ASEAN-Australia-New Zealand FTA
Subscriber Update
Update 10 – October 2006
Seventh Round of Negotiations
ASEAN-Australia-New Zealand Free Trade Agreement (FTA) negotiators met in Hobart from 26 - 29 September 2006, with over 180 delegates attending from the 12 countries.
Preparations for market access negotiations are now well advanced. The parties discussed possible targets for the number of tariff lines on which tariffs should be eliminated at entry into force of the Agreement, as well as by subsequent dates such as 2010. Parties will exchange detailed tariff and trade data before the next meeting to assist in the preparation of initial tariff offers. It is expected that parties will table initial market access offers on goods in early 2007.
There was continued progress on drafting of goods-related texts, with the tabling of a draft text on Standards, Technical Regulations and Conformity Assessment. There were useful discussions on Customs Procedures with agreement to provide papers inter-sessionally to advance negotiations in this area. There was also initial discussion on the draft text on Sanitary and Phytosanitary Measures.
Progress was made on rules of origin (ROO) with movement to a single version of a draft chapter that would allow exporters to use ROO based on either a Change of Tariff Classification (CTC) approach or a value-added approach. Discussion is continuing on the detailed CTC and value-added rules, with the meeting considering Australia’s and New Zealand’s draft proposals for the product-specific rules under the CTC approach. Australian experts outlined the principles used in development of the product specific rules.
Negotiations on investment continued, focusing on consolidating a first draft of an investment chapter. A number of threshold issues relating to the scope, coverage and structure of the investment chapter were also discussed, including the approach to scheduling commitments. On this latter issue, over 60 ASEAN officials attended a workshop on scheduling reservations on investment conducted by Australia and New Zealand investment experts, held in Manila on 18 – 19 October 2006.
Discussions on services focused on the approach to market access negotiations, with the threshold issue of negative listing (favoured by Australia) versus positive listing (favoured by ASEAN) continuing to be unresolved. Limited progress was made on the draft services chapter, where Australia and New Zealand are pressing for provisions which build on those in the WTO General Agreement on Trade in Services, including in relation to the transparency of domestic regulation. ASEAN is resisting Australia’s proposals regarding the movement of natural persons (including work rights for spouses, exclusion of labour market testing and a streamlining of visa processes).
Australia and New Zealand also continued to seek ASEAN’s agreement to the inclusion of additional provisions on telecommunications, e-commerce and financial services and jointly introduced new or revised text on these sectors. On telecommunications, we are seeking pro-competitive commitments that meet and in some areas improve upon those in the WTO Telecommunications Reference Paper. We are aiming to promote the use of e-commerce in cross-border trade by harmonising legislative frameworks. On financial services, we are seeking measures to ensure that market access for financial services is based on transparent principles that are applied in a non-discriminatory manner. ASEAN is resisting the inclusion of text on these issues.
ASEAN confirmed economic cooperation as a key objective, and is seeking the inclusion of a broad economic cooperation chapter. The merits and scope of any such chapter will be further explored at the next meeting. ASEAN seeks to house any provisions regarding intellectual property and competition policy in an economic cooperation chapter. Australia remains committed to progressing substantive negotiations in these areas, and used the meeting to table joint Australia – New Zealand text on intellectual property.
There were productive discussions on institutional and framework provisions for the FTA, and useful progress was also made in considering draft text relating to the dispute settlement mechanisms.
The next round of negotiations has been scheduled for 29 November – 1 December in Singapore. The focus of the meeting will be on tariff modalities, rules of origin, standards and sanitary and phytosanitary (SPS) measures, as well as services, investment, economic cooperation and legal/institutional issues.
More information on the ASEAN-Australia-New Zealand FTA