ASEAN-Australia-New Zealand Free Trade Area upgraded

14 Nov '22

2 min read

Pic: ASEAN

Leaders of Cambodia, the 2022 chair of the Association of Southeast Asian Nations (ASEAN), Brunei Darussalam, the ASEAN country coordinator for ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), Australia and New Zealand, recently announced the substantial conclusion of the negotiations for the AANZFTA upgrade at the 40th and 41st ASEAN Summit in Phnom Penh.

In 2021, the total merchandise trade between ASEAN and Australia reached $81.6 billion, registering a year on-year increase by 49 per cent that is higher than pre-COVID-19 rates.

Meanwhile, merchandise trade between ASEAN and New Zealand in 2021 reached $11 billion, growing by 22.5 per cent year on year.

In 2021, foreign direct investment (FDI) flows from Australia and New Zealand to ASEAN amounted to $589 million.

The agreement establishing the ASEAN-Australia-New Zealand Free Trade Area, signed in Thailand on February 27, 2009, is being upgraded to ensure that it is fit-for-purpose and is future-proofed against emerging challenges, an official press release said.

Businesses will benefit from the AANZFTA upgrade through improved transparency measures; lower costs and time for exports and imports; use of technological solutions for trade; cooperation in digital technology, sustainable development and education services; increased participation of micro, small, and medium enterprises in economic activities, including government procurement; and smoother flow of essential goods during periods of crises.

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