The upgraded ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) officially entered into force on April 21, 2025, enhancing trade relations among Australia, New Zealand, and six ASEAN member states: Singapore, Malaysia, Laos, Brunei, Indonesia, and the Philippines. This upgrade, formalized through the Second Protocol to Amend the Agreement, introduces significant changes aimed at modernizing trade practices and fostering regional economic integration.
Key provisions of the upgraded AANZFTA include the elimination or reduction of duties on approximately 97.7% of Australian exports, streamlining trade documentation, and simplifying customs procedures. These measures are expected to lower costs and time for exports and imports, benefiting businesses across the member countries.
The agreement also introduces new commitments in areas such as services, e-commerce, consumer protection, and sustainable development. Notably, it includes a standalone chapter on Trade and Sustainable Development, marking a first-ever FTA commitment for ASEAN. Additionally, the upgrade aims to support micro, small, and medium enterprises (MSMEs) by increasing their participation in economic activities, including government procurement.
The remaining ASEAN member states are expected to implement the upgrade within 60 days after completing their domestic ratification processes. Once fully in effect, the upgraded AANZFTA is anticipated to significantly boost trade and investment flows within the region, contributing to economic recovery and growth.
