Lyla Lindsey
Free trade agreements (FTAs) are international treaties between two or more countries that are designed to reduce or eliminate certain barriers to trade and investment. As of 2024, Australia has concluded 18 FTAs with more than 20 countries or groups of countries, including New Zealand, the United Kingdom, India, and the United Arab Emirates. These agreements are vital to Australia's economic growth, boosting economic and job growth, and delivering new opportunities for Australian businesses through greater trade and investment.
| Characteristics | Values |
|---|---|
| Number of FTAs | 18 |
| Number of Economies | 30 |
| FTA with India | 29 December 2022 |
| FTA with the United Kingdom | 31 May 2023 |
| FTA with New Zealand | 1 January 1983 |
| FTA with ASEAN, Australia and New Zealand | 1 January 2010 |
| FTA with Japan | 15 January 2015 |
| FTA with Korea | 1 January 2015 |
| FTA with China | 20 December 2015 |
| FTA with the United Arab Emirates | 6 November 2024 |
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What You'll Learn
Australia has 18 FTAs with 30 economies
Free trade agreements (FTAs) are international treaties between two or more countries or economies that are designed to reduce or eliminate certain barriers to trade and investment. They facilitate stronger trade and commercial ties between participating countries, and open up opportunities for exporters and investors to expand their business into key markets.
Australia currently has 18 FTAs with 30 economies. These include the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER), which entered into force on 1 January 1983, and the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which entered into force on 1 January 2010 for eight countries: Australia, New Zealand, Brunei, Burma, Malaysia, the Philippines, Singapore and Vietnam. For Thailand, AANZFTA entered into force on 12 March 2010.
Australia's FTAs also include the Australia-India Economic Cooperation and Trade Agreement (ECTA), which entered into force on 29 December 2022, and the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement (A-UAE CEPA), which was signed on 6 November 2024 and will enter into force when both parties complete the necessary legal processes for entering treaties.
In addition, Australia has recently concluded the Australia-United Kingdom Free Trade Agreement (A-UKFTA), which entered into force on 31 May 2023, and is a signatory to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) along with 10 other countries.
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Benefits of FTAs for Australia
Free trade agreements (FTAs) are international treaties between two or more countries that are designed to reduce or eliminate certain barriers to trade and investment. They facilitate stronger trade and commercial ties between participating countries. Australia currently has 18 FTAs with over 20 countries or groups of countries, and is seeking to negotiate and implement additional agreements.
FTAs offer numerous benefits to Australia. Firstly, they boost economic growth and create job opportunities for Australians. They also provide new growth opportunities for Australian businesses of all sizes by granting them access to key markets and enabling them to expand their business. For instance, the JAEPA agreement with Japan provides valuable preferential access for Australia's agricultural exports by eliminating or significantly reducing tariffs on a wide range of exports, including beef, wine, and seafood. Similarly, the KAFTA agreement has improved market access for a range of agricultural industries, including liquid milk and certain horticulture products. The ACLFTA agreement has also provided significant cost savings for the Australian red meat industry when exporting to Chile.
Moreover, FTAs benefit Australian consumers by providing them with improved access to a wider range of competitively priced and better-value goods and services. For example, the elimination of tariffs on agricultural products from Thailand has allowed Australian consumers to access a greater variety of goods at lower prices.
Finally, FTAs can also have positive flow-on effects for Australia's economy as a whole. By facilitating stronger trade and investment ties with other countries, FTAs contribute to Australia's continued economic growth and enhance its position as a global leader with one of the world's strongest performing economies.
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The Australia-India Economic Cooperation and Trade Agreement
Australia currently has 18 free trade agreements (FTAs) with 30 economies. Free trade agreements are treaties between two or more countries or economies that reduce or eliminate certain barriers to trade and investment, and facilitate stronger trade and commercial ties between participating countries.
The ECTA builds upon the Australia-India Comprehensive Economic Cooperation Agreement (CECA), which was first negotiated in May 2011. Negotiations for the CECA were suspended in 2016, but they were relaunched in September 2021 with the intention of quickly concluding an ECTA to liberalise and deepen bilateral trade in goods and services. The ECTA provides a foundation for the more ambitious CECA, which is still under negotiation.
The Australian Government supports the negotiation of comprehensive free trade agreements that are consistent with the rules and guidelines of the World Trade Organization (WTO). Under WTO rules, FTAs must eliminate tariffs and other restrictions on "substantially all trade" in goods between member countries and substantially eliminate all discrimination against service suppliers from these countries. This ensures that Australia's FTAs are comprehensive in scope and deliver the best possible outcomes for the country.
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The Australia-United Kingdom Free Trade Agreement
Australia has 18 free trade agreements with 30 economies, and the Australia-United Kingdom Free Trade Agreement (A-UKFTA) is one of them. The A-UKFTA was signed on 17 December 2021 and came into force on 31 May 2023. It was the first trade agreement signed by Britain since leaving the European Union that was negotiated from scratch.
The agreement contains 32 chapters covering a wide range of issues. It removes most tariffs on trade between the UK and Australia, with the UK market for some agricultural goods to be opened to Australia more gradually. It also covers trade in services, digital trade, public procurement, and intellectual property. The agreement has eliminated tariffs on over 99% of Australian goods exports to the UK.
The A-UKFTA also strengthens people-to-people links between the two countries. Australian professionals now have the same access to the UK job market as EU nationals. Britons under the age of 35 will be able to travel and work in Australia more easily, with relaxed rules around working holiday visas.
The UK government estimates that the agreement will increase the British economy by £500 million over 15 years, equivalent to a 0.02% increase in GDP. The Australian government expects the agreement to unlock £10.4 billion of additional trade.
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ASEAN-Australia-New Zealand FTA
Australia has 18 free trade agreements (FTAs) with 30 economies. FTAs are treaties between two or more countries or economies that reduce or eliminate certain barriers to trade and investment, and facilitate stronger trade and commercial ties between participating countries.
One of these agreements is the ASEAN-Australia-New Zealand FTA (AANZFTA). This agreement came into effect on 1 January 2010 for eight countries: Australia, New Zealand, Brunei, Burma, Malaysia, the Philippines, Singapore, and Vietnam. Thailand joined on 12 March 2010.
The AANZFTA is a comprehensive agreement, containing detailed commitments on goods, services (including financial and telecommunications services), investment, electronic commerce, movement of natural persons, intellectual property, competition policy, and economic cooperation. The agreement began negotiations for upgrading in 2020, which were completed in November 2022. Seven member countries have ratified the Protocol to upgrade the Agreement, including Australia, Brunei Darussalam, Indonesia, Malaysia, New Zealand, the Philippines, and Singapore.
The AANZFTA has provided opportunities for increased economic cooperation between Vietnam and Australia and has made Australia a partner in the 'Global ASEAN' vision. The agreement has also delivered the CLIP Scholars Programme for ASEAN Competition Officials in collaboration with the University of Queensland.
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Frequently asked questions
Australia has 18 free trade agreements with more than 20 countries.
A free trade agreement (FTA) is an international treaty between two or more economies that reduces or eliminates certain barriers to trade in goods and services, as well as investment.
Some of Australia's free trade agreements include:
- Australia-New Zealand (ANZCERTA or CER)
- ASEAN-Australia-New Zealand (AANZFTA)
- Australia-United Kingdom Free Trade Agreement (entered into force on 31 May 2023)
- Australia-India Economic Cooperation and Trade Agreement (entered into force on 29 December 2022)
