AANZFTA and ASEAN Countries: Advantages and Disadvantages to New Zealand
The AANZFTA and New Zealand
1. CONTENTS 1. 3. 4. 5. 1. 2. 6. 1. 2. 7. 8. 9. 10. Table of contents Introduction The AANZFTA AANZFTA & New Zealand Advantages to New Zealand Disadvantages to New Zealand AANZFTA & ASEAN countries Advantages Disadvantages AANZFTA, WTO and Doha round Conclusion References Appendix Error! Bookmark not defined. 3 3 4 4 6 7 7 7 7 8 9 10
2. INTRODUCTION Free trade agreements (FTA) help exporters and investors by liberalising and facilitating the export of goods, services and investments in between the countries who have signed the agreement. They do so by removing tariffs reducing the transaction costs and import quotas as well as putting in place structure to help exporters and promotion cooperation. They work again protectionism. New Zealand has a long history of FTAs. One of the latest one put in place is the AANZFTA. In this report we will look at the key element this FTA supports. We will then look at the advantages and disadvantages it brings to New Zealand and to what measure it can help the value of NZ’s export and overseas earnings. We will finish by looking at the place of FTAs such as the AANZFTA among the WTO and the Doha round. 3. THE AANZFTA Due to its small size, New Zealand has some real advantages in negotiating free trade agreements with countries it exports to and import from. New Zealand has a long history of free trade agreements with the first one ever signed with Australia in 1983. The region of South East Asia is the closest to New Zealand after the region of the Pacific and it made sense for New Zealand and Australia to develop their partnership with the ASEAN countries. The AANZFTA agreement includes New Zealand, Australia as well as the ASEAN countries listed below. ASEAN: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, The Philippines, Singapore, Thailand, Vietnam. “The overriding objective of the FTA is to open up economic opportunities for New Zealand business in the ASEAN region and to
1. CONTENTS 1. 3. 4. 5. 1. 2. 6. 1. 2. 7. 8. 9. 10. Table of contents Introduction The AANZFTA AANZFTA & New Zealand Advantages to New Zealand Disadvantages to New Zealand AANZFTA & ASEAN countries Advantages Disadvantages AANZFTA, WTO and Doha round Conclusion References Appendix Error! Bookmark not defined. 3 3 4 4 6 7 7 7 7 8 9 10
2. INTRODUCTION Free trade agreements (FTA) help exporters and investors by liberalising and facilitating the export of goods, services and investments in between the countries who have signed the agreement. They do so by removing tariffs reducing the transaction costs and import quotas as well as putting in place structure to help exporters and promotion cooperation. They work again protectionism. New Zealand has a long history of FTAs. One of the latest one put in place is the AANZFTA. In this report we will look at the key element this FTA supports. We will then look at the advantages and disadvantages it brings to New Zealand and to what measure it can help the value of NZ’s export and overseas earnings. We will finish by looking at the place of FTAs such as the AANZFTA among the WTO and the Doha round. 3. THE AANZFTA Due to its small size, New Zealand has some real advantages in negotiating free trade agreements with countries it exports to and import from. New Zealand has a long history of free trade agreements with the first one ever signed with Australia in 1983. The region of South East Asia is the closest to New Zealand after the region of the Pacific and it made sense for New Zealand and Australia to develop their partnership with the ASEAN countries. The AANZFTA agreement includes New Zealand, Australia as well as the ASEAN countries listed below. ASEAN: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, The Philippines, Singapore, Thailand, Vietnam. “The overriding objective of the FTA is to open up economic opportunities for New Zealand business in the ASEAN region and to