Laban Luamanuvao Winnie: Tariff (New Zealand - Thailand Closer Economic Partnership) Bill — Second Reading Instruction to Committee In Committee Third Reading 
Laban Luamanuvao Winnie: Tariff (New Zealand - Thailand Closer Economic Partnership) Bill — Second Reading Instruction to Committee In Committee Third Reading 
[Volume:626;Page:21425] 
LUAMANUVAO WINNIE LABAN (Labour—Mana) 
: 
 Kia ora talofa lava sawasdee and warm Pacific greetings. I have much pleasure indeed in standing to speak during the third reading of this very very historic legislation the Tariff (New Zealand - Thailand Closer Economic Partnership) Bill of 2005. I want to thank especially the honourable Minister for Trade Negotiations Jim Sutton and also the officials from the Ministry of Foreign Affairs and Trade who have worked tirelessly in negotiating this special agreement between the peoples of Thailand and of New Zealand. It does indeed represent a significant economic and strategic opportunity for New Zealand. It not only opens up more opportunities for New Zealand businesses but is also an important step towards improving our trading environment in the region and worldwide. 
I want to respond to a couple of issues. One raised by some members on the Foreign Affairs Defence and Trade Committee was the Treaty of Waitangi. The relevant provision in this closer economic partnership does not have any impact on the nature of the Government’s policy in relation to Maori. It is not uncommon in international trade agreements for countries to reserve the right to accord more favourable treatment to indigenous peoples or ethnic minorities. In fact back in 1994 New Zealand recorded a reservation in its schedule of commitments under the General Agreement on Trade in Services (GATS). That provided for more favourable treatment to be accorded to any Maori person or organisation but Australia Canada Malaysia the United States and France—on behalf of New Caledonia—have all included some form of indigenous reservation in their GATS schedules. 
I also want to respond to my colleague from New Zealand First in terms of the impact of the closer economic partnership on jobs. Although a lot of allegations about job losses are made by a lot of people who are essentially opposed to free-trade agreements there is no evidence to substantiate those allegations. The impact of opening up the New Zealand market to imports from Thailand is expected to be very muted. It is not expected that tariff reduction and removal on imports from Thailand will have a direct impact on employment. 
On the other side of the ledger a good number of export-focused industries have welcomed the outcome of the closer economic partnership and the opportunities it opens up for developing trade with Thailand. At this point in time I want to point out the benefits and how New Zealand will gain from this agreement. I will give some examples of the sectors that will benefit from the complete elimination of tariffs from 1 July this year. There will not be annual duty payments of about NZ$3 million on current levels of infant milk-food products. New opportunities will be opened up for the export of avocados cherries persimmons and kiwifruit as a result of the removal of the 30 to 40 percent tariffs on those products. The removal of the 40 percent tariff on carrots will allow New Zealand exporters to regain the NZ$2.5 million market lost to China. A large number of manufactured exports will see their tariffs completely eliminated including the 15 percent tariff on gas pumps the 5 to 10 percent tariffs on plastic moulding equipment and the 15 percent tariff on radio parts. 
I refer now to a letter that the New Zealand Horticulture Export Authority wrote to the Foreign Affairs Defence and Trade Committee urging it to support this special partnership agreement. The authority stated: “New Zealand fruit and vegetable exports have dropped from almost $13 million in 2002-03 to $7 million in 2003-04. This is the direct result of the free-trade agreement signed between Thailand and China coming into effect on 1 October 2003 providing tariff-free access for all fruit and vegetables. The New Zealand - Thailand CEP will reduce tariffs on a range of products from 40 percent to 0 from 1 July 2005 allowing New Zealand exporters to compete on a level footing with Chinese suppliers.” The authority stated in the last paragraph of its letter: “Thailand particularly Bangkok is a dynamic and rapidly growing economy. This positions the New Zealand horticultural industry extremely well to take advantage of growing demand and affluence. The New Zealand horticultural industry looks forward to the passing of the Tariff (New Zealand - Thailand Closer Economic Partnership) Bill which will deliver real benefits to our growers and exporters.” 
It is indeed a pleasure to stand to support the bill. I thank all those involved including the chair of the select committee the Hon Peter Dunne my colleague the Hon Lockwood Smith our other National colleagues who have supported the passage of this bill the Hon Matt Robson from the Progressives and also my Labour colleagues. I also thank New Zealand First and the Greens for not supporting us. Other than that this is a great day for New Zealand and I thank you.