Changes to CER Rules of Origin a boost to trans-Tasman trade

Changes to the Rules of Origin under the Australia New Zealand Closer Economic Relations Trade Agreement (CER), will reduce costs for exporters Customs Minister Maurice Williamson and Trade Minister Tim Groser say.

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 take effect today.

Now material from third countries is permitted in textiles and clothing, headgear, glass jewellery, copper, tools, machinery and appliances, vehicles, boats, furniture and toys.

"The new Rules of Origin enhances the competitiveness of our manufacturers and reduces compliance costs," Mr Williamson says.

Mr Groser says the agreement shows the CER continues to deliver benefits for New Zealand.

"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."

Since it 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 at http://www.mfat.govt.nz

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