NZ Election 2026 · The Parties, the Issues and the Long Game

This term, issue by issue · Defence, foreign affairs and trade

Defence and trade: only current settings and National have funded answers; Opportunity is silent

Only current settings (the funded 2% defence path) and National's trade diversification build toward a riskier world, and neither says whether 2% is enough if allies move to 3%.

What is at stake now and by 2050

This term

The United States is pressing allies to spend more on defence and tariffs are rising, so a small trading economy is exposed on both fronts. The current plan lifts defence to 2% of GDP by 2032, and exports are now about $114b a year.

Number to know

Defence spending to reach 2% of GDP by 2032 under the Defence Capability Plan, which adds $9b of new funding over four years.

Source: Ministry of Defence, Defence Capability Plan released

By 2050

Larger neighbours are spending more: Australia aims for 3% of GDP on a NATO-style measure (about 2.3% on its usual budget measure), and the US says 2% is 'not enough', so the 2% plan may not be the ceiling. To 2050 the questions are which alliances New Zealand keeps, how much of the Pacific's security and climate costs it carries, and how widely it spreads its export markets.

Number to know

The US says 2% of GDP on defence is 'not enough'; Australia aims for 3% by 2033 on a NATO-style measure, about 2.3% on its usual budget measure.

Source: 1News, US 'freeloading' claim puts heat on NZ's independent foreign policy

Current settings

The Defence Capability Plan lifts defence spending to 2% of GDP by 2032. New Zealand stays in Five Eyes but is not in AUKUS Pillar II. It pursues new free trade agreements and focuses its aid on the Pacific.

The options on the table

OptionBacked by
Diversify export markets with new trade deals and a doubling target
  • National
  • Labour
Cut foreign aid to fund domestic priorities
  • National
  • ACT
Raise aid towards 0.7% of GDP and restore Pacific climate finance
  • Labour
  • Greens
Recognise Palestine and sanction Israel
  • Labour
  • Greens
Leave Five Eyes, stay out of AUKUS, or declare military neutrality
  • Greens
  • Te Pāti Māori
Trade protection for local industry
  • NZ First

Where each party stands

Voter priorities out of 15 (the four core tests plus relief this term) and Readiness to 2050 out of 21 (the four core tests plus the three long-run tests). Current settings come first, as the bar to beat. Open a party for every test score, the rationale and the sources.

  • Current settings

    Voter priorities
    9/15
    Readiness to 2050
    14/21
    Test scores, rationale and sources for Current settings
    TestScore /3Counts towards
    Diagnosis2Both scores
    Mechanism2Both scores
    Funding2Both scores
    Delivery2Both scores
    Relief1Voter priorities
    Future effect2Readiness to 2050
    Durability3Readiness to 2050
    Candour1Readiness to 2050

    Rationale

    The Defence Capability Plan sets a funded path to 2% of GDP by 2032, and trade and alliance settings have cross-bloc support; the government has not said what it will forgo to pay for it, or whether 2% is enough.

    Relief this term

    The Defence Capability Plan adds $9b over four years, but the capability builds toward 2% of GDP by 2032; trade deals continue case by case, with no new answer to tariffs this term.

    Sources

  • National

    Voter priorities
    10/15
    Readiness to 2050
    15/21

    Double exports by 2034 through new trade deals, and cut aid outside the Pacific to fund medicines.

    • Double export earnings by 2034; at least 23 trade missions next term
    • Start trade talks with Brazil, Switzerland, Argentina, Bangladesh, Nigeria, Uruguay and EFTA within five years
    • Cut non-Pacific aid by 10% ($431m over four years) to fund Pharmac
    • Trial passport-free digital trans-Tasman travel before the 2028 Cricket World Cup; ratify the High Seas Treaty
    Test scores, rationale and sources for National
    TestScore /3Counts towards
    Diagnosis2Both scores
    Mechanism2Both scores
    Funding2Both scores
    Delivery3Both scores
    Relief1Voter priorities
    Future effect2Readiness to 2050
    Durability2Readiness to 2050
    Candour2Readiness to 2050

    Rationale

    Names market concentration as the trade risk and sets a measurable target (double exports by 2034, 13 named partners), with the aid cut costed in its fiscal plan and a delivery record in government; it names who pays (non-Pacific aid, $431m), but Labour and the Greens would reverse the aid cut, and it adds no defence position beyond current settings.

    Relief this term

    Export doubling targets 2034 and new trade talks start within five years, so gains mostly land after 2029; the trade missions and a trans-Tasman travel trial before the 2028 Cricket World Cup are narrow. The aid cut's relief falls in health, not here.

    Sources

  • Labour

    Voter priorities
    5/15
    Readiness to 2050
    8/21

    An 'independent voice' foreign policy: more aid, new markets, recognise Palestine; no stated defence position.

    • Raise aid progressively to 0.7% of GDP 'as fiscal limitations allow' (no date)
    • Trade deals with Africa and South America; prioritise ASEAN, the EU and Canada
    • Recognise Palestine, sanction Israel, divest ACC and NZ Super Fund from occupied territories
    • Pacific climate and displacement agreement; visa-waiver travel for Pacific Islands Forum citizens
    Test scores, rationale and sources for Labour
    TestScore /3Counts towards
    Diagnosis2Both scores
    Mechanism1Both scores
    Funding0Both scores
    Delivery1Both scores
    Relief1Voter priorities
    Future effect1Readiness to 2050
    Durability2Readiness to 2050
    Candour1Readiness to 2050

    Rationale

    Names a less stable world and strained alliances, but answers with intent: aid to 0.7% of GDP has no date or cost and is not in its fiscal plan. It has no defence position, and its stance relies on a speech (tier 3) and one release.

    Relief this term

    Aid to 0.7% of GDP has no date, new trade deals with Africa and South America would land after the term, and Pacific visa-waiver travel helps a narrow group; no defence position.

    Sources

  • Greens

    Voter priorities
    5/15
    Readiness to 2050
    7/21

    Step away from US-led security ties and put climate, human rights and the Pacific at the centre.

    • Withdraw from Five Eyes; stay out of AUKUS; refocus the Defence Force on climate, humanitarian work and monitoring
    • No autonomous weapons, and support an international ban
    • Restore and raise Pacific climate finance
    • Recognise Palestine and pass the party's bill to sanction Israel; enforceable Te Tiriti, labour and climate clauses in trade deals
    Test scores, rationale and sources for Greens
    TestScore /3Counts towards
    Diagnosis2Both scores
    Mechanism1Both scores
    Funding0Both scores
    Delivery1Both scores
    Relief1Voter priorities
    Future effect1Readiness to 2050
    Durability1Readiness to 2050
    Candour1Readiness to 2050

    Rationale

    Names climate as the Pacific's main security threat, but the case that leaving Five Eyes improves security is asserted; Pacific climate finance is uncosted and outside its tax package, and Labour does not back leaving Five Eyes.

    Relief this term

    Leaving Five Eyes and refocusing the Defence Force are structural and untimed; restored Pacific climate finance helps a narrow group, and nothing addresses tariff exposure this term.

    Sources

  • ACT

    Voter priorities
    7/15
    Readiness to 2050
    11/21

    Cut foreign aid back to 2017 levels to help balance the books.

    • Cut aid to 2017 levels, saving about $283m a year (about 28%), excluding Ukraine
    • Protect defence from spending cuts (fiscal plan)
    Test scores, rationale and sources for ACT
    TestScore /3Counts towards
    Diagnosis1Both scores
    Mechanism1Both scores
    Funding2Both scores
    Delivery2Both scores
    Relief1Voter priorities
    Future effect1Readiness to 2050
    Durability2Readiness to 2050
    Candour2Readiness to 2050

    Rationale

    The aid cut is framed as a fiscal saving, not a foreign-policy answer, but it is costed in its fiscal plan ($283m a year) and names who pays; National backs a smaller cut. ACT says little on trade or alliances.

    Relief this term

    Protecting defence from cuts keeps the $9b Defence Capability Plan, the same in-term effect as the status quo; the aid cut is a fiscal saving and nothing lands on trade exposure.

    Sources

  • NZ First

    Voter priorities
    4/15
    Readiness to 2050
    6/21

    Protect domestic industry and national sovereignty in trade and international agreements.

    • Reverse the decision not to seek trade protection for NZ-made aluminium
    • National interest test for UN agreements (as summarised in this report; party source to confirm)
    Test scores, rationale and sources for NZ First
    TestScore /3Counts towards
    Diagnosis1Both scores
    Mechanism1Both scores
    Funding0Both scores
    Delivery1Both scores
    Relief1Voter priorities
    Future effect1Readiness to 2050
    Durability1Readiness to 2050
    Candour1Readiness to 2050

    Rationale

    Aluminium protection treats job losses as the problem without weighing retaliation or consumer costs; it is uncosted and names no losers.

    Relief this term

    Reversing the decision on trade protection for NZ-made aluminium would apply immediately but helps a small group; the national interest test for UN agreements is a process change.

    Sources

  • Te Pāti Māori

    Voter priorities
    4/15
    Readiness to 2050
    6/21

    Declare military neutrality and refocus foreign policy on the Pacific and Indigenous solidarity.

    • Declare New Zealand 'militarily neutral' and review all military alliances
    • Focus the Defence Force on protection, disaster response and the Pacific
    • Fund a national action plan to implement UNDRIP
    • Hold international war criminals to account
    Test scores, rationale and sources for Te Pāti Māori
    TestScore /3Counts towards
    Diagnosis1Both scores
    Mechanism1Both scores
    Funding0Both scores
    Delivery1Both scores
    Relief1Voter priorities
    Future effect1Readiness to 2050
    Durability1Readiness to 2050
    Candour1Readiness to 2050

    Rationale

    Asserts that alliances with powerful states are the risk and proposes neutrality with no legal path, cost or assessment of the security trade-off; no likely partner backs it.

    Relief this term

    Declaring military neutrality and reviewing all alliances is a review with no timeline or legal path; nothing on trade.

    Sources

  • Opportunity

    Voter priorities
    0/15
    Readiness to 2050
    0/21

    Silent: nothing on record by 19 October 2026.

    No stated position on defence, foreign affairs or trade.

    Test scores, rationale and sources for Opportunity
    TestScore /3Counts towards
    Diagnosis0Both scores
    Mechanism0Both scores
    Funding0Both scores
    Delivery0Both scores
    Relief0Voter priorities
    Future effect0Readiness to 2050
    Durability0Readiness to 2050
    Candour0Readiness to 2050

    Rationale

    Silent: no policy on defence, foreign affairs, aid or trade found in party documents or on Policy.nz to 19 October.

    Relief this term

    Silent: no policy on defence, foreign affairs or trade to 19 October 2026.

    Sources

Place yourself

Agreeing sometimes means change and sometimes keeping current settings. Take the quiz to compare across every issue.

StatementNationalLabourGreensACTNZ FirstTe Pāti MāoriOpportunity
Stay in Five Eyes. New Zealand should stay in the Five Eyes intelligence alliance.No stated positionNo stated positionDisagreesNo stated positionNo stated positionMixedNo stated position
Cut foreign aid. New Zealand's foreign aid budget should be cut.AgreesDisagreesDisagreesAgreesNo stated positionNo stated positionNo stated position
Recognise Palestine. New Zealand should formally recognise the state of Palestine.No stated positionAgreesAgreesNo stated positionNo stated positionNo stated positionNo stated position
New trade deals. New Zealand should keep pursuing free trade deals with new markets such as Brazil and African countries.AgreesAgreesMixedNo stated positionNo stated positionNo stated positionNo stated position

✓ Agrees, ○ Mixed, ✗ Disagrees, · No stated position. Silence is a finding.

Why each statement matters

  • Stay in Five Eyes New Zealand should stay in the Five Eyes intelligence alliance.
    What it means
    Five Eyes is an intelligence-sharing alliance between New Zealand, Australia, the US, the UK and Canada. Agreeing keeps membership; disagreeing means leaving it.
    The case for
    It gives a small country intelligence and security support it could never build alone.
    The case against
    It ties New Zealand to larger powers' priorities and can limit an independent foreign policy.
    The trade-off
    Close security ties versus more independence in an uncertain world.
  • Cut foreign aid New Zealand's foreign aid budget should be cut.
    What it means
    New Zealand's aid goes mostly to the Pacific. Proposals range from cutting non-Pacific aid 10% to returning to 2017 levels (about 28% less); others would raise aid towards 0.7% of GDP.
    The case for
    The savings (about $283m a year in one proposal) could fund needs at home, such as medicines.
    The case against
    Aid is New Zealand's main tool of influence in the Pacific; cuts could weaken ties with neighbours.
    The trade-off
    Money for domestic needs versus influence in the region.
  • Recognise Palestine New Zealand should formally recognise the state of Palestine.
    What it means
    Recognising Palestine means formally accepting it as a state. New Zealand has not done so; most UN members have.
    The case for
    It brings New Zealand into line with most UN members and backs Palestinians' right to their own state.
    The case against
    Recognition is better kept as part of a future peace deal, where it can help secure agreement.
    The trade-off
    Taking a clear stand now versus holding recognition for a peace settlement.
  • New trade deals New Zealand should keep pursuing free trade deals with new markets such as Brazil and African countries.
    What it means
    New Zealand already pursues new free trade deals. This would keep seeking deals with new markets such as Brazil and African countries, beyond main partners China, Australia and the US.
    The case for
    Spreading exports beyond China, Australia and the US reduces exposure to one market's tariffs.
    The case against
    New deals expose local firms to more competition and may not protect workers, the environment or Te Tiriti.
    The trade-off
    Wider markets for exporters versus pressure on some local industries.

The 2050 test

Only current settings (the funded 2% defence path) and National's trade diversification build toward a riskier world, and neither says whether 2% is enough if allies move to 3%. Labour's aid ambition and the Greens' and Te Pāti Māori's moves away from current alliances are unfunded or have no delivery path, while ACT's and National's aid cuts save money now at some cost to Pacific influence. No party states a defence spending figure for after 2032, prices an AUKUS Pillar II decision, or plans for a long US tariff shock.

PartyEffect to 2050The policy that drives itWould it last?
NationalBuildsDouble exports by 2034 through 13 new trade deals. More markets reduce exposure to any one partner's tariffs or sanctions. SourceYes
LabourNeutralAid to 0.7% of GDP; new markets; Pacific climate agreement. Builds Pacific ties in intent, but with no cost, date or defence position the net effect is unclear. SourcePartly
GreensNeutralLeave Five Eyes; Pacific climate finance. More Pacific climate finance helps resilience, but leaving Five Eyes cuts intelligence access, so the net effect is unclear. SourceNo
ACTNeutralAid back to 2017 levels; protect defence from cuts. Saves $283m a year while holding defence, at some cost to soft power outside the Pacific. SourcePartly
NZ FirstNeutralTrade protection for aluminium. Protects one smelter-linked industry but invites retaliation against a trade-dependent economy. SourceNo
Te Pāti MāoriNeutralMilitary neutrality and alliance review. Lowers involvement in great-power conflict but removes partner support, with no plan for self-reliance or its cost. SourceNo
OpportunityNeutralNone stated. Silent on the grouping, so it neither builds nor borrows here. SourceNo

All sources for this grouping are listed on the sources page.