NZ and Australia Fast-Track Plans for a More Ambitious Single Economic Market

The CER agreement, which has underpinned trade relations between New Zealand and Australia for over four decades, continues to evolve as both economies adapt to new challenges and opportunities.

New Zealand and Australia have agreed to accelerate work on a more ambitious Single Economic Market (SEM) agenda, marking a major step forward in trans-Tasman cooperation. The announcement came as Trade and Investment Minister Todd McClay met with Australian Trade and Tourism Minister Don Farrell for the annual Closer Economic Relations (CER) Trade Ministers' Meeting in Monarto, South Australia.

The Ministers reaffirmed their shared commitment to open markets, stronger regional engagement, and closer policy coordination — key elements aimed at boosting both countries' economic resilience and competitiveness amid an increasingly complex global trade landscape.

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Strengthening the Trans-Tasman Partnership

The CER agreement, which has underpinned trade relations between New Zealand and Australia for over four decades, continues to evolve as both economies adapt to new challenges and opportunities. This year's meeting focused on fast-tracking reforms that support deeper economic integration, easier business mobility, and regulatory harmonization.

Key outcomes included:

• Regulatory and standards alignment: The Ministers endorsed a new Heads of Agreement between Standards Australia and Standards New Zealand, paving the way for closer collaboration on product standards and certification processes.

• Simplifying cross-border business operations: Both sides agreed to strengthen the Trans-Tasman Mutual Recognition Arrangement (TTMRA), which allows goods legally sold in one country to be sold in the other without further testing or modification. This will make it easier for companies to operate across the Tasman and expand their market reach.

• Progressing SEM reforms: The Ministers committed to advancing a Single Economic Market framework that streamlines regulations, aligns consumer and competition laws, and enhances digital trade and services integration.

"These initiatives are about making it simpler for businesses to trade, invest, and grow—not just between our two countries, but across the wider region," Minister McClay said.

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Coordinating Global Trade Engagement

In addition to bilateral progress, both Ministers emphasized the importance of coordinated action in regional and global trade forums. They reaffirmed a joint approach to:

• World Trade Organization (WTO) reform, ahead of the upcoming Ministerial Conference;

• Collaborative engagement in Asia-Pacific Economic Cooperation (APEC);

• Strengthened participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); and

• Deepened cooperation through the Regional Comprehensive Economic Partnership (RCEP).

Minister Farrell noted that "New Zealand and Australia share not only the world's closest trading partnership but also a commitment to shaping a fair, rules-based trading system that supports our region's prosperity."

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Aligning with Business Priorities

The Ministers also welcomed the contributions of private-sector leaders through the Australia New Zealand Leadership Forum (ANZLF), held last month. Insights from business representatives helped shape the policy agenda discussed at Monarto, ensuring that government actions align with commercial realities and growth opportunities.

Both governments committed to maintaining regular consultation with industry, particularly in emerging areas such as digital trade, green innovation, and sustainable supply chains.

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A Renewed Vision for Trans-Tasman Economic Growth

The renewed push toward a Single Economic Market reflects the long-term vision of a truly integrated trans-Tasman economy—one that supports business mobility, reduces regulatory barriers, and enhances economic security for both nations.

Since the CER agreement was signed in 1983, two-way trade between New Zealand and Australia has grown significantly, reaching over NZD $29 billion annually. With these new reforms, both countries aim to build on that success, creating a more dynamic and competitive regional economy.

A joint ministerial statement was released following the meeting, outlining the next steps and reaffirming both nations' commitment to practical cooperation and shared prosperity.