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Free trans-Tasman trade in apparel



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COMMONWEALTH

PARLIAMENTARY LIBRARY MICAH

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STATEMENT (Joint statement by the Minister for Industry, Technology and Commerce, Senator John Button, and the-Minister for) c..Trade Negotiations > _ Mr Michael DuffyO-

IMMEDIATE RELEASE 18 APRIL 1989 49/89

FREE TRANS-TASMAN TRADE IN APPAREL

All remaining tariff and import restrictions on apparel : imports will be lifted by Australia·and New Zealand from

1 July.

The Federal Minister for Industry, Technology and Commerce, Senator John Button and the Minister for Trade Negotiations,

Mr'Michael Duffy, announced this today. ’ .

• The Ministers said it would be a major step towards the goal ■ of -free trade across the Tasman in line with objectives .of the Australia-New Zealand Closer Economic Relations Trade.

Agreement (CER).

Under current arrangements, each country this year has made available the equivalent of $A20 million in access to apparel exports from the other country. This restriction will now be

lifted.

Similarly, the Ministers said, Australian industry would benefit from the abolition of the current 10 per cent duty rate against the majority of Australian apparel items exported

to New Zealand. .

The decision accelerates by a year the move toward free trade in apparel on a reciprocal basis and flags the removal of the last of Australia's tariff quotas on New Zealand manufactured goods.

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The announcement follows recent' decisions by the Federal Government to abolish quotas of New Zealand footwear and textiles and will help significantly to foster the development of the Australian and New,Zealand textile, clothing and

footwear (TCF) industries, the Ministers said.

They said the early removal of trade restrictions and tariffs was an opportunity for Australian clothing manufacturers to expand their exports to New Zealand in line with objectives of CER.

The decision, along with recent decisions on footwear and textile quotas, was meant to foster fair competition, the Ministers said.

In line with the rules of origin, area-content and intermediate goods provisions, the CER and South Pacific

Regional Trade and Economic Co-operation Agreement (SPARTECA) were not to be regarded as vehicles for circumventing and eroding the industry assistance arrangements provided to the TCF sector.

If a prejudicial situation developed under CER or SPARTECA, the Government would take prompt corrective action, the Ministers said.

Contacts: Department of Industry,

Technology and Commerce John Morris ·

, (062) 76 1969 (W> (062) 54 5624 (H)

Senator Button's Office Peter O'Connor (062) 77 7580 (W) (062) 73 3830 (H)

Mr Duffy's Office John Ellis (062) 77 7420 (W)

CANBERRA

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