AUSTRALIA'S largest free trade agreement spanning 12 economies and 600 million people came into effect yesterday, immediately removing tariffs on some exports to ASEAN nations.
Trade Minister Simon Crean said the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) opened up significant opportunities for businesses.
“With Asia leading the global recovery and six out of ten ASEAN markets expected to grow at rates at least double the forecast OECD average in 2010, there is great potential for Australian exporters to enter new markets," he said.
The agreement includes:
- The immediate elimination of a 10 per cent tariff on $9.6 million of Australian processed cheese exports (in 2008) to Malaysia
- The immediate elimination of a 5 per cent tariff on $7.2 million of exports of fresh grapes to Malaysia
- The immediate elimination of a 3 per cent tariff on $22 million of wheat exports to the Philippines
- The immediate elimination of a 5 per cent tariff on $3 million of sheepmeat exports to the Philippines
- An immediate expansion from 7 to 36 subject areas that Australian education providers can deliver in Vietnam.
“By 2020, the deal will eliminate tariffs on 96 per cent of our current exports to ASEAN nations,” Mr Crean said.
ASEAN accounted for 15 per cent of Australia's trade, valued at $83 billion in 2008-2009. This is as large as Australia's trade with China, Australia’s largest trading partner.
42 per cent of Australia's total exporter base – about 18,500 exporters – trade with ASEAN.
The AANZFTA is Australia’s first multi-country FTA and the most comprehensive FTA ever concluded by ASEAN.
In addition to Australia and New Zealand, AANZFTA has entered into force for the following ASEAN countries: Brunei, Burma, Malaysia, the Philippines, Singapore and Vietnam.
Indonesia, Cambodia, Laos and Thailand are expected to ratify the Agreement in the early part of this year.
Email a friend