Australia New Zealand Closer Economic Relations Trade Agreement

Quick Facts: Who was Australia New Zealand Closer Economic Relations Trade Agreement?

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Australia New Zealand Closer Economic Relations Trade Agreement

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Free trade agreement between Australia and New Zealand, enhancing economic ties.

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2Day Chrono-Wiki & Primary Historical Archives

Origins & Early Life

The Australia–New Zealand Closer Economic Relations Trade Agreement, commonly known as Closer Economic Relations (CER), is a free trade agreement between Australia and New Zealand. It came into force on 1 January 1983, but the actual treaty was not signed until 28 March 1983 by the Deputy Prime Minister of Australia and Minister for Trade, Lionel Bowen and the New Zealand High Commissioner to Australia, Laurie Francis in Canberra, Australia. This was because Malcolm Fraser and Robert Muldoon hated each other personally to such an extent that they refused to ratify the agreement if the other was there. CER built on the earlier New Zealand Australia Free Trade Agreement (NAFTA), which was signed on 31 August 1965 and came into force on 1 January 1966. NAFTA had removed four-fifths of the tariffs between the two countries and quantitative restrictions on trade across the Tasman Sea.

Career & Major Achievements

However, it came to be seen as too complex and bureaucratic, and in March 1980, a joint Prime Ministerial communiqué was released that called for "closer economic relations". Behind-the-scenes preparation for the 1980 communiqué was managed by a joint task force of civil servants, led on the New Zealand side by the Officials Economic Committee (OEC) under the chairmanship of Secretary to the Treasury Noel Lough. Documents from the 1978–1979 preliminary talks show that the OEC pushed to abandon the restrictive, item-by-item trade structures of the 1965 New Zealand Australia Free Trade Agreement (NAFTA) in favor of a comprehensive "all goods" approach. This blueprint encountered friction from Australian Treasury officials who opposed New Zealand's insistence on a gradualist, linear phasing-out of its protective domestic import licensing system. The two major sticking points in the negotiations were New Zealand's wish for better access for its dairy products in Australia and Australia's wish for New Zealand to remove export incentives and quantitative restrictions.

Enduring Legacy & Impact

After the two hurdles were overcome, the Heads of Agreement was signed on 14 December 1982 and came into force on 1 January of the following year. One of the most important results of CER was the Protocol on the Acceleration of Free Trade in Goods, which resulted in the total elimination of tariffs or quantitative restrictions between the two countries by 1 July 1990, five years ahead of schedule. Other parts of CER include: A good that can be legally sold in one country can also be legally sold in the other. Anyone registered to practise an occupation in one country may practise in the other (with some exemptions including medical practitioners) Service providers may provide services in either country (except in certain areas such as airway services) The CER is complementary to the Trans-Tasman Travel Arrangement. Addressing the New Zealand Parliament in February 2011, Australian Prime Minister Julia Gillard said: Now it's time to write the next chapter as we journey towards a Single Economic Market.

Chronological Milestones & Life Events

1. 1965: 1965 Milestone — CER built on the earlier New Zealand Australia Free Trade Agreement (NAFTA), which was signed on 31 August 1965 and came into force on 1 January 1966.
2. 1978: 1978 Milestone — Documents from the 1978–1979 preliminary talks show that the OEC pushed to abandon the restrictive, item-by-item trade structures of the 1965 New Zealand Australia Free Trade Agreement (NAFTA) in favor of a comprehensive "all goods" approach.
3. 1980: 1980 Milestone — However, it came to be seen as too complex and bureaucratic, and in March 1980, a joint Prime Ministerial communiqué was released that called for "closer economic relations".
4. 1982: 1982 Milestone — After the two hurdles were overcome, the Heads of Agreement was signed on 14 December 1982 and came into force on 1 January of the following year.
5. 1983: 1983 Milestone — It came into force on 1 January 1983, but the actual treaty was not signed until 28 March 1983 by the Deputy Prime Minister of Australia and Minister for Trade, Lionel Bowen and the New Zealand High Commissioner to Australia, Laurie Francis in Canberra, Australia.
6. 1990: 1990 Milestone — One of the most important results of CER was the Protocol on the Acceleration of Free Trade in Goods, which resulted in the total elimination of tariffs or quantitative restrictions between the two countries by 1 July 1990, five years ahead of schedule.
7. 2011: 2011 Milestone — Addressing the New Zealand Parliament in February 2011, Australian Prime Minister Julia Gillard said: Now it's time to write the next chapter as we journey towards a Single Economic Market.

Notable Quotes by Australia New Zealand Closer Economic Relations Trade Agreement

“Now it's time to write the next chapter as we journey towards a Single Economic Market.” (2011)

Historical Fact-Check Quiz: Australia New Zealand Closer Economic Relations Trade Agreement

True or False: “The initial New Zealand Australia Free Trade Agreement (NAFTA) eliminated all tariffs between the two nations immediately upon signing in 1965.”

Answer (FALSE ❌): NAFTA removed four-fifths of the tariffs and quantitative restrictions, but it did not eliminate all trade barriers instantly.

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Frequently Asked Questions about Australia New Zealand Closer Economic Relations Trade Agreement