Macindoe Tim: ASEAN-Australia-New Zealand Free Trade Area Bill — In Committee 
Macindoe Tim: ASEAN-Australia-New Zealand Free Trade Area Bill — In Committee 
[Volume:655;Page:4679] 
TIM MACINDOE (National—Hamilton West) 
: 
 This is my second opportunity to take a call as this important ASEAN-Australia-New Zealand Free Trade Area Bill continues its passage through this Committee and as the Hon Maryan Street has just acknowledged it is good to speak on a matter that enjoys such broad multiparty although not entirely unanimous support in this House. 
Part 1 focuses on the requisite updates to the Tariff Act 1988. Clauses 3 to 10 among other matters amend the principal Act and add definitions relating to the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area to section 2. Importantly the amendments in Part 1 create the legislative means to designate preferential tariffs for goods that are produced or manufactured by the agreement’s parties. 
From New Zealand’s perspective the practical effect of all this will be far-reaching and full implementation in 2020 will see the absence of tariffs on 99 percent of New Zealand’s current exports to the four key markets mentioned a moment ago by the Hon Maryan Street of Indonesia the Philippines Viet Nam and Malaysia. In turn this development based on current trade levels will provide a total saving in duties to our country of NZ$50 million and will no doubt escalate in value to our producers and exporters over succeeding years. 
There will be near-immediate benefits from the enactment of this measure in that tariffs will be eliminated on $429 million worth of current New Zealand exports to Indonesia Malaysia and the Philippines as early as next year and a further $435 million worth of exports to those countries with the addition of Viet Nam will have tariffs removed between 2011 and 2020. There are comparable benefits to our ASEAN trading partners in the provisions of Part 1 which will ultimately see all New Zealand tariffs on ASEAN products phased out altogether by 2020. 
The bill provides for longer phase-out periods—and this is an important safeguard in the agreement—for sensitive sectors such as but not restricted to clothing footwear carpets some textiles and some manufactured products such as steel wooden furniture and plasterboard. 
The overall impact of the enactment of Part 1 will be far-reaching and immensely valuable to this country especially in this very difficult economic climate when we must do all we can to increase the volume of our exports and as my excellent colleague from Otago said in her comments create in our economy the conditions for growth that will see an export-led recovery out of a global recession. 
Stuart Nash 
: Well Tim why did you cut $10 million from the NZTE budget? 
TIM MACINDOE 
: I had absolutely nothing to do with that measure as I am sure Mr Nash is aware. It is a great shame that Mr Nash—who I am sure will stand up in a moment and speak eloquently in support of this bill—wishes to raise red herrings at this point. 
Hon David Cunliffe 
: He hasn’t learnt collective responsibility—what are the whips doing? 
TIM MACINDOE 
: This bill is a significant development I tell Mr Cunliffe for a new Government that is determined to support our productive sector and to facilitate significant and lasting growth in our economy. I can only assume from the fact that the Opposition members are barracking so loudly that they really do not have a clue how to achieve that or how to overcome the obstacles to trade—I emphasise: the obstacles to trade—that hinder our exporters and drive up the prices paid by New Zealanders for our imported goods. Perhaps the Labour members might like to reflect on that benefit as well and listen to what is being said. 
I would like to return to the more magnanimous approach that was adopted a minute ago before the cherubs of the Opposition started to chirp and acknowledge the outstanding leadership of the Hon Tim Groser. He stands foremost and pre-eminent right around the world and he is highly regarded on the international stage for the superb work he has done over many years as a trade negotiator and now as our Minister of Trade. That is no mean achievement. He is an outstanding New Zealander and we are so lucky to have somebody of that talent and experience in this House. 
I acknowledge as did Maryan Street the former Ministers in the previous Government and the officials who have done such outstanding and challenging work. They have shown such tenacity in bringing this agreement to the stage where we have the opportunity to bring it into enactment.