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

New Zealand has a unicameral Parliament, the 120-seat House of Representatives. Since 1996, New Zealand has used the mixed member proportional (MMP) system, under which each MP is either elected by voters in a single-member (First Past the Post electoral system) constituency or appointed from party lists. Several seats are currently reserved for members elected on a separate Maori roll. However, Maori may choose to vote in and to run for the non-reserved seats, and several have entered Parliament in this way. Parliaments have a maximum term of three years, although an elections can be called earlier.

New Zealand does possess the usual cultural activities such as theatre, dance, fine arts, classical and popular music and creative writing. However, due to the small population base and a lack of arts funding sources, many artists have struggled to sustain themselves economically, even though they may achieve popular success. For this reason many of New Zealand's best artists go overseas, especially to Australia, but also to Europe or America, so they can further their careers.

The usual climate throughout the country is mild, mostly cool temperate to warm temperate, with temperatures rarely falling below 0°C or rising above 30°C. Conditions vary from wet and cold in Southland and the West Coast of the South Island, where most of the country's rain falls, to subtropical in Northland. In Wellington the average minimum temperature in winter is 5.9°C and the average maximum temperature in summer is 20.3°C.

British culture in New Zealand has been significantly influenced by Maori and other Polynesians. Scottish influences are strong, mainly in the South Island. In general, early immigrants from other parts of Europe and Asia, and World War II refugees (particularly the Dutch) were readily assimilated.

During the late 1980s, the New Zealand Government sold a number of major trading enterprises, including its telecommunications company, railway network, a number of radio stations and two financial institutions in a series of asset sales. Although the New Zealand Government continues to own a number of significant businesses, collectively known as State-Owned Enterprises (SOEs), they are operated through arms-length shareholding arrangements as stand alone businesses that are required to operate profitably, just like any privately owned enterprise. Various items of protective legislation establish business objectives yet prevent shareholding governments from having influence over day to day operations of the business.

The country is internationally recognised as achieving extremely well on a medals-to-population ratio at Olympic Games and Commonwealth Games.

Although less obvious today, in the past team sports, particularly Rugby football, gambling on horse races, and sharing a beer after a hard day's work with some good friends or work mates have been significant images of New Zealand life. This predominantly working-class male cultural image has previously been so strong that it has overshadowed other, perhaps higher, cultural aspects of New Zealand society.

In October 1990, the National Party again formed the government, for the first of three, three-year terms. In 1996 New Zealand elected its first MMP Parliament. The system was designed to increase representation of smaller parties in Parliament and appears to have done so. Since 1996, neither the National nor the Labour Party has had an absolute majority in Parliament, and for all but one of those years, the government has been a minority one. The current Labour government followed its November 1999 election success by outpolling National 41 per cent to 21 per cent in the July 2002 general election. Labour formed a coalition, minority government with Jim Anderton's Progressive Coalition, a left-wing party (subsequently named "Progressive Party") which holds two seats in Parliament.

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.