Australia and New Zealand Trade Agreement

Australia and New Zealand have signed a free trade agreement which came into effect on January 1, 2021. The agreement, known as ANZCERTA or the Closer Economic Relations Trade Agreement, serves as a cornerstone of the two countries` economic relationship.

The free trade agreement has been in effect since 1983, making it one of the oldest and most comprehensive bilateral trade agreements in the world. It covers a wide range of sectors such as agriculture, services, investment, and intellectual property rights.

Under the agreement, Australia and New Zealand have eliminated most tariffs and other trade barriers between them. This has created a seamless trading environment that has allowed businesses to operate more efficiently and cost-effectively across the Tasman Sea.

The agreement has brought significant benefits to both countries, with bilateral trade between Australia and New Zealand currently valued at around $17 billion annually. The two countries also have deeply integrated supply chains, with many companies operating across both markets.

ANZCERTA is not just about trade, however. It is also about the broader relationship between the two countries. The agreement has helped to foster closer political and cultural ties, as well as closer economic ties.

The Australia-New Zealand relationship is often described as a “mateship,” based on shared values, history, and culture. The two countries are also close strategic partners, working together on regional and global issues.

The importance of the Australia-New Zealand relationship has been highlighted during the COVID-19 pandemic. The two countries have worked closely together to manage the crisis, including the establishment of a Trans-Tasman travel bubble that allows for quarantine-free travel between the two countries.

In conclusion, the Australia-New Zealand free trade agreement is a vital component of the economic relationship between the two countries. It has created a seamless trading environment that has benefited businesses and consumers alike, while also fostering closer political and cultural ties. The agreement continues to play an important role in the bilateral relationship, and is likely to do so for many years to come.