WORLD TRADE
ORGANIZATIONWT/REG127/3
17 October 2002
(02-5644)
Committee on Regional Trade Agreements Original:  English
AGREEMENT BETWEEN NEW ZEALAND AND SINGAPORE
ON A CLOSER ECONOMIC PARTNERSHIP
GOODS ASPECTS
Communication from the Parties
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
The Agreement between New Zealand and Si ngapore on a Closer Economic Partnership,
commonly known as the CEP, entered into force on 1 January 2001.  The two Governments
announced their intention to negotiate an agreement in September 1999, and negotiations were
completed within one year.  After completing six rounds of negotiation, the New Zealand PrimeMinister Helen Clark and the Singapore Prime Mi nister Goh Chok Tong signed the Agreement in
Singapore on 14 November 2000.  Both countries subsequently ratified the Agreement on 15
December 2000.
2. Type of Agreement
The CEP is a comprehensive Free Trade Agreement in conformity with Article XXIV: 8(b) of
GATT 1994.
3. Scope
The CEP covers all trade in goods between the Parties that meet the Rules of Origin criteria as
laid out in Article 5 and Annex 1 of the CEP.
4. Trade Data
For the year ending December 2001,  Singapore’s imports from New Zealand totalled
US$183,112,000 .  New Zealand’s imports from Singapore totalled US$259,352,000.
More detailed bilateral trade statistics are attached to the back of this document.4.1 Trade diversionGiven the low level of New Zealand tariffs, and the fact that Singapore has its MFN tariffs
predominantly already at zero, there would be little in the way of trade diversion created by the CEP.WT/REG127/3
Page 2
II. TRADE PROVISIONS
1. Import Restrictions
There are no import restrictions associated with the CEP.
1.1 Duties and chargesIn accordance with Article 4, all tariffs were abolished on the CEP’s entry into force.1.2 Quantitative restrictionsAs specified in Article 6, neither Party shall adopt or maintain any prohibition or restriction
on the importation of any good of the other Party.
1.3 Common External TariffThis is not applicable to the CEP.
2. Export Restrictions
There are no export restrictions on the trade of products covered by the CEP.
2.1 Duties and charges
As per 1.1 above.
2.2 Quantitative restrictionsAs specified in Article 6, neither Party shall adopt or maintain any prohibition or restriction
on the export or sale for export of any good destined for the territory of the other Party.
3. Rules of Origin
The Rules of Origin are defined in Article 5 and fully expanded upon in Annex 1.  Goods are
treated as originating in New Zealand or Singapore when they are wholly produced or obtained in
New Zealand or Singapore respectively.  When goods are partly manufactured in New
Zealand/Singapore and partly manufactured in another country, they must meet an area contentthreshold of 40% of ex-factory cost in order to secure duty free treatment.  Excise and customs duties
will be excluded from the calculation of qualifying content.  Additionally, the last process of
manufacture must be performed in the territory of the exporting Party.  This cannot be a minimal
process such as packaging.  Quality control and testing will be recognised as a last process of
manufacture for certain products under defined rules.
The Rules of Origin make provision for inclusion of ‘antecedent’ content in the ex-factory
cost calculation so that New Zealand/Singapore content in materials going offshore for further
processing is included in the 40% calculation if the goods are returned to New Zealand/Singapore for
the last process of manufacture.WT/REG127/3
Page 3
4. Standards
4.1 Technical barriers to trade
Part 7 of the CEP provides a flexible framework for addressing technical, sanitary and
phytosanitary barriers to trade issues, including, where appropriate, the implementation of theprinciples of mutual recognition, unilateral recognit ion or harmonization to address technical, sanitary
and phytosanitary barriers.
The CEP includes the text of a mutual recognition agreement for electrical/electronic
equipment attached as a sectoral annex, which came into effect on the signature of the CEP.  New
Zealand and Singapore have also agreed on other priority sectors such as telecommunications
equipment, chemicals and the food sector for further work.
4.2 Sanitary and phytosanitary measuresAs noted above, the CEP also has provisions in place to address sanitary and phytosanitary
barriers to trade.
5. Safeguards
Article 8 stipulates that Singapore and New Zealand shall not have recourse at any time to
safeguard actions on originating imports from each other from the date of entry into force of the CEP.
6. Antidumping and Countervailing Measures
For the purposes of trade between Singapore and New Zealand, Article 9 makes changes to
the WTO Agreement on Implementation of Article VI of the GATT 1994 to tighten the thresholds
before anti-dumping investigations can be commenced or imposed.  Significantly, the de minimis
dumping margin is raised from two to five percent, and the margin of dumped imports normallyregarded as negligible is increased from thr ee to five percent.  Existing WTO provisions on
cumulation are retained.
7. Subsidies and State-aid
Article 7 prohibits all export subsidies on goods , including agricultural products.  This goes
beyond what has been achieved in the WTO.  In the event a domestic subsidy maintained by one Party
causes serious prejudice to the (trade) interests of the other Party, consultations can be sought with aview to limiting the subsidisation.
8. Sector-specific provisions
There are no sector-specific provisions in the Agreement.
9. Other
There are provisions in the CEP which specif ically deal with the issue of customs co-
operation.  Article 11 requires the Customs Administrations of both Parties to work together to
simplify customs procedures, develop mutually beneficial solutions to minimise risks and facilitate
clearance.WT/REG127/3
Page 4
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
Article 71 sets out the exceptions to the CEP based on the standard WTO exceptions as
specified in GATT 1994 Article XX and GATS Article XIV.  Under sub-paragraph 71(d), the Parties
can adopt measures ‘necessary to protect national works, items or specific sites of historical orarchaeological value, or to support creative arts of national value’.  An illustrative list of creative arts
is included in a footnote to the Article.
In addition, Article 74 stipulates that nothing in the CEP shall preclude the New Zealand
Government from adopting measures in order to meet its obligations under the Treaty of Waitangi,
provided that such measures are not used as a means of arbitrary or unjustified discrimination or as a
disguised restriction on trade in goods and services or investment.  Article 75 stipulates that nothing inthe CEP precludes the adoption by Singapore of meas ures to prevent or relieve critical shortages,
subject also to the same proviso as Article 74.  Article 76 permits either Party to take actions
considered essential to its security interests.
2. Accession
Article 79 allows for other WTO Members, states or separate customs territories to accede to
the CEP.
3. Dispute Settlement Procedures
Article 59 obliges the Parties to allow adequate opportunities for consultations in the event
that a dispute arises and to make every effort to reach a mutually satisfactory resolution.  Article 60
stipulates that the Parties may agree at any time to  good offices, conciliation or mediation.  If such
consultations fail to settle a dispute, the Party which made the request for consultations may make a
written request to the other Party to appoint an arbitral tribunal.
Article 61 provides for an arbitration tribunal consisting of three members.  Each Party shall
appoint one member, and these two members shall then agree on the third who shall chair the tribunal.
If the two members cannot agree on the third member, then the Director General of the WTO shall
appoint the third member. The Director General also has powers to appoint an arbitrator in certain
other circumstances where one of the Parties fails to appoint an arbitrator within a specified time
period.  The Director General has agreed to this role as spelt out in Article 61.
The dispute settlement procedures also include detailed provisions as to the functions and
proceedings of arbitral tribunals, as well as the implementation of the tribunal’s rulings or findings.
There are also timeframes specified for each stage of the entire proceedings, so as to give a degree of
automaticity to the process.
Recourse to WTO dispute settlement procedures is still allowed under the Agreement.
4. Relation with other Trade Agreements
Article 80 provides that the CEP will not ov erride a Party’s obligations under any other
international, regional or bilateral agreement.
The CEP is not specifically linked with any other trading agreement.  Article 81 makes clear
that the CEP does not oblige either Party to extend to the other Party benefits derived from itsWT/REG127/3
Page 5
membership of any other existing or future FTA or Customs Union. Also, the benefits negotiated
under the CEP do not automatically extend to each Party’s other FTA partners.
5. Institutional Framework
No intergovernmental or supranational institutions were created to operate the CEP.
The Ministry of Foreign Affairs and Trade of New Zealand and the Ministry of Trade and
Industry of Singapore are the two primary govern mental agencies responsible for the overall
implementation and monitoring of the CEP.  Other specialist agencies have oversight for specific
parts of the CEP.  New Zealand Customs, for example, is the key agency responsible for policing
Rules of Origin and verifying claims for preferential entry under the CEP into New Zealand.  The
New Zealand Ministry of Economic Development is the agency responsible for looking aftergovernment procurement, business law and competiti on issues.  The Ministry of Finance is the agency
responsible for government procurement in Singapore.
IV. OTHER
1. Transparency
Article 69 imposes a number of obligations on New Zealand and Singapore to ensure
transparency of laws, rules and regulations pertaining to trade in goods, services and investment.
Notably, each Party shall endeavour to allow the other Party opportunity to comment on its proposed
laws, regulations and procedures which will affect bilateral trade in goods, services and investment .
2. Business Law
Article 70 obliges the Parties to exchange information on their respective business laws ‘as a
first step in identifying issues for attention and consideration of an appropriate ongoing process for
addressing these issues’.
3. Disclosure of Information
Article 77 enables each Party to withhold information for security or public interests,
compliance with laws including that related to the protection of personal privacy, and law
enforcement, among other reasons.
4. General
In addition to trade in goods, the CEP also covers a number of other areas, including trade in
services, investment, government procurement, competition and intellectual property.WT/REG127/3
Page 6
NEW ZEALAND/SINGAPORE BILATERAL TRADE DATA
Singapore's Imports from New Zealand, Year 1999 - 2001
(Value in US$ '000)
Year Total Imports
1999 173,948
2000 188,012
2001 183,112
Source : International Enterprise Singapore
New Zealand's Imports from Singapore, Year 1999 - 2001
(Value in US$ '000)
Year Total Imports
1999 280,632
2000 232,639
2001 259,352
Source: Prepared by the NZ Ministry of Foreign Affairs and Trade from
Statistics New Zealand Data
Singapore's Imports from New Zealand, Year 1999 – 2001
(Value in US$’000)
HS Code Description 1999 2000 2001 % Change
0402 Sweetened milk powder 17,020 15,325 20,252 32.1
0401 Unsweetened milk and cream 6,178 5,164 7,777 50.6
1605 Molluscs, prepared or preserved 13,375 13,248 7,446 -43.8
0405 Butter and dairy spreads 7,928 7,736 7,382 -4.6
0808 Apples Pears & Quinces Fresh 9,586 7,720 6,572 -14.9
3003 Medicaments With 2 Or More Constituents Mixed Fo r
Therapeutic Or Prophylactic Uses Not For Retail Sale1,467 7,111 5,805 -18.4
8473 Machinery parts 3,211 2,959 5,266 78.0
0202 Frozen beef 6,565 6,649 5,080 -23.6
8703 Motor cars 234 4,011 5,032 25.5
8803 Aircraft parts 1,554 1,574 4,645 195.0
0201 Fresh beef 3,982 4,196 3,876 -7.6
0406 Cheese & Curd 4,223 3,544 3,787 6.8
3004 Medicaments Of Mixed Or Unmixed Products Fo r
Therapeuticuse Etc For Retail Sale1,553 6,420 3,273 -49.0
3906 Acrylic Polymers In Primary Forms 2,395 2,057 3,243 57.7
4804 Kraft Paper 4,613 3,016 3,134 3.9
0810 Other Fruit Fresh 3,976 3,235 2,980 -7.9
0204 Meat Of Sheep Or Goats Fresh Chilled Or Frozen 2,136 1,817 2,652 46.0
8418 Refrigerators 2,800 2,626 2,434 -7.3
7309 Reservoirs Tanks Vats 0 0 2,211 0.0
4801 Newsprint In Rolls Or Sheets 4,336 4,410 2,067 -53.1
Sub-Total for top 20 pro ducts 97,132 102,816 104,913 2.0
Singapore's Total Imports from New Zealand 173,948 188,012 183,112 -2.6
Top 20 as % of Total Imports from New Zealand 55.84% 54.69% 57.29%
Source : International Enterprise SingaporeWT/REG127/3
Page 7
New Zealand's Imports from Sing apore, December Years 1999 – 2001
 (Value: US$’000)
HS Code Description 1999 2000 2001 % Change
8471 Computers, etc 82,801 74,631 52,221 -30.03
2710 Petroleum Oil 14,665 2,375 43,971 large
8473 Machinery, Parts 15,341 14,722 15,892 7.95
3901 Polymers of Ethylene 5,742 7,283 10,541 44.73
8524 Records and Tapes 17,278 9,598 9,613 0.15
3215 Ink 4,936 6,588 8,192 24.34
4811 Paper and Paperboard , nes 6,308 6,806 7,534 10.69
8414 Air or Vacuum Pumps 4,998 4,194 5,820 38.77
2707 Petroleum Oils 191 158 5,193 large
8517 Telephone Equipment 1,888 2,863 3,955 38.14
8525 Transmission Apparatus 23,267 15,087 3,800 -74.81
8527 Reception Apparatus 3,632 2,872 3,660 27.45
3402 Cleaning fluids 1,448 1,691 3,261 92.84
4901 Books, etc 2,920 2,955 2,815 -4.74
9018 Medical or Vet Instruments 2,245 2,199 2,609 18.62
1803 Cocoa Paste 3,468 2,852 2,582 -9.46
2106 Food Preparations 1,540 1,962 2,512 28.07
3902 Polymers of Propylene 762 1,025 2,391 133.33
8803 Aircraft, Parts 132 420 2,333 456.12
2713 Petroleum Coke 12 870 2,257 159.38
Top 20 Imports 193,571 161,151 191,152 18.62
Total Imports from Singapore 280,632 232,639 259,352 11.48
Source: Prepared by the Ministry of Foreig n Affairs and Trade from Statistics NZ data
__________