Explanatory Memorandum
Circulated By Authority of the Minister for Home Affairs, the Honourable Brendan O'Connor MpANNEX H
AANZFTA - CER RELATIONSHIP
1. Australia and New Zealand have exchanged letters setting out an agreement to limit application of the AANZFTA between each other, given the Australia-New Zealand Closer Economic Relations Trade Agreement and its related agreements and understandings (CER).
2. The side-letters confirm that the introductory chapter of AANZFTA and the AANZFTA tariff commitments and associated rules of origin will apply between the two countries (i.e. exporters will be able to take advantage of regional rules of origin under AANZFTA in trans-Tasman trade provided that the AANZFTA Tariff Schedule is used). The general provisions and exceptions chapter of AANZFTA will apply to the extent that AANZFTA is applied between Australia and New Zealand.
3. Australia and New Zealand have further agreed that there will be no trans Tasman application of AANZFTA's chapters on goods safeguards, investment and dispute settlement.
4. Australia and New Zealand will consider the merits of having other chapters of the AANZFTA apply between each other. In the interim, those other chapters will not apply between Australia and New Zealand.