business envoy September 2023

Australia and New Zealand CER Then and Now

1983

2023

As Australia and New Zealand celebrate 40 years of the Closer Economic Relations trade agreement, we take a dive into the archive, to see where it started and how the relationship across the Tasman has evolved. The first trade agreement between Australia and New Zealand dates back to 1922 – it essentially stated that each party would trade with the other. In 1933, the Australia New Zealand Trade Agreement followed, under which the two countries gave each other preferences and some special rates of duty. A partial free trade

treaty entered into force in 1966, leading to the removal of tariffs and quantitative restrictions on 80 per cent of trans-Tasman trade by the late 1970s. A more open bilateral trading system was needed and, in 1983, the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) was signed – and has now become the cornerstone of the trade and economic relationship. It was one of the first agreements of its kind in the world – recognised by the WTO as among the world’s most comprehensive and effective FTAs. It has underpinned strong growth in trade across the Tasman with total two-way trade valued at A$31.3 billion in 2022. The CER has continued to grow and adapt, to capture new opportunities and address changing priorities for businesses and individuals in both countries.

Over the last 40 years, the success of CER has fostered our shared ambitions, going far beyond its origins in trade and acting as the foundation for new gains. CER is now supplemented by more than 80 protocols, arrangements and declarations, that drive trans- Tasman collaboration in areas as diverse as scientific research collaboration, mutual recognition of goods and professions, and fostering greater linkages between Māori, Aboriginal and Torres Strait Islander peoples. In this milestone year: Australia and New Zealand have made history as the first co-hosts of a FIFA World Cup – a testament to the closeness and weight of our relationship. While providing enormous economic benefit, it has also been a joint opportunity to start global conversations around

women’s sport, gender equality and raise the profile of the trans- Tasman brand. Prime Ministers have endorsed a Roadmap to 2035 showcasing a shared ambition to not just improve trade and economic flows, but also do so in a way that helps confront the challenges of climate change and brings economic inclusion into focus. The new Australia-New Zealand Sustainable and Inclusive Trade Declaration enhances our commitments under CER, to ensure businesses, individuals and our broader societies reap the benefits of more modern, resilient and sustainable economies. Australia and New Zealand continue to work in the region and on the global stage, to build on the benefits of CER and open new opportunities for trans-Tasman businesses.

The signing of the upgraded ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) in August will modernise our economic engagement with the most dynamic region in the world, with new or enhanced provisions in areas such as e-commerce, sustainable development and investment. For further information about the roadmap and declaration see: dfat.gov.au/geo/new-zealand/ trans-tasman-roadmap-2035 dfat.gov.au/geo/new-zealand/ sustainable-and-inclusive-trade- declaration

Images, from left:

New Zealand Prime Minister Mr Muldoon and Australia’s Deputy Prime Minister Mr Doug Anthony before beginning talks in Wellington on closer economic relations,

ca 28 October 1982 Credit: NZ Evening Post

New Zealand High Commissioner to Australia, Sir Laurie Francis (l), and Trade Minister Lionel Bowen (r) sign the Australia-New Zealand Closer Economic Relations (CER) Trade Agreement in Canberra on 28th March 1983 Australian Prime Minister Anthony Albanese and New Zealand Prime Minister Chris Hipkins in Wellington, New Zealand, 26 July 2023 Senator the Hon Don Farrell, Minister for Trade and Tourism, and the Hon Damien O’Connor, New Zealand Minister for Trade and Export Growth, sign the Sustainable and Inclusive Trade Declaration at the conclusion of the Closer Economic Relations Ministerial Meeting in Adelaide, August 2023

12

13

business envoy

Department of Foreign Affairs and Trade

Department of Foreign Affairs and Trade

business envoy

Made with FlippingBook - Online Brochure Maker