The Agreement establishing the ASEAN-AustraliaNew Zealand Free Trade Area (AANZFTA) aims to create a business environment that promotes certainty, predictability and transparency. It opens up business opportunities in ASEAN, Australia and New Zealand and allows greater market access for exporters and manufacturers in the region. It also promotes economies of scale in production and provides opportunities for networking and enhanced collaboration among economic operators in the region.
The AANZFTA Agreement was signed in 2009 and came into effect in January 2010. It was the first plurilateral agreement for ASEAN, the first region-to-region engagement for ASEAN and the first agreement that Australia and New Zealand have jointly negotiated.
Under the Agreement, ASEAN Member States, Australia and New Zealand are bound to progressively liberalise tariffs on at least 90% of all their tariff lines within specific timeframes. Similarly, specific provisions to facilitate easirt movement of goods exist. These include rules of origin, customs procedures, sanitary and phytosanitary (SPS) measures and standards, technical regulations and conformity assessment procedures.
In the spheres of trade in services and investment, AANZFTA helps to create a framework to strengthen services and investment outcomes over time, including the promotion of greater certainty and transparency for service suppliers doing business in the region. It also provides protection for investments, including compensation for losses, transfers relating to profit and capital, and transfer of rights or claims to investments.