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Australia and New Zealand have one of the most open economic and trade relationships of any two countries. This is based on a comprehensive set of trade and economic arrangements, collectively known as Closer Economic Relations (CER), which underpin substantial flows of merchandise trade, services, investment, labour and visitors between the two countries.
The Australia and New Zealand Closer Economic Relations Trade Agreement entered into force on 1 January 1983, replacing the earlier New Zealand Australia Free Trade Agreement. This provided a basis on which the two governments have built an extensive array of agreements and arrangements, substantially extending CER and ensuring its continuing relevance to both countries.
Progress towards the comprehensive arrangement that exists today began in the 1980s with efforts to achieve integration through free trade in goods and services. Having achieved thisby 1990, both countries moved progressively towards much deeper integration of policies, laws and regulatory regimes through processes of coordination, mutual recognition and harmonisation. This has been underpinned by frequent contact between Ministers and government agencies of both countries, by the closeness of the two societies through kinship, travel, business and social relationships and by the increasing integration of markets.
