
Closer Economic Relations (CER)


Australia is New Zealand’s most important economic partner. Australia is one of our largest export destinations, export markets and sources of foreign investment. This relationship is underpinned by the Australia and New Zealand Closer Economic Relations (CER) Agreement signed in 1983.
CER is recognised by the World Trade Organization as the world's most comprehensive, effective and mutually compatible free trade agreement.
CER is supported by more than 40 other agreements including the Trans-Tasman Travel Arrangement, Trans-Tasman Mutual Recognition Agreement, and the Food Standards Treaty which aligns food safety requirements and established Food Standards Australia New Zealand (FSANZ) and the Australia New Zealand Food Standards Code.
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Australia is our most important trading partner, with two-way trade worth $32.76 billion in 2024.



Shared values
As allies that share liberal democratic values, a commitment to the rules-based order, and a belief in a market-based economic model, New Zealand and Australia are the closest of partners. We both want a stable, secure and resilient region.
We have deep common interests grounded in our geography under shared skies, values, political systems and our commitment to the Pacific.
Sustainable Economies
Our trade relationship is underpinned by the Closer Economic Relations (CER) agreement signed more than 40 years ago and still recognised as one of the best in the world.
It’s been gradually built on over the years, enabling our people to live, work, trade and our businesses to grow and invest more easily between our two nations.
We are ambitious to drive CER forward into new areas – digital trade, science and technology, indigenous cooperation, trade that is sustainable and benefits all our people.
For New Zealanders and New Zealand businesses, Australia is a vital source of prosperity, through business and labour connections, exports, tourism, innovation, and science and knowledge. Australia is our most important trading partner, with two-way trade accounting for $32.76 billion in 2024, and is the first export market many New Zealand companies look to, to grow.
And for Australia, New Zealand is its largest source of tourists, fourth largest investment destination, only single economic market and top export destination for Australian small and medium enterprises (SMEs).
A gold standard agreement
CER was ahead of its time. Signed before the creation of the European Union or the World Trade Organisation, New Zealand and Australia set out to create a free trade area and an agreement that was truly comprehensive and built on mutual trust.
Unlike other free trade agreements there is no formal dispute settlement mechanism in the CER. Though we may have our differences, through our spirit of mutual respect between our two governments, we are able to work through these differences to reach an outcome that is beneficial for all.
CER is a living agreement. It’s been gradually expanded over the years, enabling our people to live, work, trade and our businesses to grow and invest more easily between our two nations. We continue to modernise and future proof it.
CER
- Removed all tariffs and quotas cutting costs and red tape for goods exporters
- Allowed most services to be traded across the Tasman free of restriction
- Made it as easy to do business in Australia as it is in New Zealand and vice versa
- Made it easier to invest in each other’s countries under the March 2013 Investment Protocol
- Reduced compliance costs for food exporters, provided more consumer choice and created common rules for food standards
- Lowered withholding taxes on certain payments made between New Zealand and Australia, through the Double Taxation Agreement

Building on CER
Building on the NZ-Australia CER agreement New Zealand and Australia committed to a process called the Single Economic Market (SEM) agenda in 2004, designed to create a seamless trans-Tasman business environment.
The SEM agenda identifies innovative, low-cost actions to reduce barriers and costs arising from different, conflicting or duplicate regulations or institutions in either country.
It has already brought significant economic benefits to both countries by lowering business costs and increasing the ease with which both businesses and people can operate across the Tasman.
Read more about the Single Economic Market.