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ASEAN-Australia-New Zealand FTA

Subscriber Update

 

Update 8 – July 2006

Sixth Round of Negotiations

Negotiators on the ASEAN-Australia-New Zealand Free Trade Agreement (FTA) met in Brunei Darussalam from 25-28 July 2006.

Negotiators were focused on moving the negotiations forward ahead of the meeting of ASEAN Economic Ministers and CER Trade Ministers on 25 August 2008 in Kuala Lumpur. Elements papers and draft text of chapters were prepared covering the main areas of the negotiations.

Negotiations on goods focused on options to secure commercially meaningful outcomes, both in terms of coverage and the timeframe for removal of barriers to trade. Detailed negotiations took place on the modality for tariff reductions and elimination commitments, with further deliberations scheduled for the next round.

Experts on sanitary and phytosanitary issues and customs procedures and cooperation met to consider their approach to the negotiations, with a view to tabling draft text of chapters at the next round of negotiations. Lead negotiators also discussed standards, technical regulations andconformity assessment procedures.

Over 60 ASEAN officials attended a workshop on Advance Rulings conducted by Australian and New Zealand customs experts. The workshop contributed to ASEAN understanding of the value of including provisions on advance rulings in the FTA.

Further progress was made on rules of origin (ROO), with agreement reached on key aspects of the draft text of a chapter. ASEAN also undertook to closely consider the draft change in tariff classification (CTC) based rules provided by Australia and New Zealand. Workshops conducted by Australia in Indonesia, Vietnam, Cambodia and Laos during 2005-06 have contributed to a greater level of understanding of Australia's approach, including the benefits of the CTC approach, and helped to advance the negotiations.

Discussion on services sought to clarify the scope and approach to the services negotiations. This will guide the preparation of initial draft schedules of commitments at future negotiating rounds. Negotiators also considered draft texts of chapters on services, movement of natural persons and telecommunications. Much work remains to be done to secure an agreement that will provide for comprehensive coverage of services trade.

Negotiations on investment proceeded on the basis of draft texts of an investment chapter submitted by both Australia and ASEAN. Negotiators engaged in discussion on the text with a view to narrowing differences on key articles.

Australia remains committed to progressing negotiations on intellectual property and has involved technical experts in the discussions. Australia has proposed elements for inclusion in a draft chapter, including possible areas for further cooperation between Australia, ASEAN and New Zealand.

The next round is scheduled to take place in Hobart, Australia in late September 2006. Further inter-sessional work and capacity building workshops will be undertaken by working groups and the Trade Negotiating Committee ahead of the Hobart meeting.

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 572.4 million people (2005), 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 close to 11 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