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The Australia- New Zealand Closer Economic Relations Free Trade Agreement (ANZCERTA), commonly known as CER, is an important foundation of the relationship.
You can also view Key CER Instruments and Trade Statistics.
The Australia - New Zealand Closer Economic Relationship Booklet 2005 (PDF 559KB)
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 principal elements:
It is one of the most comprehensive, effective and mutually beneficial free trade agreements in the world.
CER is entirely consistent with the World Trade Organization rules in free trade areas.
CER entered into force on 1 January 1983. This Agreement was an ambitious undertaking, but progress was rapid. By 1990, free trade in goods and nearly all services had been achieved. Since then, both countries have moved progressively towards much deeper cooperation in policies, laws and regulatory regimes through processes of coordination, mutual recognition and harmonisation. CER has always been a trend-setter in the realm of bilateral trade relationships, and has been described by the World Trade Organisation (WTO) as “the world’s most comprehensive, effective and mutually compatible free trade agreement”.
CER has increased the effective size of the New Zealand domestic market six-fold and gave Australia access to another domestic market about the size of Queensland. Bilateral trade has grown rapidly under CER, with trade in goods averaging 9% growth per annum between 1983 and 2008. Australia is New Zealand’s principal trading partner, accounting for approximately 20% of total imports. New Zealand is now Australia’s sixth largest export market, taking 5.6% of Australian exports, and is Australia’s number one market for elaborately transformed manufactures. Together, the two countries make up a combined market of 24 million people. The two economies combined equate to the size of the combined ASEAN economies.
There are no specific dispute resolution procedures in CER. The close and long-standing political relationship between New Zealand and Australia means that any issues of grievance or concern are addressed through discussion between Governments.
CER has been continuously reviewed and the scope of the Agreement extended through supporting bilateral arrangements.
CER provided for the elimination of tariffs and quantitative restrictions on goods. This was a far-sighted undertaking at the time, but such was the momentum and success of the agreement, and the degree of mutual trust between New Zealand and Australia, free trade in goods was achieved in 1990, five years ahead of schedule.
The CER Protocol on Trade in Services was signed in 1988. Bilateral investment flows have increased under this Protocol. New Zealand is currently the sixth largest source of overall foreign investment in Australia, and Australia is the largest investor in New Zealand . In recent years, there has been significant new commercial investment from New Zealand in Australia’s dairy sector, and from Australia in New Zealand’s transport and banking sectors. Officials are currently engaged in discussions to add an Investment Protocol to CER.
The Trans-Tasman Mutual Recognition Arrangement (TTMRA) entered into force in 1998. Under the TTMRA, most goods sold in one country can be sold in the other without having to meet any further sales-related requirements, and people registered to practise an occupation in one country can register to practise it in the other without the need to undergo further testing. This Arrangement enables businesses to manufacture to only one standard for the trans-Tasman market, provides greater consumer choice and supports an open trans-Tasman employment market.
The Joint Accreditation System of Australia and New Zealand (JAS-ANZ) [external link] was established under treaty between Australia and New Zealand in 1991. The organisation’s key objective is the establishment of an internationally recognised accreditation system for quality management systems, product certification and personnel certification. This accreditation establishes confidence in, and recognition of, the producers and products of New Zealand and Australia.In 1996 a regulation was made under the Australian International Organisations (Privileges and Immunities) Act 1963 declaring JAS-ANZ to be an international organisation to which the Act applies.
The Agreement between the Government of Australia and the Government of New Zealand Concerning a Joint Food Standards System (1996) [external link to NZFSA website] established a joint Australia New Zealand Food Authority (ANZFA) to develop food standards for both countries – the first bi-national agency. This was renamed Food Standards Australia and New Zealand (FSANZ) in 2002 following amendments to the Agreement, which addressed some of New Zealand’s concerns about the governance arrangements. The Agreement gives both countries greater joint influence in the establishment of international food standards. A Joint Food Code was agreed by the Health Ministers of New Zealand and the Australian Commonwealth and States and Territories in November 2000, and came into force on 20 December 2002. Australian and New Zealand officials are currently identifing measures to improve the treaty's operation and effectiveness and clarify its scope.
In 2003, the Governments of Australia and New Zealand signed an Agreement to establish a joint Australia-New Zealand Therapeutics Product Authority to regulate therapeutic products in both countries.
CER has proved to be a remarkable success. There are still some particular sectoral market access issues to resolve, but looking forward the trade and economic relationship should continue in a dynamic way, adapting to the changing requirements of business in an increasingly inter-dependent world. The current policy focus is on identifying, developing and implementing further initiatives to create a seamless trans-Tasman business environment – a Single Economic Market (SEM).
Recent advances in this area include:
There is a long history of arrangements, collectively known as the Trans-Tasman Travel Arrangement (TTTA), which allow New Zealand citizens to enter, reside and work in Australia, and Australian permanent residents to receive reciprocal access to New Zealand. These arrangements have been supplemented by the Social Security Agreement, the Reciprocal Health Agreement and the Child Support Agreement. Trans-Tasman freedom of movement is a key element in our relationship with Australia. It underpins the government-to-government relationship and the economic growth enjoyed under CER. There are at present some 389,000 New Zealanders living in Australia, and some 63,000 Australians resident in New Zealand. New Zealanders and Australians make approximately 2 million short-term visits across the Tasman each year.
