Labour’s Chris Hipkins and former leader Phil Goff have been merciless
with their attacks over an initial “failure” by government ministers to call out Trump directly after he cast a slur on Nato troops’ performance in Afghanistan.
And if Luxon had joined the Gazan board it would likely have become highly charged, with the keffiyeh-wearing Green MPs unable to resist another political onslaught.
So it’s fair to say this is one potential football he’s kicked from the electoral playing field before the November 7 election.
Luxon’s public comments yesterday were brief.
The Ministry of Foreign Affairs and Trade (MFAT) had advised against joining.
But even before that advice landed on Cabinet minister Winston Peters’ desk, the Prime Minister telegraphed what NZ would take into consideration: NZ’s geographic distance from the primary area of conflict; the ability of other regional players to make more impactful contributions and NZ’s domestic fiscal and political priorities were all factors in decision-making.
The US President had put a US$1 billion ($1.64b) price tag on permanent board membership.
But crucially, NZ had already pivoted its foreign policy to focus on Indo-Pacific regional priorities.
High-level diplomacy by both Luxon and Peters has resulted in stepped-up economic and security connections across Southeast Asia; Peters has now gone to all 13 Pacific Island Forum (PIF) nations before next year’s forum meeting in NZ, and there is a strong diplomatic push to keep the United States highly engaged in the Pacific at a time when the “Western Hemisphere” has become a US priority.
As Luxon puts it, “We don’t want America retreating. We want them to have a presence in the region. It’s our job to keep making the case for why they need to stay engaged in the Pacific.
“But we also need to step up and take responsibility in our own region as well, which is why we’re making the investments in the Defence Force, partnering really, closely with Australia and engaging with the Indo-Pacific countries in a much deeper, richer, broader way.”
New Zealand’s wider global engagement is taking place through large multilateral forums like Apec, Nato, Asean and the World Trade Organisation.
Trade Minister Todd McClay and Defence Minister Judith Collins have also formed strong international relationships. More trade agreements have been signed and the departing Collins won political support for beefed-up Budget investment in a new Defence Capability Plan.
Much of this work is not “seen” within NZ. And in an environment where many New Zealanders are finding cost-of-living pressures baked in, it does not resonate.
But our senior politicians were talking about a “rupture” of the rules-based system and global order well before Canadian Prime Minister Mark Carney’s much-lauded speech at the World Economic Forum’s meeting in Davos on January 20.
Luxon, in fact, spoke to this “rupture” in what’s been dubbed elsewhere his “Don’t sweat the big stuff” speech to Auckland business the day before – (to be fair, he thought the Carney speech was “excellent”).
He was challenged by host Auckland Business Chamber CEO Simon Bridges to spell out his approach.
Luxon’s contention is NZ has to lead with principles and be pragmatic at the same time.
“We can stand up and advocate for free trade and being against US tariffs. At the same time make our points to the Americans but equally find a way to make sure that we continue to do trade and do well there,” he told me later.
“It’s an ‘and’ world not an ‘or’ world. You’ve got to find a third way through. We’re not a medium power, we are a small power. We can express our values and we have our principles, but we can also be pragmatic about it.”
Luxon and Peters could be forgiven for feeling slightly miffed at all the attention Carney has won. They’ve been ahead on this, just not shouting about it.
But that hasn’t stopped feelers going out to see if Carney’s schedule will enable him to stop by in NZ when he goes to Australia in March at the invitation of Prime Minister Anthony Albanese.
Albanese is also getting grief.
Former Liberal Prime Minister Malcolm Turnbull has urged him to offer the same clear-eyed analysis as Carney, who said it was time to “stop invoking the rules-based international order as though it still functions as advertised”.
“Call it what it is: a system of intensifying great power rivalry where the most powerful pursue their interests using economic integration as coercion,” he said.
Carney’s address to the Canberra Parliament will be keenly watched.
If Carney can’t get to NZ, it would be useful for Albanese to invite Luxon over for talks on how “middle powers” like Australia and Canada can work with small nations like NZ to create more economic pathways, particularly around the strategy to bring the European Union and the CPTPP trade arrangements closer together which Luxon has championed.
There is also a small window after the November 7 election for Luxon and his senior ministers to attend key Indo-Pacific commitments like the Apec Leaders’ meeting in Shenzhen on November 18 and 19, which is focused on “Building an Asia-Pacific community to prosper together” and the prior East Asia Summit in the Philippines.
Luxon stresses any decision “will depend upon what happens at the election”.
But if the results are clear-cut, NZ should be there. Whoever is in power.
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