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In 2004 it began discussing free trade with China, one of the first countries to do so.

Self-government was granted to the settler population in 1852, under the UK Parliament's New Zealand Constitution Act 1852, with a General Assembly consisting of an appointed Legislative Council and an elected House of Representatives. In 1867, Maori won the right to a certain number of reserved seats in parliament. During this period, the livestock industry began to expand, and the foundations of New Zealand's modern economy took shape. By the end of the 19th century, improved transportation facilities made possible a great overseas trade in wool, meat, and dairy products.

Sporting and outdoor activities still play a significant part in the recreation of New Zealanders. Participation in a sport, rather than mere spectating, is considered a worthy pursuit. Team sports and sporting abilities are generally held in high regard, with top-performing players often becoming celebrities. However, New Zealanders can often be scathing when national sports teams and athletes lose.

Because many New Zealanders have to go elsewhere in the world to achieve fame and fortune, New Zealand society is keen to attribute famous people as being New Zealanders, however short their residency in New Zealand might have been. While being born in New Zealand is an absolute qualification for being identified as a New Zealander, attendance at a New Zealand school, or being a permanent resident in New Zealand when fame is initially achieved also qualifies, irrespective of national origin. This sometimes leads to famous people being identified as coming from both New Zealand and another country - often Australia, such as the pop group Crowded House, the actor Russell Crowe, and the Pavlova dessert, all of which are claimed by Aussies and Kiwis as 'theirs'. However, New Zealanders are generally proud to have disowned controversial figures such as Sir Joh Bjelke-Petersen.

New Zealand was featured as the setting for "Middle Earth" in the renowned early 21st century trilogy of films based on Tolkien's Lord of the Rings books. It has brought an additional interest in tourism to the nation.

After the Second World War, significant immigration from the Pacific Islands began, so much so that there are now more nationals from some Pacific island nations living in New Zealand than on their home islands. The wide variety of Pacific Island cultures has combined in New Zealand, mostly in South Auckland, to form a distinctive subculture that is separate from the Maori culture.

New Zealand has a strong party system in place. The first political party was founded in 1891, and its main rival was founded in 1909 — from that point until a change of electoral system in 1996, New Zealand had a two-party system in place. Today, New Zealand has a genuinely multi-party system, with eight parties currently represented in Parliament. Neither of the two largest parties has been able to govern without support from other groups since 1996, meaning that coalition government is common.

New Zealand Standard Time is 12 hours in advance of Coordinated Universal Time (UTC). Between the first Sunday in October each year and the third Sunday in March of the following year New Zealand observes Daylight Saving time which is 13 hours ahead of Coordinated Universal Time. The Chatham Islands are 45 minutes ahead of New Zealand standard and daylight times.

Partly because of its geographical isolation from neighbouring countries, and partly because of the number and location of numerous uninhabited islands belonging to it, New Zealand's Exclusive economic zone of marine resources was the world's fifth largest, at 4.2 million square kilometres in the year 2000 (according to New Zealand's National Institute of Water and Atmospheric Research).

Maori population figures plummetted after 1820 due to tribal wars (the musket wars) and to unfamiliar diseases - measles, whooping cough, influenza and later typhoid - reducing an initial Maori population of perhaps 100,000 to 120,000 (lower than many contemporary figures, which probably overestimated densities in the South Island) to only 62,000 by 1857 and 44,000 in 1891. Recovery began slowly (though three decades earlier than among Australia's still worse-affected Aborigines), with numbers reviving steadily after the setback of the 1918 influenza pandemic. By 1900 also, Maori had lost most of their land, usually as a result of sales or of confiscations after armed conflict with the settler government.

New Zealand's scenery has appeared in a number of television programmes and films. In particular, Hercules and Xena were filmed around Auckland, Heavenly Creatures in Christchurch. The Tribe is set and filmed here too. Peter Jackson shot the epic The Lord of the Rings trilogy in various locations around the country, taking advantage of the spectacular and relatively unspoiled landscapes, and Mount Taranaki was used as a stand-in for Mount Fuji in The Last Samurai. Other movies currently filming in New Zealand include King Kong and The Lion, the Witch and the Wardrobe.

New Zealand was originally settled by waves of Polynesians, some time between 1000 and 1300, although some evidence now suggests an earlier settlement. Those in the main islands of New Zealand became the Maori people. Separate settlement of the tiny Chatham Islands in the east of New Zealand produced the Moriori people, but it is uncertain whether they went there direct from Polynesia or were mainland Maori who ventured eastward.

The remoteness of many parts of New Zealand and the distance of the country from much of the developed world meant that things that were easily obtainable in other parts of the world were often not readily available locally. New Zealand has only recently experienced economic development outside farming, so traditionally, Kiwis are jacks-of-all-trades to some extent, willing to roll up their sleeves and have a go. Most highly industrialised countries produce experts trained in narrow fields of specialisation, but New Zealand professionals are often generalists as well. This reputation often makes New Zealanders uniquely valued employees in overseas organisations.

Britain was motivated by the desire to forestall other European powers (France established a very small settlement on Banks Peninsula in the South Island at Akaroa also in 1840) and to end the lawlessness of European (predominantly British) whalers and traders. Maori chiefs were motivated by the promises of protection of their existing possessions (which was only partially carried out) and by the promise of protection against other Maori using muskets obtained from European whalers and traders (the Musket Wars of 1820-1835).

From the 1790s the waters around New Zealand were visited by British, French, and American whaling ships, whose crews sometimes came into conflict with Maori inhabitants. The arrival of traders and missionaries in the 1800s and 1810s added to local disputes. The first full-blooded European infant in the territory, Thomas King, was born in 1815 in the Bay of Islands. The initiation of a programme of large-scale settlement and land purchases in 1839 by the New Zealand Company, coupled with increasing French interest in the islands, finally prompted the British government to take control of the situation.