THE PACIFIC AGREEMENT ON CLOSER ECONOMIC RELATIONS PLUS Trade in Goods, Rules of Origin and Customs

The Pacific Agreement on Closer Economic Relations Plus is a landmark trade and development agreement that will lower barriers and provide greater certainty for businesses, while raising living standards, creating jobs and increasing exports in Pacific Island countries.

Benefits for New Zealand exporters PACER Plus will create greater certainty for New Zealand goods exporters trading in the region, including by: • binding in current tariffs on 88 percent of New Zealand exports when the agreement enters into force; • gradually eliminating tariffs on 84 percent of New Zealand exports by the time the agreement is fully implemented; • securing most-favoured-nation treatment on 100 percent of New Zealand goods exports to the Parties. This means that Pacific Island Countries that are part of PACER Plus continue to develop and negotiate more ambitious agreements with other significant costs; and the product specific rules are now more competitors, New Zealanders will also get the benefits closely aligned with New Zealand’s other free trade of those agreements; agreements, thereby reducing administrative costs for compliance and enforcement; and • binding in a range of relevant World Trade Organization (WTO) disciplines such as non- • the enhanced customs commitments in the PACER discrimination and most-favoured-nation obligations Plus region will benefit exporters through increased for internal taxation and regulation, including for efficiency at the border and expedited release of the eight PACER Plus Parties that are not members goods. This should lead to a lower cost of trade, and of the WTO: the , , , Palau, the simplified customs procedures for traders. Federated States of Micronesia, , the Republic of Marshall Islands, and . PACER Plus will be the Benefits for Pacific Island Country first binding commitment made to New Zealand by these countries on trade in goods disciplines and tariff Parties bindings; The agreement builds on the South Pacific Regional Trade and Economic Cooperation Agreement (1980) under • when PACER Plus enters into effect a Tariff Finder will which New Zealand currently provides 100 percent duty- be made available on-line.; free access to Pacific Island countries. It strikes a careful • provisions in the Rules of Origin chapter mean that balance between encouraging trade liberalisation and New Zealand exporters to the Pacific Region are not providing security to the small vulnerable economies in required to obtain independent certification that the region about determining the pace of that their goods are originating, thus reducing compliance liberalisation.

Disclaimer – This document is for information purposes only, and does not constitute legal advice. Trade weighted outcomes under PACER Plus for New Zealand's goods exports by sector

62 1 2 5 6 0 14 20 6 2 17 11 0 1 0 8 7 2.72 67.23 0.27 0.14 0.20 0.28 20.44 6.95 1.23 100% 1 1 1 0.15 90% 7 15 2 0.68 1.08 1.20 0.40 0.83 2 11 5 17 33 36 20.22 80% 3 9 3.38 70%

60% Trade weighted outcomes under PACER Plus for New Zealand's goods exports by sector 100%50% 90% 40%80% 70% 14 30%60% 50% 20%40% 30% 10%20% 24 99 97 94 86 99 80 71 77 83 80 87 99 66 64 89 82 96.60 32.77 98.65 99.71 98.61 99.33 76.18 72.83 97.93 10% 0%

eliminated under PACER binding under PACER unbound under PACER

Tariffs will be eliminated over extended timeframes Want to find out more? of 25 or 35 years. Timeframes for least developed countries will depend on the date they graduate from Visit the Trade section of the Ministry for Foreign Affairs least developed country status. Each country has made and Trade website www.mfat.govt.nz/pacer to find out individual commitments that reflect its particular more about PACER Plus and the benefits it is designed to circumstances. The unique development focus of deliver. This website includes: PACER Plus means that some sectoral outcomes sit • The full text of PACER Plus; below levels secured in New Zealand’s existing trade agreements. This reflects the fact that the countries • Factsheets on key areas for New Zealand; and involved have small vulnerable economies, and many are not WTO members. Where elimination or binding • The National Interest Analysis. commitments have not been secured, most-favoured- nation commitments apply.

Outcomes for specific New Zealand goods export sectors Overall New Zealand has secured binding and elimination outcomes on the majority of products of export interest to us. Taken together, these account for more than 70 percent of trade flows to the Parties.

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