Title
NEW ZEALAND - UNITED ARAB EMIRATES COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT
Preamble
PREAMBLE
The Governments of New Zealand (hereinafter referred to as “New Zealand”) and the United Arab Emirates (hereinafter referred to as the “UAE”);
hereinafter being referred to individually as a “Party” and collectively as “the Parties”;
RECOGNISING the strong economic and political ties between New Zealand and the UAE, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
DETERMINED to build on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994, and other multilateral and bilateral agreements relating to matters covered by the New Zealand – UAE Comprehensive Economic Partnership Agreement to which both Parties are a Party;
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalisation and technological progress that presents various economic and strategic challenges and opportunities to the Parties;
ACKNOWLEDGING that Te Tiriti o Waitangi/The Treaty of Waitangi is a foundational document of constitutional importance to New Zealand;
SEEKING to establish clear and mutually advantageous rules governing their trade in goods and services, to promote a predictable business environment and open and fair competition, and eliminate barriers between them;
RESOLVING to promote transparency in international trade and investment;
DETERMINED to develop and strengthen their economic and trade relations through the liberalisation and expansion of trade in goods and services in their common interest and for their mutual benefit;
AIMING to promote the development, transfer and use of technology to expand trade;
CONVINCED that the establishment of a free trade area will provide a more favorable climate for the promotion and development of economic and trade relations between the Parties;
AIMING to facilitate trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters;SEEKING to emphasise the importance of sustainable development in promoting inclusive economic growth;
DETERMINED to support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by the New Zealand – UAE Comprehensive Economic Partnership Agreement;
RECOGNISING the importance of 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;
AIMING to establish a clear, transparent, and predictable legal and commercial framework for business planning, that supports further expansion of trade and investment;
RECOGNISING their inherent right to regulate and resolved to preserve the flexibility of the Parties to set legislative and regulatory priorities, and protect legitimate public policy objectives, such as health, safety, environmental protection, conservation of living or non-living exhaustible natural resources, integrity and stability of the financial system, public morals, and in the case of New Zealand, the promotion or protection of the rights, interests, duties and responsibilities of Māori, in accordance with the rights and obligations provided in the New Zealand – UAE Comprehensive Economic Partnership Agreement;
RECOGNISING the positive momentum that trade agreements and arrangements can have in accelerating global trade liberalisation, and their role as building blocks for the multilateral trading system;
HAVE AGREED, in pursuit of the above, to conclude the following Agreement (hereinafter referred to as “this Agreement”):
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
The Parties hereby establish a Free Trade Area, in conformity with Article XXIV of the General Agreement on Tariffs (GATT) and Article V of General Agreement on Trade in Services (GATS).
Article 1.1. Establishment of a Free Trade Area
For the purposes of this Agreement:
Agreement on Agriculture means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
Anti-Dumping Agreement or 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;
customs authority means:
(a) with respect to New Zealand, the New Zealand Customs Service or its successor;
(b) with respect to the United Arab Emirates, the Federal Authority of Identity, Citizenship, Customs and Port Security or its successor;
customs duty means any duty or charge of any kind imposed on, or in connection with, the importation of a good, including 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 I11:2 of the GATT 1994;
(b) anti-dumping or countervailing duty applied consistently with the provisions of Article VI of the GATT 1994, the Anti-Dumping Agreement, and the SCM Agreement; or
(c) fee or other charge in connection with importation commensurate with the cost of services rendered.
Customs Valuation 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;
days means calendar days, including weekends and holidays;
DSU means the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO 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;
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;
Import Licensing Agreement means the Agreement on Import Licensing Procedures in Annex 1A to the WTO Agreement;
Joint Committee means the Joint Committee established pursuant to Article 19.1 (Establishment of the Joint Committee) of this Agreement;
measure means any measure, whether in the form of a law, regulation, rule, procedure, decision, practice, administrative action, or any other form;
person means a natural person or a juridical person;
Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
SME means small and medium-sized enterprise;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement;
territory means:
(a) for the UAE, its land territories, internal waters, including its Free Zones, territorial sea, including, the seabed, and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which UAE has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law.
(b) 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 tesources in accordance with international law, but does not include Tokelau.
trade administration documents means forms issued or controlled by a Party that must be completed by or for an importer or exporter in connection with the import or export of goods;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;
WCO means World Customs Organization; WTO means the World Trade Organization; and WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, 15 April 1994.
Article 1.3. Relation to other Agreements
1, The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which both Parties are party.
2. 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.
Article 1.4. Regional and Local Government
1. Each Party shall take such reasonable measures as may be available to it to ensure observance of the provisions of this Agreement by the regional and local governments and authorities and by non-governmental bodies in the exercise of governmental powers delegated by central, regional and local governments and authorities within its territories.
2. This provision is to be interpreted and applied in accordance with the principles set out in paragraph 12 of Article XXIV of the GATT 1994 and paragraph 3 of Article I of the GATS.
Article 1.5. Confidential Information
Where a Party provides information to the other Party in accordance with this Agreement and designates the information as confidential, the other Party shall maintain the confidentiality of the information. Such information shall be used only for the purposes specified and shall not be otherwise disclosed without the specific written permission of the Party providing the information, except to the extent that the Party receiving the information is required under its law to provide the information, including for the purpose of judicial proceedings.
Article 1.6. Disclosure of Information
Nothing in this Agreement shall be construed to require a Party to furnish or allow access to information, the disclosure of which would be contrary to its law or would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.
Chapter 2. TRADE IN GOODS
Article 2.1. Definitions
For the purposes of this Chapter:
duty-free means free of customs duty; and
import licensing 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.
Article 2.2. Scope and Coverage
Unless otherwise provided in this Agreement, this Chapter applies 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 the GATT 1994, including its interpretative notes. To this end, Article III of the GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.4. Elimination of Customs Duties
1. Unless otherwise provided in this Agreement, including as explicitly set out in each Party’s schedule included in Annex 2A (Schedule of Tariff Commitments for Goods), neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party.
2. 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. Where a Party reduces its most-favoured nation (hereinafter “MFN”) applied rate of customs duty, that duty rate shall apply to an originating good of the other Party if, and for as long as, it is lower than the customs duty rate on the same good calculated in accordance with its schedule in Annex 2A (Schedule of Tariff Commitments for Goods).
Article 2.5. Acceleration or Improvement of Tariff Commitments
1. Upon the request of a Party, the other Party shall consult with the requesting Party to consider accelerating, or improving the scope of, the elimination of customs duties on originating goods as set out in Annex 2A (Schedule of Tariff Commitments for Goods).
2. An agreement between the Parties to accelerate, or improve the scope of, the elimination of a customs duty on an originating good (or to include a good in in Annex 2A (Schedule of Tariff Commitments for Goods) shall supersede any duty rate or staging category determined pursuant to Annex 2A (Schedule of Tariff Commitments for Goods) for that good once approved by each Party in accordance with its applicable domestic procedures.
3. Nothing in this Agreement shall prohibit a Party, at any time, from unilaterally accelerating, or improving the scope of, the elimination of customs duties on originating goods as set out in Annex 2A (Schedule of Tariff Commitments for Goods). A Party shall inform the other Party as early as practicable before the new rate of customs duty takes effect.
4. If a Party accelerates, or improves the scope of, elimination of custom duties in accordance with paragraph 3 of this Article, that Party may raise the customs duties concerned to the level set out in Annex 2A (Schedule of Tariff Commitments for Goods) for the respective year following such unilateral acceleration or improvement to the scope.
Article 2.6. 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 and its amendments.
Article 2.7. Transposition of Schedules of Tariff Commitments
1. Each Party shall ensure that the transposition of its schedule in Annex 2A (Schedule of Tariff Commitments for Goods), undertaken in order to implement Annex 2A (Schedule of Tariff Commitments for Goods) in the nomenclature of the revised HS following periodic amendments to the HS, is carried out without impairing existing tariff concessions, and does not afford less favourable treatment to an originating good of the other Party, as set out in its schedule in Annex 2A (Schedule of Tariff Commitments for Goods).
2. The transposition of the schedules of tariff commitments shall be carried out in accordance with the methodologies and procedures adopted by the Sub-Committee on Trade in Goods.
3. The Parties shall ensure the timely circulation of the transposed schedules of tariff commitments in the nomenclature of the revised HS.
Article 2.8. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party shall adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994 including its interpretative notes. To this end Article XI of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
2. Where a Party proposes to adopt an export prohibition or restriction on foodstuffs in accordance with paragraph 2(a) of Article XI of GATT 1994, the Party shall:
(a) seek to limit such proposed prohibition or restriction to the extent necessary, giving due consideration to its possible effects on the other Party's foodstuff security;
(b) provide information in writing, as soon as practicable, to the other Party of such proposed prohibition or restriction and its reasons together with its nature and expected duration; and
(c) on request, provide the other Party with a reasonable opportunity for consultation with respect to any matter related to the proposed prohibition or restriction.
Article 2.9. Import Licensing Procedures
1. Each Party shall ensure that its automatic and non-automatic import licensing procedures are implemented in a transparent and predictable manner, and applied in accordance with the Import Licensing Agreement. Neither Party shall adopt or maintain a measure that is inconsistent with the Import Licensing Agreement (1), which is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. Each Party shall notify the other Party of any new import licensing procedures and any modification to its import licensing procedures. A Party shall do so 60 days before the new procedure or modification takes effect, whenever practicable. In no case shall a Party provide the notification later than 60 days after the date of its publication.
3. A Party shall be deemed to be in compliance with paragraph 2 with respect to a new or modified import licensing procedure if it notifies that procedure to the WTO Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement, including the information specified in Article 5.2 of the Import Licensing Agreement.
4. A Party shall publish on an official government website any new or modified import licensing procedure, including any information that it is required to publish under paragraph (a) of Article 1.4 of the Import Licensing Agreement. To the extent possible, the Party shall do so at least 21 days before the new procedure or modification takes effect.
5. Each Party shall respond within 60 days to enquiries and the request of relevant information from the other Party with regard to any import licensing procedures that it has adopted or changed. A response shall include, where requested, an explanation of the reason for the denial of an import licensing application with respect to a good of the other Party.
Article 2.10. Customs Valuation
For the purposes of determining the customs value of goods traded among the Parties, Article VII of the GATT 1994 and the Customs Valuation Agreement, including its interpretative notes, shall apply, mutatis mutandis.
Article 2.11. Export Subsidies
Neither Party shall maintain, introduce or reintroduce export subsidies, or other measures with equivalent effect, on any good destined for the territory of the other Party, including agricultural products.
Article 2.13. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its interpretive notes, that all fees and charges of whatever character (other than import and export duties charges equivalent to an internal tax or other internal charges applied consistently with Article III:2 of GATT 1994, and anti-dumping and countervailing duties) imposed on, or in connection with, importation or exportation shall be limited in amount to the approximate cost of services rendered, shall not be on an ad valorem basis and shall not represent an indirect protection to domestic goods or a taxation on imports or exports for fiscal purposes.
2. Each party shall promptly publish, and update as appropriate, details of the fees and charges that it imposes in connection with importation or exportation and shall make such information available on the Internet.
Article 2.14. Technical Consultations
1. Neither Party shall adopt or maintain any non-tariff measures on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party except in accordance with its rights and obligations under the WTO Agreement or this Agreement.
2. A Party may request technical consultations with the other Party to discuss any measure within the scope of this Chapter if it considers the measure was prepared, adopted or applied with a view to, or with the effect of, creating an unnecessary obstacle to trade and adversely affecting trade between the Parties. The request shall be in writing and shall clearly identify the measure, explain the reasons for the request and how the measure adversely affects trade between the Parties, indicate any provisions of the Chapter to which the concerns relate and, if possible, provide suggested solutions.
3. Where a non-tariff measure of the type described in paragraph 2 is covered by another Chapter which provides for a consultation mechanism with the other Party, that consultation mechanism shall be used.
4. Within 30 days of receipt of a request under paragraph 2, the responding Party shall provide a written reply to the requesting Party.
5. Unless the Parties agree otherwise, within 30 days of the requesting Party’s receipt of the reply, the Parties shall enter into consultations with a view to reaching a mutually satisfactory solution.
6. If the requesting Party considers that the subject of the request under paragraph 2 is urgent or involves perishable goods, the responding Party shall give prompt and reasonable consideration to any request to hold consultations within a shorter timeframe than that provided for under paragraph 5.
7. If consultations under paragraph 5 or 6 failed to reach a mutually satisfactory solution, the matter shall be immediately reviewed by the Sub-Committee on Trade in Goods with the view to securing a mutually satisfactory solution.
8. Any consultations undertaken pursuant to this Article shall be without prejudice to the rights and obligations of the Parties under Chapter 20 (Dispute Settlement) or under the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO Agreement.
Article 2.15. State Trading Enterprises
Nothing in this Agreement shall be construed to prevent a Party from maintaining or establishing a state trading enterprise in accordance with Article XVII of the GATT 1994 and the Understanding on the Interpretation of Article XVII of the GATT 1994.
Article 2.16. Temporary Admission of Goods
1. Each Party shall grant temporary admission, free of customs duties, for the following goods imported from the other Party, regardless of their origin:
(a) professional and scientific equipment, including their spare parts, and including equipment for the press or television, software, and broadcasting and cinematographic equipment, that are necessary for carrying out the business activity, trade, or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party;
(b) goods intended for display, demonstration, or use at theaters, exhibitions, fairs, or other similar events;
(c) commercial samples and advertising films and recordings; (2)
(d) goods admitted for sports purposes; and
(e) containers and pallets that are used for the transportation of equipment or used for refilling.
2. Each Party shall, at the request of the importer and for reasons deemed valid by its Customs Authority, extend the time limit for temporary admission beyond the period initially fixed.
3. No Party shall condition the temporary admission of a good referred to in paragraph 1, other than to require that the good:
(a) not be sold or leased while in its territory;
(b) be accompanied by a security in an amount no greater than the customs duties and any other tax or charge imposed on imports that would otherwise be owed on entry or final importation, releasable on exportation of the good;
(c) be capable of identification when exported;
(d) be exported in accordance with the time period granted for temporary admission, or within such other period or extension in accordance with its domestic law related to the purpose of the temporary admission;
(e) not be admitted in a quantity greater than is reasonable for its intended use; or
(f) be otherwise admissible into the importing Party’s territory under its law.
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, that Party may apply the customs duty, and any other tax or charge that would normally be owed on the importation of the good and any other charges or penalties provided for under its law.
5. Each Party, through its Customs Authority, shall adopt or maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, such procedures shall provide that when such a good accompanies a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
6. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted in accordance with its customs procedures.
7. Each Party shall provide that the importer or other person responsible for the goods admitted in accordance with this Article shall not be liable for failure to export the goods within the period fixed for temporary admission, including any lawful extension, on presentation of satisfactory proof to the importing Party that the goods were totally destroyed. In certain cases, a Party may condition relief of liability under this paragraph by requiring the importer to receive prior approval from the Customs Authority of the importing Party before the good can be totally destroyed.
Article 2.17. Goods Re-Entered after Repair or Alteration
1. Neither Party shall apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in the territory of the Party from which the good was exported for repair or alteration, except that a customs duty or other taxes or charges may be applied, in accordance with each Party’s laws and procedures, to the addition resulting from the repair or alteration that was performed in the territory of the other Party.
2. Neither Party shall apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
3. For purposes of this Article, “repair” or “alteration” does not include an operation or process that:
(a) destroys a good’s essential characteristics or creates a new or commercially different good;
(b) transforms an unfinished good into a finished good;
(c) results in a change of the classification at a six-digit level of the Harmonized System (HS); or
(d) substantially changes the function of a good.