Latest news with #Asean-Australia-NewZealandFreeTradeArea
New Straits Times
23-04-2025
- Business
- New Straits Times
Malaysia backs upgraded Asean-Australia-New Zealand FTA to boost regional trade
KUALA LUMPUR: Malaysia has joined fellow Asean members, along with Australia and New Zealand, in welcoming the upgrade of the Asean-Australia-New Zealand Free Trade Area (AANZFTA). The move marks a major step in Malaysia's commitment to inclusive, resilient and sustainable economic integration, the Investment, Trade and Industry Ministry (MITI) said in a statement today. With a combined gross domestic product exceeding US$5.6 trillion (about RM24.68 trillion) and a population of over 700 million, the upgraded AANZFTA strengthens Malaysia's resilience in a competitive regional market. The amendment is expected to reduce transaction costs, support the digitalisation of trade, enhance the resilience of supply chains and open new opportunities in sustainable trade and investment. According to MITI, the AANZFTA has been a vital component of Malaysia's regional trade strategy since its entry into force in 2010. Malaysian exporters' utilisation of the agreement has shown encouraging growth, with export value doubling from RM5.8 billion in 2016 to RM12.9 billion in 2023. MITI said Malaysian businesses have continued to show interest and momentum in leveraging the AANZFTA to better position themselves for the benefits of the upgraded agreement amid evolving global conditions. "With the Second Protocol now in effect, the upgraded agreement introduces meaningful improvements across 13 existing chapters, including rules of origin, customs procedures and trade facilitation, competition and electronic commerce. "It also brings in new chapters on trade and sustainable development, micro, small and medium enterprises (MSMEs), and government procurement," it added. MITI said Australia and New Zealand have contributed around AUD$48.7 million (about RM137.34 million) under the Regional Trade for Development initiative. This support is crucial in realising the benefits of AANZFTA and the Regional Comprehensive Economic Partnership for local communities. "Malaysia remains committed to the full and effective implementation of the upgraded agreement and MITI will continue to work closely with industry players, especially MSMEs, to ensure businesses are well-positioned to maximise the benefits from the enhanced provisions," it added.
The Star
22-04-2025
- Business
- The Star
Asean, Australia and New Zealand's upgraded free trade area deal enters into force
The agreement enters into force at a time when US President Donald Trump appears bent on reversing decades of globalisation in favour of his protectionist policies. - ST SINGAPORE: An upgraded agreement between Asean, Australia and New Zealand entered into force on Monday (April 21), enhancing business opportunities across a free trade area of over 703 million people, with a combined gross domestic product of more than US$5.6 trillion. The deal to upgrade the Asean-Australia-New Zealand Free Trade Area (AANZFTA) was signed in Indonesia in August 2023 to promote opportunities in areas such as e-commerce, investment, services, sustainable development, consumer protection and government procurement. The agreement enters into force at a time when US President Donald Trump appears bent on reversing decades of globalisation in favour of his protectionist policies that carry the risk of slowing down trade and economic growth worldwide. Singapore's Ministry of Trade and Industry (MTI) said: 'The upgrade reflects parties' commitment to uphold an open, inclusive and rules-based multilateral trading system.' MTI said the upgraded AANZFTA will boost supply chain resilience for essential goods and simplify rules of origin, the criteria used to determine a product's country of origin for preferential tariff treatment. This will ensure greater certainty on the flow of essential goods in times of crisis by expediting their movement, release and clearance. MTI said the upgrade will ensure more sourcing options for businesses, and higher efficiency by streamlining documentation for transit and shipment of goods. Meanwhile, regulations in professional, educational, financial and telecommunications services will also be made more transparent and business-friendly. The pact aims to improve digital connectivity through the alignment of digital trade standards and e-invoicing. It will also boost cooperation among governments to help businesses capture opportunities in the green economy. Dispute settlement processes will also be improved, with better protection for businesses and consumers. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said: 'Amidst the uncertainties in the global trade environment, this agreement is a bright spot demonstrating Asean, Australia and New Zealand's commitment to an open, inclusive and rules-based multilateral trading system.' He said the three partners will continue to help businesses, particularly small and medium-sized enterprises, manage disruptions and find new opportunities for growth across the free trade area. The upgraded agreement also has a new chapter that promotes collaboration between governments to enhance the capabilities of micro, small and medium-sized enterprises and improve the business environment for them. The original agreement establishing the AANZFTA entered into force in 2010. In 2023, Asean's total trade in goods with Australia and New Zealand amounted to US$138.4 billion. - The Straits Times/ANN
