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The Ministry of Economic Development and the Ministry of Foreign Affairs and Trade are inviting submissions on the upcoming review of the Rules of Origin (ROO) under the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), known as CER.
CER, signed in 1983, remains one of the world’s most open and successful free trade agreements (FTAs). It has underpinned a mutually beneficial expansion and deepening of trans-Tasman economic links. Trade between the two countries has grown by an average of 9 per cent per annum over the life of the agreement.
Australia is New Zealand’s largest trading partner, taking nearly 22 percent of our merchandise exports and providing nearly 21 percent of our merchandise imports, with two-way trade worth nearly NZ$17 billion in the year to December 2007. In turn, New Zealand is both Australia’s fifth-largest individual export market, Australia’s fifth largest merchandise trade partner overall and its largest market for elaborately-transformed manufactures.
Rules of Origin are the criteria used to define where a product was made. They are an essential part of CER. They determine whether a product qualifies for tariff-free entry when being traded between New Zealand and Australia. The current CER ROO, and associated product-specific schedules, are available at the Ministry of Economic Development’s website.
The current ROO were finalised in 2006 and entered into force on 1 January 2007. In general they reflect a move away from the previous, more restrictive “value added” approach to a “change in tariff classification” (CTC) approach. CTC recognises the transformation of a product undertaken in the trading party, regardless of the origin of inputs.
The current CER ROO Article provides that the ROO must be reviewed within three years from entry into force. Through the joint communiqué issued at the August 2008 CER Ministerial Forum, New Zealand and Australian Ministers urged a prompt start on the review so as to allow Australia and New Zealand to assess thoroughly the impact of the 2007 revised Rules, and further to explore the scope to liberalise them in a manner that supports both Governments’ desire to enhance the international competitiveness of their economies. The New Zealand and Australian Governments have now commenced work towards this review.
Public consultation is critical to the review. The New Zealand Government is now seeking submissions from interested parties.
Please send your submissions, by Wednesday 17 December 2008, to:
You are also welcome to contact either the Ministry of Economic Development or the Ministry of Foreign Affairs and Trade with any questions regarding submissions or the review process.
Nick Kirton
Policy Analyst
Ministry of Economic Development
PO Box 1437
Phone: 04 462 4265
Email: nick.kirton@med.govt.nz
Ben Eckman
CER Policy Officer
Australia Division
Ministry Of Foreign Affairs and Trade
Private Bag 18 901
Phone: 04 439 8540
Email: ben.eckman@mfat.govt.nz
