Street Maryan: Tariff (New Zealand-Hong Kong China Closer Economic Partnership Agreement) Amendment Bill — Second Reading In Committee Third Reading 
Street Maryan: Tariff (New Zealand-Hong Kong China Closer Economic Partnership Agreement) Amendment Bill — Second Reading In Committee Third Reading 
[Volume:666;Page:13377] 
Hon MARYAN STREET (Labour) 
: 
 I rise to speak on the second reading of the Tariff (New Zealand-Hong Kong China Closer Economic Partnership Agreement) Amendment Bill which will put in place the free-trade agreement with Hong Kong. The Minister of Trade has elsewhere noted that the benefits of this free-trade agreement with Hong Kong—or closer economic partnership as we are calling it—have many aspects to them. He has said previously that this closer economic partnership complements our free-trade agreement with China and there is no doubt that it does. In fact when I finished my speech on the first reading of this bill I was at the point of saying that this closer economic partnership agreement rationalises and allows businesses to springboard between Hong Kong and China. New Zealand businesses will be better able to move seamlessly between Hong Kong and China with their trade and business arrangements. 
The Minister who presented the first speech on the second reading the Hon John Carter referred to the fact that this closer economic partnership breaks new ground for Hong Kong. It is the first agreement of this type outside its agreement with Mainland China. For New Zealand it adds to a growing list of free-trade agreements that are both high-quality and comprehensive. But it is worth noting that the novelty of this closer economic partnership was the item that took the media’s attention when at the time of signing at the end of March earlier this year the media reported this new free-trade deal. They said that New Zealand and Hong Kong signed a free-trade deal—the city’s first outside China. Clearly Hong Kong is looking at it as a model and as a template for other such agreements and that is good. Hopefully it is of benefit to them. For us there is a whole panoply of new high-quality free-trade agreements that we have achieved over the years between successive Governments I might add as I do not think there is yet one free-trade agreement that has been signed by this National Government that began with it; they all began with the Labour Government. 
I draw attention to a couple of points and one that is particularly apposite is the trade in services. Usually we are accustomed to looking at tariff reductions and trade in commodities but the trade in services is of real benefit to New Zealand. The securing of access should allow a whole range of services to maximise trade with Hong Kong. First the closer economic partnership protects existing access for services. It is good to have that cemented in but it is simply the status quo. The agreement goes on to talk quite comprehensively about the range of services now covered by this closer economic partnership such as professional services business services education construction and engineering logistics air services environmental services computer and related services tourism sporting and other recreational services and so on. The list is expansive. 
One of the most exciting things about this closer economic partnership is the ability of New Zealand to trade on its strengths not just in commodities but in the provision of high-quality services. It is something that will become increasingly important if we are to improve the economic status and wealth of this country. We need to look further to the exporting of services and look past the exporting of commodities alone. So trade in services is significant. 
The second point I draw attention to is noted in the national interest analysis. We have labour and environment agreements as part of this closer economic partnership. For a long time—certainly for the last 10 years anyway—we have insisted on labour and environment clauses first of all being attached to our free-trade agreements but more latterly becoming integral parts of our free-trade agreements and that is a good thing. The national interest analysis states that the New Zealand study on the benefits of a closer economic partnership between New Zealand and Hong Kong identified sustainable development as a core national objective for both economies. I think we are getting to the stage with trade agreements where they cannot be seen in isolation. Trade agreements impact upon and are impacted by labour standards. They impact upon and are impacted by climate change agreements and by emissions trading schemes and global efforts to reduce the carbon footprints of industry in particular. The fact that this agreement identifies sustainable development as a core national objective for both economies may come as news to some members of the National Party but it is an important and forward-looking element inside this closer economic partnership. 
The labour memorandum of understanding and the environment agreement provide an opportunity for New Zealand to seek input from non-governmental sectors in identifying and developing potential areas for cooperation. If there are areas where we can cooperate with Hong Kong over labour standards—they may be health and safety standards they may be more than that they may be to do with income levels—or if we can assist with environmental protections and production of goods and delivery of services in a way that minimises the emissions impact of those commodities and services then both economies and even in a very small way the world the global environment are enhanced. These things are now no longer simply clip-on elements. An agreement about labour standards and an agreement about environmental standards have become an integral part not only of this closer economic partnership but of other free-trade agreements. This is the way for the world to move forward. Free-trade agreements can be used for more than simply free trade. Thank you Mr Deputy Speaker.