House of Representatives

Explanatory Memorandum

Circulated By Authority of the Minister for Home Affairs, the Honourable Brendan O'Connor Mp

ANNEX A

ASEAN-Australia-New Zealand Free Trade Area (AANZFTA):

Negotiating Objectives

Trade in Goods

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Ensure an outcome that is WTO-consistent, by seeking to eliminate and bind tariffs and other barriers to trade between Australia and ASEAN on the broadest possible basis; and

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Provide a basis for reducing over time the restrictive impact of non-tariff barriers.

Rules of Origin

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Agree on a set of rules of origin that ensures that the benefits of preferential tariff treatment under the FTA apply only to goods from Australia, New Zealand and ASEAN while avoiding unnecessary obstacles to trade, which reflects the principle of substantial transformation and is not unnecessarily burdensome to administer.

Customs Cooperation

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Ensure that the customs procedures of the parties are transparent, efficient and consistent, and that they facilitate trade; and

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Strengthen cooperation and exchange of information to assist in the detection, investigation and prevention of infringements of customs laws.

Quarantine/Sanitary and Phytosanitary (SPS) Measures

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Seek to reinforce mutual commitment to the development and application of science based quarantine measures, consistent with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement);

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Seek to strengthen cooperation between Australian, New Zealand and ASEAN quarantine authorities; and

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Seek to strengthen cooperation in implementing the WTO SPS Agreement.

Standards, Technical Regulations and Conformity Assessment Procedures

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Seek to enhance cooperation on the development and application of standards, technical regulations and conformity assessment procedures, consistent with the WTO Agreement on Technical Barriers to Trade; and

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Seek to enhance arrangements for information exchange on regulatory regimes.

Trade in Services

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Obtain improved opportunities for, and minimise discriminatory treatment of, Australian service suppliers through the more developed ASEAN 6 members (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand) substantially improving on their WTO market access commitments in priority sectors;

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Seek an appropriate Most Favoured Nation (MFN) clause, with exclusions for all visa-related requirements;

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Seek to include WTO-plus disciplines on regulatory practice, notably for financial services, telecommunications and to facilitate the temporary movement of business people in the ASEAN region;

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Ensure the outcome of the negotiations takes account of Australia's cultural and social policy objectives, and the need for appropriate regulation and support measures to achieve these objectives; and

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Ensure the outcome of the negotiations does not limit the ability of Government to provide public services, such as health, education, law enforcement and social services.

Investment

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Seek to promote greater transparency of investment rules and ensure that investors have access to appropriate legal protection;

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Ensure that the negotiations take account of Australia's foreign investment policy;

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Seek to reduce foreign equity participation limits in ASEAN and provide greater certainty for Australia investors in relation to ASEAN pre-establishment investment screening regimes and related approval processes; and

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Seek an appropriate MFN clause, with exclusions for all visa-related requirements.

Intellectual Property Rights

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To further harmonise intellectual property systems in the region with international frameworks in order to deliver efficiency gains to business and to enhance the protection and enforcement of the rights of intellectual property holders.

Electronic Commerce

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Seek to enhance the growth of electronic commerce in goods and services in ways that promote the use of electronic commerce globally.

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Reaffirm the current practice of not imposing customs duties on electronic transmissions between Australia, New Zealand and ASEAN members.

Competition Policy

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Seek the development, implementation and enforcement of policies in ASEAN that promote a pro-competitive environment.

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Foster cooperation on competition policy.

Economic Cooperation

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Seek agreement on a work program of specific economic cooperation projects to enhance ASEAN's capacity to implement the AANZFTA commitments.

Dispute Settlement

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Encourage the early identification and settlement of disputes through consultation.

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Establish fair, transparent, timely, and effective procedures to settle disputes arising under the Agreement.

Government Procurement

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Seek a basis for the initiation of market access negotiations on government procurement, including by Australia being treated comparably with any countries with which ASEAN agrees to begin negotiations on access to ASEAN government procurement markets.