O'Connor DamienWEDNESDAY 9 NOVEMBER 2022(continued on Thursday 10 November 2022)UNITED KINGDOM FREE TRADE AGREEMENT LEGISLATION BILLAPPLE TRANSITIONAL EXPORT QUOTA BILLThird ReadingsHon DAMIEN O'CONNOR (Minister for Trade and Export Growth): I present the legislative statements on the United Kingdom Free Trade Agreement Legislation Bill and the Apple Transitional Export Quota Bill.ASSISTANT SPEAKER (Hon Jenny Salesa): Those legislative statements are published under the authority of the House and can be found on the Parliament website.Hon DAMIEN O'CONNOR: I move That the United Kingdom Free Trade Agreement Legislation Bill and the Apple Transitional Export Quota Bill be now read a third time. These two bills have undergone the scrutiny of the parliamentary process. Following the first reading in July the United Kingdom Free Trade Agreement Legislation Bill was referred to the Foreign Affairs Defence and Trade Committee where it was exhaustively examined. The committee recommended that the bill proceed with a limited number of amendments related to Part 5 of the bill Apple transitional export quota". Further technical amendments were also made for clarity and consistency. At the committee stage Part 5 was split out from the rest of the bill creating two bills: the United Kingdom Free Trade Legislation Bill and the Apple Transitional Export Quota Bill. This split accords with Standing Order 317 given Part 5 creates a completely new legislative framework in whole whereas other parts amend existing legislation. Part 5 will also be repealed earlier than other parts of the bill as the apple quota will only be enforced until the end of the third year that the free-trade agreement (FTA) is in force. Beyond that there will be no restrictions. It is a pleasure to speak in support of these two bills and in support of the gold standard New Zealand - United Kingdom Free Trade Agreement (FTA) and I'd like to acknowledge the high commissioner who is in the House today. Thank you for the support. The UK FTA is a high-quality inclusive and precedent-setting agreement. It contains important benefits for New Zealand benefits for our exporters for our small and medium enterprises for Māori for the environment and much more. Our two countries have a uniquely close bond including a significant connection between Māori and the UK given the role of the British Crown as one of the original signatories of the Treaty of Waitangi. Ours is a partnership grounded in common traditions experiences and values strengthened and maintained by deep people-to-people links and made relevant by close cooperation across the entire spectrum of engagement: economic health science innovation sport defence and security. This FTA forms an important new cornerstone—the cornerstone of the contemporary relationship between New Zealand and the UK. The free-trade agreement is a key component of New Zealand's trade recovery strategy which recognises that trade is a key driver of our economy from the economic impacts of COVID-19. It is another big step in providing future economic security for our entire nation. It's also a representation of this Government's Trade For All agenda an approach to ensure that the benefits of trade are channelled to all sectors of our society. I believe that this is the true test of the value of any free-trade agreement. Trade is also important for building a high-wage low-emissions economy that supports economic security. New Zealand's work to provide strategic trade depths through concluding a series of free-trade agreements with key partners provides New Zealanders with as many trading opportunities and options as possible. Pursuing high-quality and ambitious FTAs is a key to strengthening New Zealand's trade architecture and resilience under this strategy. The UK FTA is a significant addition to New Zealand's FTA network and will contribute to our diversified trade portfolio assisting New Zealand's recovery from the economic impacts of COVID-19. The free-trade agreement will also deliver preferential access to the UK's $3 trillion consumer market with over 67 million people for the first time in nearly 50 years since the UK entered the European Community in 1973. The FTA will create the conditions for New Zealand trade to grow particularly in areas where it has previously been constrained due to very high tariffs such as beef and dairy and in new innovative sectors such as gaming and fintech. The market access package that we have agreed is among the very best New Zealand has secured in an FTA. At full implementation the UK will eliminate all tariffs on all New Zealand exports and 99.5 percent of current New Zealand exports will enter the UK duty-free on the first day the FTA is in force thanks to a combination of tariff elimination and sizeable duty-free quotas. At full implementation the FTA is expected to boost the New Zealand economy by between $700 million and $1 billion with New Zealand annual exports to the UK estimated to grow by over 50 percent or by up to we think $2.2 billion and I'm sure it will go beyond that. The FTA contains significant outcomes for matters of interest to Māori recognising the importance that Māori place on this agreement. This includes a dedicated trade and economic cooperation chapter that will create a platform for cooperation on a range of issues important to Māori the inclusion of Māori perspectives and concepts in the environment chapter and importantly the preamble to the FTA recognises the unique relationship between Māori and the British Crown as an original signatory to Te Tiriti o Waitangi the Treaty of Waitangi. As with all FTAs since 2001 the agreement includes New Zealand's Treaty of Waitangi exception that ensures that nothing in the FTA would prevent a New Zealand Government from meeting its obligations to Māori. In addition the UK FTA does not constrain the New Zealand Government's right to regulate for legitimate public policy purposes.The deal includes new guarantees of market access and more certainty for our services exporters investors and for Kiwi businesses wanting to access the UK Government's procurement market. It will establish a level playing field for New Zealand businesses operating in investing in the UK. We've also agreed to cooperate with the UK in a range of areas including the digital trade to assist our growing tech sector. As the first FTA launched and concluded under New Zealand's Trade For All agenda this FTA sets high ambition commitments in inclusive and sustainable trade. Trade For All principles and priorities were embedded in New Zealand's approach to the negotiations from the outset and are clearly reflected in the final outcomes. This is New Zealand's first bilateral free-trade agreement to include a dedicated chapter on trade and gender equality to support women's economic empowerment. We've also secured equality outcomes on trade and development small and medium enterprises trade and labour and anti-corruption. The FTA also includes far-reaching commitments on trade and the environment. This includes including concrete steps to eliminate subsidies on fossil fuels provisions to combat overfishing and specific articles on climate change. The trade and environment chapter will prioritise the elimination of tariffs on over 290 environmentally beneficial products. This is a significant list and is the largest ever agreed by either New Zealand or the UK. I believe trade holds the solution to many global challenges and our trade and environment chapter is a significant step in addressing climate change at this critical time. Given the difficulties both of COVID-19 and the challenges to the international trading system the achievement of this gold standard deal cannot be overstated and speaks to New Zealand's long history of negotiating high-quality and inclusive trade agreements. The FTA sends an important signal of New Zealand's openness to trade and signals our ability and commitment to progress and conclude trade agreements that deliver for New Zealand. The UK FTA is one of the best deals New Zealand has signed and will assist the development of stronger trade economic cultural and people-to-people links between our countries. The UK is also in the process of acceding to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and this is a further welcome development. The fact that a G7 economy like the UK is interested in joining CPTPP highlights the value of the agreement and the rules-based trading system. New Zealand is supportive as we've said all along for the UK joining the CPTPP as it will build on this bilateral free-trade agreement. It will further deepen trade linkages and embed UK in the economic architecture of the Indo-Pacific region. There are a limited number of legislative and regulatory amendments that are required to align New Zealand's domestic law with certain obligations in this free-trade agreement. The United Kingdom Free Trade Agreement Legislation Bill and the Apple Transitional Export Quota Bill will both enable New Zealand to implement its obligations under this FTA. I'd just like to finally say that I must compliment the many many officials in New Zealand and in the UK as well for their commitment. A lot of this occurred by way of Zoom which was a new and challenging process that required a huge amount of trust. Those officials carried that out in an absolutely professional manner and I want to thank them—Brad Burgess in particular who led the charge but the whole team at the Ministry of Foreign Affairs and Trade. I'd also like to acknowledge as I have the commitments of both Liz Truss and Anne-Marie Trevelyan in the UK as Ministers who championed this agreement and I hope that the passage of legislation in the UK will enable this bill to be brought into force as soon as possible. Thank you.ASSISTANT SPEAKER (Hon Jenny Salesa): Thank you Minister. The question is that the motion be agreed to."