ASEAN (Association of Southeast Asian Nations) is one of the fastest-growing markets in the world, with enormous business and investment potential.
AANZFTA is the first comprehensive FTA signed by ASEAN, and is a major milestone for trade negotiations.
Facts and figures
Countries: New Zealand, Australia, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Viet Nam.
- Combined population: 620 million
- Combined GDP: estimate US$2.4 trillion
- Timeline: Negotiations started 2005. Agreement in force for all countries 2012.
New Zealand’s major goods exports to ASEAN: Milk powder, butter and dairy spreads, cheese
New Zealand’s major imports from ASEAN: Crude and non-crude petroleum oils, waste oil, biodiesel, trucks and vans
- Elimination of tariffs on 99% of exports to key ASEAN markets by 2020. This represented about $50 million of annual duty savings based on levels of trade when the Agreement was signed.
- Rules of Origin in AANZFTA allow for ‘cumulation’. This means New Zealand goods used in products made in ASEAN countries or Australia are considered as local content. Cumulation makes New Zealand products an attractive supply option for businesses in the region.
- Lower transaction costs for businesses because of better cooperation between the countries when it comes to regulations.
- Higher commercial profile for New Zealand companies in ASEAN markets.
- Better opportunities and access in the region for New Zealand service sector businesses such as education, tourism, construction and transport.
- Better protection and security for New Zealanders investing in ASEAN economies, with a range of investment protection disciplines and provision for recourse to binding investor-state arbitration procedures.
- More streamlined and transparent procedures for immigration applications and processes for New Zealanders working in the ASEAN region.
- Measures to streamline customs procedures and cooperation, sanitary and phytosanitary measures, standards, technical regulations and conformity assessment procedures, electronic commerce, intellectual property and competition policy.