Australia/NZ - ASEAN Free Trade Agreement Negotiations
Negotiations Conclude
The negotiations between ASEAN, Australia and New Zealand for a Free Trade Agreement (AANZFTA) were concluded at the 13th annual meeting of the ASEAN Economic Ministers-Closer Economic Relations (AEM-CER) consultations in Singapore on 28 August 2008. The Agreement is a comprehensive single undertaking FTA between ASEAN and Australia and New Zealand. Commitments were also given to resolve specific bilateral market access issues between Australia and Indonesia and Malaysia.
The Minister for Trade, Mr Simon Crean, who represented Australia at the AEM-CER Consultations, said Australia stood to gain considerably from the trade agreement.
Leaders from Australia, the 10 countries ASEAN, and New Zealand agreed in Laos in 2004 to launch negotiations on an FTA and the first round of negotiations was held in March 2005. Leaders decided that the FTA would be comprehensive, covering trade in goods and services, and investment in a Single Undertaking. The initiative originated from efforts begun in the early 1990s under the then-Labor Government to develop closer linkages between the ASEAN Free Trade Area (AFTA) and the Australia-New Zealand Closer Economic Relations (CER) Agreement.
AANZFTA is Australia’s first multi-country (plurilateral) FTA. It was the first time Australia and New Zealand have been involved jointly in negotiating an FTA with third countries. It was the first time ASEAN has embarked on comprehensive FTA negotiations covering all sectors including goods, services and investment, intellectual property simultaneously. And, the agreement is the most comprehensive trade agreement that ASEAN has ever negotiated.
The ten ASEAN countries have a population of 570 million people, third after China and India and a combined GDP of estimated at around US$1 trillion, second only to China in emerging Asia. As a group, ASEAN is a larger trading partner for Australia (16 per cent) than any single country, including Japan (13 per cent), China (12 per cent) or the United States (11 per cent). However ASEAN attracted only a modest 5% of Australia’s foreign direct investment as at December 2007.
Updates
Feasibility Studies
The Angkor Agenda: Report of the High Level Task Force on the AFTA-CER Free Trade Area, 2000 (pdf -420KB)
The Report concludes that establishing a free trade area between AFTA and CER is not only feasible but also advisable, for both political and economic reasons, if both ASEAN and CER are at least to keep pace with the rapidly changing world of today.
Economic benefits from an AFTA-CER free trade area - Year 2000 study (pdf - 367KB)
This study by the Centre for International Economics using computable general equilibrium techniques shows that the proposed FTA will bring about a net discounted benefit of about US$ 48 billion in additional GDP to the region up to the year 2020, with an additional US$19.1 billion to Australia, US$25.6 billion to ASEAN countries, and US$3.4 billion to New Zealand.
Submissions
DFAT is inviting submissions and comment relevant to the AANZFTA throughout the negotiation process. Submissions, comments or general enquiries about the FTA should be directed to
Asia Trade Task Force:
Email: asean.fta@dfat.gov.au
Fax: (02) 6261 2187
Asia Trade Task Force
Department of Foreign Affairs & Trade
RG Casey Building
John McEwen Crescent
BARTON ACT 0221
Additional Information
Background & Fact Sheets
- Fast Facts about ASEAN - Australia - New Zealand FTA
- ASEAN – Australia – New Zealand FTA Timeline
- Australia's Trade with ASEAN
- ASEAN economy fact sheet [ PDF ]
- Joint Declaration of the Leaders of the ASEAN - Australia and New Zealand Commemorative Summit
- Guiding Principles for Negotiation on ASEAN - Australia and New Zealand Free Trade Area
- Australia's trade with ASEAN
- About ASEAN
- ASEAN Free Trade Area - Closer Economic Relations - Closer Economic Partnership (AFTA CER CEP)
- Ministerial Declaration on the AFTA-CER Closer Economic Partnership, 14 September 2002
- ASEAN: Building an Economic Community, a report by DFAT’s Economic Analytical Unit, 2006
Media Releases and Statements
- Australia concludes Southeast Asia trade deal, Minister for Trade, 28 August 2008
- Joint Media Statement of the 12th AEM-CER Consultations in Makati City, Philippines, 26 August 2007
Doing Business in the ASEAN Region
For more information on doing business in the ASEAN region and about specific export opportunities, go to the Austrade website. As well as country-specific information, the Austrade website also has a database that can be searched by industry.
Contact us
Asia Trade Task Force:
Email: asean.fta@dfat.gov.au
Fax: (02) 6261 2187
Asia Trade Task Force
Department of Foreign Affairs & Trade
RG Casey Building
John McEwen Crescent
BARTON ACT 0221
For media enquiries, please call DFAT's Media Liaison Section: (02) 6261 1555