Singapore and New Zealand yesterday signed a first-of-its-kind agreement to ensure the continuing trade of essential goods, including fuel and food, in times of crisis.

The agreement was signed in Singapore by Tan See Leng, Singapore’s minister-in-charge of energy, science, and technology, and New Zealand’s Minister for Trade and Investment. Todd McClay, in the presence of the two nations’ prime ministers.

The agreement commits both countries not to impose unnecessary export restrictions on critical goods, including food, fuel, healthcare products, and chemical and construction materials. It also establishes a framework to facilitate the movement of goods between the two nations, and to consult each other before or during supply chain disruptions, Singapore’s Ministry of Trade and Industry said in a statement.

Speaking at a joint press conference, Singaporean Prime Minister Lawrence Wong said that the two nations had made a promise to “not shut each other out” and to “work actively to keep trade moving.”

“This matters, because in difficult times, every country will be tempted to look inward,” he said. “But when that happens, supply chains break down and everyone ends up worse off.”

New Zealand’s Prime Minister Christopher Luxon noted that a third of his country’s fuel is ​refined in Singapore, and that the agreement would keep “fuel flowing to New Zealand when it matters most.” New Zealand is also an important source of food imports for Singapore.

The Agreement on Trade in Essential Supplies, as it is officially known, is the world’s “first legally-binding bilateral supply chain resilience agreement,” and both leaders said that they would welcome other countries to adopt its standards.

“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,” said Wong.

While both leaders referenced the supply shocks resulting from the current turmoil in the Middle East, the deal was concluded ​during Wong’s visit to New Zealand in October, when the two sides upgraded their relationship to a Comprehensive Strategic Partnership.

However, its logic has only been underscored by the outbreak of the Iran conflict and the closure of the Strait of Hormuz, which has choked off a fifth of the world’s oil supply, straining global energy supply chains. The conflict has had a disproportionate impact on the Asia-Pacific, the destination for some 80 percent of the energy supplies passing through the Strait.

Last month, Australia and Singapore brokered a similar, although not legally binding, agreement focused on maintaining a continued flow of petrol, diesel, and liquefied natural gas between the two nations. In a joint statement signed in Singapore, Australian Prime Minister Anthony Albanese and Wong agreed to make “maximum efforts” to meet each other’s fuel needs as long as the Iran conflict continues.

Like Australia, New Zealand is highly dependent on imported petrol and diesel. Since the outbreak of the war, it has experienced a surge of fuel prices due to the Iran conflict, which has also prompted anxieties about potential shortages.

The deal builds on a longstanding and mutual commitment to the principles of open trade. Singapore and New Zealand have had a free trade agreement since 2000, and were both members of the economic partnership that later evolved into the 12-nation Comprehensive and Progressive Agreement for ​Trans-Pacific Partnership.

The Agreement on Trade in Essential Supplies will be incorporated into the New Zealand-Singapore Free Trade Agreement following domestic approval processes in both countries.