Sutton Jim: Tariff (New Zealand - Thailand Closer Economic Partnership) Bill — Second Reading Instruction to Committee In Committee Third Reading 
Sutton Jim: Tariff (New Zealand - Thailand Closer Economic Partnership) Bill — Second Reading Instruction to Committee In Committee Third Reading 
[Volume:626;Page:21421] 
Hon JIM SUTTON (Minister for Trade Negotiations) 
: 
 I move  
That the Tariff (New Zealand - Thailand Closer Economic Partnership) Bill be now read a third time 
. The bill allows the agreement negotiated between Thailand and New Zealand for a closer economic partnership to come into force once Thailand has also completed its domestic implementation process. The agreement provides for all tariffs applying goods of New Zealand or Thai origin traded between the two countries to be either eliminated immediately or phased out over a schedule period. 
Sitting suspended from 6 p.m. to 7 p.m. 
Hon JIM SUTTON 
: As well as providing for all tariffs applying to goods traded between the two countries to be eliminated the agreement provides for the early commencement of negotiation to liberalise trade in services. The agreement also provides for the use of bilateral transitional safeguards by both New Zealand and Thailand. Members opposite seem to have difficulty in understanding that concept. I am not sure what it was that they could not understand but I will just point out to them that the bilateral transitional safeguards under the closer economic partnership simply allow New Zealand to raise tariffs on Thai goods back to the level applying to imports from other countries in the event of serious injury or threat of serious injury because of a sudden and dramatic surge in imports. 
The World Trade Organization global safeguards apply generally to imports from all countries and can raise tariff rates above the World Trade Organization bound rates if a World Trade Organization safeguard is applied. I think that explains the relationship between the two. 
Clearly most members who have participated in the debate like most New Zealanders recognise the value of freer and fairer trade and have supported this bill accordingly. The National Party members have spent most of their debating time raging against the presence of a Treaty of Waitangi carve-out article in the bill an article that is identical in effect to the one they had proposed in the Singapore - New Zealand closer economic partnership and one that they cheerfully agreed to put in New Zealand’s treaty binding us to the General Agreement on Trade in Services of the World Trade Organization. However they seem to get particularly exercised by this article. Their necks turn red before our very eyes as they rage against it. 
The meaning of the article that they have trouble understanding is I suggest plain on the face of it. The Government has no particular plans for more favourable treatment of Maori but given the historical injustices perpetrated by the Crown on Maori in breach of the treaty over the years we deem it equitable not to preclude some favourable treatment by way of redress if this seems necessary to the Government of the day at some time in the future. National members may shout until their necks turn red but Labour believes in justice. 
I thank everybody in the House and in particular the members of the Foreign Affairs Defence and Trade Committee for their attention to this important legislation. I would also like to thank the officials who were involved in the negotiation of the agreement especially the team leader Rachel Fry and the members of the public and private sectors who provided invaluable input into the process. They can all be proud of their special efforts and their achievement. 
The agreement opens up substantial opportunities for exporters both immediately and over the longer term and will enable New Zealand’s trading relationship with Thailand to achieve its full potential. Moreover the closer economic partnership will serve as a springboard for developing aspects of the New Zealand - Thai relationship beyond the economic domain. The conclusion of the agreement has already provided the impetus to introduce a working holiday scheme with Thailand and it creates a platform for greater cooperation in areas such as tourism education cultural links and scientific exchange. Beyond this the agreement with Thailand has added impetus to the pursuit of New Zealand’s wider trade strategy objectives in South-east Asia with negotiations now under way on free-trade agreements with Malaysia and indeed the entire ASEAN membership. I commend the bill to the House.