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The upgraded free trade agreement between the Association of Southeast Asian Nations, Australia, and New Zealand entered into force on April 21
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The Second Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area entered into force for Australia, New Zealand, Singapore, Malaysia, Laos PDR, and Brunei Darussalam
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For the remaining ASEAN member states, the Second Protocol will enter into force 60 days after they notify of their completed respective domestic processes
The upgraded free trade agreement (FTA) between the Association of Southeast Asian Nations (ASEAN), Australia, and New Zealand entered into force on April 21.
The Second Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) entered into force for Australia, New Zealand, Singapore, Malaysia, Laos PDR, and Brunei Darussalam. For the remaining ASEAN member states, the Second Protocol will enter into force 60 days after they notify their completed respective domestic processes.
The Second Protocol, signed in August 2023, updates the original AANZFTA and the First Protocol signed in February 2009 and August 2014, respectively.
Under the Second Protocol, 13 Chapters in the original AANZFTA – including Rules of Origin, Customs Procedures and Trade Facilitation, Investment, Competition and Consumer Protection, and Electronic Commerce – have been upgraded. Three new chapters, namely Government Procurement, Micro, Small and Medium Enterprises, and Trade and Sustainable Development, as well as new provisions on education services under the Chapter on Trade in Services have also been added.
These improvements are designed to create a more seamless, resilient, and business-friendly environment across the region, ensuring that the agreement remains relevant in an evolving global trade landscape.
“The entry-into-force of the Second Protocol underscores our collective dedication to ensuring AANZFTA remains commercially relevant and beneficial for businesses across the region, while maintaining the region’s resilience and driving sustainable economic growth, particularly amidst global uncertainties,” ASEAN secretary-general Dr. Kao Kim Hourn said in a statement.
At a time of great challenge for the global trading system, ASEAN said AANZFTA’s continued relevance underscores the benefits of cooperation to uphold commitments to the principles of open, predictable and transparent rules-based multilateral trade, as well as the importance of cooperative, collective and regional efforts to liberalize markets and expand the benefits of trade.
With parties encompassing a combined gross domestic product of over $5.6 trillion and a population of 703 million, the AANZFTA is seen to continue as a cornerstone for strengthening economic ties and promoting inclusive growth.
The entry into force of the Second Protocol is expected to generate new trade and investment opportunities, benefitting from streamlined trade facilitation measures that will reduce transaction costs, enhance supply chain resilience, promote the adoption of digital technologies, and foster cooperation on trade and sustainable development.
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