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Continue to strengthen economic cooperation between ASEAN, Australia and New Zealand through promoting the dissemination and application of the the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

Economic and trade relations between ASEAN, Australia and New Zealand have always been focused on building and developing by all involved parties since the early days of its formation, with the important mark of success being the signing of the AANZFTA. This relationship has been further enhanced and strengthened by ASEAN members, Australia and New Zealand, through the promotion of the implementation of the Agreement over the years, and the continuous negotiation to upgrade commitments, as demonstrated by the results of the First Protocol signed in 2014 and the new Second Protocol signed in 2023.

With 2024 marking the 15th anniversary of the implementation of the Agreement establishing the AANZFTA since its signing on 27 February 2009, many frameworks and cooperation activities aimed at strengthening economic relations, especially focusing on increasing trade exchange, inclusiveness, public-private dialogue and leveraging the AANZFTA Agreement have been organized by ASEAN, Australia and New Zealand.

On June 10, 2024, the Ministry of Industry and Trade of Viet Nam coordinated with the Australian Embassy in Viet Nam and the Regional Trade for Development (RT4D) Programme to organize a conference to celebrate the 15th anniversary of the implementation of the ASEAN - Australia - New Zealand Free Trade Agreement (AANZFTA) with the aim of introducing the upgraded version of the Agreement, as well as assessing the impacts and potential of the upgraded AANZFTA. This is a major commemorative event with the participation of Australian Ambassador to Viet Nam - Andrew Goledzinowski, New Zealand Ambassador to Viet Nam, and representatives from agencies, ministries and agencies of the Viet Nam Government, representatives in Viet Nam of ASEAN Committees and Committees under AANZFTA, the Australian Embassy and the New Zealand Embassy in Viet Nam, the Australian Chamber of Commerce in Viet Nam, the Viet Nam Federation of Commerce and Industry, associations, businesses, scholars and economists.

In addition, to further promote deeper policy dialogue between governments and the business community towards enhancing public-private partnerships and fully utilizing the provisions of the AANZFTA to promote trade and investment growth across the region, the Ministry of Industry and Commerce of Lao PDR in collaboration with the RT4D have organized the AANZFTA Regional Business Roundtable Meeting on 21 September 2024, on the sidelines of the 56th ASEAN Economic Ministers’ Meeting, in Vientiane, Lao PDR. The event has witnessed the honour attend of the Minister of Industry and Trade of Lao PDR - Malaithong Kommasith, Minister of State for Trade, Minister for Women, and Associate Minister of Agriculture (Horticulture) of New Zealand - Nicola Grigg, and Assistant Minister for Trade of Australia - Tim Ayres, along with ASEAN Secretary-General Dr Kao Kim Hourn. Opening the ceremony, Dr Kao Kim Hourn indicated: “Trade and economic linkages between ASEAN, Australia and New Zealand are integral to the region’s future. ASEAN is steadily strengthening its regional economic integration and consolidating its position as a key recovery hub in the global supply chain, and the strengthening of its commitments such as the Regional Comprehensive Economic Partnership (RCEP) and in particular the upgraded AANZFTA play a key role in this process.”

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The meeting has attracted the attention and participation of 200 delegates from the public and private sectors to attend and share their thoughts and experiences. Many topics were discussed, such as raising awareness of the AANZFTA and related challenges and opportunities, while proposals from the private sector and other key groups on upgrading AANZFTA were put forward. The representative speaker of Viet Nam was Ms. Nguyen Thi Tuyet Minh - Founder and President of the Pioneering Women Leadership Network, who shared very practical information on the topic of enhancing the presence of female entrepreneurs in the international integration process.

In October 2024, the RT4D continued to officially call for proposals related to supporting the strengthening of the implementation of the AANZFTA through capacity building and technical assistance to the members of the Agreement. Through this activity, the members of the Agreement can contribute their initiatives to enhance the implementation of the AANZFTA more effectively and sustainably in the coming time. This cooperation activity promises to bring many good initiatives in the implementation of the AANZFTA while promoting exchanges between stakeholders towards the effective development, implementation and enforcement of future initiatives.

General information:

The AANZFTA was signed on 27 February 2009 and officially took effect from 1 January 2010. Through the AANZFTA, members commit to: Gradually liberalize tariffs from the date the Agreement comes into effect and eliminate import tariffs on at least 90% of tariff lines according to a specific roadmap; gradually liberalize barriers to trade in services and allow service providers of the parties to access the market more conveniently; facilitate the flow of natural persons for those participating in trade and investment activities in the region; Accept protection of a number of investment issues such as treatment in investment, compensation for victims, transfer of profits and capital, etc.; facilitate the flow of goods through the application of specific provisions on rules of origin, customs procedures, etc.

For Viet Nam, in 2023, through AANZFTA, Viet Nam has issued about 71.4 thousand sets of AANZ C/O form, worth about 2.4 billion USD with a C/O usage rate of 40.4%. Some items with AANZFTA preferential usage rates of over 80% include wood and wood products (89.9%); footwear of all kinds (nearly 100%); textiles and garments (88.2%), etc.

ASEAN members, along with Australia and New Zealand, are long-standing economic partners and are increasingly closely linked. In 2023, the trade value between ASEAN and Australia reached 94.4 billion USD, accounting for 2.7% of ASEAN's total trade value, while trade between ASEAN and New Zealand reached 12.7 billion USD, accounting for 0.4% of ASEAN's total trade value. At the same time, the value of Australian Foreign Direct Investment (FDI) in ASEAN member countries reached US$1.6 billion, accounting for 0.7% of the total value of direct investment from countries outside the region into ASEAN in 2023.