Title
FREE TRADE AGREEMENT BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND NEW ZEALAND
Preamble
PREAMBLE
The United Kingdom of Great Britain and Northern Ireland ("the United Kingdom") and New Zealand, hereinafter each individually referred to as a "Party" or collectively as the "Parties",
CONSCIOUS of their longstanding and strong partnership based on common principles and values, and of their important economic, trade, and investment relationship;
RESOLVING to strengthen their economic relations, further liberalise and expand bilateral trade and investment;
SEEKING to establish clear and mutually advantageous rules governing their trade and investment, to promote a predictable business environment and open and fair competition, and eliminate barriers between them;
RECOGNISING the unique relationship that exists between Maori and the United Kingdom, noting thatrepresentatives of the British Crown and Maori were the original signatories to Te Tiritio Waitangi/The Treaty of Waitangi whilst acknowledging that the New Zealand Crown has now succeeded the British Crown and assumed all rights and obligations under that Treaty;
ACKNOWLEDGING that Te Tiriti o Waitangi/The Treaty of Waitangi is a foundational document of constitutional importance to New Zealand;
DETERMINED to build on their rights and obligations under the WTO Agreement and other international agreements relating to matters covered by this Agreement to which both Parties are party;
RESOLVING to promote transparency, good governance, and the rule of law, and prevent and combat bribery and corruption in international trade and investment;
RECOGNISING the Parties' respective autonomy and right to regulate within their territories in order to achieve legitimate public policy objectives such as the protection and promotion of public health, public morals, animal welfare, labour standards, safety, the environment including climate change, and in the case of New Zealand meeting its Te Tiriti o Waitangi/The Treaty of Waitangi obligations;
RECOGNISING the importance of mutually supportive trade and environmental policies and of taking urgent action to protect the environment, reaffirming each Party's commitments under multilateral environment agreements including the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement;
SEEKING to increase women's access to and ability to fully benefit from the opportunities created by this Agreement and to support the conditions for women to participate equitably in global, regional, and domestic economies;
RECOGNISING the value of Maori leadership and economy, and the challenges that exist for Maori in accessing international trade and economic opportunities, including in digital trade;
RECOGNISING that small and medium-sized enterprises contribute significantly to economic growth but often face barriers to trading internationally and require support to participate in and benefit from the opportunities created by this Agreement;
AFFIRMING the importance of coherent and mutually supportive trade and labour policies, including the promotion of adherence to internationally recognised labour rights, and of full and productive employment and decent work for all;
SEEKING to emphasise the importance of sustainable development in promoting inclusive economic growth;
RECOGNISING the importance of promoting consumer protection to enhance consumer trust and participation in trade, including online, as well as encouraging cooperation between relevant authorities;
NOTING the importance of facilitating new opportunities, addressing unjustified barriers, promoting trust and certainty for businesses and consumers in digital trade, including by cooperating on digital innovation and emerging technologies to ensure this can be achieved;
RECOGNISING the importance of ensuring certainty for service suppliers, including by enabling the temporary entry of business persons to supply services in each of the Partiesâ territories; and
SEEKING to ensure emerging and future trade and investment challenges and opportunities are addressed, and the Parties' priorities are further advanced over time,
HAVE AGREED as follows:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. Establishment of a Free Trade Area
The Parties, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish a free trade area in accordance with this Agreement.
Article 1.2. Relation to other Agreements
1. Each Party affirms its existing rights and obligations with respect to each other under existing bilateral and multilateral agreements to which both Parties are party, including the WTO Agreement.
2. Unless otherwise provided in this Agreement, in the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
3. For as long as the Protocol on Ireland/Northern Ireland to the Agreement on the Withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, signed in London and Brussels on 24 January 2020 ("Protocol") is in force, (1) nothing in this Agreement shall preclude the United Kingdom from adopting or maintaining measures, or refraining from doing so, further to the Protocol, and amendments thereto and subsequent agreements replacing parts thereof, provided that such measures, or the absence of such measures, are not used as a means of arbitrary or unjustified discrimination against the other Party or as a disguised restriction on trade.
4. On request of either Party, the Parties shall hold consultations, in relation to the effects of a measure described in paragraph 3 the United Kingdom has adopted, or absence thereof, (2) on this Agreement and seek a mutually acceptable solution. (3)
Article 1.3. General Definitions
For the purposes of this Agreement, unless otherwise provided in this Agreement:
“AD Agreement” means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
“Agreement” means the Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and New Zealand;
“central level of government” means:
(a) for New Zealand, the national level of government;
(b) for the United Kingdom, her Majesty’s Government of the United Kingdom of Great Britain and Northern Ireland;
“covered investment” means, with respect to a Party, an investment in its territory of an investor of the other Party, made in accordance with the applicable law at the time the investment is made, (4) in existence as of the date of entry into force of this Agreement or established, acquired, or expanded thereafter;
“customs authority” means:
(a) with respect to New Zealand, the New Zealand Customs Service or its successor;
(b) with respect to the United Kingdom, Her Majesty’s Revenue and Customs or its successor or, where relevant, any other authority responsible for customs matters within its territory. For greater certainty, with respect to the provisions of this Agreement which apply to the Bailiwick of Guernsey, the Bailiwick of Jersey, or the Isle of Man, “customs authority” shall also mean:
(i) with respect to the Bailiwick of Jersey, the Jersey Customs and Immigration Service or its successor;
(ii) with respect to the Bailiwick of Guernsey, Guernsey Customs and Excise or its successor; and
(iii) with respect to the Isle of Man, the Customs and Excise Division of the Isle of Man Treasury or its successor;
“customs duty” includes any duty or charge of any kind imposed on or in connection with the importation of a good, and any form of surtax or surcharge imposed in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994;
(b) antidumping or countervailing duty applied consistently with the provisions of Article VI of GATT 1994, the AD Agreement, and the SCM Agreement; or
(c) fee or other charge in connection with the importation commensurate with the cost of services rendered;
“Customs Valuation Agreement” means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
“days” means calendar days, including weekends and holidays;
“enterprise” means any entity constituted or organised under applicable law, whether or not for profit, and whether privately or governmentally owned or controlled, including a corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organisation;
“existing” means in effect on the date of entry into force of this Agreement;
“GATS” means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
“GATT 1994” means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement. For greater certainty, references in this Agreement to articles in GATT 1994 include the interpretative notes;
“good” means any merchandise, product, article, or material;
“goods of a Party” means domestic products as these are understood in GATT 1994, or such goods as the Parties may agree, and includes originating goods of a Party;
“government procurement” means the process by which a government obtains the use of or acquires goods or services, or any combination thereof, for governmental purposes and not with a view to commercial sale or resale or use in the production or supply of goods or services for commercial sale or resale;
“Harmonized System” or “HS” means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, Chapter Notes, and Subheading Notes;
“heading” means the first four digits in the tariff classification number under the Harmonized System;
“Joint Committee” means the New Zealand – United Kingdom Joint Committee established under Article 30.1 (Establishment of the Joint Committee – Institutional Provisions);
“measure” includes any law, regulation, procedure, requirement, or practice;
“national” means:
(a) for New Zealand, a citizen of New Zealand under its laws or a natural person who has the right of permanent residence in New Zealand;
(b) for the United Kingdom, a British Citizen in accordance with its applicable laws and regulations, or a permanent resident;
“OECD” means the Organisation for Economic Co-operation and Development;
“originating good” or “originating material” means a good that qualifies as originating under the rules of origin in Chapter 3 (Rules of Origin and Origin Procedures);
“person” means a natural person or an enterprise;
“person of a Party” means a national or an enterprise of a Party;
“recovered material” means a material comprising one or more individual parts that results from:
(a) the disassembly of a used good into individual parts; and
(b) the cleaning, testing, or other processing of those individual parts as necessary for improvement to sound working condition;
“regional level of government” means:
(a) for New Zealand: the term regional level of government is not applicable;
(b) for the United Kingdom:
(i) England, Northern Ireland, Scotland, or Wales; or
(ii) Her Majesty’s Government of the United Kingdom of Great Britain and Northern Ireland in respect of England, Northern Ireland, Scotland, or Wales, but not the United Kingdom as a whole;
“remanufactured goods” means a good that:
(a) is entirely or partially comprised of recovered materials;
(b) has similar life expectancy and performance compared to the equivalent good when new; and
(c) has a warranty similar to that applicable to such a good when new;
“Safeguards Agreement” means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
“sanitary or phytosanitary measure” means any measure referred to in paragraph 1 of Annex A to the Sanitary and Phytosanitary Agreement in Annex 1A to the WTO Agreement;
“Sanitary Agreement” means the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of New Zealand on Sanitary Measures Applicable to Trade in Live Animals and Animal Products done at London on 21 January 2019;
“SCM Agreement” means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
“SME” means a small and medium-sized enterprise, including a micro-sized enterprise;
“state enterprise” means an enterprise that is owned, or controlled through ownership interests, by a Party;
“subheading” means the first six digits in the tariff classification number under the Harmonized System;
“territory” means:
(a) for New Zealand, the territory of New Zealand and the exclusive economic zone, seabed, and subsoil over which it exercises sovereign rights with respect to natural resources in accordance with international law, but does not include Tokelau;
(b) in respect of the United Kingdom:
(i) the territory of the United Kingdom of Great Britain and Northern Ireland including its territorial sea and airspace;
(ii) all the areas beyond the territorial sea of the United Kingdom, including the seabed and subsoil of those areas, over which the United Kingdom may exercise sovereign rights or jurisdiction in accordance with international law;
(iii) the Bailiwick of Guernsey, the Bailiwick of Jersey, and the Isle of Man (including their airspace and the territorial sea adjacent to them), territories for whose international relations the United Kingdom is responsible, as regards the following provisions in their entirety, unless otherwise provided in this Agreement:
(A) Chapter 2 (National Treatment and Market Access for Goods), including Annex 2A (Schedule of Tariff Commitments for Goods);
(B) Chapter 3 (Rules of Origin and Origin Procedures);
(C) Chapter 4 (Customs Procedures and Trade Facilitation);
(D) Chapter 5 (Sanitary and Phytosanitary Measures); and
(E) Chapter 6 (Animal Welfare); and
(iv) any territory for whose international relations the United Kingdom is responsible and to which this Agreement is extended or further extended in accordance with Article 33.6 (Territorial Extension – Final Provisions);
“TRIPS Agreement” means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement; (5)
“WTO” means the World Trade Organization; and
“WTO Agreement” means the Marrakesh Agreement Establishing the World Trade Organization done at Marrakesh on 15 April 1994
Chapter 2. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Article 2.1. Definitions
For the purposes of this Chapter:
“advertising films and recordings” means recorded visual media or audio materials, consisting essentially of images or sound, showing the nature or operation of goods or services offered for sale or lease by a person of a Party, provided that those materials are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public;
“commercial samples of negligible value” means commercial samples as determined by a Party to be either having a value, individually or in the aggregate as shipped, of not more than the amount specified in a Party’s laws, regulations, or procedures governing temporary admission, or being so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or use except as commercial samples;
“consular transactions” means the procedure of obtaining from a consul of the importing Party in the territory of the exporting Party, or in the territory of a nonparty, a consular invoice or a consular visa for a commercial invoice, certificate of origin, manifest, shipper’s export declaration, or any other customs documentation in connection with the importation of the good;
“customs duty” includes any duty or charge of any kind imposed on or in connection with the importation of a good, and any form of surtax or surcharge imposed in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994;
(b) anti-dumping or countervailing duty applied consistently with the provisions of Article VI of GATT 1994, the AD Agreement, and the SCM Agreement; or
(c) fee or other charge in connection with the importation commensurate with the cost of services rendered;
“duty-free” means free of customs duty;
“export licensing procedures” means administrative procedures, requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body of the exporting Party as a prior condition for exportation from the territory of the exporting Party;
“goods of a Party” means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of a Party;
“goods temporarily admitted for sports purposes” means sports requisites for use in sports contests, demonstrations, or training in the territory of the Party into whose territory those goods are admitted;
“Import Licensing Agreement” means the Agreement on Import Licensing Procedures in Annex 1A to the WTO Agreement;
“import licensing procedures” means an administrative procedure requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body of the importing Party as a prior condition for importation into the territory of the importing Party;
“performance requirement” means a requirement that:
(a) a given level or percentage of goods or services be exported;
(b) domestic goods or services of the Party granting an import licence be substituted for imported goods;
(c) a person benefiting from a requirement for an import licence purchase other goods or services in the territory of the Party that grants the import licence or accord a preference to domestically produced goods;
(d) a person benefiting from a requirement for an import licence produce goods or supply services in the territory of the Party that grants the import licence, with a given level or percentage of domestic content; or
(e) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows, but does not include a requirement that an imported good be:
(f) subsequently exported;
(g) used as a material in the production of another good that is subsequently exported;
(h) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported; or
(i) substituted by an identical or similar good that is subsequently exported; and
“printed advertising materials” means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials, and posters, that are used to promote, publicise, or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.
Article 2.2. Scope
Unless otherwise provided in this Agreement, this Chapter shall apply to trade in goods between the Parties.
Article 2.3. National Treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative notes. To this end, Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.4. Classification of Goods
For the purposes of this Agreement, the classification of goods in trade between the Parties shall be governed by each Party’s respective tariff nomenclature in conformity with the Harmonized System.
Article 2.5. Elimination of Customs Duties
1. Unless otherwise provided in this Agreement, neither Party shall increase any existing customs duty on any good above the applicable rate for such good as set out in Annex 2A (Schedule of Tariff Commitments for Goods), or adopt any new customs duty on an originating good of the other Party. For greater certainty, the applicable rate refers to the base rate under this Agreement and the applicable tariff reductions to a level below the base rate in subsequent years of the Agreement being in force, as set out in Annex 2A (Schedule of Tariff Commitments for Goods).
2. Unless otherwise provided in this Agreement, each Party shall eliminate customs duties on originating goods of the other Party in accordance with the tariff elimination Schedules and the staging categories in Annex 2A (Schedule of Tariff Commitments for Goods).
3. For each good, the base rate of customs duty to which successive reductions under paragraph 1 are to be applied shall be specified in Annex 2A (Schedule of Tariff Commitments for Goods).
4. Where and for so long as a Party’s applied most-favoured-nation customs duty is lower than the rate calculated pursuant to paragraph 1, the customs duty rate to be applied pursuant to this Agreement to originating goods of the other Party shall be calculated as equal to the importing Party’s applied mostfavoured-nation customs duty
Article 2.6. Accelerated Tariff Elimination
1. At the request of Party, the Parties shall consult to consider accelerating the elimination of customs duties on originating goods as set out in their Tariff Schedules in Annex 2A (Schedule of Tariff Commitments for Goods).