A Celebration of Trans-Tasman Relations
20 Years of Closer Economic Relations between Australia and New Zealand

CER and Beyond: Economic Integration in Depth

The CER is the principal agreement that supports the trans-Tasman economic relationship. There are many other agreements and arrangements, some of which are also outlined below.

The CER Agreement (Australia New Zealand Closer Economic Relations Trade Agreement or ANZCERTA) formally signed on 28 March 1983, with effect from 1 January 1983, is the free trade agreement. A Protocol to the CER on the Acceleration of Free Trade in Goods in 1988 provided for the elimination of all remaining tariffs and quantitative restrictions by 1 July 1990.

The Trade in Services Protocol to the CER, signed in 1988, brought services into CER from January 1989. Almost all trans-Tasman trade in services is now open.

The Trans Tasman Mutual Recognition Arrangement TTMRA (1998) is an agreement between the Australian and New Zealand Governments and the Governments of the Australian States and Territories, which provides that goods that may legally be sold in either country may be sold in the other. A person who is registered to practise an occupation in either country is entitled to practise an equivalent occupation in the other.

Agreed Minute on Industry Assistance, signed by Trade Ministers in 1988, and amplified by later correspondence, provides for consultation between the Australian and New Zealand Governments on changes to industry assistance.

The Open Skies Agreement Transport Ministers agreed in a Memorandum of Understanding in November 2000 to allow Australian and New Zealand international airlines to operate across the Tasman, and then beyond to third countries without restriction. (The MOU gave immediate effect to an Air Services Agreement, signed in August 2002.) In addition international airlines of both countries are able to operate dedicated freight services using what are known as "seventhfreedom" rights. These rights, for example, allow a New Zealand dedicated freight carrier to operate services directly from Australia to third countries without operating out of New Zealand. Open Skies formalized the Single Aviation Market arrangements of 1996, which allowed all Australian and New Zealand owned airlines to operate trans-Tasman services and domestic services in either country subject to the necessary safety approvals.

Customs Cooperation Arrangement (1996) provides for cooperation to harmonise customs policies and procedures, assist in the prevention investigation and repression of offences and resolve problems of customs administration and enforcement, particularly in the Asia Pacific Region.

Protocol on the Harmonisation of Quarantine Procedures, signed by the Prime Ministers in 1988, provided for work towards common administrative procedures for quarantine.

Joint Accreditation System Australia and New Zealand JAS-ANZ (1991) established under the Agreement on Standards, Accreditation and Quality (1990) is the joint accreditation body for certification of management systems, products and personnel.

Arrangement on Food Inspection Measures Under the Imported Food Control Act 1992 and following a 1996 exchange of letters between Trade Ministers,all food traded between Australia and New Zealand,with the exception of that identified as Risk Food,is exempt from import inspection.

Food Standards Australia New Zealand (formerly ANZFA) is a bi-national statutory authority that develops common food standards to cover the whole of the food chain "from paddock to plate". FSANZ operates under the Food Standards Australia and New Zealand Act 1991.

The Joint Australia New Zealand Food Standards Code became the sole food standards code in operation in Australia and New Zealand on 20 December 2002.

MOU on Business Law Coordination 2000 provides a framework for work on the alignment of business laws in order to increase the ease of capital flows and trans-Tasman business integration

Government Procurement Agreement In 1991 New Zealand joined the Commonwealth/State National Preference Agreement.

Joint Therapeutic Products Agency Australian and New Zealand Ministers for Health have agreed in principle to establish a joint Therapeutic Goods Agency (TGA). Negotiations between the two countries on the arrangements to establish the agency are continuing.

"Trans-Tasman Travel Arrangement" A term applied to the collection of Ministerial understandings which allow Australians and New Zealanders to visit, live and work in the other country.

Social Security Agreement 2002 A cost sharing arrangement covering aged pensions, disability support pensions and carer payments for partners of disabled persons and comparable New Zealand benefits for Australia and some parenting and partner allowances for Australian and New Zealand residents.

Reciprocal Health Care Agreement 1998 deals with access to health care by Australians and New Zealanders traveling in the other country.

The Double Taxation Agreement January 1995 contains provisions for the avoidance of double taxation and the prevention of fiscal evasion in relation to income flowing between Australia and New Zealand.

Extension of tax imputation. In February 2003 the Treasurer and his New Zealand counterpart agreed to extend Australias and New Zealands imputation regimes to include certain companies resident in the other country. For example, a New Zealand company that has Australian operations and Australian shareholders will be able to keep an Australian franking account. The expected date of effect of the new legislation is 1 April 2003 for New Zealand companies maintaining a franking account and Australian companies maintaining an imputation credit account. Franked or imputed credits can be paid out from 1 October 2003 in Australia or New Zealand.