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The aim of the upgrade is to uphold an open, inclusive and rules-based multilateral trading system and ensure that the AANZFTA remains relevant and responsive to evolving global challenges.
The Upgraded Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) has entered into force on 21 April 2025 (Monday).
As announced by Singapore's Ministry of Trade and Industry (MTI), the upgraded AANZFTA will aim to create a conducive environment to enable businesses, in particular small and medium businesses, to better seize opportunities in Southeast Asia, Australia and New Zealand. It also seeks to reflect the Parties’ commitment to uphold an open, inclusive and rules-based multilateral trading system and ensure that the AANZFTA remains relevant and responsive to evolving global challenges.
The original Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) entered into force in 2010, establishing a free trade area of over 703mn people with a combined GDP of more than US$5.6tn.
Businesses are anticipated to benefit from:
- More sourcing options and production efficiencies in meeting the Agreement’s rules of origin.
- Time and cost efficiencies arising from streamlined processes for transit arrangements for consolidated shipments.
- Greater certainty on the flow of essential goods in times of crisis through expediting the movement, release and clearance of essential goods.
- More transparent and business-friendly regulations in professional, education, financial and telecommunication services.
- Improved digital connectivity through alignment of digital trade standards and interoperability in e-invoicing.
- Better protection for businesses and consumers.
- Cooperation to catalyse green opportunities.
- Improved dispute processes with better protection for consumers.
Key features of the upgraded AANZFTA are as follows:
- Promotes certainty in the supply of essential goods during future crises for businesses and consumers.
- Improves flexibility for businesses to tap on preferential market access with simplified Rules of Origin.
- Enhances collaboration in the professional, education, telecommunications and financial services sectors for businesses to explore opportunities in AANZFTA markets with greater confidence.
- Enhances the ease of doing business for companies engaging in e-commerce.
- Provides greater transparency and certainty for investors.
- Better protects businesses and consumers.
- Increases certainty in the regulatory environment through a new Government Procurement chapter.
- Facilitates cooperation, information sharing and capacity building to enhance cooperation on sustainable development.
- Provides support for micro, small and medium enterprises (MSMEs) to enhance their capabilities.
Below are some quotes from the various spokespeople:
Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, Singapore
“The entry into force of the upgraded AANZFTA today marks a significant milestone in strengthening our economic resilience and fostering deeper regional cooperation.
"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."
"It underscores the enduring importance that we place on cooperation among ASEAN, Australia, and New Zealand in navigating an increasingly complex global landscape. We will continue to help our businesses manage disruptions and find new opportunities for growth, particularly our SMEs."
CK Lim, CEO, Hiin Asia Pacific
“The enhanced AANZFTA marks a significant step forward in fostering a more connected, resilient, and dynamic regional economy. For Hiin Asia Pacific, it unlocks strategic opportunities to strengthen supply chains and expand our value-added offerings in bitumen and maritime services across Australia and New Zealand — two key markets in our growth journey.
"As the global landscape continues to evolve, AANZFTA empowers businesses like ours to lead with agility, deepen cross-border collaboration, and deliver greater long-term value to our clients and partners."
Gan Geok Chua, Executive Director and Co-Founder, Singapore Safety Glass
"SSG is benefitting from the current AANZFTA for the zero-duty rate, which has encouraged customers in Australia and New Zealand to buy from us.
"Once the upgraded AANZFTA enters in force, more companies can benefit similarly from the zero-rate when their products are able to qualify more easily for Singapore origin.”
Priscilla Ng, Market Development Manager, TYJ
“The AANZFTA has allowed TYJ to offer more competitive pricing compared to regional competitors – particularly important in an era of rising production and logistics costs.
"With the AANZFTA upgrade focused on streamlining trade procedures, more companies can benefit even further from smoother cross-border trade and enhanced supply chain efficiency. This can also help TYJ in reinforcing its position as a leading innovator in frozen Asian cuisine."
ASEAN, Australia and New Zealand share strong economic ties, with ASEAN’s total trade in goods with Australia and New Zealand amounting to USD138.4bn and Australia and New Zealand’s Foreign Direct Investment into ASEAN at USD304.54mn in 2023.
READ MORE: Mini but mighty: How SMEs in Singapore, Malaysia and Australia are balancing talent and costs
Lead image & infographics / MTI
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