Closer Economic Relations (CER)
Australia and New Zealand are the closest of partners.
This year we celebrate that relationship and look forward to a future driven by innovation and opportunity. A future that is better together.
We are more than neighbours, we are family. Our similarities deepen the bond between us.
Wherever Australia and NZ face challenges and change, we benefit from tackling them together. We prosper when we take advantage of opportunities together.
50 years ago, freedom of movement was made easier for our citizens. This freedom to move throughout the Tasman, to live and work in each other’s countries, has provided opportunities for our people and our businesses, and benefited both our countries. The ability for our citizens to call each other’s country home is one that we must not take for granted and is fundamental to the strength of our relationship.
Around 700,000 Kiwis have made their home in Australia. More than 170,000 Māori live in Australia.
Australia is New Zealand’s largest source of visitors with over 1.55 million visiting our shores in 2019 and contributing over $2.7 billion to the economy.
Australia is our most important trading partner, with two-way trade worth $29 billion in 2022.
For Australia, New Zealand is its second largest source of tourists, fourth largest investment destination, only single economic market and top export destination for Australian small and medium enterprises.
Shared values
As allies that share liberal democratic values, a commitment to the rules-based order, and a belief in a market-based economic model, New Zealand and Australia are the closest of partners. We both want a stable, secure and resilient region.
We have deep common interests grounded in our geography under shared skies, values, political systems and our commitment to the Pacific.
Sustainable Economies
Our trade relationship is underpinned by the Closer Economic Relations (CER) agreement signed 40 years ago and still recognised as one of the best in the world.
It’s been gradually built on over the years, enabling our people to live, work, trade and our businesses to grow and invest more easily between our two nations.
We are ambitious to drive CER forward into new areas – digital trade, science and technology, indigenous cooperation, trade that is sustainable and benefits all our people.
For New Zealanders and New Zealand businesses, Australia is a vital source of prosperity, through business and labour connections, exports, tourism, innovation, and science and knowledge. Australia is our most important trading partner, with two-way trade accounting for $29.22 billion in 2022, and is the first export market many New Zealand companies look to, to grow.
And for Australia, New Zealand is its second largest source of tourists, fourth largest investment destination, only single economic market and top export destination for Australian small and medium enterprises (SMEs).
A gold standard agreement
CER was ahead of its time. Signed before the creation of the European Union or the World Trade Organisation, New Zealand and Australia set out to create a free trade area and an agreement that was truly comprehensive and built on mutual trust.
Unlike other free trade agreements there is no formal dispute settlement mechanism in the CER. Though we may have our differences, through our spirit of mutual respect between our two governments, we are able to work through these differences to reach an outcome that is beneficial for all.
CER is a living agreement. It’s been gradually expanded over the years, enabling our people to live, work, trade and our businesses to grow and invest more easily between our two nations. We continue to modernise and future proof it.
CER
· Removed all tariffs and quotas cutting costs and red tape for goods exporters
· Allowed most services to be traded across the Tasman free of restriction
· Made it as easy to do business in Australia as it is in New Zealand and vice versa
· Made it easier to invest in each other’s countries under the March 2013 Investment Protocol [PDF, 88 KB]
· Reduced compliance costs for food exporters, provided more consumer choice and created common rules for food standards
· Lowered withholding taxes on certain payments made between New Zealand and Australia, through the Double Taxation Agreement
Building on CER
Building on the NZ-Australia CER agreement New Zealand and Australia committed to a process called the Single Economic Market (SEM) agenda in 2004, designed to create a seamless trans-Tasman business environment.
The SEM agenda identifies innovative, low-cost actions to reduce barriers and costs arising from different, conflicting or duplicate regulations or institutions in either country.
It has already brought significant economic benefits to both countries by lowering business costs and increasing the ease with which both businesses and people can operate across the Tasman.
Under the SEM New Zealand and Australia also developed the world’s first standalone bilateral Indigenous Collaboration Arrangement promoting and deepening indigenous linkages for policy collaboration and closer people to people links to benefit indigenous communities
Another exciting area of cooperation under the SEM work programme is our science relationship through the Australia New Zealand Science, Research, Innovation Cooperation Agreement.
Read more about the Single Economic Market
CER benefits
For New Zealanders and New Zealand businesses, Australia is a vital source of prosperity, through business and labour connections, exports, tourism, innovation, and science and knowledge. And for Australia, New Zealand is its second largest source of tourists, fourth largest investment destination, only single economic market and top export destination for Australian small and medium enterprises (SMEs).
Australia is our most important trading partner, with two-way trade of goods and services accounting for $29 billion in 2022. It is the first export market many New Zealand companies look to, to grow.
Built with Shorthand