“The signing of the New Zealand/Thailand Closer Economic Partnership Agreement marks an historic day in the relationship between the two countries,” Prime Minister Helen Clark said today.

The Prime Minister and Thai Prime Minister Thaksin Shinawatra presided over the signing of the CEP Agreement by Trade Minister Jim Sutton and Thai Commerce Minister Thanong Bidaya in Bangkok on 19 April. Mr Sutton also signed Arrangements on Labour and Environment, negotiated in parallel with the CEP, and a Working Holiday Scheme arrangement between New Zealand and Thailand.

“This CEP will play a key role in advancing the concept of a Thai/New Zealand strategic partnership and unlock the potential of the bilateral trade and economic relationship,” the Prime Minister said. “The CEP can act as a catalyst for a reinvigorated relationship, break down trade barriers, and alert business people in both countries to what they have to offer each other.”

For New Zealand, the comprehensive elimination over time of all Thailand’s tariffs under the CEP represents a major trade policy outcome which will open up significant opportunities for New Zealand.

All tariffs will be eliminated either on implementation or under phasing arrangements. On implementation, 71 per cent of bilateral trade will be duty free. By 2010 this proportion is estimated to rise to 84 per cent.

“Alongside the trade liberalisation commitments are important provisions aimed at facilitating trade and improving the environment for doing business between our countries. The CEP will also promote co-operation between New Zealand and Thailand in areas ranging from intellectual property to competition policy, and should encourage the flow of investment between us,” Helen Clark said.

Helen Clark emphasised that the New Zealand Government is committed to making the CEP work for business. “We are working on a programme of activities that will help to translate the opportunities opened up by the CEP agreement into concrete outcomes for business,” Helen Clark said.

“Completion of the CEP with Thailand provides another economic link with a leading ASEAN nation and reflects New Zealand’s commitment to engage more intensively with South East Asia. It will also serve to boost the prospects of achieving a comprehensive and ambitious agreement in our negotiations on an ASEAN/Australia/NZ FTA”.

As a first step, a group of senior New Zealand business people is accompanying the Prime Minister and Mr Sutton to Bangkok and will participate in a seminar for Thai business people on doing business with New Zealand.