O'Connor DamienUNITED KINGDOM FREE TRADE AGREEMENT LEGISLATION BILLSecond ReadingHon DAMIEN O'CONNOR (Minister for Trade and Export Growth): Thank you Madam Speaker. I present a legislative statement on the United Kingdom Free Trade Agreement Legislation Bill. ASSISTANT SPEAKER (Hon Jenny Salesa): That legislative statement is 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 be now read a second time. It is a pleasure to move in support of this bill. Following the bill's first reading in July the bill was referred to the Foreign Affairs Defence and Trade Committee where it was extensively examined. The committee considered the bill between 26 July and 20 October and it recommended that the bill proceed with a limited number of amendments related to Part 5 of the bill: the apple transitional export quota. Further technical amendments were also made for further clarity and consistency. I want to express my thanks to all those involved in this important examination process from members of the committee to civil society and business representatives. The New Zealand - United Kingdom free-trade agreement (FTA) is a high-quality inclusive and precedent-setting free-trade agreement that will provide real benefits for New Zealand. The global economy is confronting the realities of the largest war in Europe since World War II whose impacts are reverberating around the world. This of course comes on the back of a COVID-19 pandemic that triggered a major global shock over the past two years which continues to affect economies around the world. Nations are grappling with the interlinked challenges of high inflation tightening financial conditions and continuing pressure on supply chains. New Zealand's Trade Recovery Strategy recognises that trade is a key driver of our recovery from the economic impacts of COVID-19. Trade is also important for building a high-wage low-emissions economy that supports economic security. New Zealand has worked to provide strategic trade debt through concluding a series of free-trade agreements with key partners providing New Zealanders with as many trading options as possible. The UK FTA and our recently concluded free-trade agreement with the European Union are key components of the Trade Recovery Strategy. Both agreements provide new and meaningful access into large high-value consumer markets where exporters have previously faced high barriers. These free-trade agreements will support New Zealand's businesses to reconnect with partners customers and markets overseas. They will improve our exporters' competitiveness through reduced tariffs and increased market access and will create opportunities for exporters to diversify products and markets. New Zealand's most recently concluded free-trade agreement with the European Union has been a long-sought objective by successive Governments. Once implemented this agreement will create a level playing field for most New Zealand exporters and significantly improved access to the large and high-value EU market of 450 million consumers. New Zealand is working with the European Commission to secure speedy signature and ratification of the New Zealand - EU FTA and signature could occur by mid-2023 and ratification of the free-trade agreement in 2024. In the UK free-trade agreement New Zealand was able to capitalise on being in the first tranche of the UK's new FTAs after it left the EU as well as on the UK's intention to demonstrate the success of its independent trade policy and its credentials to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The UK FTA is one of the best deals New Zealand has signed. Our two countries have a uniquely close bond including the 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. This FTA will assist the development of stronger trade economic cultural and people-to-people links between our two countries. Importantly it will restore a level playing field for New Zealand exporters for the first time since the UK entered the European Union 30 years ago. New Zealand and the UK share deep interests in the Indo-Pacific as an open and inclusive region of sovereign resilient and prosperous States underpinned by the utmost respect for international rules and norms. As a piece of architecture this free-trade agreement creates an enduring link that draws the UK towards our region and makes a contribution to an open rules-based system that goes beyond bilateral trade. The market access package 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 New Zealand exports. The FTA is expected to boost New Zealand's economy by between $700 million and $1 billion at full implementation with New Zealand annual exports to the UK estimated to grow by over 50 percent or up to $2.2 billion. The FTA provides New Zealand exporters with immediate comprehensive and commercially meaningful access into the UK market including for our primary sector and 99.5 percent of New Zealand's current exports will enter the UK duty-free on entry into force of the FTA. Tariff elimination has been prioritised for a range of key products including those of interest to Māori such as honey horticultural goods and seafood. For products where tariffs will be phased out over a number of years such as dairy beef and sheep meat we have secured sizable duty-free quotas that offer commercially meaningful access into the market. The FTA contains significant outcomes for matters of interest to Māori including a dedicated trade and economic cooperation chapter and far-reaching commitments on trade and environment. 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 this agreement includes New Zealand's Treaty of Waitangi exception that ensures that nothing in the free-trade agreement will prevent the New Zealand Government from meeting its obligations to Māori. Beyond new market access the deal offers more certainty for our services exporters for investors and for Kiwi businesses wanting to access the UK's Government procurement market. We've also agreed to cooperate with the UK in a range of areas including in 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. It is New Zealand's first bilateral FTA to include dedicated chapters on trade and gender and consumer protection. We have secured quality outcomes on trade and development small and medium sized enterprises trade and labour and anti-corruption. The FTA also includes far-reaching commitments on trade and the environment including concrete steps to eliminate subsidies on fossil fuels provisions to combat overfishing and specific articles on climate change. The environment chapter will also prioritise the elimination of tariffs on over 290 environmentally beneficial products. This is the largest environmental goods list agreed in any FTA to date. Once ratified the UK and EU FTAs will mean that the percentage of our exports to markets covered by an FTA will rise to nearly 75 percent up from 52 percent in 2017. This significant expansion of New Zealand's FTA network will contribute to New Zealand's diversified trade portfolio and assist New Zealand's recovery from the economic impacts of COVID-19. With the UK FTA signed in February this year both New Zealand and the UK are working to bring the agreement into force as soon as possible. There are a limited number of legislative and regulatory amendments that are required to align New Zealand's domestic law with certain obligations in the UK FTA. The United Kingdom Free Trade Agreement Legislation Bill will enable New Zealand to implement its obligations under the FTA and the legislation necessary to bring the FTA into force. New Zealand is aiming to complete domestic ratification processes this year. The United Kingdom is completing its own domestic process including the passing of legislation. Once both countries have concluded the necessary steps we will be ready to bring the FTA into force. As noted by the Prime Minister Jacinda Ardern New Zealand has secured this deal with the UK at a crucial time in our recovery from the economic impacts of COVID-19. The New Zealand - UK FTA serves our economy and exporters well as we reconnect rebuild recover and look into the future. I commend the bill to the House. Kia ora. ASSISTANT SPEAKER (Hon Jenny Salesa): The question is that the motion be agreed to.