FREE TRADE AGREEMENT
Zealand and the Kingdom of Thailand, hereinafter referred to as the “ Parties ”
Inspired by the traditional links of friendship and cooperation between
them and their shared regional interests and ties;
Recognising that the strengthening of their economic partnership will
bring economic and social benefits and improve the living standards
of their people;
further the importance of securing trade liberalisation
and an outward looking approach to trade and investment in order to
expand economic relations between them;
Conscious that open, transparent and competitive markets are the key
drivers of economic efficiency, innovation, wealth creation and consumer
Affirming the rights of their governments to regulate in order to
meet national policy objectives;
Aware that closer social and political relationships and economic
partnerships can play an important role in promoting sustainable development;
Building on their rights, obligations and undertakings under the
World Trade Organisation, and other relevant agreements and arrangements;
Mindful of their commitment to the Asia-Pacific Economic Cooperation
(APEC) goals of free and open trade and investment;
Recognising the significance of good corporate governance and the need
for a predictable, transparent and consistent business environment
to enable businesses to conduct transactions freely, and use resources
efficiently and take investment and planning decisions with certainty;
Desiring to strengthen the cooperative framework for the conduct
of economic relations to ensure it is dynamic and encourages broader
and deeper economic cooperation.
agreed as follows:
1: Objectives and General Definitions
The Parties hereby establish a free trade area consistent with the WTO
Agreement, based upon the principles of common interest and cooperation
and the goals of free and open trade and investment.
The objectives of the Parties in concluding this Agreement are to
strengthen their trade and economic relationship;
liberalise trade and investment and to create favourable conditions
for the stimulation of trade and investment flows;
support the wider liberalisation and facilitation process in APEC;
build upon their commitments at the World Trade Organisation, and
to support its efforts to create a predictable, and more free and
open global trading environment;
encourage and facilitate cooperation in areas of mutual interest in
support of the aims of the Agreement;
improve the efficiency and competitiveness of their trade sectors
by promoting conditions for fair competition, for innovation and for
mutually beneficial business collaboration; and
facilitate trade and investment by establishing a framework of transparent
rules and seeking to minimise transaction costs.
the purposes of this Agreement, unless otherwise specified:
(a) “Agreement” means the New Zealand-Thailand Closer Economic
(b) “APEC” means Asia-Pacific Economic Cooperation;
(c) “CEP Joint Commission” means the Closer Economic Partnership
Joint Commission established under Article 16.1 of this Agreement;
(d) “customs administration” means the competent authority
that is responsible under the laws of a Party for the administration of
customs laws, regulations and policies;
(e) “customs duties” includes any customs or import duty
and a charge of any kind imposed in connection with the import of a good,
including any form of surtax or surcharge in connection with such import,
but does not include any:
charge equivalent to an internal tax imposed consistently with Article
III.2 of GATT 1994;
anti-dumping or countervailing duty applied consistently with the
provisions of GATT 1994, the WTO Agreement on Implementation of Article
VI of the General Agreement on Tariffs and Trade 1994, and the WTO
Agreement on Subsidies and Countervailing Measures; and
fee or other charge in connection with importing commensurate with
the cost of services rendered;
(f) “days” means calendar days, including weekends and holidays;
(g) “food standards” means a mandatory requirement that
is either an SPS measure or a technical regulation as defined in the TBT
Agreement which relates to food and is made pursuant to relevant laws
administered by a Party;
(h) “GATS” means the General Agreement on Trade in Services,
which is part of the WTO Agreement;
(i) “GATT 1994” means the General Agreement on Tariffs and
Trade 1994, which is part of the WTO Agreement;
(j) “goods” means all kinds of movable property, including animals, as understood
in GATT 1994;
(k) “goods” and “products” shall be understood to have
the same meaning unless the context otherwise requires;
(l) “originating goods” means goods that qualify as originating
in accordance with the relevant provisions of Chapter 4;
(m) “person” means a natural person or a juridical person;
(n) “SPS Agreement” means the Agreement on the Application
of Sanitary and Phytosanitary Measures, which is part of the WTO Agreement;
(o) “SPS measure” means a sanitary or phytosanitary measure
and shall have the same meaning as in Annex A, paragraph 1 of the SPS
(p) “TBT Agreement” means the Agreement on Technical Barriers
to Trade, which is part of the WTO Agreement;
(q) “territory” means the territory of a Party, as well
as the exclusive economic zone, seabed and subsoil over which the Party
exercises sovereign rights or jurisdiction in accordance with international
law, but with respect to New Zealand does not include Tokelau;
(r) “WTO” means the World Trade Organisation;
(s) “WTO Agreement” means the Marrakesh Agreement Establishing
the World Trade Organisation, done on 15 April 1994.
2: Trade In Goods
as otherwise provided, this chapter applies to trade in all goods of a
Party shall accord national treatment to the goods of the other Party
in accordance with Article III of GATT 1994. To this end, the provisions
of Article III of GATT 1994 and its interpretative notes are incorporated
into and shall form part of this Agreement, mutatis mutandis.
2.3 Elimination of Customs Duties
The provisions of this Chapter concerning the elimination of customs duties
on imports shall apply to goods originating in the territory of the Parties.
A Party shall not increase an existing customs duty or introduce a new
customs duty on imports of an originating good.
Except as otherwise provided in this Agreement, each Party shall progressively
eliminate its customs duties on originating goods of the other Party in
accordance with its Tariff Schedule at Annex 1. The base rate and the
interim rate of customs duty at each stage of reduction for an item are
indicated for the item in each Party's Schedule. Reductions shall occur
upon entry into force of the Agreement and thereafter on 1 January of
each year, as provided for in each Party's Schedule.
Each Party may adopt or maintain measures necessary to administer a tariff
quota set out in its Tariff Schedule, including allocating access to that
quota opportunity. Such measures shall be transparent and predictable
and shall not have trade restrictive effects on imports additional to
those caused by the imposition of the tariff quota.
On the written request of the other Party, a Party applying or intending
to apply measures pursuant to Paragraph 4 shall consult to consider a
review of the administration of those measures.
2.4 Accelerated Tariff Elimination
Each Party is prepared to eliminate its customs duties more rapidly than
provided for in Article 2.3 or otherwise to improve the conditions of
access of originating goods taking into account its general economic situation
and the economic situation of the sector concerned.
On the request of a Party, the Parties shall promptly enter into consultations
to accelerate the elimination of customs duties on originating goods as
set out in its Tariff Schedule in Annex 1.
An Agreement by the Parties to accelerate the elimination of customs duties
on originating goods shall enter into force after the Parties have exchanged
written notification advising that they have completed the necessary internal
legal procedures and on such date or dates as may be agreed between them.
A Party may at any time accelerate unilaterally the elimination of customs
duties on originating goods of the other Party set out in its Tariff Schedule.
A Party considering doing so shall inform the other Party as early as
practicable before the new rate of customs duties takes effect.
2.5 Administrative Fees and Formalities
Party shall ensure, in accordance with Article VIII.1 of GATT 1994, that
all fees and charges of whatever character (other than customs duties,
charges equivalent to an internal tax or other internal charge applied
consistently with Article III.2 of GATT 1994, and anti-dumping and countervailing
duties) imposed on or in connection with import or export are limited
in amount to the approximate cost of services rendered and do not represent
an indirect protection to domestic goods or a taxation on imports or exports
for fiscal purposes.
2.6 Agricultural Export Subsidies
For the purposes of this Article, agricultural goods means those products
listed in Annex
1 of the WTO Agreement on Agriculture [external link].
The Parties share the objective of the multilateral elimination of all
forms of export subsidies for agricultural goods and shall work towards
an agreement in the WTO to eliminate those subsidies and prevent the introduction
in any form of any new export subsidies for agricultural goods.
Recognising the trade-distorting nature of export subsidies and consistent
with their rights and obligations under the WTO Agreement on Agriculture,
neither Party shall introduce or maintain any form of export subsidy on
any agricultural good destined for the territory of the other Party.
If a Party believes that a policy or measure implemented by the other
Party has the effect of providing an export subsidy on any agricultural
good exported to that Party, it may request consultations with the aim
of preventing such subsidisation occurring on trade between the Parties.
A Party shall not 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 WTO
rights and obligations or in accordance with other provisions of this
Each Party shall ensure the transparency of its non-tariff measures permitted
in Paragraph 1 and shall ensure that any such measures are not prepared,
adopted or applied with a view to or with the effect of creating unnecessary
obstacles to trade between the Parties.