. /.WORLD TRADE
ORGANIZATIONWT/REG111/R/B/1/Add.1
G/L/406/Add.1
5 December 2001
(01-6208)
Original:  English
AUSTRALIA AND NEW ZEALAND CLOSER ECONOMIC RELATIONS
TRADE AGREEMENT (ANZCERTA)
FREE TRADE AGREEMENT BETWEEN AUSTRALIA AND NEW ZEALAND
Biennial Report on the Operation of the Agreement
Communication from the Parties to the Agreement
Addendum
This document reproduces questions addressed to the Parties and the responses provided by
them.
_______________
II. TRADE PROVISIONS
7. Subsidies and State-aid
The Parties report that they have agreed to try to avoid industry specific measures
(bounties, subsidies and other financial support) which have adverse effects on competition
between industries in the free trade area.  In order to support this objective, the parties have
established notification and consultation commit ments which apply in cases where either Party
considers that such a measure must be adopted.  The Parties have also agreed to give due
consideration to representations from each other on the possible effects industry-specific non-
financial measures may have on competition between industries in the free trade area.
Can the Parties please report further on their experience of the operation of these
provisions?  For example, how often have the notification and consultation commitments in
respect of financial support measures been brought into play?  With what results?  Similarly,
how frequently have representations been made in relation to the effects of non-financial
measures on competition and with what results?  More generally, how do consultation
obligations described in relation to Subsidies and State Aid relate to the general consultationobligation described in Section III:3 (Dispute Settlement Provisions) of the report?
Under the terms of the 1988 Agreed Minute on Industry Assistance, Australia and New
Zealand agreed to consider the implications of industry specific measures, and to initiate consultation
when possible adverse effects were identified on competition between the two countries.  The Minuterequires each party to notify and consult on industry assistance decisions, and to take the other party’s
views into account before making its final decision.  A minimum time period of one month is to be
allowed for the other party to present its views.   Although no formal process is maintained for
notification and consultation commitments concerning industry specific measures, representations are
considered when they are raised by the other party including in the context of discussions at the
annual CER Trade Ministers’ Meetings.  The agencies responsible for industry policy in each countryWT/REG111/R/B/1/Add.1
G/L/406/Add.1
Page 2
consult as necessary in accordance with the spirit and provisions of the Agreed Minute, in the case of
both financial and non-financial measures.  In accordance with Article 22 of the CER Agreement,
Australian and New Zealand Trade Ministers are obliged annually to review, consult and undertake
dispute settlement including those relating to industry assistance measures.  Due to the requirementsof Cabinet and commercial confidentiality specific details on representations are not available.
__________