Third-world materials to boost trans-Tasman trade
From today, New Zealand and Australian products can incorporate material from third-world countries.
Hot Topic
SCIENCE
From today, New Zealand and Australian products can incorporate material from third-world countries.
Material from third countries is now permitted in textiles and clothing, headgear, glass jewellery, copper, tools, machinery and appliances, vehicles, boats, furniture and toys.
Customs Minister Maurice Williamson and Trade Minister Tim Groser say the changes will reduce costs for exporters, and enhance manufacturers’ competitiveness
The alterations were made to the rules of origin. Under the Australia New Zealand Closer Economic Relations Trade Agreement (CER) these rules determine which products are “New Zealand" or "Australian" goods and are able to be exported between the countries free of duty.
The changes that took effect today were agreed to by the New Zealand and Australian Trade Ministers in June last year.
Mr Groser says the changes will bring CER up to date with the realities of the global supply chain.
“Today, some 60% of global merchandise trade is made up of inputs from a wide range of countries which make up highly competitive components, rather than finished products in every case. If New Zealand wants to prosper it must compete in this global supply chain."
Since the CER was signed in 1983, total trade between New Zealand and Australia has grown at an average of almost 7.5% per year.
The Rules of Origin can be viewed here (third drop-down box).
Charlotte Woodfield
Thu, 01 Sep 2011
Thu, 01 Sep 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Third-world materials to boost trans-Tasman trade
16689