House of Representatives

Explanatory Memorandum

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

ANNEX F

AANZFTA ECONOMIC COOPERATION

1. The economic cooperation package comprises an Economic Cooperation chapter text and a Work Program which outlines the assistance that will be provided to parties to implement AANZFTA in eight areas of focus ("components") linked to different aspects of the AANZFTA. The broad activities currently covered by the Work Program are:

-

Rules of Origin;

-

Sanitary and Phytosanitary Measures;

-

Standards Technical Regulations and Conformity Assessment Procedures;

-

Services;

-

Investment;

-

Intellectual property;

-

Sectoral integration; and

-

Customs.

2. The Work Program does not have Treaty-level status but forms part of the AANZFTA package. The Implementing Arrangement formally integrates the Work Program into the overall FTA package.

3. The Work Program will be implemented over five years after entry into force of AANZFTA and is estimated to cost in the range of $20 - 25 million. The funding will be borne largely by Australia and New Zealand, with 'in kind' contributions from ASEAN member states. This funding reflects proposed Economic Cooperation projects deemed high priority in the initial planning phase. However, the work program provides flexibility for emerging and changing priorities of parties to the FTA to be addressed through an annual planning process. The work program is in addition to Australia's ongoing economic cooperation assistance to ASEAN and complements the ASEAN Australia Development Cooperation Program Phase II ($57 million 2008 - 2015).