5 September 2008
Australia and Laos conclude South East Asia trade deal
The agreement - the most comprehensive ever negotiated by ASEAN - covers goods and services, investment, intellectual property, competition policy and economic cooperation, amongst other issues.
It is also the largest FTA that Australia has ever negotiated. Australia's two-way trade with ASEAN was $71 billion in 2007. As a bloc, ASEAN is a larger trading partner for Australia than any other single country. Australian investment in the ASEAN countries is now in excess of $16 billion. The AANZFTA will strengthen Australia’s trade and investment ties with ASEAN.
Concluding these negotiations is a significant achievement but it is not the end of the road. Negotiating partners have committed to build on the outcomes of these negotiations into the future.
Commenting on the conclusion of negotiations, Australian Ambassador to Laos, Dr Michele Forster said “The AANZFTA sends a positive signal of the economic dynamism of our region and provides a building block for regional integration. In the Lao context, I am very pleased this agreement will support the further growth of trade and investment ties between Laos and Australia.”
Laos also stands to benefit from the Economic Cooperation provisions of this agreement. A $20-25 million work program to help AANZFTA Parties implement their obligations will be carried out over five years.
Australia, Laos and other ASEAN member countries have concluded negotiations over the regional free trade agreement called the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). Negotiations for the AANZFTA started in March 2005.
The final negotiations were conducted by Ministers of the ten ASEAN countries, Australia and New Zealand at the 13th ASEAN Economic Ministers plus Australia and New Zealand meeting in Singapore on 28 August 2008. The AANZFTA is expected to be signed by leaders at the ASEAN Summit in December, following legal verification.