Changes to the Rules of Origin under the Australia New Zealand Closer Economic Relations Trade Agreement (CER), will reduce costs for exporters, according to ab an online report cby Fibre2Fashion, citing Customs Minister Maurice Williamson and Trade Minister Tim Groser.
The Rules of Origin determine which products are “New Zealand" or "Australian" goods and are able to be exported between the countries free of duty.
The changes were agreed to by the New Zealand and Australian Trade Ministers in June 2010 and took effect early September.
Now material from third countries is permitted in textiles and clothing, headgear, glass jewellery, copper, tools, machinery and appliances, vehicles, boats, furniture and toys.
Williamson was quoted saying the new Rules of Origin enhances the competitiveness of our manufacturers and reduces compliance costs.
"CER is widely recognised as one of the world’s benchmark free trade agreements. These 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," Groser was quoted saying.
Since it was signed in 1983, total trade between New Zealand and Australia has grown at an average of almost 7.5% per year.