Speeches
Speech as prepared for the launch of The negotiation of the Closer Economic Relations Trade Agreement 1983
Old Parliament House, Canberra, 25 March 2003
The negotiation of the Closer Economic Relations Trade Agreement 1983
Thank you, Doug Anthony, for your kind words of introduction.
Ms Kate Lackey, New Zealand High Commissioner in Australia
Excellencies
Distinguished guests
Ladies and gentlemen.
Today it is my great pleasure to launch the volume of documents on The Negotiation of the Australia New Zealand Closer Economic Relations Trade Agreement, 1983.
The timing of today's launch is apt.
This Friday will mark the 20th anniversary of the signing of the Closer Economic Relations Trade Agreement.
And this year also marks the 60th anniversary of the exchange of diplomatic representatives between Australia and New Zealand.
The CER agreement has proved over twenty years to be one of the most wide-ranging and successful free trade agreements in the world.
As New Zealand Prime Minister Clark has stated, it was an Agreement of great foresight - predating the European Union and North American Free Trade Agreement.
The CER has brought our two economies together today into what is virtually a single market.
It is a single market not just of goods and services, but of common and enduring ideas, values and principles.
The history of relations between Australia and New Zealand
The Agreement that we celebrate today has brought our two countries closer together than they have ever been.
But relations between Australia and New Zealand have always been uniquely close.
In Sydney, in 1891, my grandfather, Sir John Downer, represented South Australia at an inter-colonial conference to discuss the possible federation of the British colonies in the South-West Pacific.
The colony of New Zealand also sent to Sydney a delegation led by its venerable elder statesman, Sir George Grey.
New Zealand, in the end, decided not to join the Commonwealth of Australia when it was established in 1901.
And so deprived itself of a proud tradition in sporting success!
Seriously, this partly reflected the fact that - because of distance - trade between New Zealand and its sister colonies was less significant than the trade between the Australian colonies themselves.
Nevertheless relations between the internally self-governing Dominions of Australia and New Zealand continued to advance.
Both nations developed similar political and social institutions, and both were pioneers of universal suffrage, free education and health care services.
Shared patriotism in both countries led to the creation, in the First World War, of the Australia and New Zealand Army Corps - the Anzacs.
During the Second World War, in 1944, Australia and New Zealand negotiated with each other their first international agreement, independent of the United Kingdom.
The Australian-New Zealand Agreement (or ANZAC Agreement) laid the foundations for post-war co-operation in the Pacific.
The ANZAC Agreement, too, will mark its sixtieth anniversary next year.
The middle part of the 20th century also saw both Australia and New Zealand - albeit at a different pace and direction - develop more diverse markets for their products, and rely less on traditional patterns of trade and investment with Great Britain.
The level of trade between Australia and New Zealand, however, remained curiously low, subject to all manner of restrictions.
It was like two siblings, who although close in so many ways, could not bring themselves to do business together.
Negotiating the CER Trade Agreement
When Britain joined the European Economic Community in the 1970s, New Zealand and Australia were placed in an invidious position because of the loss of that important export market.
Our economies also experienced oil-price shocks, and the twin evils of rising unemployment and inflation, in the 1970s.
It was in these circumstances, in 1978, that our two countries came together to consider a new basis for their economic and trading relations.
In March of that year, New Zealand Deputy Prime Minister and Minister for Overseas Trade, Mr Brian Talboys, and then Prime Minister Malcolm Fraser affirmed the 'deep ties of common origin and shared ideals' between the two countries.
They resolved to seek 'the further opening of bilateral trade' and to encourage 'efficient industries that can meet international competition'.
Differences remained to be resolved, however, and reaching an agreement was not inevitable.
New Zealand wanted satisfactory access for its dairy products, for example.
And Australia wanted New Zealand's import licensing and export incentive schemes ended.
The final months of negotiation saw the latter become the 'make or break' issue for Australia, but hard bargaining, the negotiating skills of the likes of Doug Anthony, and indeed the goodwill on both sides, all resulted in success.
The CER Heads of Agreement was signed via two-way satellite transmission at noon on 14 December 1982 and the agreement itself was signed on 28th March 1983, here in Canberra.
The CER Agreement 1983-2003
The CER is more than a free trade agreement.
It is one of the most successful examples of economic integration in the world and a model for others.
The objectives of the Agreement are to expand free trade by eliminating barriers to trade and promoting fair competition.
It achieved its specific objective of removing tariffs and quantitative restrictions from trans-Tasman trade in goods by the year 1990 - five years ahead of schedule.
In the 1990s, merchandise trade between Australia and New Zealand grew at an average rate of nine per cent per year, faster than growth in trade with the rest of the world for either country.
Since the CER was signed, two-way trade with New Zealand has expanded five-fold.
Total bilateral trade is now over $16 billion per annum.
Total two-way investment is almost $34 billion.
As a result of the CER, Australia is now the largest foreign investor in New Zealand, and the largest destination for New Zealand investment.
Undoubtedly, the business activity generated by the CER has brought substantial wealth and employment for both countries.
The Spirit of CER
Australia and New Zealand share a special relationship as allies and as close economic partners.
As two sovereign nations we have developed unique inter-governmental structures and extensive people-to-people contacts.
The trans-Tasman relationship will continue to evolve in line with our individual perceptions of where our respective national interests lie.
We enjoy a healthy sporting rivalry, we follow each other's overall progress, and we holiday and work in each other's countries.
We have a mutual interest in promoting a dynamic relationship, one that is based on engaging a changing world from a position of security and economic prosperity.
The CER typifies our common interest.
When we talk of the CER today, we refer not only to the original agreement, but a web of agreements reached since 1983.
These agreements include goods, services, taxation, the movement of people, welfare, product standards, qualifications, aviation, customs, quarantine, and food standards.
As a result, our two economies have become increasingly integrated, to a level attained by few others, and in a manner entirely consistent with our multilateral interests and objectives.
What Australia and New Zealand have done in 20 years is a benchmark for how the world can liberalise trade and investment.
But it is also a benchmark for how two nations can work together.
As you know, the agenda for Australia-New Zealand cooperation extends well beyond our economic relations.
In international political and strategic relations, Australia and New Zealand share compelling global interests.
We have a strong history of close cooperation in international fora, such as the United Nations and the World Trade Organisation.
I meet twice yearly with my New Zealand counterpart, Phil Goff, to discuss a wide range of foreign policy issues.
Our Prime Minister has just concluded a visit to New Zealand, reflecting the mutual undertaking for annual consultations at Head of Government level.
Indeed, rarely a month goes by without Ministerial and other high-level delegations heading across the Tasman.
Of special significance, New Zealand is Australia's most important ally in the South Pacific.
We work in tandem to promote good governance, stability and economic development throughout our neighbourhood.
We have both contributed to regional peace-keeping efforts, in Bougainville and the Solomon Islands, as well as the UN peace-keeping force in East Timor.
And we are both among the strongest supporters of international non-proliferation and disarmament regimes.
There is much - I am sure - that we will be doing together in the future to safeguard and ensure the security and prosperity of both our nations, and of our region.
Conclusion
Ladies and gentlemen
In this 20th year of the CER - and 60th year of diplomatic representation - I take pride in how far our countries have moved towards economic integration and a single labour market.
Australians and New Zealanders are no longer simply banking at the same banks, and driving the same cars.
We are buying the same white goods, and the same foods.
New Zealanders now recognise retail names that have been household words in Australia for many years.
And Australians are getting to know New Zealand's top quality trademarks.
The publication of this volume of documents itself reflects the cooperation and integration inherent in the CER.
It is the first time two foreign ministries have collaborated to document an important bilateral agreement.
I congratulate the officials on both sides of the Tasman who compiled it, and the book's publishers.
I commend it highly to you, as a valuable contribution to understanding our shared history, and I take great pleasure in declaring it launched.