Australia - New Zealand Closer Economic Relations Trade Agreement
Overview
The Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), which came into effect on 1 January 1983, is central to the Australia - New Zealand trade and economic relationship.
As well as underpinning bilateral trade in goods and services, ANZCERTA is the umbrella for close collaboration across quarantine, customs, transport, regulatory and product standards and business law issues.
The ANZCERTA is one of the world’s most open and successful free trade agreements. Following its adoption, two-way Tasman trade has increased at an average annual rate of around 9 per cent.
Based on trade in goods and services in 2008-09, New Zealand is now Australia’s seventh largest market, taking 3.7 per cent of our exports and providing the ninth-largest source of imports.
Australia is New Zealand’s principal trading partner during 2008, providing 18 per cent of its merchandise imports and taking 23 per cent of its exports. In 2008-09, trans-Tasman trade in goods and services was valued at $15.595 billion.
The final text of the agreement is available from the DFAT website.
Rules of origin
On 11 December 2004, Australia and New Zealand agreed to reform the Rules of Origin under ANZCERTA. After extensive consultations with industry and complex trans-Tasman negotiations, an approach was adopted which comprised Product Specific Rules, with the central basis of those product specific rules being a Change of Tariff Classification (CTC). These rules came into effect on 1 January 2007.
Under the CTC approach, imports are required to undergo a specified change in tariff classification. This usually occurs when a product is transformed from a collection of material and components into the finished good. The CTC approach simplifies the administration of ROOs and reduce compliance costs. Adopting the CTC approach in ANZCERTA reflects a global trend to use this type of ROO in bilateral free trade agreements (it is the approach used in Australia’s FTAs with the USA and Thailand). The resulting consistency benefits export oriented industries in both countries.
The new rules provide for a five year transition period ending 1 January 2012, during which importers will be able to claim origin under the existing rules should they prefer. In accordance with the 1 January 2007 decision, a review of the revised rules is to be completed by the end of 2009.
The CTC approach does not change the rules relating to the treatment of “wholly obtained goods” (ie. goods that are obtained or produced entirely in the country, such as minerals extracted there, vegetable goods harvested there, and live animals born and raised there).
The Customs (New Zealand Rules Of Origin) Regulations 2006, which contain the new product-specific rules, are available on the Australian Customs website.