Australia - New Zealand Closer Economic Relations Trade Agreement

The Australia New Zealand Closer Economic Relations and Trade (ANZCERTA), came into effect on 1 January 1983 and 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.

ANZCERTA does not affect Australia or New Zealand’s ability to impose quarantine measures to protect their animal and plant health. 

ANZCERTA is one of the world’s most open and successful free trade agreements. Based on trade in goods and services in 2010-11, New Zealand was Australia’s seventh largest market, taking 34.4 per cent of exports and providing the eighth largest source of imports.

Australia was New Zealand’s principle trading partner during 2010, providing 18.2 per cent of its merchandise imports and taking 23 per cent of its exports.

In 2010-11, trans-Tasman trade in goods and services was valued at $21.1 billion.

The final text of the agreement is available on the DFAT website. 

Rules of origin

On 11 December 2004, Australia and New Zealand agreed to reform the Rules of Origin (ROO) 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 in 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 reduces compliance costs.  Adopting the CTC approach in ANZCERTA reflects a global trend to use this type of ROO in bilateral free trade agreements (as is the approach in Australia’s FTAs with the USA and Thailand).  The resulting consistency benefits export oriented industries in both countries. 

The new rules provided for a five year transition period ending 1 January 2012, during which importers were able to claim origin under the existing rules should they prefer.

The CTC approach does not change the rules relating to the treatment of “wholly obtained goods” (i.e. 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).

On 21 June 2010, proposed Agreements to amend ANZCERTA Article 3 (Rules of Origin) and the related Annex G (Product Specific Rules) were tabled with the Australian Parliament's Joint Standing Committee on Treaties. For further information, visit the JSCOT website.