Abstract: New Zealand-s product markets experienced a surge in
import competition beginning from the late 1970-s when its
government began to promote a policy of more open markets. This
study considers how the trade liberalization aspect of the policy may
have influenced unionization and union-organizing success. For
describing the trade liberalization, a model shows how the removal of
import tariffs can lead to countervailing influences upon the union
membership of a domestic firm. The evidence supports the prediction
that union membership has been decreased rather than increased. In
the context of debates concerning globalization, it can be said that the
power of unions has been diminished.