Street Maryan: Tariff (Malaysia Free Trade Agreement) Amendment Bill — Second Reading In Committee Third Reading 
Street Maryan: Tariff (Malaysia Free Trade Agreement) Amendment Bill — Second Reading In Committee Third Reading 
[Volume:664;Page:12144] 
Hon MARYAN STREET (Labour) 
: 
 It gives me great pleasure to rise and speak in the third reading of the Tariff (Malaysia Free Trade Agreement) Amendment Bill. Although it gives me great pleasure I am sure that it will give Lain Jager and Carol Ward of Zespri Group even greater pleasure to know that the third reading of this bill is now before the House. And so it will pass in a matter of minutes. 
I make the reference to Zespri because as we have traversed in the second reading and Committee stage the benefits of this free-trade agreement—and will continue to do so in the third reading—it is clear that as far as the exporting of goods is concerned this is indeed a very high-quality free-trade agreement. Within very short order in comparison with other free-trade agreements we will see almost all tariffs eliminated from our goods exported into Malaysia. By 2016 99.5 percent of our goods will be tariff free. Better than that at the moment of implementation there will be a benefit instantly for kiwifruit and for other primary production items. In the case of kiwifruit we will see the elimination of a 15 percent tariff on exports. 
That is a multimillion-dollar deal for one of our horticulture industries. That multimillion-dollar deal means that profit will be retained within New Zealand and it will not carry the cost of the tariff that has applied until this moment. As I think mentioned in the second reading along with our other primary products that are exported into Malaysia—butter cheese honey wool apples milk-powder and increasingly now liquid milk as well—with this free-trade agreement we will see an improvement in the profit margins for all of those industries because of the elimination of the tariff cost. 
We have talked quite a lot about the benefit for trade in goods. I now take the opportunity of this third reading to focus a little on those things that I have not had time to speak about in my previous contributions. I want to talk a bit more about the trade in services which is particularly significant in this free-trade agreement. The services referred to in this free-trade agreement are substantial. The one of particular interest is education. Education is New Zealand’s single most important services export after tourism. Tourism attracts very few barriers but that sector and the education services sector stack up very very favourably as the most important services export sectors. What has been achieved in this free-trade agreement is that access for the education services sector has become New Zealand’s highest priority for the negotiation of services in this free-trade agreement. We have a very good deal—a very good arrangement—that includes primary secondary and higher education plus additional training particularly English language training. Making that education available on very favourable terms in Malaysia will boost our education exports here. 
Malaysia has agreed to provide New Zealand with most favoured nation treatment in private education. It means that education providers will enjoy the best treatment that Malaysia gives any of its competitors from other countries. Having a most favoured nation status in respect of education exports will make things easier for our very qualified and very capable education sector. I made reference earlier to the fact that Malaysian universities are keen to improve their performance and that the Malaysian Government is keen to improve the performance of Malaysian universities. With the research and teaching record in our tertiary education sector we can assist in that area and that also benefits New Zealand. 
I will say a couple of other things about this agreement in general. I have spent some time talking about the binding treaty agreements on labour and the environment that are a part of this free-trade agreement. I reiterate the fact that these agreements remain dynamic as does the free-trade agreement. Should any disputes or issues arise out of the maintenance of labour standards according to ILO declarations and principles or any application of domestic labour policies that are used for protectionist purposes there is a process to resolve those issues right up even to ministerial level. 
I look forward to additional clauses I suppose being added into such free-trade agreements in future because it seems to me that this will be the way of trade in the future. If we do not care in a cooperative way for the fragility of this planet then it does not matter how good we are at producing high-quality exports because there will be no orderly productive and sustainable means of continuing trade. I cannot overstate that point. In the end it remains the most critical basis on which we engage with other countries. Either we have a sustainable planet or we do not and if these agreements can be used to enhance cooperative arrangements for sustainability sustainable production and sustainable trade arrangements then so much the better. The world is better for it. 
This free-trade agreement is significant. When we were in Malaysia the Minister of Trade talked about it being the icing on the ASEAN free-trade agreement cake. It is just much better in its terms and timing than the ASEAN free-trade agreement which is a significantly beneficial agreement on its own. We have a long history of engagement with Malaysia particularly on cultural and educational matters. It is fitting that this House passes this legislation without further delay and that the free-trade agreement with Malaysia proceeds forthwith. Thank you.