Streamlined trade is said to be a step closer between Australian and New Zealand businesses, with the Department of Immigration and Border Protection and the New Zealand Customs Service (NZCS) formally agreeing to work towards the implementation of a Mutual Recognition Arrangement (MRA) during Australian Trusted Trader’s (ATT) pilot phase.
The Australian Comptroller-General of Customs Roman Quaedvlieg APM and Comptroller of NZCS Carolyn Tremain signed a Statement of Intent in Canberra, which formally initiates the negotiation process. Both agencies will sign the MRA in June 2016 before its implementation from July 2016.
The MRA will ensure that members of the NZCS Secure Exports Scheme and ATT receive preferential border treatment and trade facilitation benefits when conducting trans-Tasman trade.
The MRA will deliver a mutually beneficial outcome that increases both nations’ contributions to international supply chain security and trade facilitation. It is anticipated that the MRA will allow up to 13 per cent of New Zealand import volume to Australia totalling $3.0 billion to be facilitated, along with $7.5 billion of Australian exports by 2020.
This combined $10.5 billion of trans-Tasman trade facilitated and secured through the MRA demonstrates a significant return on investment that will increase the international competitiveness of industries in both countries.
This is a key milestone and a show of confidence in the ATT by the NZCS, which has signed and implemented MRA with the United States, Japan and Korea.
The ATT’s pilot phase is progressing well, with the number of pilot partners growing from the initial four companies to twelve across the country.
The new pilot partners are Apple, Fletcher International Exports, Hewitt-Packard, IKEA, IBM, Matrix Composites, Pacific Brands and Target.
These companies join existing partners, Boeing Aerostructures Australia, Devondale Murray Goulburn, Mondelez Australia and Techwool Trading.