Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)
The Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) is a comprehensive free trade and economic agreement between the two countries. ANZCERTA eliminates tariffs and minimizes trade barriers on all goods. This bilateral free trade agreement was further complemented by the 2010 ASEAN-Australia-New Zealand FTA.
The Agreement also includes rules of origin and local content provisions. Goods are counted as originating from each country if:
- There is a change in HS code headings at the level specified for each good; or,
- They meet a minimum regional value content specified for each good
The Investment provisions of the Agreement forbids performance requirements that require, as a condition of investment, export quotas, domestic content quotas, technology transfer, and other non-tariff barriers. It also carries national treatment and most-favored nation treatment provisions that require investors from either Party to be treated equally to both domestic investors or those from any other nations.
However, it does allow either party to provide additional benefits or advantages tied to the following conditions:
- Location of production in its territory
- Supply of a specific service
- Training and employment of workers
- Construction or expansion of certain facilities
- R&D activities
It also does not prevent either party from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.
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