Speeches Page 3 

As I have done previously, I certainly commend the contribution of the previous speaker, and not only his work on the free-trade agreement itself but also his contribution to the Foreign Affairs, Defence and Trade Committee. As I have done on previous occasions, I also acknowledge the contributions of all the members of the select committee. Obviously, I particularly want to acknowledge the excellent role of the Hon Phil Goff, that of our Prime Minister, the Rt Hon Helen Clark, and also that of the team of negotiators and advisers, some of whom were represented in this Parliament yesterday and last night during the Committee stage of this legislation.

As the Acting Minister of Trade, the Hon Annette King, said, securing this comprehensive free-trade agreement is indeed a major achievement for our country. It took more than 3 years and 15 rounds of negotiations to reach the deal. As we are aware, the agreement liberalises and facilitates trade in goods and services and facilitates investment. It removes barriers to trade and promotes cooperation in a broad range of economic areas between New Zealand and China, which is our third-largest individual trading partner.

I want to quote, if I may, from the report of the Foreign Affairs, Defence and Trade Committee, which, of course, I chair. We said in our report to the Parliament: "We believe that this agreement is a major event in New Zealand's history and fundamental to the future economic wellbeing of this country. The main values for New Zealand in entering into the FTA and associated instruments are as follows ... increased access for New Zealand trade and investment, which will contribute to growth, jobs, and higher living standards ... the framework the FTA establishes for resolving trade and investment issues that may arise in the future ... the framework established by the Memorandum of Understanding and the Environment Cooperation Agreement for discussing and cooperating on labour and environment issues". I think that is a particularly important point, and I acknowledge the contribution of the Council of Trade Unions, other unions, and other organisations in terms of that very important specific issue. The report goes on to say the value for New Zealand is also in "the support the treaties give to New Zealand's objective of broadening and deepening relations in Asia and with China in particular ... the support the FTA gives to New Zealand's wider trade policy interests in strengthening economic integration in the Asia-Pacific and multilaterally ...[and] the FTA's assistance in raising the commercial profile of New Zealand companies in China." Our report, obviously, emphasises and illustrates those particular points.

I do not want to spend much longer on my contribution to this particular reading of the legislation, but I just make the point and emphasise yet again that before this free-trade agreement with China was signed our exporters faced extra costs when trying to sell their products and services. They faced tariffs of up to 20 percent, making it harder for them to make money and, of course, to feed that money into our economy. Chinese tariffs on New Zealand products cost exporters almost $120 million a year. On the other hand, conversely, Chinese exporters faced very few tariffs when they sold their products to New Zealand. The free-trade agreement will help to address that imbalance by reducing, and in many cases eliminating, tariffs, so that New Zealand goods will be able to enter China on a more even playing field.

I make the point that when it is easy for our Kiwi companies to do business, we all benefit. Companies can expand, hire more staff, develop new products, and grow our economy. And of course I make the point that the support for this free-trade agreement has come from a wide cross-section of groups, including the Council of Trade Unions, the Dairy Companies Association of New Zealand, Federated Farmers, Air New Zealand, Fonterra, the Hospitality Standards Institute, Ngāi Tahu, Meat and Wool New Zealand, the National Distribution Union, Zespri, Business New Zealand, the Seafood Industry Council, and the Wellington Chamber of Commerce.

Having said that, I acknowledge-and I have acknowledged in previous contributions on this issue to this House-there is a counter point of view, and I acknowledge it was reflected also in the submissions to the select committee. Hopefully the select committee report has tried to comprehensively acknowledge, if you like, some of the cross-section of concerns that were raised.

I quoted from the Prime Minister in my contribution to the debate on this legislation in the Committee of the whole House, and I will just repeat that quote in conclusion. I think it is a very apt and appropriate quote, which sums up the issue very well: "The agreement sets a high standard. It is a model for how two trading partners, disparate in size but complementary in the products and services they offer, can take a trading relationship to a new level." There are certainly challenges. No one doubts that there are challenges in taking that relationship to a new level, but I think that with the skill and innovation of our whole country and the major players in our economy across the board there are huge opportunities under this agreement in terms of our relationship with China. I certainly believe that history will record that this is one of the major achievements of the current Government. But I also acknowledge the very broad multiparty support we have in terms of the legislation and the agreement. I congratulate all those who were involved, and I hope we will now seize the opportunity that this free-trade agreement gives to our country.

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