CPTPP and Australia
Australia is also part of CPTPP, so businesses on both sides of the Tasman can use a common set of trade rules when operating in the Asia-Pacific region.
Australia is New Zealand’s second-largest trading partner and biggest services export market.
New Zealand and Australia already provide for tariff-free access into each other’s market as a result of CER. However, the CPTPP rules of origin accommodate the concept of full cumulation – allowing processing undertaken in CPTPP Parties to be counted towards achieving the origin threshold.
This principle means that New Zealand inputs can be counted as part of the qualifying content for goods produced and traded between all CPTPP Parties. This potentially makes New Zealand materials more attractive for companies in Australia (and elsewhere in CPTPP the region) that plan to utilise CPTPP tariff preferences and we would expect it will improve New Zealand companies’ integration into regional supply chains.
For New Zealand services suppliers and investors, Australia’s commitments under CPTPP provide additional certainty to CER, again confirming that New Zealand service suppliers and investors can operate there with few restrictions.
New Zealand and Australia signed a reciprocal side letter that excludes the use of investor-state dispute settlement between us under the Agreement.