Curran Clare: Trade (Safeguard Measures) Bill — First Reading 
Curran Clare: Trade (Safeguard Measures) Bill — First Reading 
[Volume:652;Page:1872] 
CLARE CURRAN (Labour—Dunedin South) 
: 
 I rise to support the first reading of the Trade (Safeguard Measures) Bill. I agree with the member opposite that this bill is important. It should be noted that this bill was originally introduced by the Hon Lianne Dalziel in the last Parliament under the previous Labour Government—and a very fine bill it is too. The bill is the result of a review initiated under the Labour-led Government of the existing Act the Temporary Safeguard Authorities Act 1987. There was extensive public consultation and the bill is the result of that work. 
As members have heard this legislation not only means compliance with the World Trade Organization rules but also streamlines the process of responding to allegations of dumped or subsidised goods being released on the New Zealand market. It will be welcomed by New Zealand’s manufacturers and producers which is very important. It is also important to note that it is a cost-effective measure in that it removes the requirement to establish temporary safeguard authorities and enables the existing expertise of the Ministry of Economic Development to be utilised instead. This bill unlike National’s own bills fully complies with the regulatory impact analysis regime. Members have heard that some of the changes proposed by this bill include an extension of the current time frame of 30 working days for the completion of a safeguard investigation to 75 working days or 85 days if provisional safeguard duties are requested and a provision that safeguard investigations are to be undertaken by the ministry rather than by independent temporary safeguard authorities. 
I will talk just a little about what is in the bill. It implements a new safeguards regime for New Zealand. Safeguards as a number of members have indicated tonight are emergency measures applied at the border usually in the form of a duty that may be taken in order to provide temporary protection to a domestic industry from injury caused by a surge in imported goods as a result of unforeseen developments. Safeguards are provided for under the General Agreement on Tariffs and Trade and by the World Trade Organization and agreements on safeguards are intended to facilitate adjustment by a domestic industry to increased imports. So the bill’s purpose really is to enable New Zealand to apply safeguards measures at its border as the member opposite has indicated and to do so in accordance with the agreement adopted at Marrakech in 1994 that established the World Trade Organization. 
The bill states that such measures are intended to provide temporary protection to a domestic industry from serious injury caused by increased imports and to facilitate adjustment by a domestic industry to increased competition from increased imports. The bill provides that the Minister may on application by any person or at the Minister’s discretion initiate a safeguard investigation by the chief executive into increased imports if the Minister is satisfied there are reasonable grounds for an investigation into whether the increased imports are causing serious injury or the threat of serious injury. 
The matters that the chief executive must investigate in a safeguard investigation include the following: whether increased imports have caused serious injury or a threat of serious injury and whether the increased imports have been due to unforeseen developments; whether a safeguard measure is necessary to prevent or remedy serious injury and to facilitate adjustment by the domestic industry to the increased competition from the increased imports; and if a safeguard measure is necessary which goods should be subject to a measure which measure is appropriate and the appropriate extent and duration of the measure. Then there is also the matter of the public interest which may entail amongst other matters consideration of the likely effectiveness of a safeguard measure in assisting the domestic industry and the alternatives to a safeguard measure. There is also the likely effect of a safeguard measure on the market—which includes the effect on consumers—and on New Zealand’s international relations and trade goals and the strategic importance of the domestic industry. 
The bill also provides that in investigating whether the increased imports have caused serious injury or a threat of serious injury the chief executive must consider the impact of the increased imports on the domestic industry including an actual or potential decline in output sales market share productivity employment and utilisation of production capacity. The chief executive must consider the nature and extent of imports of the goods by the domestic industry including their value quantity and frequency; the purpose of the imports; and factors other than the imports that have injured or are injuring the domestic industry. So there is a range of important issues there. 
The bill also provides for the circumstances in which the Minister may impose a provisional safeguard duty. The Minister may impose that duty on imported goods if the Minister is satisfied there are reasonable grounds to believe that a delay in imposing a duty would cause damage that would be difficult to repair and also that the increased imports are causing serious injury or again the threat of serious injury. 
The bill provides for several different types of safeguard measure any of which may be imposed on or in relation to imported goods. They include a safeguard duty; a duty or a variation of any rate or duty or an exemption from any duty under the Tariff Act 1988; a restriction on importing the goods under the Customs And Excise Act 1996 or the Imports and Exports (Restrictions) Act 1988; and also any other action that the Minister considers to be appropriate. 
The bill provides that after receiving the chief executive’s report about a safeguard investigation the Minister may take one or more of those actions in relation to imported goods if the Minister is satisfied that increased imports have caused serious injury or a threat of serious injury and that the increased imports were due to unforeseen developments. The Minister must be satisfied also that the safeguard measure is necessary to prevent or remedy serious injury and to facilitate adjustment by the domestic industry to the increased competition from the increased imports; that the safeguard measure relates to the appropriate goods is the appropriate measure and is of the appropriate extent and duration; and that the action is in the public interest. The particular safeguard measure must not be incompatible with New Zealand’s international obligations as a party to the World Trade Organization agreement or other agreements. 
Finally I will finish by saying this bill is about ensuring that New Zealand’s safeguards regime is consistent with World Trade Organization rules provides an efficient transparent and objective investigative and decision-making process and is responsible. The bill is timely sensible law developed by the previous Labour Government; it strengthens the protections for our domestic industry at a time of increased globalisation and competition from imported products. I have great pleasure in supporting the bill.