Business leaders call for closer New Zealand-Australia integration

Australian and New Zealand business leaders on Thursday called on leaders of the two countries to accelerate economic integration as Australian Prime Minister Tony Abbott and New Zealand counterpart John Key are due to discuss moves this week to advance the single economic market ( SEM) across the Tasman.

The two prime ministers and ministers from both sides are also expected to participate in the Australia-New Zealand Leadership Forum in Auckland on Friday, which will bring together business and government leaders.

This year's meeting would continue to focus on trade, tourism and progress towards SEM, and advocate for a better trans-Tasman investment environment, said forum leaders.

New Zealand co-chair Adrian Littlewood said the success of the bilateral Closer Economic Relations free-trade agreement and a deepening SEM meant the two countries had a strong platform from which to grow trade with each other and with the rest of the world.

"Our goal at this forum is to develop some new ideas for leadership between the two countries and together as we face the world," Littlewood said in a statement.

Australian co-chair Warwick Smith said in the statement that the trans-Tasman relationship would benefit from a better understanding in both countries of the importance of foreign direct investment for generating growth.

Chief executive of the Business New Zealand organization Phil O 'Reilly said trans-Tasman businesses shared many common issues, including the need to increase productivity, innovation and higher technology inputs to business.

"Removing barriers to productive, innovative workplaces in our two countries would help both succeed and grow," O'Reilly said in the statement.

The independent New Zealand Institute of Economic Research ( NZIER) issued a report on Wednesday saying the bilateral relationship was close with most barriers to integration removed but it could be closer.

"Getting even closer means addressing what's left: the more challenging economic and political issues such as the mutual recognition of imputation credits, restrictions on services trade and the costs of traveling across the Tasman," NZIER deputy chief executive John Ballingall said in a statement. Enditem