Dean Jacqui: ASEAN-Australia-New Zealand Free Trade Area Bill — Second Reading 
Dean Jacqui: ASEAN-Australia-New Zealand Free Trade Area Bill — Second Reading 
[Volume:655;Page:4624] 
JACQUI DEAN (National—Waitaki) 
: 
 The National Government understands very very well the importance of free-trade agreements and the importance of opening up trade in particular around the ASEAN region. That is why I am very pleased to speak to the second reading of this ASEAN-Australia-New Zealand Free Trade Area Bill. It is the National Government that understands trade. It is the National Government that is in constant dialogue with groups such as Federated Farmers. 
Hon Steve Chadwick 
: So is Labour; don’t be silly. 
JACQUI DEAN 
: I do not know whether there is a farmer amongst the Labour ranks. I remember that the Minister of Agriculture in the previous Labour Government had not been anywhere near a farm. I fail to see how the previous Labour Government could have had any sense of the importance of agriculture—it certainly did not show any signs of it in its policy. But this National Government does and the ASEAN-Australia-New Zealand Free Trade Area Bill is an excellent opportunity for New Zealand. Interestingly it was recommended by majority that the bill be passed without amendment. It was supported through the select committee process by all parties except the Greens. 
Simon Bridges 
: Did Labour understand it? 
JACQUI DEAN 
: Labour members worked very hard in the select committee process to understand the provisions in the bill. Given that Labour members do not represent the agricultural community where the main benefits of this bill are— 
Simon Bridges 
: Whom do they represent? 
JACQUI DEAN 
: Well the previous Labour Government and current members struggle with representing city folk whereas in the main National MPs and I am one of those proud members—and I am surrounded by them as a matter of fact—have their roots in rural and provincial New Zealand. We will be the beneficiaries of the provisions in this bill. 
I address this bill because it is important and significant for us in New Zealand. Just briefly the Association of South-east Asian Nations or ASEAN includes Brunei Cambodia Indonesia Laos Malaysia Myanmar the Philippines Singapore Thailand and Viet Nam. These are good strong emerging markets for New Zealand exporters and this bill puts in place the provisions where New Zealand exporters can take advantage of the provisions that will go into this bill. The agreement was concluded on 27 February 2009 and this Government is wasting no time in bringing this legislation before the House so that New Zealand exporters and importers can take advantage of its provisions. 
Addressing the bill itself Part 1 makes amendments to the Tariff Act creating provisions to designate preferential tariffs for goods that are produced or manufactured by the parties to the ASEAN-Australia-New Zealand Free Trade Area Bill. Under those amendments to the Tariff Act New Zealand can then set different tariff rates for specified parties. This is quite a technical bill so I will take the time to go through the provisions. For the benefit of members opposite I am dealing with Part 1— 
Todd McClay 
: The ones who represent the list. 
JACQUI DEAN 
: Yes the list members on the other side of the House. Part 1 addresses the issues in the Tariff Act. Secondly this bill amends the definition of “free trade agreement” in section 15A of the Tariff Act to provide for transitional safeguard measures for this agreement. Of course there must be transitional provisions and this is the part of the bill where those come into play. 
Part 2 amends the Customs and Excise Act to allow the chief executive of the New Zealand Customs Service to designate certification bodies that are authorised to issue a New Zealand certificate of origin to goods that are to be exported to ASEAN agreement parties. There was a lot of discussion within the select committee on how we must endeavour through the process of considering this bill and in fact through any activity of this Government to make commerce easier and to make exporting and importing of products easier more streamlined and more efficient in order to encourage trade between these ASEAN partners. The amendments to the Customs and Excise Act are designed to facilitate that. The certificate of origin will identify the goods and certify that they are of New Zealand origin. 
Part 2 and the amendments to the Customs and Excise Act will create the criteria that the chief executive of the Customs Service must measure applications against before the service can certify a body to issue certificates. In the bill the criteria to certify that goods are of a New Zealand origin are described so that goods can be measured against them before certification can take place. This provision also enables the creation of regulations that will set prescribed terms and conditions for certification. This is very important for our exporters who need certainty. It also sets the criteria application forms and fees. As members can see this bill is quite technical. There was a lot of discussion around it and it was designed to make the process easier for our exporters in New Zealand. 
Moving to the key outcomes of the ASEAN agreement there will be no tariffs on 99 percent of New Zealand’s current exports to the four key markets within the 12 years to 2020. These four key markets for New Zealand are Indonesia Malaysia the Philippines and Viet Nam. Those of us who have an interest in agricultural matters will understand very clearly that those four markets are very important emerging markets for our exporters. 
Todd McClay 
: The farmers will be pleased about that. 
JACQUI DEAN 
: Yes I can happily inform my colleague from Rotorua that the farmers are pleased about that. On full implementation by 2020 the bill will provide a total duty saving to New Zealand of $50 million based on current trade levels. In 2010 tariffs will be eliminated on $429 million of current New Zealand exports to Indonesia Malaysia and the Philippines. 
At this point I will acknowledge that this has been a bipartisan agreement and the approach in the select committee has been generally cooperative and constructive and I thank my select committee colleagues for that. We were not always in total agreement but generally we moved in a bipartisan way. It is important to note that tariffs are progressively being eliminated on exports to our very important export markets including Indonesia Malaysia and the Philippines but in some of those markets only on milk-powder butter wool products such as kiwifruit and some manufactured products. This bill brings good news to the New Zealand agricultural sector. From 2011 to 2020 tariffs will be removed on a further $435 million worth of exports to Indonesia Malaysia Viet Nam and the Philippines. We have looked at New Zealand exports but for ASEAN exports to New Zealand there will be improved access to New Zealand markets through the gradual elimination of tariffs and that is the nature of this bill. That is what this bill is all about. By 2010 goods from ASEAN countries that are within the 85 percent of tariff lines will be able to enter New Zealand duty-free. There are some good practical measures in this bill. 
I finish my speech this evening by noting that—and I did say this before but I will say it again—this bill is hugely beneficial to New Zealand trade. It was very encouraging to note Minister Groser saying that New Zealand Trade and Enterprise will be directed into having a focus on our exporters. That is also good news because it is all very well putting into place a free-trade agreement and I have described some of those measures in the bill but in order for that to take effect and for New Zealand farmers exporters and producers to take advantage of it New Zealand Trade and Enterprise must have its focus on exports and productivity. That is one of the key messages of the National Government through its Budget. I think this bill is a very clear example of this National Government’s desire.