How the ASEAN Free Trade Agreement fits into the wider trade agenda

Trade negotiations carried out under the WTO framework, involving all WTO members, remain the top trade priority for New Zealand because these multilateral trade negotiations offer the largest potential gains for a country like New Zealand. But the number of countries and interests involved in the WTO negotiations mean that progress can be slow.

FTAs have the potential to open up new opportunities for New Zealand businesses in a shorter timeframe than through the WTO. They allow New Zealand to accelerate progress towards more open markets by partnering with countries that share our same level of ambition for progress.

Good quality FTAs can also usefully contribute to moving the WTO and APEC processes forward by highlighting and reinforcing the benefits of trade reform. FTAs are being negotiated by most of our trading partners and have proliferated throughout the global economy, particularly the Asia-Pacific region. It is therefore essential that New Zealand is part of this activity to strengthen economic links and obtain improved access to and protect existing markets.

New Zealand has now entered into FTAs with the following countries:

• Australia (the Australia-New Zealand Closer Economic Relations) in 1983, which has been described by the WTO as the "world's most comprehensive, effective and mutually compatible free trade agreement".
• Singapore (the New Zealand-Singapore Closer Economic Partnership) in 2001.
• Thailand (the New Zealand-Thailand Closer Economic Partnership) in 2005.
• Chile, Singapore and Brunei (the Trans-Pacific Strategic Economic Partnership) in 2006.
• China (the New Zealand-China FTA) in 2008.

New Zealand has recently completed negotiations with the Gulf Cooperation Council.  The Malaysia/NZ FTA was signed in October 2009 and is expected to enter into force in May or June 2010.  New Zealand and South Korea are in the process of negotiations.  Work on studies which may help launch FTA negotiations with India and Japan are also underway. And New Zealand - in conjunction with Brunei, Chile and Singapore - has recently announced the start of negotiations to see the United States and potentially other partners join the Trans-Pacific SEP (now known as the Trans-Pacific Partnership - TPP).