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CER is a series of agreements and arrangements that began with the entry into force of the Australia New Zealand Closer Economic Trade Relations Agreement (ANZCERTA) on 1 January 1983. CER is characterised by a number of principle elements:
CER is one of the most comprehensive, effective and mutually beneficial free trade agreements in the world.
Mutual recognition of goods and occupations: a good that can legally be sold in one country can also be sold in the other, and a person who is registered to practise an occupation in one country is entitled to practise an equivalent occupation in the other. Five product areas and one occupational group (medical practitioners) are exempted.
Free labour market: a long history of arrangements, collectively known as the Trans-Tasman Travel Arrangement allow Australians and New Zealanders to visit, reside and work in each other’s country without restriction. These arrangements have been supplemented by the Social Security Agreement, the Reciprocal Health Agreement and the Child Support Agreement.
CER is entirely consistent with the World Trade Organization rules in free trade areas.
The actual treaty was signed in Canberra on 28 March 1983. The two Governments had already entered into a “Heads of Agreement” on 14 December 1982, which meant that the basic provisions of CER came into effect from 1 January 1983.
CER replaced, and went far beyond, the so-called New Zealand Australia Free Trade Agreement (NAFTA) that had been in force since 1 January 1966. Although NAFTA grew out of a renewed interest by New Zealand and Australia in each other’s markets, and in that sense it was intended to be of mutual advantage, it had various shortcomings. The bureaucratic process of nominating large lists of products for inclusions un “free trade” schedules contrasts sharply with the comprehensive principle of CER, which is that everything is included unless specifically excluded.
CER covers substantially all goods and services. Total free trade in goods was achieved by 1990 (five years ahead of schedule) with the elimination of all tariffs and quantitative restrictions. The 1988 CER Services Protocol achieved free trade in services from 1 January 1989 on all services except those inscribed in annexes to the agreement. These inscriptions have been substantially reduced since and currently include only a few items, like coastal shipping.
Both countries are now moving progressively towards much deeper integration of policies, law and regulatory regimes through processes of coordination, mutual recognition and harmonisation. This movement has been underpinned by frequent contacts between Ministers and Government agencies, by the closeness of the two societies through kinship, travel, business, social relationships and the increasing integration of markets.
Yes. The percentage of New Zealand exports that Australia takes has risen from 13% in 1983 to 20% in 2005, and in real inflation adjusted terms our exports have doubled. Australia now provides 23% of our merchandise imports. Over the past 10 years, as CER has consolidated, trans-Tasman trade has increased annually by 9% on average, which exceed the international trade growth rates for both countries.
Please contact Australia Division, Ministry of Foreign Affairs and Trade.
