This paper discusses New Zealand's role in the global market for tertiary education. The internationalization and liberalization of education markets is progressing rapidly in today's globalizing world, as reflected by the incorporation of education as a service into the GATS framework. Through the example of New Zealand as a case study for internationalization of education services, the study depicts the way government is involved in this process. Commodification of sectors traditionally subject to domestic public policy is often associated with a less interventionist state, but our example of education shows that this is not necessarily the case, at least in the medium-term: New Zealand's government rather appears to be an active facilitator of the liberalization process in education. We review its recent move towards treating education as an international export good and present data on the growth of this industry. The paper concentrates on the particular ways by which New Zealand's government is trying to facilitate this process of liberalizing the education sector.