Impact on the Northern Territory for trade in goods and services

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

17 November 2010

1. Trade in goods

Northern Territory merchandise exports to ASEAN (calendar year 2009): $323 million. 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 the Northern Territory' 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 the Northern Territory, calendar year 2009):

Live animals

Inorganic chemical elements

Iron and steel

Refined petroleum

Trailers and semi-trailers

Civil engineering equipment and parts

Corals

Copper

Worked bone, tortoise-shell and other animal carving material, and articles thereof

2. Trade in services opportunities for the Northern Territory

Services exporters in the Northern Territory are in a strong position to access the growing services markets in ASEAN. Exports of services to the world, which were worth $873 million in 2009, account for 14 per cent of the Territory' total exports.

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