'We have each other's backs': Luxon on NZ-Singapore fuel deal

About a third of NZ's fuel is refined in Singapore, and a new world-first deal formally signed today means that supply will keep flowing — even through crises.

Both Prime Minister Christopher Luxon and his Singaporean counterpart Lawrence Wong witnessed the formal signing of the agreement earlier today in the Asian city-state.

"This is a relationship which both countries can rely on one another.

"We have each other's backs," Luxon declared.

The agreement, first struck last October, comes as the conflict in the Middle East continues to disrupt oil supplies amid wider ruptures in the global rules-based order.

New Zealand and Singapore's so-called "fuel-for-food" deal prevents either government from imposing export restrictions on an agreed list of goods, including fuel, foodstuffs, construction materials and medicines.

"The past few months have shown we live in a volatile world - Kiwis are seeing that every time they fill up their car," Luxon said.

"That is why we are hustling in the world to protect New Zealand and build our resilience in uncertain times."

He said the agreement "takes a long-standing trust and turns it into really practical action - a commitment to keep essential trade flowing in a crisis".

"With a third of New Zealand's fuel refined in Singapore, this agreement turns trust into action, and right now, that's keeping fuel flowing to New Zealand when it matters most."

Both Luxon and Wong said the agreement sent a clear signal to the world.

The Singaporean leader suggested it symbolised a commitment to resist the temptation to look inward when times got tough for individual nations.

"This is the first agreement of its kind for both our countries and also globally, and it marks another breakthrough and sends a very clear signal, even under strain, trusted partners will keep faith with one another," Wong said.

"Even in times of crisis or shortages, we will keep essential goods flowing – food, fuel and other critical supplies. We will not shut each other out.

"In difficult times, every country will be tempted to look inward, but when that happens, supply chains break down, and everyone ends up worse off.

"This agreement is our answer. It's a commitment that we will do things differently, that we will keep markets open and stand by one another, especially when it matters most."

Wong described the relationship between Aotearoa and Singapore — two nations of five million people — as built on a "very deep reservoir of trust" developed over decades, pointing to previous collaborations including laying the groundwork for the CPTPP.

"Each time we have broken new ground. We don't just wait for consensus to happen — we, our two countries, are prepared to move ahead first."

Luxon also framed the deal against a world in flux and the shifting global order.

"We're moving increasingly from a multilateral world that relied on rules to a multipolar world that relies on power," Luxon said.

"The way we have power and influence is by working together."

Both leaders said other countries would be welcome to join the agreement.

Wong said it was "not meant to be exclusive", while Luxon said New Zealand and Singapore were "inventing new trade architecture" and were open to expanding it.

"We welcome other countries to join us, and if they are able to meet the same standards, then it will start to expand a network of trusted partners who can provide similar assurances to one another," the Singaporean leader said.

Wong told reporters Singapore was preparing for supply through the Strait of Hormuz to remain limited "for quite a prolonged period, at least to the end of the year, perhaps even beyond", even if a ceasefire were reached soon.

He said even if the strait were reopened, damaged port infrastructure and mines would need to be cleared, insurance concerns addressed, and confidence restored before normal shipping could resume. "All these, we think, take months at least," Wong said.

Singapore's refineries had so far been able to source alternative feedstock and maintain production, though throughput was lower than usual, Wong said.

Luxon agreed the disruption would linger, saying "even if a ... resolution happened today, you've got at least six months of bumpiness" from the lag effect on supply chains.

He said he had met with leaders of refineries and oil companies in Singapore on Monday morning and had been assured they had found alternative sources of crude.

"We don't see a risk to any of that supply based on the conversations we had this morning," Luxon said. He acknowledged the price effect was being felt by consumers, but said the priority remained maintaining supply.

ExportNZ executive director Joshua Tan cautioned the deal would not be a "silver bullet" for immediate crises, saying it did not remove the global fuel shock or freight volatility.

"But what it does help is to ensure that essential goods are less likely to be caught up behind export restrictions or crisis-driven policy decisions," Tan said.

"And that is really valuable should the current situation continue to deteriorate."

The Agreement on Trade in Essential Supplies establishes binding commitments which will be incorporated into the existing New Zealand-Singapore free trade agreement after domestic approval processes in both countries.

This week's visit also saw the launch of the inaugural Singapore-New Zealand Leadership Forum for business leaders from both countries.

In a separate exchange with 1News, McClay addressed Donald Trump's tariffs, saying a second US court ruling had found "Liberation Day" tariffs imposed were unlawful.

"This is the second court case in the US that shows that what the US administration did was not legal. It is very technical, so we're working with exporters.

"Whether they get a refund depends upon who has paid the tariff — some New Zealand exporters do that themselves — others, it's the importing company that does it there.

"I've asked the Ministry of Foreign Affairs to reach out and engage with the larger companies in New Zealand to make sure that we're working step by step.

"This is time-limited, but for any exporter who thinks they may have a refund available to them, they should get in touch with the Ministry of Foreign Affairs."