AANZFTA

ASEAN-Australia-New Zealand Free Trade Area

Australia and New Zealand are longstanding Dialogue Partners of ASEAN, with formal relations established in 1974 and 1975, respectively. Both economies are advanced, high-income markets with strong capabilities in services, agriculture, natural resources, and innovation, making them important partners for ASEAN’s economic development and regional integration.

ASEAN’s economic ties with Australia and New Zealand have expanded steadily over time:

• In 2024, two‑way trade between ASEAN and Australia reached US$96.3 billion, while trade with New Zealand reached US$12.7 billion
• FDI inflows from Australia amounted to US$2.4 billion, and from New Zealand US$481 million.

These figures reflect growing engagement across trade, investment, and economic cooperation.

The ASEAN–Australia–New Zealand Free Trade Area (AANZFTA) was signed in 2009 and entered into force in 2010. It serves as a comprehensive framework for deepening economic integration among ASEAN, Australia, and New Zealand.

AANZFTA covers a broad range of areas, including:

• trade in goods
• trade in services and financial services
• investment
• electronic commerce
• movement of natural persons
• customs procedures and trade facilitation
• sanitary and phytosanitary (SPS) measures
• standards and technical regulations
• intellectual property rights
• competition policy
• government procurement
• micro, small, and medium enterprises (MSMEs)
• trade and sustainable development
• dispute settlement

The agreement is one of ASEAN’s most comprehensive FTAs, supporting both market access and regulatory cooperation across multiple sectors.

Role in Regional Integration

AANZFTA has contributed to:

• improved market access for exporters and manufacturers
• strengthened regional value chain development
• enhanced investment flows and investor confidence
• promotion of economies of scale across the region

The agreement also provides a stable and predictable environment for business, helping ensure that commercial activities are secure, transparent, and less prone to disruption.

AANZFTA continues to evolve to remain relevant in a changing global environment:

• The Second Protocol to Amend AANZFTA (2023) modernised the agreement by introducing new areas such as:
  • MSMEs
  • government procurement
  • trade and sustainable development.
• Economic cooperation is supported through programmes such as:
  • AANZFTA Economic Cooperation Support Program (AECSP)
  • AANZFTA Implementation Support (AIS) Programme, aimed at capacity building and strengthening institutional frameworks

ASEAN–Australia–New Zealand cooperation is expected to deepen further, supported by:

• ongoing AANZFTA upgrades
• stronger digital and services integration
• enhanced cooperation in sustainability and green growth
• participation in broader regional frameworks such as RCEP

Overall, AANZFTA continues to play a pivotal role in strengthening economic ties between ASEAN, Australia, and New Zealand, supporting regional integration, business opportunities, and long-term economic growth across the Indo-Pacific.