How the ASEAN Free Trade Agreement fits into the wider trade agenda

Trade negotiations carried out under the WTO framework, involving all WTO members, remain the top trade priority for New Zealand because these multilateral trade negotiations offer the largest potential gains for a country like New Zealand. But the number of countries and interests involved in the WTO negotiations mean that progress can be slow.

FTAs have the potential to open up new opportunities for New Zealand businesses in a shorter timeframe than through the WTO. They allow New Zealand to accelerate progress towards more open markets by partnering with countries that share our same level of ambition for progress.

Good quality FTAs can also usefully contribute to moving the WTO and APEC processes forward by highlighting and reinforcing the benefits of trade reform. FTAs are being negotiated by most of our trading partners and have proliferated throughout the global economy, particularly the Asia-Pacific region. It is therefore essential that New Zealand is part of this activity to strengthen economic links and obtain improved access to and protect existing markets.

New Zealand has now entered into FTAs with the following countries:

• Australia (the Australia-New Zealand Closer Economic Relations) in 1983, which has been described by the WTO as the "world's most comprehensive, effective and mutually compatible free trade agreement".
• Singapore (the New Zealand-Singapore Closer Economic Partnership) in 2001.
• Thailand (the New Zealand-Thailand Closer Economic Partnership) in 2005.
• Chile, Singapore and Brunei (the Trans-Pacific Strategic Economic Partnership or "TPP") in 2006.
• China (the New Zealand-China FTA) in 2008.
• Malaysia (the Malaysia-New Zealand Free Trade Agreement) in 2010.
• Hong Kong (the New Zealand-Hong Kong, China Closer Economic Partnership) in 2011.

New Zealand has completed negotiations with the Gulf Cooperation Council.    Negotiations with South Korea, Russia-Belarus-Kazakhstan and India have started.  Work on studies which may help launch FTA negotiations with Japan are also underway. And negotiations for an expanded TPP agreement including the United States, Australia, Peru and Viet Nam began in March 2010. Malaysia joined the negotiations in October 2010.