Impact on Victoria for trade in goods and services

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

17 November 2010

1. Trade in goods

Victorian merchandise exports to ASEAN (calendar year 2009): $2.9 billion. Principal exports:

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 Victoria' 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 Victoria, calendar year 2009):

Dairy

On $5.0 million of exports of whey to Indonesia (0404.10) 2:

Aluminium

Cereals

Medicaments

Meat and animal products

Fruit

Seafood exports

While ASEAN is currently a small market for Australia' seafood exports, AANZFTA will deliver significant liberalization:

Food preparations

Plastics

Lead

Automotive parts and components

Passenger motor vehicles (PMV)

Early tariff elimination will be achieved in the Philippines, and on medium to large vehicles in Malaysia. Outcomes are more modest for other vehicles and markets.

Other processed or manufactured goods

2. Trade in services opportunities for Victoria

Victoria' services exporters are in a strong position to access the growing services markets in ASEAN. Victoria' services exports to the world, which were worth $12.9 billion in 2009, account for 42 per cent of the State' total exports.

Under AANZFTA, ASEAN countries have made substantial, commercially meaningful improvements on existing WTO commitments in a range of services sectors – including banking, insurance, construction, mining and energy-related services, telecommunications, education and professional services – where Victorian providers have strong capabilities. 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 This is the four digit heading or the six digit sub-heading of the tariff system that corresponds to the export figure given.