Impact on South Australia for trade in goods and services

Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

17 November 2010

Trade in goods

The following analysis summarises tariff outcomes under the Agreement Establishing the ASEAN-Australia-New Zealand FTA (AANZFTA) for Indonesia, Malaysia, the Philippines and Vietnam for some of South Australia' principal exports. These are the four largest AANZFTA markets with which Australia does not already have a bilateral FTA.

The tariff outcomes in AANZFTA include (export figures are for South Australia, calendar year 2009):

Copper

On South Australia' leading export to ASEAN, copper (Chapter 74 of the tariff), AANZFTA will ensure tariff-free treatment for most products:

Lead

On South Australia' second most important export to ASEAN, lead (chapter 78 of the tariff), AANZFTA will ensure tariff-free treatment for exports to all markets:

The outcomes on lead include:

Cereals

Pasta

Tariff-free treatment will be achieved on all tariff lines for pasta (1902, but excluding 1902.40):

Meat and animal products

Citrus

Wine

Seafood

While ASEAN is currently a small market for Australia' seafood exports, AANZFTA will deliver significant liberalization (Chapter 3 of the Tariff and 1604-1605):

Automotive parts and components

There will be significant tariff elimination on Automotive parts and components. For most products, tariff-free treatment will be achieved, with tariffs on remaining products generally reduced to 5% or less, compared to tariffs generally in the 10%-15% range, and for Vietnam in the 20%-50% range.

Passenger motor vehicles

Early tariff elimination will be achieved in the Philippines on Passenger motor vehicles (PMV) (included in 8703 of the tariff), and on medium to large vehicles in Malaysia.

Building materials

Instruments

The elimination of tariffs in the 0%-10% range from entry-into-force or 2012 on $0.6 million of exports of optical, photographic, measuring and medical instruments to Indonesia (Chapter 90 of the tariff)

Tariffs will be eliminated on all optical, photographic, measuring and medical instruments by:

2. Trade in services opportunities for South Australia

South Australia is well placed to tap into the growing services markets in ASEAN. Services exports to the world account for 20 per cent of South Australia' total exports (worth $2.0 billion in Calendar Year 2009).

Statistics are not available on the percentage of these exports that go to ASEAN.

Under AANZFTA, ASEAN countries have made substantial, commercially meaningful improvements on existing WTO commitments in a range of services sectors – including education and professional services, where South Australia has particular strengths. For example:

A built-in review provision will ensure that further improvements can be negotiated over time, as the ASEAN countries progressively liberalise their services sectors.

  • 1 Until April 2009 the value of bulk wheat exports by destination country was confidential in Australian Bureau of Statistics merchandise trade statistics. Therefore, the figures in this paper for wheat exports generally under-report actual trade in 2009.
  • 2 The four digit heading or the six digit sub-heading of the tariff system is provided that corresponds to the export figure given.