Australia and New Zealand concluded negotiations for a Free Trade Agreement with ASEAN last week in a deal expected to significantly benefit Australian and New Zealand agricultural producers.
Australian Federal Trade Minister Simon Crean said in a press statement the Free Trade Agreement would help access of his country’s agricultural exports into the ASEAN economic bloc.
“This is a very good deal for Australia, because we will gain considerably from the agreement,” he said. “It covers 16 per cent of trade in goods and services worth A$71bn. It is also the first region-wide agreement that Australia has negotiated.”
Mr Crean said tariffs would be removed in all major ASEAN countries on goods covering about 95 per cent of trade.
Over 40 per cent of Australian exporters send their products to ASEAN markets.
Deputy chairman of the Australian Horticultural Exporters Association David Minnis said the FTA means good things for Australian and NZ exporters as well as ASEAN countries.
“ASEAN countries have got as much to gain from this FTA as we have,” he said. “I think it’s good that we’ve done it.”
“I think it should be good news for our exports. For example, Indonesia put the duty up on Australian mandarins from 5 to 20 percent four years ago. That kind of duty would be untenable with an FTA, or it would at least be negotiated downwards.”
Mr Minnis added that any FTA would be subject to quarantine issues, which may limit the extent of the deal.
Trade between ASEAN and New Zealand rose 27 per cent last year to US$6bn, and trade with Australia rose 15 per cent to US$42bn.
The deal is expected to be signed at an ASEAN leaders summit in Bangkok later this year.
