What is the ASEAN Free Trade Agreement?

The Agreement Establishing the ASEAN - Australia - New Zealand Free Trade Area (AANZFTA) liberalises and facilitates trade in goods, services and investment between New Zealand, Australia and the ASEAN (Association of Southeast Asian Nations) economies. It contains measures to improve business flows and promote cooperation in a broad range of economic areas of mutual interest.

The AANZFTA agreement entered into force on 1 January 2010 for (and between) the following countries: Australia, Brunei, Malaysia, Myanmar, New Zealand, Singapore, the Philippines, and Viet Nam.  It entered into force for Thailand on 12 March 2010; for Laos and Cambodia on 1 and 4 January 2011 respectively; and for Indonesia on 10 January 2012.

The key elements of the ASEAN FTA, which are set out in more detail in this Guide, include:

Liberalised trade in goods

The eventual removal of tariffs on 99 percent of New Zealand's current exports to the four key ASEAN markets of Indonesia, Malaysia, the Philippines and Viet Nam, which will equate to an annual duty saving of approximately $50 million based on current trade.

Rules to govern trade

Robust rules which will allow New Zealand exporters to effectively take advantage of the preferential conditions offered under the ASEAN FTA for trade in goods, without undue compliance costs, as well as rules to counter unexpected surges in imported goods from ASEAN economies.

Liberalised trade in services

New Zealand service providers will benefit from ASEAN economies improving their commitments in services, particularly in the context of education services.

Movement of people

New Zealand will benefit from provisions to better facilitate the movement of business people within the ASEAN region.

Enhanced protection for investment

New Zealand will benefit from enhanced protections for investments established in ASEAN economies. The ASEAN FTA also provides New Zealand investors with access to binding investor-state arbitration procedures if an ASEAN Government breaches certain investment provisions.

Measures to improve business flows

Better opportunities for New Zealand business in the ASEAN region.

The ASEAN FTA also contains measures relating to customs procedures and cooperation, sanitary and phytosanitary measures, standards, technical regulations and conformity assessment procedures, electronic commerce, intellectual property and competition policy. These are all designed to reduce barriers to doing business in ASEAN, as well as to improve dialogue and cooperation between New Zealand and the ASEAN member countries.

The ASEAN FTA also establishes an overarching framework for cooperation to enhance the benefits of the FTA, with the objective of building on the existing relationships and creating new opportunities.

Dispute settlement

The ASEAN FTA includes a robust consultation and dispute settlement mechanism to resolve any disputes that arise concerning the operation, implementation or application of the Agreement.

Associated Documents: Environment and Labour

In conjunction with the ASEAN FTA, bilateral treaties with the Philippines covering labour and environmental cooperation have also been concluded. They are not explicitly linked with the ASEAN FTA, but they have been concluded in the context of it. These treaties will enhance communication and cooperation on these issues and assist in meeting the shared objectives of raising working standards and improving environmental protection in New Zealand and the Philippines. These treaties supplement similar instruments New Zealand already has with other ASEAN partners in the bilateral context (Thailand, Brunei, Malaysia and Singapore).

Associated Documents: Temporary Employment Entry / Working Holiday Schemes

Alongside the FTA negotiations, but not as part of the FTA itself, New Zealand has entered into arrangements with two ASEAN nations (the Philippines, and Viet Nam) to allow limited temporary employment entry into New Zealand.  New Zealand has also agreed with to start Working Holiday Scheme negotiations with each of those countries.

The Members of ASEAN are Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Viet Nam.

back to top