<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trade and defence have dominated Prime Minister </span><a href="https://www.9news.com.au/anthony-albanese" rel="" target="" title="Anthony Albanese"><span>Anthony Albanese</span></a><span>'s official visit to </span><a href="https://www.9news.com.au/new-zealand" rel="" target="" title="New Zealand"><span>New Zealand</span></a><span> today.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As tensions grow in the Indo-Pacific region, defence took centre stage as NZ Prime Minister, Christopher Luxon, hosted Albanese in the </span><a href="https://www.9news.com.au/national/new-zealand-travel-fee-australian-tourists-to-nz-will-have-to-pay-a-new-cost-when-entering-the-country/fdadd35b-7f66-42ce-9e35-482b05c15475" rel="" target="" title="tourist city of Queenstown"><span>tourist city of Queenstown</span></a><span> for their second annual bilateral leaders' meeting.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Both PMs discussed closer cooperation between their expanding militaries against the backdrop of a recent extraordinary Chinese live-fire exercise near their shores.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/israel-hamas-war-gaza-city/f5c3d24f-7bef-4c92-886d-400b0a39f251"><strong><span>Australia joins multiple nations to strongly reject Israel's plan to take over Gaza City</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Luxon said his country wanted closer military cooperation with Australia, a country he describes as New Zealand's "only ally".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"A big focus for us has been interoperability with Australia. We want to be a force multiplier," Luxon told reporters.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We want to be one, sort of, essential Anzac force essentially operating within our region," he added, referring to the Australian New Zealand Army Corps in which the two nations' soldiers first fought together during World War I.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/anthony-albanese-new-zealand-visit-stronger-military-ties-defence-spending/bac22e81-592c-49be-a079-71e2e1a79792" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Albanese and Luxon recognised their countries face the most unpredictable and dangerous strategic environment in decades and their alliance plays a critical role in protecting and advancing their shared interest in the region, they said in a joint statement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The prime ministers also commended progress over the past year to intensify defence cooperation and integration.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/melbourne-neo-nazi-protest-bourke-street/20b1c31e-9974-4506-8a5c-db4d3c7c33cf"><strong><span>Neo-Nazis march through Melbourne in early hours of the morning</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The summit follows a Chinese naval flotilla firing weapons in February in the Tasman Sea, which separates the two countries.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The exercise forced commercial airlines to divert flights.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Chinese navy rarely ventures so far south and the mission that partially circumnavigated Australia was seen as a demonstration of China's growing military reach.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Albanese said last month that he complained to China's President Xi Jinping during a state visit to Beijing about the lack of notice the Chinese had given of the live-fire exercise.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Xi replied that Australia also engaged in exercises, referring to freedom of navigation missions conducted by Australian military in the disputed South China Sea.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While the statement did not mention China, the prime ministers confirmed their most important trading partner was discussed.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Of course, the geostrategic competition, in particular between the great powers, is something that countries like Australia and New Zealand do discuss together and we cooperate politically," Albanese said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Luxon said "both countries have followed pretty much the same playbook" in their bilateral dealings with China.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"China's an important world power. It's important that we can engage," Luxon said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We genuinely are able to have a conversation — I think a very mature one now — to say, look, we do have very different histories, we do have different systems, we do have different values, that does mean we do have differences. Good partners should be not afraid to talk about those things," Luxon added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Luxon announced in April a plan to make the New Zealand Defence Force more combat capable that would double defence spending to more than 2 per cent of GDP.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He described the rise from around 1 per cent over the past two decades as "a big step up for us."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In a demonstration of Tokyo seeking deeper strategic ties in the South Pacific, Japanese warships docked in New Zealand on Friday for the first time in almost 90 years.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia announced this week Japan's Mitsubishi Heavy Industries will build a fleet of 11 Australian naval frigates with a contract expected to be worth $10 billion.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia's most expensive defence expansion is the AUKUS submarine deal with the United States and Britain that is expected to cost up to $375 billion. Under the trilateral partnership, Australia will acquire a fleet of eight submarines powered by US nuclear technology.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>US President Donald Trump has urged western countries to increase their defence budgets and rely less on the US for their security.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Today the Pentagon said Australia would be unable to fulfill its AUKUS submarine commitments without an increase of at least 3.5 per cent GDP.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If people argue that we should increase our defence spending, we are," Albanese told reporters today.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Albanese also delivered on his promise for closer economic ties between the two nations almost immediately.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The PM met with senior business leaders from Australian and New Zealand companies, meeting CEOs from the likes of Qantas, BlueScope and AMPOL petrol this afternoon.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Before heading home tomorrow, Albanese will lay a wreath at a war memorial and enjoy a helicopter tour with Luxon and Maori elders.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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