CER op-ed
by Lianne Dalziel, Commerce Minister
Few relationships are as warm, enduring and characterised by such friendly rivalry and mature co-operation as that
between New Zealand and Australia. The strength of the bond between New Zealanders and our trans-Tasman neighbours has
become a part of our identity as a nation, from the comradeship of the early ANZACs to the trade, business, diplomatic,
sporting and travel relationships of the present day.
This week we celebrate 25 years of the Closer Economic Relations (CER) trade agreement between New Zealand and
Australia. CER was born out of a desire to have an open trading relationship with our nearest neighbour and largest
market. But today CER means much more than just trade. CER underpins and builds on strong historical, cultural,
geographical and political ties, reflecting the values and interests that both our countries share. It has transformed
into a comprehensive, dynamic agreement which has shown itself capable of adapting to the evolving requirements of
business.
The World Trade Organisation (WTO) has hailed CER as the most comprehensive, effective and mutually compatible bilateral
free trade agreement in the world which has led to significant trade growth between the two nations.
The Australian and New Zealand economies are becoming increasingly integrated, not just through trade but also the high
degree of regulatory co-ordination of the goods and services markets. These dynamic effects have shaped labour markets
responses, the design of business operations and investment decisions in the trans-Tasman market. Today, businesses in
both countries hold nearly $100 billion of investment stock across the Tasman. Australia is New Zealand’s top source,
and top destination, of foreign investment.
Since 1997 the Trans Tasman Mutual Recognition Agreement (TTMRA) has played a central role in driving deeper levels of
regulatory policy co-operation between the two countries, making it a valuable instrument of CER. The principle of the
TTMRA is that each country accepts the other's regulatory approaches so that a qualification or standard accepted on one
side of the Tasman is deemed to meet the requirements on the other. It's a vital tool in both governments' shared vision
of creating a seamless trans-Tasman business environment, or Single Economic Market (SEM), to support our businesses in
meeting the challenges of an increasingly competitive global environment.
Work towards a SEM particularly under the Memorandum on Business Law Coordination will further strengthen the
trans-Tasman relationship by reducing transaction costs and behind-the-border barriers to trade for businesses operating
on both sides of the Tasman.
Another area of particular interest to me as Commerce Minister is the development of joint Australian/New Zealand
Standards. This joint framework has resulted in lowering costs to business and improved competitiveness from being able
to manufacture to a single standard. There are currently over 2300 joint Australian/New Zealand Standards, accounting
for 75 per cent of the New Zealand Standards catalogue, in areas including energy efficiency, wood products, gas and
electrical safety and risk management.
The importance of CER on making sense of our business relationships with Australia in the face of global competition can
not be underestimated. On the 25th anniversary of CER, New Zealand looks forward to further building on that strong and
enduring relationship with Australia.
ENDS