Prime Ministers Kevin Rudd and John Key held their fourth bilateral meeting in Canberra on 20 August 2009 during Prime Minister Key's official visit to Australia.
The Prime Ministers agreed on the imperative for continued strong and coordinated international action to restore confidence and global economic growth. They recognised that strengthened trans-Tasman economic integration, including through the Single Economic Market work program, would be vital for both countries. They recognised it would enhance the ability of Australia and New Zealand to weather the current global recession, increase national productivity, maintain and drive job creation, foster international competitiveness and improve the environment for doing business on both sides of the Tasman.
The Prime Ministers agreed to a joint statement of intent to give new intensity and a renewed focus to delivering the practical benefits and outcomes from the Single Economic Market. This work will be guided by key principles designed to deliver more quickly and effectively the benefits of seamless trans-Tasman economy to consumers and businesses in both countries. The joint statement also lists practical concrete outcomes on economic regulatory matters, including business law and competition policy, that they would like to achieve. A copy of the Joint Statement of Intent is attached.
The Prime Ministers also agreed to a joint plan to streamline trans-Tasman travel, with improvements to be seen as early as next year. The plan includes roll out of the automated SmartGate passenger clearance system in New Zealand, and improvements to screening and processing for low risk passengers on both sides of the Tasman. They also agreed to trials of direct exit paths for passengers and the transfer between Australia and New Zealand of x-ray images for more efficient biosecurity screening. To foster long-term improvements, Australia and New Zealand will explore further streamlining passenger processing through studies on pre-clearing passengers at point of departure and through expanding and integrating SmartGate systems.
The Prime Ministers also endorsed a new Development Coordination Partnership, which takes an important first step towards implementing the Cairns Compact for Strengthened Development Coordination in the Pacific, agreed at the Pacific Islands Forum Leaders' Meeting in Cairns on 6 August. The Partnership pledges new efforts by Australia and New Zealand to integrate development assistance activities in order to lift the effectiveness of aid programs and make improved progress towards the achievement of the Millennium Development Goals in the Pacific. The Partnership builds on the recommendations of the joint report, released at the Cairns Pacific Islands Forum, about the impact of the global recession on the Pacific. The Prime Ministers also welcomed the launch by Pacific leaders of PACER Plus negotiations. A copy of the major themes is attached.
Recalling the commitment that they had made in March to strengthen economic integration and cooperation, the two Prime Ministers welcomed the considerable progress made in the preceding five months including:
* substantial progress in concluding a CER Investment Protocol aimed at promoting further cross-Tasman investment, and reaffirmed their commitment to concluding this agreement by the end of 2009, including today agreement on the screening thresholds, which will be AUD$953 million for New Zealand investments in Australia and NZD$477 million for Australian investments in New Zealand, half of the Australian threshold;
* an amended Australia-New Zealand Joint Food Standards Treaty on which stakeholders will be consulted in September;
* updated economic agreements to facilitate closer business links including a revised Double Taxation Agreement and the conclusion of a new scheme enabling Australian and New Zealand workers to move pension funds across the Tasman;
* continued close collaboration on international and regional trade policy, including with a view to the swift conclusion of the Doha Development round of negotiations at the WTO;
* new joint trade promotion activities to increase global market shares for the Trans-Tasman economy, particularly in the Asian region, including through AANZFTA;
* Australian - New Zealand collaboration in flagship initiatives including agreement to a joint bid to host the Square Kilometre Array Radio Telescope Project;
* collaboration on other science/innovation initiatives including the Global Carbon Capture and Storage Institute, and new research to reduce agriculture emissions; and
* New Zealand's participation in the Business Regulation and Competition Working Group of the Council of Australian Governments, in order to share ideas on economic and regulatory reform.
The Prime Ministers agreed that in addition to the implementation of the Single Economic Market and Development Coordination Partnership, both governments would bring sustained focus to making new progress in:
* further streamlining of trans-Tasman travel, working towards full implementation of a new trans-Tasman passenger clearance model; and work on streamlining trans-Tasman goods trade;
* exploring whether the Trans-Tasman Outcomes Framework could be applied to other areas of the SEM;
* cooperation between the Australian Productivity Commission and any future New Zealand Productivity Commission;
* exploring implications for the trans-Tasman economy from changes to tax regimes in Australia and/or New Zealand, noting New Zealand's strong interest in the mutual recognition of imputation credits;
* continuing collaboration on the design, implementation and linking of emissions trading schemes and ensuring harmonisation where it would be of benefit, and working together to contribute to the development of the global carbon market. Both countries will continue working together towards an ambitious post-2012 international climate change framework that sets the world on a path to limit the increase on global average temperature to 2 degrees Celsius or less. Prime Ministers noted that emissions from agriculture are a significant issue for both countries and agreed on the value of continued collaboration on mitigation approaches; and
* ongoing close defence relations to promote common regional security objectives, including exploring possible opportunities to enhance our joint operational capabilities reinvigorating the ANZAC spirit.
The Prime Ministers agreed on the need for substantial progress on all of these areas for the remainder of the year. They agreed to take stock when next they met early in 2010. The two Prime Ministers also noted that they will meet with Ministerial colleagues the following day in the inaugural joint Cabinet meeting between the two countries.
Documents
Joint Statement of Intent: Single Economic Market Outcomes Framework - RTF 321KB | PDF 44KB
Australia-New Zealand Partnership for Development Cooperation in the Pacific - RTF 321KB | PDF 47KB