Damon Mcknight
Australia has several free trade agreements (FTAs) with countries around the world. These agreements are treaties between two or more countries that facilitate stronger trade and commercial links between the participating countries. Australia has 18 FTAs with over 20 countries and is seeking to negotiate and implement more. These agreements can be bilateral, between Australia and one other country, or regional, involving Australia and a group of countries. This article will explore the countries that Australia has FTAs with and the benefits of these agreements.
| Characteristics | Values |
|---|---|
| Number of countries Australia has FTAs with | 18 |
| Number of economies covered by Australia's FTAs | 30 |
| Type of FTAs | Bilateral and multilateral |
| Countries/regions Australia has FTAs with | New Zealand, Brunei, Burma, Malaysia, the Philippines, Singapore, Vietnam, Thailand, Laos, Cambodia, Indonesia, China, Japan, Korea, India, Cook Islands, Kiribati, Niue, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu, Chile, Canada, Mexico, Peru, United States, United Arab Emirates, United Kingdom, European Union |
| Organisations involved in FTA negotiations | Department of Foreign Affairs and Trade (DFAT) |
| Organisations involved in supporting Australian companies with FTAs | Austrade |
| Organisations involved in representing agriculture industries in FTA negotiations | Department of Agriculture, Fisheries and Forestry (DAFF) |
| Organisations involved in biosecurity and food safety measures in FTAs | Department of Agriculture, Fisheries and Forestry (DAFF) |
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What You'll Learn
- Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)
- ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)
- Regional Comprehensive Economic Partnership Agreement (RCEP)
- Australia-United Kingdom Free Trade Agreement (A-UKFTA)
- Australia-India Economic Cooperation and Trade Agreement (ECTA)
Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)
Australia has 18 free trade agreements currently in force, with over 20 countries. These agreements are either bilateral, between Australia and one other country, or regional, involving Australia and a group of countries.
The Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER) was signed on 28 March 1983 and came into effect on 1 January 1983. It is the cornerstone of the trade and economic relationship between the two countries and is supplemented by more than 80 government-to-government bilateral treaties, protocols, and other arrangements. ANZCERTA covers a wide range of trade issues, including all trans-Tasman trade in goods, agricultural products, and services. It is one of the most comprehensive bilateral free trade agreements in existence and was the first to include free trade in services. The Agreement's central provision is the creation of a World Trade Organization (WTO)-consistent Free Trade Area encompassing Australia and New Zealand. ANZCERTA prohibits all tariffs and quantitative import or export restrictions on trade in goods originating in the Free Trade Area. It also minimises market distortions in trade in goods, including through domestic industry assistance and export subsidies and incentives.
ANZCERTA is the foundation of a broader economic and trade relationship with New Zealand. It has been recognised by the WTO as a model Free Trade Agreement and one of the world's most comprehensive, effective, and multilaterally compatible free trade agreements. Australia is the largest investor in New Zealand, and it ranks third as an investment destination for Australia. Over half of Australia's total investment in New Zealand is Foreign Direct Investment, reflecting the high level of economic integration between the two countries.
The first trade agreement between Australia and New Zealand dates back to 1922, and it essentially stated that each party would trade with the other. This was followed by the Australia New Zealand Trade Agreement in 1933, under which the two countries gave each other preferences and some special rates of duty. A partial free trade treaty, the New Zealand Australia Free Trade Agreement (NAFTA), entered into force in 1966, leading to the removal of tariffs and quantitative restrictions on 80% of trans-Tasman trade by the late 1970s.
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ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)
The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) is an agreement between ASEAN member states, Australia, and New Zealand. It entered into force in 2010 for Australia, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
AANZFTA was the first plurilateral free trade agreement negotiation embarked upon by New Zealand and Australia as a joint party. It was also the first time ASEAN embarked on comprehensive free trade agreement negotiations that covered all sectors simultaneously. AANZFTA originated from the desire to explore a link between the ASEAN Free Trade Area (AFTA) and the Australia-New Zealand Closer Economic Relations Trade Agreement (CER). This resulted in the AFTA-CER Closer Economic Partnership (CEP) Agreement, which sought to deepen economic integration through a work programme focused on trade facilitation and capacity building.
AANZFTA delivers extensive tariff reduction and greater certainty for service suppliers and investors. It is the highest-quality FTA that ASEAN has with its partners. The agreement has been updated over the years to modernise it, further reduce barriers impacting exports, and boost trade in the region. The latest upgrade, signed in August 2023, will enter into force on 21 April 2025.
AANZFTA supports ASEAN, New Zealand, and Australia's economic partnership in trade and investment in areas of mutual interest. It enhances New Zealand's partnership with ASEAN and supports exporters and communities in maximising the benefits the agreement offers. New Zealand has gained almost full elimination of tariffs on goods through AANZFTA, with 99% of goods entering duty-free. The 2025 upgrade will streamline and improve the efficiency of processing exports across borders and enhance conditions for trade in services and e-commerce.
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Regional Comprehensive Economic Partnership Agreement (RCEP)
Australia has 18 free trade agreements (FTAs) in force with over 20 countries. These agreements can be bilateral, between Australia and one other country, or regional, involving Australia and a group of countries. The Regional Comprehensive Economic Partnership Agreement (RCEP) is one such regional FTA. It was signed on 15 November 2020, with 15 member countries participating by video link due to the COVID-19 pandemic.
The RCEP is a free trade agreement between the large economies of China, South Korea, and Japan. It also includes Australia, Brunei Darussalam, Cambodia, Laos, New Zealand, Singapore, Thailand, and Vietnam. The Philippines joined on 2 June 2023, and Indonesia joined on 2 January 2023. Malaysia and the Republic of Korea joined in 2022.
The RCEP is significant because it is the first agreement to create a free trade agreement between China, South Korea, and Japan. It is expected to have a significant economic impact, particularly for China, Japan, and Korea. It is also notable because it does not establish unified standards on labour and the environment or commit countries to open services and other vulnerable areas of their economies.
The RCEP is one of two major free trade agreements in the region, the other being the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is considered more comprehensive, as it includes unified standards on labour and the environment. However, the RCEP has the potential to be more economically significant, especially with the inclusion of India. Together, the RCEP and CPTPP are expected to offset the global negative economic effects of the China-US trade war.
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Australia-United Kingdom Free Trade Agreement (A-UKFTA)
Australia has 18 free trade agreements (FTAs) in force with over 20 countries. These agreements are treaties between two or more countries that facilitate stronger trade and commercial links between the countries involved. They cut tariffs when exporting between markets and may also reduce some non-tariff barriers to trade.
The Australia-United Kingdom Free Trade Agreement (A-UKFTA) is one such FTA. It was signed on 17 December 2021 and entered into force on 31 May 2023. The agreement contains commercially significant commitments that create new export opportunities, reduce input costs for businesses, strengthen trade diversification, and help ease cost-of-living pressures for consumers. The A-UKFTA has eliminated tariffs on over 99% of Australian goods exports to the UK, making it easier for Australian services companies and professionals to operate in the UK market.
The A-UKFTA was the first trade agreement signed by Britain since leaving the European Union that was negotiated completely anew. The broad terms of the agreement were agreed upon after almost a year of negotiations. The deal is expected to grow the British economy by £500 million over 15 years, equivalent to a 0.02% increase in GDP. It also includes the Innovation and Early Careers Skills Exchange Pilot (IECSEP), which provides an opportunity for 1,000 UK citizens who are early in their careers or who have contributed to innovation to live and work in Australia in the first year of the program.
While the Australian National Farmers' Federation welcomed the deal, agricultural interests in the UK criticised it, expressing concern that it might weaken British restrictions on pesticide use and set a precedent for future trade deals.
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Australia-India Economic Cooperation and Trade Agreement (ECTA)
Australia has 18 free trade agreements currently in force with over 20 countries. These agreements are either bilateral, between Australia and one other country, or regional, involving Australia and a group of countries. They facilitate stronger trade and commercial links between the countries involved.
The Australia-India Economic Cooperation and Trade Agreement (ECTA) is one such agreement. It entered into force on 29 December 2022. The agreement has reduced tariffs on goods exports between the two countries. Over 85% of Australian goods exports by value to India are now tariff-free, rising to 90% by 1 January 2026. High tariffs have been reduced on some further agricultural products. Additionally, 96% of imports from India are now tariff-free, increasing to 100% by 1 January 2026.
The agreement helps secure access to India's fast-growing market of over 1.4 billion people and gives Australian businesses opportunities for trade diversification. It also gives Australian businesses a competitive advantage in accessing and expanding into India, securing Australia's foothold in the world's fastest-growing large economy.
To help Australian companies take advantage of the agreement, Austrade offers support, guidance, and information for international investors and buyers. They also offer a range of in-market and Australian-based services to help Australian companies familiarise themselves with local market conditions and develop export opportunities.
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Frequently asked questions
Australia has free trade agreements with over 20 countries, including New Zealand, the United States, Thailand, Singapore, the United Arab Emirates, and the United Kingdom.
Free trade agreements (FTAs) promote stronger trade and commercial ties between participating countries. They also open up opportunities for Australian exporters and investors to expand their business into new markets.
Australia has 18 free trade agreements currently in force, covering 30 economies.
The Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) was signed in 1983 and was Australia's first bilateral trade agreement.
Australia's most recent free trade agreement is the Australia-United Kingdom Free Trade Agreement (A-UKFTA), which entered into force on 31 May 2023.
