Australian Prime Minister Kevin Rudd and his New Zealand counterpart John Key agreed on Monday to establish closer economic ties in response to the global economic crisis, Xinhua reported.
"Worldwide this is the model for a trade agreement, it's been around for a quarter of a century ... and we're determined to make it better," Rudd told reporters after holding formal talks with Key in Sydney.
Rudd also said they had discussed the ways to make travel between the two countries easier.
"So that the traveling public don't have as many hassles as they currently have in moving from one side of the Tasman to the other," Australian Associated Press quoted Rudd as saying.
Australia and New Zealand will also exchange information of each other's emissions reduction schemes.
"Our officials will continue to collaborate closely, with the objective of making sure there is the greatest degree of possible harmonization between New Zealand's approach and Australia's approach to carbon pollution reduction," Rudd