Prime Ministers Rudd and Key held their annual talks in Sydney on 1-2 March 2009.
Mr Rudd expressed deep appreciation for the strong support provided by New Zealand in the face of Australia's worst bushfires, including assistance from 100 New Zealand fire-fighters. Prime Minister Key presented a cheque from the New Zealand Red Cross for NZ$2m for the Australian Red Cross Victorian bushfires appeal.
The major focus of discussions between the two Prime Ministers was the global economic crisis, the worst since the Second World War. The most recent IMF forecast is for global growth to slow to ½ per cent in 2009.
Both agreed on the imperative for continued strong and coordinated international action to restore confidence and global economic growth and to protect jobs. They agreed to cooperate closely in the lead up to the meeting of G20 Leaders in London on 1 and 2 April. They underlined the importance of collective action to normalise global private credit flows as soon as possible, supported by strong stimulus measures and reforms to the global financial system.
In the face of the global economic downturn they pledged renewed ambition to achieve new levels of trans-Tasman economic integration. These efforts will be built on:
* the strong trade results delivered by 26 years of Closer Economic Relations, which have set a global benchmark for free trade
* the vital role of the Single Economic Market initiative in aligning and strengthening the two economies, stimulating business activity, competitiveness and job creation
* high quality, responsive domestic financial regulatory systems and institutions
* a determination to foster open markets, flows of capital and credit and to resist protectionism in order to uphold confidence in the international economy; and
* the dynamism and strength of Australian and New Zealand companies, and the ideas and energy of bodies such as the Australia New Zealand Leadership Forum.
The two Prime Ministers committed to:
* accelerate regulatory harmonisation and alignment in order to stimulate business and create jobs
* finalise in 2009 an Investment Protocol to promote investment between the two economies through a reduction in regulatory barriers and compliance costs for business
* complete a new comprehensive Tax Treaty between Australia and New Zealand to reduce tax barriers to trade and investment, further protect the tax base in each jurisdiction and simplify and improve certainty for those with Trans-Tasman business interests
* conclude a scheme for the mobility of trans-Tasman retirement savings which will enable pension funds to be moved between Australia and New Zealand
* undertake a review of CER Rules of Origin, and an updating of the Australia-New Zealand Joint Food Standards Treaty
* reduce remaining barriers at the borders to ensure that people and goods can move more easily between the two countries, including through effective air links
* further strengthen cooperation to promote open markets and trade opportunities for exporters, including through the ASEAN Australia New Zealand Free Trade Agreement signed on the weekend and a successful conclusion of the WTO Doha Development Round
* expand joint trade promotion activities to increase global market shares for the Trans-Tasman economy
* undertake further work on therapeutic product standards between the two countries.
The Prime Ministers agreed on the need for substantial progress in all these areas in 2009. The CER Ministerial meeting in July will provide a report on progress to the Prime Ministers at a further meeting between them in Australia in August.
Prime Minister Key indicated that New Zealand would collaborate closely with Australia in its bid to host the Square Kilometre Array Radio Telescope Project (SKA). This project will be the world's premier radio telescope and will be constructed over the period 2012-2020.
Extending the configuration of the SKA to include New Zealand will significantly add to the reach of the project, increasing scientific innovation and economic benefits for both countries. Over its fifty year life the SKA will generate significant spinoffs in supercomputing, fibre optics, renewable energy, construction and manufacturing.
Both Prime Ministers emphasised the importance of a successful Copenhagen Climate Change conference in December to decide on a post-Kyoto international climate change framework beyond 2012. Both countries will work closely together in the lead up to the Copenhagen conference. The Prime Ministers agreed on the desirability of harmonising to the greatest extent possible the emissions reduction regimes in both countries. Prime Minister Key expressed support for Australia's initiative to establish a Global Carbon Capture and Storage Institute.
The two Prime Ministers agreed on the need for continued close cooperation on developments in the Pacific, especially helping Pacific island countries achieve the Millennium Development Goals. It will be essential to sustain support for developing Pacific island nations in the face of the effects of the global economic crisis on the region. They announced a joint Australia - New Zealand study on the regional implications of the global economic downturn to be completed before the 2009 Pacific Islands Forum meeting to be hosted by Australia in August. The crisis will be a major focus of the Forum discussions.
The Prime Ministers also discussed a range of common international interests, including Afghanistan and regional and global security challenges.