Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)
The Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) gradually came into force :
- January 2010: in Australia, New Zealand (Agreement supplemented by the existing Australia-New Zealand Closer Economic Relations Trade Agreement), Brunei, Myanmar, Malaysia, the Philippines, Singapore (supplemented by existing Singapore-Australia FTA), and Vietnam
- March 2010: in Thailand (Agreement supplemented by existing Thailand-Australia FTA)
- January 2011: in Laos, Cambodia
- January 2012: in Indonesia
The Agreement eliminates or reduces border tariffs on:
- Electric generation equipment
- Mechanical equipment including pumps, appliances and other advanced machinery
- Electric motors, transformers, batteries and capacitors
- Motor vehicles and vehicle parts (except for motor vehicle imports into Myanmar and Vietnam)
- Mineral ore and processed products including graphite, manganese, copper, aluminium and nickel
- Various products manufactured using the above minerals and metals such as sheets, powders, bars, and plates
- Photovoltaic cells
The Agreement also includes rules of origin and local content provisions. Goods are considered as originating from a signatory country, and thus benefitting from preferential tariff treatment if:
- they are wholly produced or obtained in the country
- they qualify for a change in HS code as defined for each good
- they meet minimum regional value content requirements
The Agreement forbids investment barriers related to export quotas, domestic content requirements, technology transfer, and other non-tariff barriers. National treatment and most-favoured nation treatment provisions in the Agreement also require investors from either Party to be treated equally to both domestic investors or those from any other nations.
However, the Agreement allows Parties party to provide additional benefits or advantages linked to the following specific endeavours:
- Location of production in the domestic territory
- Supply of a specific service
- Training and employment of workers
- Construction or expansion of certain facilities
- R&D activities
Want to know more about this policy ? Learn more