Nash Stuart: ASEAN-Australia-New Zealand Free Trade Area Bill — In Committee 
Nash Stuart: ASEAN-Australia-New Zealand Free Trade Area Bill — In Committee 
[Volume:655;Page:4687] 
STUART NASH (Labour) 
: 
 I am speaking in favour of this ASEAN-Australia-New Zealand Free Trade Area Bill—that I have made clear. I find myself in the very unusual situation of actually agreeing with everything that the last two Government speakers have said. 
Hon Member 
: Very unusual. 
STUART NASH 
: It is very very unusual. In fact if I had not had a big lunch I think I would probably find myself falling down in my chair and fainting. 
This is a very important bill and Part 2 is a very important part of this bill as well. It sets out the amendments to the Customs and Excise Act 1996. If we go through a clause by clause analysis of this bill we find that the first clause of Part 2 which is clause 11 states that the bill amends the Customs and Excise Act 1996. It sets out the regulatory environment that updates what is happening and brings us forward to the 21st century. Clause 12 sets out the purpose of Part 2. The purpose is “to amend the principal Act to provide for a system of issuing New Zealand certificates of origin in relation to goods being exported to countries”. When we talk about certificates of origin rules of origin etc. we bring in the Customs Service. 
The member who just resumed his seat Dr Paul Hutchison talked about our need to have a very robust Customs Service and I could not agree more with him. He said that this was a priority for the National Government. Well I say that having a robust Customs Service has been a priority for every Government and it has to be the priority of all Governments. When we think that our economy is based upon agriculture forestry and a lot of the time monoculture we realise that if our Customs Service and our phyto—whatever that big long word is— 
Todd McClay 
: Phytosanitary protection. 
STUART NASH 
:—I thank Mr McClay—our phytosanitary protections are not up to date then the harm that can be done to our economy is absolutely huge. It is a priority to have a robust Customs Service which is what we do have by the way. It is very efficient and is one of the best in the world. In fact it had to be after 9/11. I think the Chairperson the Hon Rick Barker was responsible for turning our Customs Service into one of the best in the world. I fully support that as well. 
If we look at the rules of origin we see that Part 2 is very important. The inclusion of robust rules around certificates of origin allows New Zealand exporters to effectively take advantage of the preferential treatment and conditions offered under the free-trade agreement for trade of goods without undue compliance costs. A free-trade agreement is about getting rid of undue compliance costs; in fact it is getting rid of most of the compliance costs. The phrase “undue compliance costs” is almost an oxymoron is it not? But we all know that there needs to be a certain level of compliance in order to allow for the provision of free trade to make sure that we get it right and to make sure that our laws and the host laws are obeyed. 
This agreement also provides a mechanism through which originating goods can be cumulated across the parties. The export opportunities under this free-trade agreement are expanded not only through direct access to New Zealand goods for ASEAN markets but also through the ability to include New Zealand materials and origin assessment of goods manufactured and traded within the region by Australian and ASEAN manufacturers and exporters. 
As we have said before one area that we really need to improve within New Zealand is our manufacturing sector. This legislation helps those involved in the sector without a question of a doubt. It allows them to set strategic plans and strategic goals. We have heard about the fantastic Hawke’s Bay company called Future Products Group run by a guy called Robert Darroch. He is the sort of New Zealand manufacturer who will do incredibly well out of Part 2. It means that he can plan with certainty. He can look at his markets he can put together a strategic plan and he can know with a high degree of certainty that on certain dates tariffs will be removed from the products that he is sending to all these ASEAN countries. 
Dr Ashraf Choudhary 
: It’ll have the level of origin there as well. 
STUART NASH 
: Absolutely; the level of origin is most important. This will also allow other manufacturers who are perhaps not in the export market at the moment but who want to get into those markets to plan with certainty as well. It is very very important that the New Zealand economy grows and reaches the top half of the OECD as that will take us forward to 2011 when the next Labour Government will take over. 
This agreement also provides co-equal or alternative rules for the majority of product lines. This means that manufacturers and exporters can choose between a change in tariff classification approach and a regional value content approach with about 40 percent free on board.