Australian Prime Minister Anthony Albanese joined ASEAN and New Zealand counterparts to announce the substantial conclusion of negotiations to upgrade the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) in Phnom Penh.
AANZFTA is an agreement between ASEAN Member States (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Australia and New Zealand. It delivers extensive tariff reduction and greater certainty for service suppliers and investors.
Once implemented, the upgrade will strengthen and improve the trade agreement to ensure it is fit for the future for businesses and trade in the region, according to a statement from Australia’s Minister for Trade and Tourism, Senator the Hon Don Farrell.
The agreement is expected to provide a stronger foundation for Australian businesses to expand their economic engagement with Southeast Asia.
While talking about the agreement, Albanese was quoted as saying in the statement: “Strengthening trade agreements with ASEAN and New Zealand will mean better outcomes for Australian business and Australian families.
“Today we open an ambitious new chapter for the growing economic relationships between ASEAN, Australia and New Zealand, in line with my government’s commitment to deepening engagement in Southeast Asia.”
The upgraded trade agreement, once in force, will benefit Australian businesses through new chapters and provisions, including on micro, small, and medium-sized enterprises, trade and sustainable development and education services, the release said.
The agreement will also include enhanced provisions on electronic commerce, competition, customs procedures and trade facilitation, trade in goods, rules of origin, trade in services and investment.
The pandemic has highlighted the importance of focusing on trade facilitation to support businesses and secure supply chains. The upgrade will support traders to conduct business in the region, particularly when it comes to completing documentation – everything from origin certification to invoicing requirements.
The upgrade will also offer more opportunities for regional cooperation on issues such as the environment and climate change. ASEAN is a growing partner, particularly in renewable energy, as we work together to meet our climate objectives.
Australia’s Minister for Trade and Tourism, Senator Don Farrell, said: “ASEAN is a significant market for Australian exporters with a combined population of over 660 million and GDP of more than $3.3 trillion.”
“Deeper economic integration with our key strategic and economic partners in Southeast Asia is a priority for the Australian Government.”
“By upgrading AANZFTA, we hope to create new commercial opportunities for Australians, our exporters and investors to work hand-in-hand with ASEAN. This would cement Australia as a partner of choice in an open and inclusive region.”
Meanwhile, Assistant Minister for Trade, Assistant Minister for Manufacturing, Senator Tim Ayres, said: “An upgraded AANZFTA promises new opportunities for Australian businesses in a complex international trading environment and uncertain global economic outlook.
“Announcing the substantial conclusion of these negotiations is a deliberate step to prepare our businesses for these opportunities.”
Source: Khmer Times
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<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
