INDEPENDENT NEWS

CER rules change impacts $12 billion trade

Published: Mon 13 Dec 2004 02:30 PM
Media statement
Monday, December 13th, 2004
CER rules change impacts $12 billion trade
The importance of the change in the Rules of Origin for goods traded between New Zealand and Australia under the CER agreement should not be underestimated, the Employers & Manufacturers Association (Northern) says.
"We endorse and welcome the RoO change agreed at the annual trans Tasman ministerial talks over the weekend," said Bruce Goldsworthy, EMA's Manager of Manufacturing Services.
"While the gains from the talks for wine and fruit are valuable and simply understood, the change agreed for CER's Rules of Origin is easily the most far reaching.
"The change which we advocated will facilitate the further growth of trans Tasman trade in goods worth over $12 billion each year by:
* reducing the compliance costs of calculating a product's content,
* removing uncertainty on whether a product has reached the content threshold at which goods gain preferential access, and
* introducing a rule that can be extended to all new FTA's so RoO treatment becomes uniform.
"The current rules have passed their use-by date. They stipulate goods qualifying for duty free access to either New Zealand or Australia must reach 50 per cent ex factory added value. This is holding back efficiency and productivity gains since to meet this threshold, components and materials often cannot be sourced at the most favourable prices.
"Moving to the change of tariff rule will overcome this constraint."
ENDS

Next in Business, Science, and Tech

General Practices Begin Issuing Clause 14 Notices In Relation To The NZNO Primary Practice Pay Equity Claim
By: Genpro
Global Screen Industry Unites For Streaming Platform Regulation And Intellectual Property Protections
By: SPADA
View as: DESKTOP | MOBILE © Scoop Media