Huo Raymond: Trade (Safeguard Measures) Bill — First Reading 
Huo Raymond: Trade (Safeguard Measures) Bill — First Reading 
[Volume:652;Page:1882] 
RAYMOND HUO (Labour) 
: 
 I rise to support the Trade (Safeguard Measures) Bill at its first reading. I am very pleased to see that this bill which was originally introduced by the Hon Lianne Dalziel under the previous Labour Government has been reinstated as a Government bill. It is great to see that legislation introduced by the Labour-led Government is now proceeding through the House at reasonable pace. 
In an age of globalisation New Zealand like any other developed or developing country benefits significantly from the reduction of trade barriers. However as a limited exception to free trade an effective safeguard regime has the potential to promote support for future trade liberalisation among import-competing domestic manufacturers. This bill is about the safeguard regime as part of a coherent trade remedies regime which could and would have positive effects on investment by providing a means to protect domestic industry from international supply shocks. The safeguard regime which is temporary targeted and adjustment orientated is not contrary to but is complementary to trade policies such as tariff reduction. To be specific safeguards are emergency measures applied at the border usually in the form of a duty which may be taken to provide temporary protection to a domestic industry from injury caused by a surge in imported goods. Such regimes are provided for under the General Agreement on Tariffs and Trade and the World Trade Organization Agreement on Safeguards which are intended to facilitate adjustment by a domestic industry to increased import competition. Safeguards of this nature are particularly relevant to New Zealand and to some extent they are vital for us to ensure that manufacturers retain access to an effective safeguards mechanism at a time when other domestic industry is exposed to increasing import competition. 
The existing legislation the Temporary Safeguard Authorities Act 1987 is outdated. It does not provide adequate means for New Zealand to comply with its World Trade Organization obligations should it be necessary to take safeguard action. The legislation was subject to a review under the Labour-led Government and that review included wide public consultation. The bill before the House is the result of that good work. The bill repeals the current Act and doing so will produce compliance with the World Trade Organization rules. It streamlines the process of responding to allegations of dumped or subsidised goods on the New Zealand market something that will definitely be welcomed by New Zealand manufacturers and suppliers. 
Under the leadership of the previous Minister of Commerce the Hon Lianne Dalziel a comprehensive consultation was carried out. Treasury the Ministry of Foreign Affairs and Trade the New Zealand Customs Service and other agencies were consulted on the discussion document. I note with interest that it was proposed that safeguard investigations be carried out by the Ministry of Economic Development—rather than by independent safeguard authorities—which would report to the Minister of Commerce and recommend whether safeguard measures should be imposed. There is a substantial overlap between different regimes and agencies. For instance the current legislation does not provide for the imposition of a final safeguard measure where the measure involves an increase in the standard protection through an increase in the tariff. This must be done by Order in Council under section 9 of the Tariff Act 1988. This can be a lengthy process that could potentially reduce the effectiveness of the safeguard remedy. 
The current bill which is the result of the review and wide consultation promotes efficient transparent and objective investigative and decision-making processes. The changes implemented in the bill will strengthen New Zealand’s safeguards regime and provide better protection for New Zealand domestic industry.