The Australian New Zealand Procurement Agreement (ANZPA) is a free trade agreement between the two countries that aims to open up access to each other`s government procurement markets. This agreement was signed on 22 May 2019 and came into effect on 1 January 2021.
ANZPA covers all government procurement contracts above a certain threshold, which varies depending on the type of procurement. For goods and services, the threshold is AUD 80,000 for Australia and NZD 106,000 for New Zealand. For construction services, the threshold is AUD 9.4 million for Australia and NZD 10 million for New Zealand.
ANZPA aims to simplify the procurement process for both countries, making it easier for Australian and New Zealand businesses to bid for government contracts in each other`s markets. This will lead to increased competition and greater transparency, resulting in better value for taxpayers` money.
The agreement also includes provisions that encourage the use of small and medium-sized businesses (SMEs) in government procurement. ANZPA aims to create more opportunities for SMEs to participate in government procurement processes, helping them to grow their businesses and create jobs in both countries.
ANZPA is part of a broader agenda to deepen the economic relationship between Australia and New Zealand. The two countries already have a Closer Economic Relations (CER) agreement, which has been in place since 1983. ANZPA builds on the success of CER, providing a framework for greater access to government procurement markets.
In conclusion, the Australian New Zealand Procurement Agreement is an important free trade agreement that aims to simplify the procurement process, increase competition, and create opportunities for SMEs. This agreement is an important step towards strengthening the economic relationship between Australia and New Zealand, creating more jobs and driving economic growth in both countries.