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ASEAN-Australia-New Zealand FTA

Subscriber Update

 

Update 7 – April 2006

Fifth Round of Negotiations

ASEAN-Australia-New Zealand free trade agreement (FTA) negotiators met in Rotorua, New Zealand from 4-7 April 2006.

Following a comprehensive program of information exchange, negotiations have moved to substantive discussion on potential elements and draft text for inclusion in the agreement.

The complexity of Australia negotiating a free trade agreement with the ten members of ASEAN and New Zealand all at different stages of economic development - cannot be underestimated. Much work remains to secure an agreement which is comprehensive, covering goods, services and investment.

Discussions in Rotorua covered the structure and scope of an agreement, and approaches to the negotiations, including elements of possible chapters. Trade in goods (including rules of origin, customs procedures, sanitary and phytosanitary measures, and technical barriers to trade), services, investment, economic cooperation, intellectual property, competition policy, and dispute settlement mechanisms, were covered.

Progress was made on trade in goods, with consensus reached on some common elements, although much work remains to secure the most liberalising outcomes possible. Approaches to tariff elimination and reduction were explored, with useful discussion in areas such as scope and coverage of the FTA, and full implementation within ten years. However, as the lead negotiators stated in Rotorua, goods market access negotiations will be challenging, recognising that ASEAN countries are at various stages of economic development.

Real advancements in the negotiation on rules of origin (ROOs) were made, reflecting Australia's efforts to increase understanding among the ASEAN countries of our approach to ROOs, including the benefits of the change in tariff classification (CTC) approach. While the ASEANs are more familiar with the value added approach, better understanding of the CTC approach amongst ASEAN countries has resulted in a willingness to find ways of incorporating this approach in the agreement.

Negotiators have agreed that further work on the methods to be used in the services negotiations will take place over coming months. Australia remains committed to an approach that provides meaningful market access and recognises the different development needs of all countries involved.

ASEAN, Australia, and New Zealand remain committed to progressing negotiations on investment, and have involved technical experts in the discussions. Elements for inclusion in, and the approach to, a draft chapter were discussed and will be further refined.

Australia organised a two-day capacity building workshop on intellectual property, which preceded and contributed to the negotiations on IP. The workshop reinforced the value of IP as a tool for promoting economic growth and development. Substantive negotiations on possible IP provisions will take place at the next negotiating round.

The 6th meeting of the ASEAN-Australia-New Zealand free trade agreement negotiators, is scheduled to take place in Brunei Darussalam in late July 2006. Inter-sessional work by working groups and the trade negotiating committee will also take place to progress the negotiations.

Why an FTA with ASEAN?

ASEAN is one of Australia’s top trading partners. It offers Australian exporters and investors a significant consumer market - with 557.7 million people, and a combined GDP of US$861.9 billion. Australia’s two-way trade with member countries was valued at A$55.1 billion in 2005, with ASEAN countries purchasing around 12 per cent of Australia’s total exports.

For more information, contact the Asia Trade Task Force:

Further information on Australia's existing FTAs.

More information on the ASEAN-Australia-New Zealand FTA