Launch of ASEAN - ANZ FTA Negotiations a Historic Development

The launch of negotiations on an ASEAN-Australia and New Zealand Free Trade Agreement (FTA) was a historic development in Australia’s engagement with South East Asia, Trade Minister Mark Vaile said today.

Leaders from ASEAN, Australia and New Zealand agreed to launch FTA negotiations during their Summit in Vientiane, Laos today. Negotiations would begin in early 2005 and be concluded in two years.

“An FTA will help boost our trade and commercial links with one of the most economically-vibrant regions in the world,” Mr Vaile said.

“It will lead to further job creation in our export sector, adding to the 1.4 million jobs created since 1996.

“An ASEAN FTA will also further consolidate Australia’s economic integration with South East Asia, following on from the Singapore and Thai agreements.

“I am particularly pleased that leaders endorsed a set of negotiating principles which my ministerial colleagues and I agreed upon during our annual consultations in Jakarta on 5 September. These principles include a commitment to a comprehensive agreement covering both goods and services and the progressive elimination of all forms of barriers to trade.

“Australia already enjoys a substantial trading relationship with ASEAN, but an FTA will provide a solid platform for future growth.”

Australia’s two-way merchandise trade with ASEAN was valued at $32.8 billion in 2003-04. ASEAN countries currently purchase more than 11 per cent of Australia’s merchandise exports and just under 15 per cent of services exports.

“The 10 countries of ASEAN are home to 545 million people and have a combined GDP of almost US$700 billion,” Mr Vaile said.

“An FTA will present Australian exporters with further commercial opportunities in this enormous and expanding market.”

Contact: Jemima Lohse 02 6277 7420