Impact on Western Australia for trade in goods and services

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

17 November 2010

1. Trade in goods

Western Australian merchandise exports to ASEAN (calendar year 2009): $7.2 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 Western Australia’s 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 Western Australia, calendar year 2009):

Crude petroleum, petroleum gases and other gaseous hydrocarbons

Gold

Of Western Australia’s second most important export to ASEAN, gold (7108), most is currently exported to Thailand ($1.2 billion in 2009) and Singapore ($616 million). AANZFTA has bound the current 0% tariff in both countries from 2010 (with the 0% tariff already being bound in Australia’s existing bilateral FTAs with these two countries). AANZFTA will also ensure tariff-free treatment for exports to other ASEAN markets:

Cereals and cereal preparations

The outcomes on wheat include:

The outcomes on worked cereal grains include:

The outcomes on malt include:

Live animals, meat and animal products

Pigments, paints and varnishes

The major exports of pigments, paints and varnishes to ASEAN are pigments and preparations based on titanium oxide (3206.11). Many of these exports are to Thailand ($40 million in 2009), and AANZFTA has bound the tariff at 0% on these exports from 1 January 2010 (the same as the existing binding in the Thailand-Australia FTA (TAFTA)). AANZFTA will also deliver tariff-free treatment in Indonesia, Malaysia, the Philippines and Vietnam:

Iron and steel

Aluminium

Nickel

Dairy

Vegetable products

Machinery and parts of machinery

Products of the chemical or allied industries

Other

2. Trade in services opportunities for Western Australia

Services exporters in Western Australia are in a strong position to access the growing services markets in ASEAN. Exports of services to the world, which were worth $5.3 billion in 2009, account for 6.4 per cent of the State’s total exports.

Under AANZFTA, ASEAN countries have made substantial, commercially meaningful improvements on existing WTO commitments in a range of services sectors – including mining and energy-related services, education, construction, and professional services – where Western Australian 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.

  • 1Until 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.
  • 2The four digit heading or the six digit sub-heading of the tariff system is provided that corresponds to the export figure given.