Acci Welcomes Commencement Of Asean Free Trade Agreement

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1st January 2010, 01:17pm - Views: 812





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ACCI represents over 350,000 businesses in every State and Territory and all industries. Our network employs around

4

million employees, ranging from the top 100 companies to tens of thousands of small and medium businesses.




MR 002/10


LEADING AUSTRALIAN BUSINESS


Friday 1 January 2010

 


ACCI WELCOMES COMMENCEMENT OF ASEAN FREE TRADE AGREEMENT


Statement by Mr Peter Anderson, Chief Executive


The Australian Chamber of Commerce and Industry (ACCI), welcomes the commencement today

of the Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA). 


The Agreement was signed in Thailand in February 2009 by all ASEAN countries and Australia

and New Zealand. All countries have completed the domestic ratification process except for

Cambodia, Laos and Thailand. It is expected that these three countries will complete their

ratification early in 2010. 


Under the AANZFTA many potential opportunities are available to Australian industry

particularly in textiles, agriculture, motor vehicles and motor-vehicle parts. 


“The really exciting aspect to the Agreement, are the opportunities for Australian business to tap

into regional supply chains.” 


The AANZFTA agreement allows for originating materials or components from any AANZFTA

country which are used in the final production of goods in another AANZFTA country to be

treated as originating materials under the Agreement. For example, if an Australian company

sources components from Indonesia or Singapore for its final product that company is able to take

advantage of the preferential tariff rates under AANZFTA in exporting the final good to Malaysia. 


The AANZFTA agreement signifies a major step in closer relations with Australia’s ASEAN

neighbours and signals greater integration across the region’s economies. With the continued

stalling of the Doha Round of World Trade Organisation (WTO) talks, the AANZFTA agreement

illustrates that Australia is continuing to broaden its market access and relationships with key

trading partners though comprehensive regional trade agreements. 


Australia’s total trade with ASEAN is approximately $64.9 billion and represents a 14.4% share of

Australia’s total merchandise trade. To put this in perspective, total trade with China, one of

Australia’s largest trading partners, is $76 billion and represents a 17% share of Australia’s total

merchandise trade. 


In terms of services exports and investment relationships, ASEAN is also a very significant

partner, with Australian foreign direct investment (FDI) in ASEAN in 2008 $14 billion compared

to Australian FDI in China of only $4 billion. 


For further information:

Peter Anderson


Chief Executive




0417 264 862

Nathan Backhouse


Manager, Trade and International Affairs

0431 615 709

Brett Hogan



Director of Communications



0407 273 884






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