These decisive steps emerged as the outcome of the first major scheduled review of ANZCERTA in 1988, and were driven in large measure by the political direction provided by the two prime ministers of the day.

Trade in Goods

Agreement was reached to accelerate dramatically the liberalization of goods trade, so that remaining tariffs and quantitative restrictions on all goods traded between the two countries, including those hitherto subject to “modified arrangements”, were eliminated by 1990. A partial solution was agreed to New Zealand's concern over Australian “bounties”, whereby “bounties” would not be paid to Australian manufacturers on exports to New Zealand, although New Zealand exporters to Australia continued to suffer from the effect of the “bounties” in offsetting their preferential access to the Australian market.

A number of new measures or initiatives designed to facilitate further free trade in goods were also agreed at this time. A Memorandum of Understanding on Technical Barriers to Trade, a Protocol on Harmonization of Quarantine Administrative Procedures, and a Joint Understanding on Harmonization of Customs Policies and Procedures launched work programmes that would progressively deepen cooperation and harmonization in each of these areas.

Elimination of Anti-Dumping — First Steps on Competition and Business Law

A ground breaking development was the agreement to eliminate anti-dumping actions on trade between the two countries. Issues relating to fairness in trade would be addressed instead by the extension of competition law provisions in each country prohibiting abuses of market power to cover abuses that affect trans-Tasman trade in goods. In order to give effect to this agreement changes were made to the relevant legislation in each country, including provision for the courts in each country to hear evidence relating to contraventions of these prohibitions in the other jurisdiction. Also in 1988 the two governments concluded a Memorandum of Understanding on Harmonization of Business Law, committing themselves to work towards identifying and pursuing potential areas for harmonization in this field.