Damon Mcknight
Free trade agreements (FTAs) are international treaties that reduce or eliminate certain barriers to trade and investment between two or more countries. As of 2023, Australia has 18 FTAs with more than 20 countries or groups of countries. These agreements are designed to promote stronger trade and commercial ties, as well as provide opportunities for Australian businesses to expand their reach and for consumers to access a wider range of competitively priced goods and services. This article will explore Australia's various free trade agreements and the benefits they bring to the country.
| Characteristics | Values |
|---|---|
| Number of FTAs | 18 |
| Number of economies in FTAs | 30 |
| Examples of FTAs | ANZCERTA, AANZFTA, CPTPP, A-UKFTA, IA-ECTA, A-UAE CEPA |
| Number of countries Australia has FTAs with | More than 20 |
| PACER Plus countries | Australia, Cook Islands, Kiribati, New Zealand, Niue, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu |
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What You'll Learn
Australia-New Zealand (ANZCERTA)
Australia has 18 free trade agreements with 30 economies. One of these is the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER), which came into effect on 1 January 1983. ANZCERTA is one of the world's most open and successful free trade agreements and is central to the Australia-New Zealand trade and economic relationship.
ANZCERTA is a comprehensive agreement that covers not only trade in goods and services but also encompasses close collaboration across biosecurity, customs, transport, regulatory and product standards, and business law issues. It is worth noting that ANZCERTA does not affect the ability of either Australia or New Zealand to impose biosecurity measures to protect animal, plant, and human health.
The agreement has helped to reduce or eliminate certain barriers to trade and investment, thereby facilitating stronger trade and commercial ties between Australia and New Zealand. This has opened up opportunities for Australian and New Zealand businesses to expand their operations into each other's markets.
In addition to ANZCERTA, Australia and New Zealand are also parties to other free trade agreements, such as the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These agreements further strengthen the economic relationship between Australia and New Zealand, as well as with other countries in the region.
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ASEAN-Australia-New Zealand (AANZFTA)
The Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) is a free trade agreement between ASEAN Member States (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Australia and New Zealand. It came into force on 1 January 2010 for eight countries: Australia, New Zealand, Brunei, Burma, Malaysia, the Philippines, Singapore and Vietnam. Thailand joined on 12 March 2010.
AANZFTA delivers extensive tariff reduction and greater certainty for services suppliers and investors. It remains the highest quality of ASEAN's FTAs with its partners. The agreement has established a mechanism where exporters can apply for and obtain a Certificate of Origin, which ascertains that the goods being exported to another AANZFTA Party are eligible for preferential tariff treatment. The AANZFTA Tariff Finder is a tool that helps businesses, especially exporters and importers of goods, check the latest preferential tariffs and rules applicable to specific commodities traded under AANZFTA.
On 21 April 2025, the Second Protocol to Amend the Agreement Establishing the AANZFTA (known as the AANZFTA Upgrade) came into force. The AANZFTA Upgrade improves processes for traders to access the AANZFTA’s existing tariff preferences and provides new market access commitments and regulatory certainty for service providers.
Australia, Brunei Darussalam, Cambodia, Laos, Malaysia, New Zealand, Singapore, Thailand and Vietnam have also ratified the Regional Comprehensive Economic Partnership (RCEP) Agreement, an ASEAN-led FTA, which entered into force on 1 January 2022.
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Australia-India Economic Cooperation and Trade Agreement (ECTA)
Free trade agreements (FTAs) are international treaties between two or more economies that reduce or eliminate certain barriers to trade in goods and services, as well as investment. Australia currently has 18 FTAs with 30 economies.
The Australia-India Economic Cooperation and Trade Agreement (ECTA) entered into force on 29 December 2022. The ECTA helps secure access to India's fast-growing market of over 1.4 billion people and gives Australian businesses opportunities for trade diversification. Over 85% of Australian goods exports by value to India are now tariff-free, rising to 90% by 1 January 2026. Additionally, high tariffs have been reduced on some agricultural products. On the other hand, 96% of imports from India are now tariff-free, increasing to 100% by 1 January 2026.
The ECTA is a significant agreement for Australia as it promotes stronger trade and commercial ties with India. It also opens up opportunities for Australian exporters and investors to expand their businesses into key markets. The removal of barriers in highly protected markets or the facilitation of access to new markets are some of the benefits that FTAs can bring about.
The ECTA is a comprehensive agreement that covers various aspects of trade and economic cooperation between Australia and India. It includes provisions on trade in goods and services, investment, intellectual property, and government procurement, among others. The agreement is designed to benefit both countries by increasing trade and investment flows, facilitating market access, and creating a more predictable and transparent business environment.
Overall, the Australia-India Economic Cooperation and Trade Agreement (ECTA) is an important development in the economic relationship between the two countries. By reducing tariffs and other trade barriers, the agreement enhances trade and investment opportunities for businesses and consumers in both Australia and India. The ECTA also strengthens the commercial ties between the two countries and contributes to their long-term economic growth.
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Australia-United Kingdom Free Trade Agreement (A-UKFTA)
Australia has 18 free trade agreements with 30 economies. Free trade agreements (FTAs) are international treaties that reduce or eliminate trade barriers and facilitate stronger trade and investment ties between participating countries.
The Australia-United Kingdom Free Trade Agreement (A-UKFTA) entered into force on 31 May 2023. The agreement was signed on 17 December 2021, six months after the broad terms were agreed upon. It was the first trade agreement signed by Britain since leaving the European Union. The A-UKFTA contains commitments that create new export opportunities, reduce input costs for businesses, strengthen trade diversification, and ease cost-of-living pressures for consumers.
The agreement has eliminated tariffs on over 99% of Australian goods exports to the UK, providing significant benefits to Australian exporters. Additionally, Australian services companies and professionals benefit from new commitments that make it easier to operate in the UK market, including the mutual recognition of professional qualifications. The A-UKFTA also enhances opportunities for citizens of both countries to live and work temporarily in each other's countries. For example, British citizens under 35 can obtain working holiday visas for three years, and Australian employers do not need to demonstrate economic necessity when hiring them.
The Australian National Farmers' Federation welcomed the deal as an opportunity to increase agricultural exports to the UK. However, some UK farmers expressed concern about the potential impact of cheaper Australian imports on domestic prices. The agreement also faced criticism from the National Farmers' Union regarding the lack of protections for geographical indicators on certain food products.
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Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement (FTA) signed on 8 March 2018 in Santiago, Chile. It is a separate treaty that incorporates the provisions of the Trans-Pacific Partnership (TPP) Agreement, which was signed but never entered into force due to the withdrawal of the United States. The CPTPP was created as a succeeding agreement, retaining two-thirds of its predecessor's provisions. It consists of twelve members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom, and Vietnam. The CPTPP entered into force for Australia, Canada, Japan, Mexico, New Zealand, and Singapore on 30 December 2018; for Vietnam on 14 January 2019; for Peru on 19 September 2021; for Malaysia on 29 November 2022; for Chile on 21 February 2023; for Brunei on 12 July 2023; and for the UK on 15 December 2024.
The CPTPP is designed to promote stronger trade and commercial ties between participating countries, as well as open up opportunities for Australian exporters and investors to expand their business into key markets. It includes provisions for the reduction or elimination of certain barriers to trade and investment, such as preferential tariff treatment for importers based on a Certification of Origin (COO). It also includes an e-commerce chapter that mandates consumer protection laws to fight fraud and deceptive commercial activities, and a chapter on state-owned enterprises (SOEs) that requires signatories to share information and address the issue of state intervention in markets.
The CPTPP is one of the world's largest free trade areas by GDP, with member states accounting for around 15% of exports and 17% of imports in 2020. On 1 February 2021, the United Kingdom formally requested accession to the CPTPP, and on 16 July 2023, the CPTPP Ministers signed the UK's Accession Protocol. On 28 November 2024, CPTPP Ministers also agreed to the commencement of an accession process for Costa Rica.
Australia assumed the Chair of the CPTPP on 1 January 2025, with a focus on increasing trade, facilitating trade, and spreading the benefits of trade to ensure inclusive and sustainable trade practices.
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Frequently asked questions
Australia has concluded FTAs with 18 countries or groups of countries. However, some sources state that Australia currently has 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.
Free trade agreements help boost economic and job growth in Australia, delivering new growth opportunities to big and small Australian businesses through greater trade and investment. Australian consumers and businesses also benefit from improved access to a wider range of competitively priced imported goods and services.
Some examples of free trade agreements involving Australia include the Australia-New Zealand (ANZCERTA or CER), which came into effect on 1 January 1983, the ASEAN-Australia-New Zealand (AANZFTA), which came into effect on 1 January 2010, and the Australia-United Kingdom Free Trade Agreement (A-UKFTA), which came into force on 31 May 2023.
The CPTPP is an FTA between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The agreement was signed by the initial ratifying countries on 8 March 2018, and the UK signed the CPTPP's Accession Protocol on 16 July 2023.
