House of Representatives

Second Reading Speech

Mr Brendan O'Connor (Minister for Privacy and Freedom of Information, Minister for Home Affairs and Minister for Justice)

I move:

That this bill be now read a second time.

The Customs Amendment (New Zealand Rules of Origin) Bill 2011 implements changes to article 3 of the Australia-New Zealand Closer Economic Relations Trade Agreement, commonly referred to as the ANZCERTA.

The ANZCERTA has been a remarkable success. It is Australia's longest standing bilateral free trade agreement, having been in force since 1983. It is a wide-ranging agreement that provides Australia and New Zealand with liberal access to each other's goods and services markets. The World Trade Organization recognised it as 'one of the world's most comprehensive, effective and multilaterally-compatible free trade agreements'.

Australia and New Zealand provide duty free access to each other's goods that meet the rules of origin requirements in the ANZCERTA. On 1 January 2007, these rules of origin provisions underwent significant change to allow both the 'change in tariff classification' and the 'regional value content' methods to determine origin of goods. As part of the 2007 amendments to the ANZCERTA, both countries have agreed to conduct a review of the new rules of origin within three years of these new rules taking effect. This review, commenced in late 2008 and completed in March 2010, resulted in changes to the text of ANZCERTA article 3 'Rules of Origin' and the related Product Specific Rules in annex G to the ANZCERTA. Amendments to the Customs (New Zealand Rules of Origin) Regulations 2006 will implement the changes to annex G.

The changes to the ANZCERTA, implemented domestically through this bill and amendments to the Customs (New Zealand Rules of Origin) Regulations 2006, will reduce the administrative burden on businesses, facilitate the eligibility for duty free entry of goods into both markets, and provide greater consistency between the ANZCERTA Rules of Origin and those of other trade agreements negotiated by Australia. I commend the bill to the House.

Debate adjourned.