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Second Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area
Treaty Type:
Bilateral/Plurilateral
Common Name:
AANZFTA Upgrade
Responsible Department:
Foreign Affairs and Trade
Administering Department:
Foreign Affairs and Trade
Treaty Summary:
In 2023, member countries agreed on the Second Protocol that will upgrade the Agreement establishing AANZFTA. The Second Protocol amends the existing AANZFTA to modernise its commitments while also adding new areas into the Agreement. The Second Protocol will update AANZFTA’s trade rulebook as well as market access commitments in services and investment. This will bring AANZFTA’s provisions into line with comparable recent FTAs. The benefits include simpler processes at the border for New Zealand goods and a modernised approach to e-commerce.
The Protocol will help ensure AANZFTA remains a modern, high-quality FTA that supports New Zealanders to effectively and efficiently export to and invest in the ASEAN region.
The Second Protocol was signed by New Zealand at the sidelines of the 55th ASEAN Economic Ministers’ Meeting on 21 August 2023 in Semarang, Indonesia. Once the Second Protocol enters into force, the provisions of the Second Protocol will effectively replace the provisions of the original AANZFTA Agreement and First Protocol, where provided for in the Second Protocol.
NZ Adherence Status:
In Progress
Negotiation Status:
New Zealand signed the Second Protocol at Semarang on 21 August 2023
Organisation:
ASEAN Secretariat
Is Signed By NZ:
Yes
Signature Date:
21/08/2023
Ratified or Signed:
No
Requires Ratification:
Yes
NZ Territorial Applications:
None
Information about required Legislation:
No changes to primary legislation are required to implement the outcomes of the Second Protocol. Three amendments are required to the Customs and Excise Regulations 1996, which will be undertaken by New Zealand Customs: . Regulation 51ZQ (Accumulation) – updated to allow for full cumulation for those AANZFTA Parties that opt-in to this provision;
. Regulation 51ZX (Direct Consignment) – this article will be re-titled ‘Direct consignment, Transit and Transhipment; and amended to address goods that enter free zones and are not further processed there; and
. Regulation 51ZM (Products Specific Rules (PSR)) – these rules determine a good’s tariff classification, and have been reviewed and amended to align with modern FTAs in line with World Trade Organisation (WTO) guidelines.
Impacts on Maori:
Specific areas of trade interest to Treaty Partners include e-commerce, services and investment. Officials have engaged on the approach to negotiations in these areas, and text proposals being considered by New Zealand, particularly in the closing stages of negotiations. Alongside this officials have regularly provided briefings and to engage with the Lead Negotiator of the upgrade negotiations
Impacts on Stakeholders:
Engagements were specifically undertaken both before and during negotiations to inform and engage stakeholders on the Upgrade with specific areas of interest and impact being: their interests in the region, market goods access and non-tariff barriers,
Prior to the Upgrade, the initial call for public submissions on the General Review received a number of responses from a range of businesses, organisations and individuals. These included: Zespri; Beef + Lamb NZ and Meat Industry Association (joint submission); ASEAN New Zealand Business Council, New Zealand Chamber of Commerce and Industry; Fonterra; Transparency International New Zealand; Dairy Companies Association of New Zealand; New Zealand Wine; New Zealand Trade and Enterprise; and Apples and Pears New Zealand.
Link To Legislation:
Treaty Text Link:
Contact Information:
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