Limits of Free Trade Agreements - The New Zealand/Australia Experience

Abstract

This chapter discusses the several reasons why relations between New Zealand and Australia have not become closer notwithstanding the Closer Economic Relationship (CER) Agreement between the countries. The authors suggest that the experience of CER offers a salutary tale on the limits of 'old style' broad agreements in developing free trade; especially when compared to the new style FTA. The authors conclude that the differences between Australia and New Zealand intellectual property law are considerable in detail and in approach. In Australia, where intellectual property standards tend to track those in the US and Europe (even beyond those levels prescribed by the international agreements), it is often wondered why New Zealand is so intent on maintaining its own course in matters such as copyright term and parallel imports. Conversely, the attitude of many New Zealanders is that the New Zealand position is best for New Zealand, even if something else may be better for Australia.

Keywords: intellectual property, free trade agreements, New Zealand, Australia