New Zealand and the US have signed a science and technology research co-operation agreement to help protect both countries against acts of terrorism and other threats to domestic and external security.

The agreement was signed on Friday in Washington DC by US Homeland Security Secretary Janet Napolitano and New Zealand Ambassador Roy Ferguson.

The US has recently concluded similar agreements with Spain, Germany, France, Israel, Australia, the UK and Canada, all of whom are key US allies.

Research commissioned by the Ministry of Justice suggests that proposed anti-terrorism and money laundering legislation will cost business $112 million in start-up expenses and $43 million each year for banks, jewellers and other institutions.

But the true cost could be higher still, as consultancy Deloitte revised down estimates by the affected parties from $228 million and $128 million a year respectively.