Visits
There has been an major increase in contact between New Zealand and Latin American countries over the last year and a half. Recent Ministerial visits to Latin America including by the New Zealand Minister of Foreign Affairs and Trade Rt Hon Don McKinnon in May 1998, the Minister of Research Science and Technology, the Hon Maurice Williamson, in October 1998, the Minister of Tourism and Sport, the Hon Murray McCully in November 1998. Following these visits, several New Zealand Ministers have expressed an interest in travelling to South America in the near future. 

MEXICO
Since the early 1970s Mexico consistently ranked amongst our top five Latin American trading partners. It is still among our most important milk powder markets. Although New Zealand's relationship with Mexico has traditionally been strongly focused on trade, we are presently attempting to 'broaden' the political relationship with Mexico.

New Zealand and Mexico share common interests in many multilateral fora. It has been an active member of the PBEC and PECC. Mexico joined APEC in 1993 and was admitted as a full member of the OECD in April 1994. Mexico has been a member of the GATT since 1986 and was a founding member of the WTO.

In August 1983 New Zealand and Mexico signed an umbrella agreement on Scientific and Technological Cooperation (STC). A cooperation agreement between Tradenz and Bancomext (the state-owned Mexican foreign trade bank) was signed in February 1992. In April 1994 New Zealand signed a Trade and Investment Agreement (TIA). The TIA provides a framework for annual discussions on trade and investment issues, at Ministerial or senior official level.

ARGENTINA
New Zealand enjoys an amicable and cooperative relationship with Argentina. Diplomatic relations between our countries are longstanding. There has been a steady level of bilateral contact between the two countries in recent years. President Menem visited New Zealand in April 1998.

New Zealand and Argentina cooperate in several multilateral fora. Argentina is a fellow member of the Cairns Group and a party to the Antarctic Treaty. New Zealand and Argentina signed a Statement on Antarctic Cooperation in mid 1996. Both countries collaborate on the environment through the Valdivia Group and on high seas fisheries matters. Argentina is also a member of the Conference on Disarmament.

Science and technology cooperation is currently being explored by science agencies after the signature of a Science and Technology Cooperation Arrangement in October 1998. Cooperation arrangements on conservation (national parks) and on sports were also signed in 1998. A veterinary agreement is also in the process of being developed to facilitate market access for agricultural products, and an Investment Promotion and Protection Agreement is under negotiation.

Recently Argentina has begun to tune its foreign policy toward the Pacific. It has expressed interest in developing closer economic and trade links with Pacific basin countries and in joining PECC and APEC. Argentina has also expressed interest in becoming a member of the OECD and is participating in a number of specialised committees including working groups on cereals, meat, fruits and dairy products.

Trade
New Zealand's trade with Argentina has been growing overall in nominal terms, subject to peaks and dips accounted for by fluctuations in dairy trade depending on Argentinian domestic shortages or excesses. Argentina's share of New Zealand's export markets remains fairly constant. Both countries are large producers of similar types of agricultural products including wool, meat and dairy products.

Investment
A number of New Zealand companies have significant investments in Argentina (total New Zealand investment in Argentina is estimated to be within the vicinity of US$ 140 million). An Investment Promotion and Protection Agreement soon to be concluded will offer increased protection to New Zealand investments in Argentina.

Transport and Air Services
New Zealand and Argentina signed an Air Services Agreement in 1985. The Aerolineas Argentinas Buenos Aires/Auckland air link was New Zealand's first direct link with South America. This service was recently increased from two to three times a week. Quantas also began a similar air link between Buenos Aires and Auckland twice a week in November 1998. A shipping link with Argentina is run by Mitsui OSK lines.

Visas are no longer required by New Zealanders or Argentinians visiting each other's countries for up to three months.

Education
Argentina is an important potential market for New Zealand education services in the areas of postgraduate, English language, vocational and professional studies, and for secondary school exchanges. Two missions including representatives of some sixteen secondary and tertiary education organisations visited Argentina in March 1996 and April 1997 to explore possibilities for closer education linkages.

CHILI
Chile is one of New Zealand's closest friends in Latin America. Trade relations between New Zealand and Chile are governed by common membership of the WTO, and both countries cooperate on agricultural issues through the Cairns Group. We share similar interests in obtaining market access for primary produce in third markets

New Zealand and Chile maintain contact in a number of multilateral fora on issues such as the Law of the Sea, whaling, nuclear disarmament, Antarctica, environmental and related scientific issues, and agricultural trade. A dialogue is also maintained through the Pacific Economic Cooperation Conference (PECC) and the Pacific Basin Economic Council (PBEC), to which New Zealand and Chile both belong, as well as through APEC. There is also ongoing bilateral cooperation between our Navies and Police Forces, with periodic staff exchanges.

Trade & Investment
Bilateral trade has been growing steadily. Investment has added to this to become a key factor in the economic relationship. Chile has become a central focus in Latin America for New Zealand's business interests. New Zealand investment in Chile is estimated at more than US$ 4 billion, mostly raised offshore (the second largest investment destination after Australia). New Zealand investments in Chile are found in forestry, food wholesaling and distribution, fisheries, and construction enterprises. The sectors involved are important strategically for New Zealand as they are areas in which Chile offers actual or potential competition in third country markets.

Bilateral Agreements
A Joint Statement on Antarctic Cooperation was signed at the time of President Aylwin's visit in 1993. A Trade and Investment Framework Arrangement was signed in October 1995, establishing a joint Commission on Trade and Investment to meet annually to discuss trade and economic issues of mutual interest. An Arrangement on naval cooperation was signed in July 1996 to facilitate exchanges of information between the Chilean Navy and the Royal New Zealand Navy. A Diplomatic Spouses and Dependents Employment Agreement was signed in October 1996. A bilateral agreement allowing the export of beef to Chile was concluded in
May 1998. An Open Skies Agreement was signed in October 1998. A Visa Waiver scheme for visitors from Chile allowing them to stay for up to three months took effect from 1 January 1999. Chile has now reciprocated with Visa Waiver for New Zealand visitors.

BRAZIL
New Zealand and Brazil have a good relationship, but it is not as close as those we enjoy with others in the region. There are however many areas of common interest. Both countries are members of the Cairns Group of agricultural nations. A Memorandum of Understanding on Scientific and Technological Cooperation was signed in 1986 (but lapsed in 1989) and there is regular contact in multilateral fora on environment, Law of the Sea and Antarctic issues.

Trade
New Zealand's two way trade with Brazil is now growing. Market access negotiations are currently underway for agricultural products across the board. Following a visit to New Zealand by quarantine officials last year, Brazil has accepted New Zealand sanitary standards on agricultural exports. It is expected that an agreement formalising access for agricultural products to Brazil will be concluded soon.

New Zealand is currently in the process of upgrading its relationship with Brazil. New Zealand has recently appointed a Consul General resident in Sao Paulo, Brazil.

Investment
Fletcher Challenge has a substantial investment in Brazil's leading newsprint producer, PISA. The Dairy Board established New Zealand Milk Products (Brazil) in 1995 and opened an office in São Paulo in February 1996, formally inaugurated by Mr Burdon in June 1996.

Air Services
Brazil negotiated an air services agreement with New Zealand in December 1995, signed by Ministers in Brasilia in June 1996. Although the legal framework to start air services between Brazil and New Zealand is now in place, air lines have yet to take up the commercial opportunity. In 1999 Air New Zealand and Ansett will join the Star Alliance of which Brazil's Varig airline is a member.

Education
Brazil is recognised as a potentially huge market for New Zealand education services. Two missions including representatives of some
sixteen secondary and tertiary education organisations visited Brazil in March 1996 and April 1997 to explore possibilities for closer education linkages. Otago University made an independent visit to Brazil in June 1998, and Massey University did the same in October 1998.

PERU
New Zealand and Peru share interests in a number of foreign policy issues with bilateral linkages increasing. President Fujimori made the first State Visit by a Peruvian President to New Zealand in June 1998. Peru has been a member of the Pacific Economic Cooperation Conference (PECC) since 1990. Peru is also a member of the Pacific Basin Economic Council (PBEC). Peru's membership of APEC is further expanding the bilateral dialogue. In 1989 Peru acquired Antarctic Treaty Consultative Party status
with New Zealand support.

In May 1998 a Memorandum of Understanding establishing formal foreign policy talks was signed between New Zealand and Peru as was an Agreement for Technical Cooperation on Fisheries between Peru's Maritime Institute (IMARPE) and the Institute of Geological and Nuclear Sciences (IGNS). A bilateral quarantine arrangement was also signed recently to facilitate the importation of Peruvian mangoes to New Zealand. Closer air services cooperation is also being explored, with negotiations scheduled for the second half of 1999.

Trade
The principal element in the Peru-New Zealand relationship has been and is likely to remain trade. Peru is traditionally a significant market for New Zealand dairy products. However, Peru's continuing reforms and recent market growth are providing opportunities in more diverse export sectors including agricultural technology, telecommunications, food processing and building products markets.

Education
Educational linkages with Peru are also expanding. Several New Zealand universities have singed memorandums of understanding with Peruvian Educational institutions including linkages for staff exchanges, academic materials exchanges, and collaborative research.

URUGUAY
The natural affinity between New Zealand and Uruguay is based on southern hemisphere co location and the role of agriculture in external trade. Accordingly the two countries cooperate in multilateral trade institutions including the WTO and the Cairns Group. Two bilateral accords have helped underpin cooperation in agricultural development. And for some decades New Zealanders, in particular MAF and the former DSIR (now CRIs), have been associated with World Bank consultancies aimed at enhancing agricultural development there. New Zealand and Uruguay have worked together in the former International Wool Secretariat. Both countries cooperate closely on environment issues through the Valdivia Group and maintain active contact on Antarctic Treaty matters.

PARAGUAY
Relations with Paraguay are modest, reflecting the low level of trade. As Paraguay is the current Chair of Mercosur, New Zealand's main contact is through joint involvement in the CER/Mercosur dialogue.

COLOMBIA
Relations with Colombia are good, but the level of contact is modest, reflecting the relatively low level of trade. New Zealand exports to Colombia have grown very fast in recent years, although from a small base. Imports from Colombia comprise mainly coffee and fabrics.

GUATEMALA
New Zealand has had minimal political contact with Guatemala. There is slightly more contact in the multilateral context, including New Zealand's previous involvement in the process of Guatemala accession to the GATT in 1990. Our trade with Guatemala has been dominated by exports of dairy products, mainly milk powder.

VENUEZUELA
The relationship between New Zealand and Venezuela is based almost entirely on our dairy trade, which consists largely of whole milk powder exports.

CARIBBEAN
New Zealand and the countries of the Caribbean enjoy long-standing and friendly relations. New Zealand and countries of the Caribbean share common Commonwealth, UN and environmental interests, a modest historical trading relationship, and traditional sporting contacts.

New Zealand has traditionally taken an active role in promoting the interests and addressing the concerns of small states. Many of the issues involved are common to both the Caribbean and the South Pacific, New Zealand's home region. In particular, New Zealand has engaged itself actively in environmental and development issues. New Zealand's chairmanship of the Commission on Sustainable Development (CSD) provides additional linkages with the Caribbean on these issues.

A further important linkage between New Zealand and the Caribbean is trade. The Caribbean is one of New Zealand's oldest and most diversified market for dairy products. Today, New Zealand is broadening its exports to the region. The New Zealand Dairy Board has invested in a dairy processing factory in Jamaica and New Zealand Post has recently won a contract to manage the Trinidad and Tobago postal service for a period of five years.