ASEAN (Association of Southeast Asian Nations) is one of the fastest-growing markets in the world, with enormous business and investment potential for New Zealand.

AANZFTA is the first comprehensive FTA signed by ASEAN, and is a major milestone for New Zealand’s trade negotiations.

Facts and figures

Countries: New Zealand, Australia, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Viet Nam.

Combined population: 660 million

Combined GDP: estimate US$3.9 trillion

Timeline: Negotiations started 2005. Agreement in force for all countries 2012.

New Zealand's major goods exports to ASEAN: Milk powder, butter and dairy spreads, cheese

New Zealand's major imports from ASEAN: Crude and non-crude petroleum oils, waste oil, biodiesel, trucks and vans

Map showing AANZFTA countries
AANZFTA countries

 Agreement highlights

  • Elimination of tariffs on 99% of exports to key ASEAN markets by 2020. This represented about $50 million of annual duty savings based on levels of trade when the Agreement was signed.
  • Rules of Origin in AANZFTA allow for ‘cumulation’. This means New Zealand goods used in products made in ASEAN countries or Australia are considered as local content. Cumulation makes New Zealand products an attractive supply option for businesses in the region.
  • Lower transaction costs for businesses because of better cooperation between the countries when it comes to regulations.
  • Higher commercial profile for New Zealand companies in ASEAN markets.
  • Better opportunities and access in the region for New Zealand service sector businesses such as education, tourism, construction and transport. 
  • Better protection and security for New Zealanders investing in ASEAN economies, with a range of investment protection disciplines and provision for recourse to binding investor-state arbitration procedures.
  • More streamlined and transparent procedures for immigration applications and processes for New Zealanders working in the ASEAN region.
  • Measures to streamline customs procedures and cooperation, sanitary and phytosanitary measures, standards, technical regulations and conformity assessment procedures, electronic commerce, intellectual property and competition policy.

Using the FTA

Businesses trading in goods

If you trade in goods, use the Tariff Finder (external link) to find out:

  1. the tariff classification for the good
  2. the tariff commitments
  3. the Rules of Origin (ROO)
  4. how to get a Certificate of Origin
  5. which FTA to use if there are more than one to choose from

New Zealand Customs Service provides detailed information about Rules of Origin and certification for New Zealanders trading in goods under AANZFTA.

Customs Rules of Origin Fact Sheet # 42 [PDF, 224 KB]

Customs certification and trade facilitation Fact Sheet #43 [PDF, 248 KB] 

Service sector businesses

Service sector businesses can use Chapter 8 and Annex 3 of the agreement to find out:

  1. how your service is classified
  2. if there are limits on national treatment or market access for your service
  3. if there are any additional commitments for your service

Read chapter 8 of the agreement, Trade in Services [PDF, 317 KB]

Get the services schedules for each country (Annex 3)

Investors

Investors can use the MFAT AANZFTA information booklet [PDF, 4.3 MB] and FTA Chapter 11 [PDF, 247 KB] to find out how to benefit from the agreement.

Deciding which FTA to use

New Zealand has other trade agreements with some ASEAN countries and Australia, and you'll need to decide which one to use when doing business with these countries. The Tariff Finder (external link) will help you decide, but there are other factors such as transhipment/routing requirements that you should also consider. 

Country Agreements to choose from 
Malaysia NZ-Malaysia FTA or AANZFTA
Thailand Thai CEP or AANZFTA
Singapore Singapore CEP, P4 or AANZFTA
Brunei P4 or AANZFTA
Australia CER or AANZFTA

Use the Tariff Finder (external link) and this NZIER study to help you decide which one to use.

NZIER comparison of FTA provisions [PDF, 130 KB]

Media and Resources

Full text of AANZFTA [PDF, 642 KB] 

Annexes to the AANZFTA

MFAT Guide to AANZFTA 

MFAT AANZFTA fact sheet [PDF, 2.1 MB]

The AANZFTA Website (external link)

AANZFTA National Interest Analysis [PDF, 747 KB] was done before formal negotiation started, and shows the potential benefits of the FTA.

Member countries have agreed on a Protocol that will amend the Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA). Read more on the first protocol.

Tariff schedules in HS2012

 

Watch the video below to see what happens during an AANZFTA meeting