What is the Closer Economic Relations Trade Agreement?

The Closer Economic Relations Trade Agreement is an agreement signed between the governments of Australia and New Zealand in 1983. This trade agreement is a comprehensive agreement that saw the establishment of a free trade zone between the two countries. Also, known as Closer Economic Relations (CER), the Trade Agreement was a trade treaty on the trade of goods between the countries. AustraliaNew Zealand Closer Economic Relations Trade Agreement became effective in January 1983 but the treaty was not signed until March 28, 1983.

What is the History of the Closer Trade Relations Trade Agreement

Before CER was signed as a trade treaty, the New Zealand Australia Free Trade Agreement (NAFTA) existed. The trade agreement was signed in 1965 but became effective on January 1, 1966. 

Despite the provision of NAFTA, it was considered to be too bureaucratic and cumbersome which brought about the introduction of CER. CER accelerated the establishment of free trade of goods between these two counties and also eliminated tariffs and trade restrictions. The Deputy Prime Minister of Australia and Minister for Trade, Lionel Bowen and Laurie Francis, the New Zealand High Commissioner to Australia signed the Closer Economic Relations (CER) in 1983. The trade agreement created a free trade zone between these countries, it also regulated tariffs and trade transactions. There are certain results that were achieved by the Closer Trade relations (CER) after its establishment. Some of the provisions of this trade treaty include;

• The legality of the two countries exchanging goods. This means goods can be legally sold by exporters and importers in both countries.
• Professionals and experts who practice in either of the countries can also practice in another.
• Registered service providers are also allowed to provide services in any of the countries.