ASEAN, Australia, New Zealand upgrade free trade deal

SINGAPORE (ICIS)–ASEAN, Australia and New Zealand upgraded their free trade agreement, which came into force on 21 April, according to Singapore’s Ministry of Trade and Industry (MTI).

The upgraded ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) will, among other amendments, strengthen supply chain resilience during times of crisis, allow for preferential tariff treatment and market access, and improve access to green opportunities among the countries, MTI said in a statement on 21 April.

ASEAN comprises 10 countries from southeast Asia, namely, Thailand, Vietnam, Indonesia, Malaysia, Singapore, Philippines, Laos, Cambodia, Brunei and Myanmar.

“Amidst the uncertainties in the global trade environment, this agreement is a bright spot demonstrating ASEAN, Australia and New Zealand’s commitment to an open, inclusive and rules-based multilateral trading system,” said Singapore Deputy Prime Minister Gan Kim Yong, who is the concurrent trade & industry minister of the country.

In 2023, ASEAN traded a total of $138.4 billion in goods with Australia and New Zealand. The combined GDP of all parties in the deal stood at over $5.6 trillion.

The AANZFTA first came into effect on 1 January 2020, eliminating tariffs for 90% of goods traded between the parties, and covers 100% of Singapore’s trade volume with Australia and New Zealand, according to Enterprise Singapore.