28 March 2008
25-Year-Old ANZCERTA Shows the Future of Trade Liberalisation
The Minister for Trade, Simon Crean, is using the 25th anniversary of Australia’s free trade agreement with New Zealand to reiterate the opportunity for extending trade pacts “beyond the border”.
On 28 March 1983, Australian Deputy Prime Minister and Trade Minister Lionel Bowen and New Zealand High Commissioner Laurie Francis committed the two nations to a visionary and ground-breaking free trade experiment by signing the ANZCERTA (Australia New Zealand Closer Economic Relations Trade Agreement) pact.
The World Trade Organisation has recognised ANZCERTA as a model FTA (free trade agreement) for its comprehensive scope, its effective operation, and its compatibility with international trade liberalisation objectives.
Mr Crean says the 25th anniversary is an opportunity to advance the ANZCERTA model to the world. The agreement is a model for Australia’s approach to FTAs more generally, he says.
The anniversary is also an opportunity for Australia to build on the agreement’s success to date. In particular, the Single Economic Market (SEM) program offers an opportunity to more closely harmonise regulations on both sides of the Tasman.
“Australia and New Zealand are pressing ahead to create a seamless trans-Tasman business environment under the Single Economic Market (SEM) initiative,” says Mr Crean.
“We are looking in particular to reduce transaction costs and address remaining ‘behind-the-border’ barriers, alongside other initiatives to deepen ANZCERTA. Examples of these initiatives include:
- renegotiation of the ANZ Double Taxation Agreement;
- continuing business law harmonization work, notably to remove duplication of corporate filing obligations for trans-Tasman business operations;
- mutual recognition of court proceedings and regulatory enforcement;
- trans-Tasman portability of retirement savings; and
- finalising negotiation of a bilateral Investment Protocol, rounding out ANZCERTA to cover investment and financial services issues.
Mr Crean says trans-Tasman economic relations have gone ahead by “leaps and bounds” in the quarter-century since ANZCERTA’s signing.
“ANZCERTA exemplifies the benefits of a truly comprehensive approach to bilateral trade liberalisation. Annual two-way trade in goods and services now exceeds AUD21 billion. Trade has grown annually at an average of 9%, an achievement unparalleled in our other trade. New Zealand is our sixth largest trading partner, and our largest market for manufactured goods, while we are New Zealand’s largest market. Bilateral investment stands at AUD83 billion and we have a highly-integrated trans-Tasman business environment.
“The vision and ambition of the architects of ANZCERTA has paid off. The agreement provides an umbrella under which vision has been rewarded and economic growth consolidated. It has provided a foundation of confidence for a broad family of related agreements on everything from trans-Tasman aviation to single food standards.
“I suspect even the architects of ANZCERTA would be a little surprised to see how fertile their vision has proved.”
“My New Zealand colleague Phil Goff and I agreed in our recent meeting in Melbourne that we cannot rest on our laurels. I hope that our annual ANZCERTA Ministerial meeting in July will see some of the initiatives to further deepen the agreement brought to a successful conclusion.”
Media Inquiries: Mr Crean's office 02 6277 7420 - Departmental Media Liaison 02 6261 1555