Twyford Phil: ASEAN-Australia-New Zealand Free Trade Area Bill — In Committee 
Twyford Phil: ASEAN-Australia-New Zealand Free Trade Area Bill — In Committee 
[Volume:655;Page:4684] 
PHIL TWYFORD (Labour) 
: 
 I will direct my comments to some of the very specific provisions of the ASEAN-Australia-New Zealand Free Trade Area Bill and to the very specific benefits that will accrue to New Zealand exporters as a result of this legislation being passed. But I will first say as a number of people have said before that this bill has significant benefits for New Zealand producers and the New Zealand economy. We are talking about over time the elimination of $50 million in tariffs that are currently being paid by New Zealand exporters and strengthening our relationship with a very significant market of 566 million people that accounts for $1.4 trillion in global trade. Whichever way we slice it this bill is significant. It is not a panacea but it is a very useful building block in the long-term engagement of New Zealand with that incredibly important regional market. 
I will talk about some of the specific benefits for New Zealand and our firms. If we take for instance the dairy sector by 2010 tariffs will be eliminated on whole-milk powder butter ice cream and cheese in Indonesia and on casein milk powder cheese and buttermilk in the Philippines. 
Hone Harawira 
: Our next Prime Minister. 
PHIL TWYFORD 
: I would expect members on the other side of the Chamber to realise just what a significant benefit that is for New Zealand producers. It is not only the trade in dairy products. Let us talk about the meat and wool industry. Tariffs on key beef exports will be eliminated in the Philippines by 2012 and in Indonesia in 2020. Tariffs on sheep meat for the Philippines will be gone by 2010 and in Viet Nam by 2016. Let us talk about forestry. Over a 12-year period from 2010 tariffs on key products will be eliminated including tariffs on fibreboard and paper in Indonesia and on less-processed wood products for the Philippines. It is not only dairy meat wool and forestry; a wide variety of horticultural products will benefit with some global exports subject to early tariff elimination. For instance apples and kiwifruit will benefit from the removal of tariffs in 2010 in Indonesia in 2011 in the Philippines in 2012 in Malaysia and in 2016 in Viet Nam. In relation to manufactured goods a key benefit of this agreement is that for our manufacturers the rules of origin can be met on a regional basis. This means that New Zealand manufacturers will benefit from not only improved direct access but also the ability to include New Zealand materials in the origin assessment of goods manufactured and traded within the region. The trade in services also has important outcomes for New Zealand producers. This agreement will greatly assist in the expansion of trade and services between New Zealand and our ASEAN partners. 
The free-trade agreement includes a trigger for negotiations on improving services commitments. If after this agreement comes into force any of the ASEAN partners negotiate a subsequent agreement on trade in services at some stage in the future those benefits over and above this agreement will automatically be passed on to New Zealand. In addition to that clause Viet Nam has committed to provide most favoured nation treatment to New Zealand for certain higher education services including distance learning and Internet-based education services. Any improvements that Viet Nam provides to a future partner will be passed on to New Zealand. Those are valuable benefits to New Zealand exporters. 
New Zealand business services that will benefit from this legislation include legal services for Indonesia and Viet Nam accounting services for Malaysia Burma and the Philippines and taxation services for Malaysia. The list just goes on and on: computer and related services and research and development services with Indonesia. We are also talking about communications such as telecommunications in Brunei Indonesia Malaysia the Philippines and Thailand. It is very significant and includes construction and related engineering services and educational and environmental services. The other important area in this agreement is investment. The agreement delivers some fantastic protections for New Zealand investors. 
The question was put that the amendments set out on Supplementary Order Paper 27 in the name of the Hon Tim Groser to Part 1 be agreed to. 
Amendments agreed to. 
Part 1 as amended agreed to.