PRIME MINISTER
JOINT STATEMENT BY THE PRIME MINISTERS
OF AUSTRALIA AND NEW ZEALAND
ON THE OCCASION OF THE CONCLUSION OF THE 1988
REVIEW OF THE AUSTRALIA NEW ZEALAND
CLOSER ECONOMIC RELATIONSHIP
In November 1987 at Waitangi in New Zealand we established a
framework for reviewing the Australia New Zealand Closer
Economic Relations-Trade Agreement of 1983. At that time, we
decided to consider accelerating the implementation of free
trade in goods, harmonising relevant business laws and
administrative practices in the trans Tasman market and widening
the bilateral economic relationship by liberalising trade in
services.
We have had before us a series of recommendations agreed by the
responsible ministers of the two Governments in Christchurch in
June. we pay special tribute to the efforts of the Ministers
concerned.
Today we have set the final seal on a package of measures which
will accelerate, deepen and widen the economic relationship
between our two countries. From 1 July 1990 we will have
removed virtually all the impediments to achieving a single
trans Tasman market. In recent weeks and today the two
Governments have concluded and signed all of the agreements and
arrangements relating to this historic achievement.
At Waitangi we noted both countries, desire, as formally
expressed in the CER Trade Agreement, to achieve greater
economic welfafe for our peoples through the liberalisation of
trans Tasman trade in accordance with each country's
international rights and obligations. In view of the visible
benefits which the CER Trade Agreement has brought to both
countries, we resolved then that determined efforts should be
made to further strengthen the trans Tasman economic
relationship. In particular, the CER Trade Agreement has benefited consumers
in both countries through the availability of a greater range of
competitively priced goods and producers have responded strongly
to the challenge of new market opportunities which the CER Trade
Agreement has provided for them. As a result, there have been
notable efficiency gains from CER which have been consistent
with the overall direction of Government policy in both
countries. CER is outward-looking and the impressive growth in
two-way trade between our two countries has not been achieved at
the expense of our other trading partners. Australia and New
Zealand are now, and will remain, global trading countries
committed to the realisation of the principles of the GATT and
their improvement in the course of the Uruguay Round of
multilateral Trade Negotiations.
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We have today considered the package of measures which emerged
from the ministerial meeting in Christchurch and have signed
three Protocols which contain binding commitments to move
towards the creation of a single trans Tasman market from 1 July
1990. The market so created will cover both goods and services.
These are:
a Protocol to the CER Trade Agreement on Acceleration of
Free Trade in Goods covering the arrangements to bring all
product sectors to free trade by 1 July 1990, the abolition
of anti-dumping procedures on goods originating in the free
trade area and a further general review of CER in 1992,
including consolidation of the current range of treaty
instruments;
a Protocol on Trade in services which brings services within
CER on the basis of clearly stated rules and provides
arrangements to further liberalise trade in services between
the two countries;
a Protocol on Quarantine Administrative Procedures which
will result in additional harmonisation and cooperation.
other instruments have been agreed and signed by our Ministers
covering: the harmonisation of business law and regulatory practices;
further cooperation and harmonisation of Customs policies
and practices;
increased cooperation to achieve the elimination of
technical barriers to trade;
support by the Australian Government for equality of
opportunity for New Zealand in the government purchasing
processes of Australian States;
the elimination of production bounties payable on exports to
each other and the avoidance of financial support measures
for domestic industries which have adverse effects on
competition between the two countries;
the removal of export prohibitions which have been
maintained for protective reasons.
Each of these undertakings is significant in itself, and
together they build an economic relationship unequalled by any
other two sovereign countries. By July 1990, a full five years
ahead of the original timetable set in the 1983 Agreement, we
will have removed all frontier barriers to trade in goods. We
have taken steps to ensure that this trade shall be fair.
Consistent with this objective we are also agreed that we will
further harmonise our competition laws. 1255
These commitments, which cover all goods including manufactured
and agricultural, provide for free trade and fair competition.
In this context we welcome the arrangements worked out between
our governments which provide for the free and fair conduct of
trans Tasman trade in dairy products.
On industry assistance, we reaffirm that bounties and subsidies
providing long-term protection for Australian and New Zealand
industries from trans Tasman competition can no longer be
regarded as viable instruments of industry policy. We have also
set ourselves the task of making our respective industry
policies more responsive to CER objectives.
We acknowledge that greater efficiency in domestic and trans
Tasman transport must be achieved in order for producers and
consumers to fully realise the benefits of free trade. This is
the thrust of our respective domestic policies.
Recognising that the world economy is increasingly characterised
by strong growth in trade in services, we have agreed to bind
our two countries to free trade principles in respect of trans
Tasman services.
We therefore welcome the major achievement of an agreement
covering trans Tasman trade in services. Not only is the
agreement a notable breakthrough between the two countries but
it is also at the forefront of international efforts to provide
agreed rules to liberalise trade in services. It removes
regulations applied to bilateral trade in services, underpins
the viability and dynamism of this large and expanding sector of
our two economies, and provides for further liberalisation as
our respective domestic policies allow. we regard the freedom
of movement between our two countries as an essential element of
free trade in services.
The comprehensive range and coverage of the other agreements and
arrangements settled by ministers at Christchurch will
facilitate the conduct of trans Tasman trade and commerce. They
will bring about great harmonisation in our business regulations
and practices where appropriate and thereby facilitate easier
and more efficient economic interchange between our two
countries. We' welcome also the benefits which will arise from
closer cooperation on quarantine and Customs procedures anW from
reducing technical barriers to trade.
Following the achievement of free trade without exception in
goods across the Tasman and the application of each country's
competition laws to relevant anti-competitive conduct affecting
trans Tasman trade, anti-dumping measures are to be removed from
1 July 1990. We are committed to the removal of anti-dumping
provisions for goods originating in the free trade areas by this
date and to changes to our competition laws to ensure that the
objectives of CER are not frustrated by anti-competitive
conduct.
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4.
We affirm our strong support for the continued development of
closer economic relations between our two countries on an
outward-looking basis. The package we have finalised today
heralds a new chapter in our economic relationship and a trading
environment which, as far as possible, is unencumbered by
Government regulation and direction.
Investment flows have grown in both directions across the Tasman
since 1983 and under current arrangements applications are
generally processed quickly and favourably in both countries.
Having regard to CER, the question of an investment agreement to
preserve and enhance this environment is a matter for ongoing
consideration. It has been agreed that in the year ahead the
two governments will engage in discussions to explore the scope
for such an agreement. Progress will be reviewed by 1990.
In the documents signed by us today, provision is made for a.
review of trans Tasman trade in services in 1990 and of the
overall economic relationship in 1992. These reviews will
provide further opportunity to examine the scope to further
extend the closer economic relationship between our two
countries. The steps we have taken through this Review represent the
governmental contribution to creating a more vigorous trans
Tasman economy. We could not have contemplated changes of this
magnitude had the business communities in both countries not
supported our efforts. We look again to the private sector to
take up the opportunities inherent in our decisions.
The new chapter we have opened in our bilateral economic and
trade relationship will strengthen our ability to participate in
the dynamic growth of the world economy and particularly in the
Asia/ Pacific region, of which we are part. in this context the
decisions we have reached today keep us on the path towards a
dynamic and competitive trans Tasman economy.
18 AUGUST 1988 1257