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Elevate Magazine
December 11, 2024

NZ Joins US-Led Indo-Pacific Defence Group

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Photo Source: defense.gov/

New Zealand has joined the Partnership for Indo-Pacific Industrial Resilience (PIPIR), a new 13-nation initiative led by the United States. Established in June 2024.

The partnership aims to address vulnerabilities in defence supply chains while bolstering the region’s “warfighting” capabilities.
The group, which includes key allies such as Australia, Japan, and South Korea, held its inaugural meeting in October in Honolulu.

Officials emphasised that New Zealand’s focus within the group would be on supply chain resilience, a priority highlighted by global crises like the Ukraine war and the COVID-19 pandemic.

Strengthening Defence Capabilities Across the Indo-Pacific


PIPIR operates through four main workstreams: supply chain resilience, military sustainment, weapons production, and policy optimisation. The US describes the initiative as a way to “better integrate our defence industries,” modelling it on efforts designed to support Ukraine in its war with Russia.

At the first meeting, US Under Secretary of Defence William LaPlante said, “PIPIR will help strengthen our collective ability to produce and sustain warfighting capability in the Indo-Pacific.”

Reports from the Atlantic Council underscore the strategic urgency of such collaborations. “In a war against China, the US could quickly exhaust its weapons,” the think tank warned.

It noted that US munitions stockpiles have already been strained, citing a recent case where an entire year’s production of a counter-ballistic missile was used in one day during support for Israel.

New Zealand’s Role and Strategic Benefits


New Zealand has prioritised participation in the supply chain resilience workstream. Defence Minister Judith Collins referred to PIPIR as a “discussion forum” aimed at mitigating risks to defence supply chains.

There are documents obtained through Official Information Act requests, officials briefed Collins and Foreign Minister Winston Peters on the benefits of joining, stating, “Enhancing defence industrial and supply chain resilience is a priority of the United States.”

They further quoted US Defence Secretary Lloyd Austin, who, in a speech earlier this year, said, “We’re breaking down national barriers and better integrating our defence industries. This would fortify the shared capacity of the military industrial bases.”

Officials have positioned New Zealand’s involvement as flexible, with participation in workstreams to be determined on a case-by-case basis. “New Zealand proposes to leave open the option of engaging in all of the workstreams,” they advised, though they emphasised that the supply chain resilience workstream would be the country’s primary focus.


PIPIR also offers potential economic benefits, providing access to new markets for defence contractors. This comes at a time when the New Zealand Defence Force (NZDF) faces budgetary constraints, with only 2% of its spending going to local contractors. Therefore expanding industrial capacity and reducing barriers to trade could alleviate some of these pressures.

Domestic Debate and Secrecy


New Zealand’s decision to join PIPIR has not been without controversy despite its potential benefits. Neither the signing of the Statement of Principles, on which the partnership is based, nor the country’s participation in the group, was publicly announced. Information about New Zealand’s involvement only came to light through documents released under the Official Information Act.

Collins defended the decision, stating, “New Zealand recognises the importance of international collaboration to reduce or avoid supply chain risks, enable rapid responses to any disruptions, and to limit their impact.”


However, some voices within New Zealand’s political landscape have expressed caution. Green Party spokesperson Tuiono Teanau warned,

“There’s no such thing as a free lunch in foreign relations, so our country should tread carefully before signing up to military tech pacts, particularly ones that commit us to militarisation or unnecessary wars and undermine our independence.”

Tensions with AUKUS and Regional Partnerships


New Zealand’s quiet entry into PIPIR comes amid ongoing debates over its potential involvement in AUKUS Pillar Two, an agreement focused on sharing advanced military technologies. While Labour has opposed joining AUKUS Pillar Two, Australian Defence Minister Richard Marles emphasised the importance of interoperability and collaboration on innovative defence technologies.

New Zealand has also deepened its defence ties with the US and Australia through other initiatives beyond PIPIR. These include a US-NZ tech dialogue, collaboration in the space sector, and New Zealand’s inclusion in the US National Technology and Industrial Base.

Conclusion


New Zealand’s participation in PIPIR marks a strategic alignment with US-led efforts to address global defence challenges and bolster resilience in the Indo-Pacific. While the partnership offers potential benefits in supply chain security and economic opportunities, the secrecy surrounding its announcement and the geopolitical implications have sparked domestic debates.