Australia/NZ - ASEAN Free Trade Agreement Negotiations

Overview

Leaders from Australia, the 10 countries of the Association of Southeast Asian Nations (ASEAN) and New Zealand agreed in 2004 to launch negotiations on a free trade agreement (FTA) involving Australia, ASEAN and New Zealand. Meeting in Laos, the 12 leaders agreed the FTA would be comprehensive, covering trade in goods and services, and investment. The initiative originated from efforts begun in the early 1990s under the former Labor Government to develop linkages between the ASEAN Free Trade Area (AFTA) and the Australia-New Zealand Closer Economic Relations (CER) Agreement.

The ASEAN-Australia-New Zealand FTA (AANZFTA) is the first plurilateral FTA negotiation Australia has embarked upon. It is also the first time Australia and New Zealand are involved jointly in negotiating an FTA with third countries and the first time ASEAN has embarked on comprehensive FTA negotiations covering all sectors (goods, services and investment) simultaneously.

An FTA with ASEAN is expected to strengthen growth and development throughout the region and strengthen Australia’s ties with ASEAN and the region. It should create significant opportunities for trade and investment, including opportunities beyond those provided by our bilateral FTAs with Singapore and Thailand, because AANZFTA is a regional FTA with regional rules of origin.

AANZFTA negotiations began in March 2005. At the 12th ASEAN Economic Ministers-CER Consultations, held in Manila on 26 August 2007, Ministers agreed to aim to conclude AANZFTA negotiations by mid-2008.

The ten ASEAN countries have a population of over 550 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 3.4% of Australia’s foreign direct investment as at December 2006.

Updates

Updates

Register for updates on the FTA negotiation process by sending your e-mail address to the Asia Trade Task Force: asean.fta@dfat.gov.au.

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

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
ASEAN economy fact sheet (pdf)
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

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