The Agreement establishing the ASEAN Australia- New Zealand Free Trade Area (AANZFTA) is a free trade agreement that underpins our trade and economic relationship with ASEAN. In August 2023, following negotiations to modernise the Agreement, New Zealand signed the Upgrade to amend AANZFTA.
Our economic integration with ASEAN, including through AANZFTA, contributes to the prosperity and stability of our region. With mounting pressure on multilateral trade architecture as well as increasing strategic competition in the Indo-Pacific, it is critical that New Zealand works together with regional partners to promote the benefits of trade and maximise the opportunities created by free trade agreements.
AANZFTA has been a huge success for New Zealand. Since the Agreement entered into force for New Zealand in 2010, two-way trade between ASEAN and New Zealand has doubled.
ASEAN is now one of our top three trading partners, with two-way trade worth NZD$27 billion in 2023.
Free trade agreements require review and revision to ensure they remain fit for purpose. Negotiations to upgrade AANZFTA were concluded in November 2022. New Zealand signed the agreement on 21 August 2023.
The AANZFTA Upgrade aimed to reduce barriers impacting exports, further increase regional trade, and bring the agreement into line with more recent trade practice. Key outcomes include streamlining and expediting the flow of goods across borders, supporting the flow of essential goods during times of crisis, and, in recognition of the increased importance of digital trade, introducing stronger e-commerce rules.
The Upgrade also introduces new chapters to better enable micro-, small and medium enterprises (MSMEs) to trade, and to ensure that trade is sustainable and inclusive. These are areas of particular importance to New Zealand.
These chapters also serve as important pathfinders, creating opportunities for cooperation in new areas of trade practice with ASEAN and Australia.
New Zealand hosted the recent 21st Joint Committee which brought together the ASEAN, Australian and New Zealand trade officials who oversee the AANZFTA’s implementation. Hosting gave us the opportunity to build momentum towards entry into force of the AANZFTA Upgrade, and to focus on practical issues of importance to our exporters.
New Zealand contributes NZD$500,000 per year to the AANZFTA Implementation Support Programme, which builds the capacity of ASEAN members to implement the Agreement. In 2024, members agreed an Economic Cooperation Work Programme, with a focus on supporting members to implement new provisions and upgraded chapters.