Committee on Regional Trade Agreements FACTUAL PRESENTATION

WT/REG284/1/Rev.1

31 October 2014

(14-6319) Page: 1/102

Committee on Regional Trade Agreements

FACTUAL PRESENTATION

FREE TRADE AGREEMENT BETWEEN THE ASSOCIATION OF SOUTH EAST ASIAN NATIONS (ASEAN), AUSTRALIA AND NEW ZEALAND

(GOODS AND SERVICES)

Report by the Secretariat

Revision

This report, prepared for the consideration of the Agreement establishing the Association of Southeast Asian Nations (ASEAN), Australia and New Zealand Free Trade Area has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The factual presentation reproduces as closely as possible the terminology used in the Agreement and in the comments provided and does not imply official endorsement or acceptance by the Secretariat of such terminology. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement by the Secretariat regarding the contents of the Agreement.

Any technical questions arising from this report may be addressed to Mr Peter Milthorp (tel: +41 22 739 5016). Any statistical questions arising from this report may be addressed to Ms Rowena Cabos (tel: +41 22 739 5185).

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TABLE OF CONTENTS Page

1 TRADE ENVIRONMENT ................................................................................................. 4 1.1 Merchandise trade ..................................................................................................... 4 1.2 Trade in services and investment ................................................................................ 11 2 CHARACTERISTIC ELEMENTS OF THE AGREEMENT .................................................... 17 2.1 Background Information ............................................................................................ 17 3 PROVISIONS ON TRADE IN GOODS ........................................................................... 18 3.1 Import duties and charges, and quantitative restrictions ................................................ 18 3.1.1 General provisions ................................................................................................. 18 3.1.2 Liberalization of trade and tariff lines ........................................................................ 19 3.1.2.1 ASEAN ............................................................................................................... 19 3.1.2.2 New Zealand ...................................................................................................... 25 3.1.3 Liberalization schedule............................................................................................ 26 3.1.3.1 ASEAN ............................................................................................................... 26 3.1.3.2 Australia and New Zealand ................................................................................... 33 3.1.4 Tariff rate quotas ................................................................................................... 34 3.2 Rules of origin .......................................................................................................... 34 3.3 Export duties and charges, and quantitative restrictions ................................................. 36 3.4 Regulatory provisions on trade in goods ....................................................................... 37 3.4.1 Standards ............................................................................................................. 37 3.4.1.1 Sanitary and phytosanitary measures .................................................................... 37 3.4.1.2 Technical barriers to trade .................................................................................... 37 3.4.2 Safeguard mechanisms ........................................................................................... 38 3.4.2.1 Global safeguards ............................................................................................... 38 3.4.2.2 Bilateral safeguards ............................................................................................. 39 3.4.2.3 Balance of Payments safeguards ........................................................................... 40 3.4.3 Anti-dumping and countervailing measures ............................................................... 40 3.4.4 Subsidies and State-aid .......................................................................................... 40 3.4.5 Customs-related procedures .................................................................................... 40 3.4.6 Fees and charges ................................................................................................... 41 3.5 Sector-specific provisions on trade in goods ................................................................. 41 4 PROVISIONS ON TRADE IN SERVICES AND INVESTMENT ......................................... 41 4.1 Scope and definitions ................................................................................................ 41 4.2 Denial of benefits ..................................................................................................... 42 4.3 General provisions on trade in services and investment .................................................. 42 4.3.1 Market access ....................................................................................................... 42 4.3.2 National treatment and MFN .................................................................................... 42 4.3.3 Commercial presence ............................................................................................. 43 4.3.4 Movement of natural persons .................................................................................. 43 4.3.5 Australia and New Zealand ...................................................................................... 45 4.4 Other measures on Investment .................................................................................. 46 4.5 Liberalization commitments ........................................................................................ 47

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4.5.1 ASEAN ................................................................................................................. 48 4.5.1.1 Brunei Darussalam .............................................................................................. 48 4.5.1.2 Cambodia .......................................................................................................... 49 4.5.1.3 Indonesia........................................................................................................... 49 4.5.1.4 Lao PDR ............................................................................................................ 51 4.5.1.5 Malaysia ............................................................................................................ 52 4.5.1.6 Myanmar ........................................................................................................... 54 4.5.1.7 The Philippines ................................................................................................... 55 4.5.1.8 Singapore .......................................................................................................... 56 4.5.1.9 Thailand ............................................................................................................ 57 4.5.1.10 Viet Nam .......................................................................................................... 58 4.5.2 Australia and New Zealand ...................................................................................... 59 4.5.2.1 Australia ............................................................................................................ 60 4.5.2.2 New Zealand ...................................................................................................... 61 4.6 Regulatory provisions ................................................................................................ 62 4.6.1 Domestic regulation ............................................................................................... 62 4.6.2 Recognition ........................................................................................................... 63 4.6.3 Subsidies .............................................................................................................. 63 4.6.4 Safeguards ........................................................................................................... 63 4.6.5 Other ................................................................................................................... 63 4.7 Sector specific provisions on trade in services ............................................................... 64 4.7.1 Financial Services .................................................................................................. 64 4.7.2 Telecommunications services ................................................................................... 64 4.7.3 E-Commerce ......................................................................................................... 65 5 GENERAL PROVISIONS OF THE AGREEMENT ............................................................. 65 5.1 Transparency ........................................................................................................... 65 5.2 Current payments and capital movements .................................................................... 66 5.3 Exceptions ............................................................................................................... 66 5.4 Accession and Withdrawal .......................................................................................... 66 5.5 Institutional framework ............................................................................................. 67 5.6 Dispute settlement ................................................................................................... 67 5.7 Relationship with other agreements concluded by the Parties .......................................... 70 5.8 Government procurement .......................................................................................... 73 5.9 Competition ............................................................................................................. 73 5.10 Intellectual property rights ....................................................................................... 73 5.11 Environment and Labour .......................................................................................... 73 5.12 Economic Cooperation ............................................................................................. 74 ANNEX 1 ........................................................................................................................ 75 ANNEX 2 ...................................................................................................................... 101

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Key Facts Parties to the Agreement: Australia; Brunei Darussalam; Myanmar; Cambodia; Indonesia; Lao People's Democratic Republic; Malaysia; Philippines; Singapore; Viet Nam; Thailand; New Zealand Date of Signature: 27 February 2009 Date of Entry into Force: 1 January 2010 for Australia, Brunei Darussalam, Malaysia, Myanmar, New Zealand, Philippines, Singapore and Viet Nam; 12 March 2010 for Thailand; 1 January 2011 for Lao PDR; 4 January 2011 for Cambodia; 10 January 2012 for Indonesia. Date of Notification: 8 April 2010 Full implementation of tariff liberalization: 2010 for Singapore; 2020 for Brunei, Malaysia, Philippines, Thailand, Australia and New Zealand; 2025 for Cambodia, Indonesia, Lao PDR and Myanmar; 2022 for Viet Nam; 1 April 2025 for tariff liberalization commitments and 2027 for safeguards.

1 TRADE ENVIRONMENT

1.1. The Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area ("the Agreement") between ASEAN (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam) and Australia and New Zealand is ASEAN's 5th RTA as notified to the WTO, Australia's 8th and New-Zealand's 9th RTA.

1.1 Merchandise trade

1.2. The Parties to the Agreement have vastly different economies in terms of size, profile and development (see Table 1.1 below). In 2012 this ranged from Australia's total GDP of US$1,532.4 billion, through Indonesia at US$878 billion, Cambodia at US$14 billion and Lao PDR at US$9.4 billion.

1.3. With a combined GDP of US$2,326.3 billion in 2012 ASEAN's total merchandise trade (exports and imports) was valued at US$2,474.1 billion. In 2012, Australia's GDP was US$ 1,532.4 billion and total merchandise trade was US$517.3 billion. In the same year New Zealand's GDP was US$167.3 billion, and total merchandise trade US$75.6 billion.

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Table 1.1 ASEAN member states, Australia and New Zealand's merchandise trade profiles in 2012

Population (million)

Exports Imports

GD

P U

S $

b

illio

n

Trade to GDP ratio

(2010-2012)

Value (billion US$)

Share in

World Total (%)

Rank Value (billion US$)

Share in

World Total (%)

Rank

ASEAN Brunei Darussalam

0.4 13.0 0.07 57 3.6 0.02 111 17.0 109.1

Cambodia 14.9 7.8 0.04 76 11.0 0.06 71 14.0 118.7 Indonesia 246.9 188.5 1.02 20 190.4 1.02 20 878.0 48.0 Lao PDR 6.6 2.3 0.01 107 2.5 0.01 122 9.4 64.0 Malaysia 29.2 227.5 1.24 18 196.4 1.06 19 305.0 165.9 Myanmar 52.8 8.9 0.05 71 9.2 0.05 78 56.2 28.8 Philippines 96.7 52.1 0.28 41 65.3 0.35 30 250.2 59.6 Singapore 5.3 408.4 2.22 9 379.7 2.04 10 274.7 400.2 Thailand 66.8 229.2 1.25 17 250.0 1.34 14 366.0 145.0 Viet Nam 88.8 114.5 0.62 26 113.8 0.61 23 155.8 153.0 Australia 22.7 256.4 1.39 15 260.9 1.40 13 1,532

.4 44.1

New Zealand

4.4 37.3 0.20 44 38.3 0.21 42 167.3 57.5

Note: Rank excludes intra-EU trade. Trade to GDP ratio is 2009-2011 for Brunei Darussalam and Myanmar. Source: WTO Statistics Database, Trade Profiles (March 2014).

1.4. Charts 1.1 and 1.2 below show trade (global and bilateral) between ASEAN member states and Australia and New Zealand. Over the past 7 years trade has grown steadily, in both directions. Among the ASEAN economies Brunei, Indonesia, Malaysia, the Philippines and Singapore have maintained a global trade surplus during this period. The balance of trade has also reverted back to a surplus for both Australia and New Zealand since 2009. In their trade with Australia and New Zealand, Brunei Darussalam, Malaysia, Singapore and Thailand have maintained surpluses during this period while the other ASEAN economies' trade has been more volatile although generally showing an increase.

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Chart 1.1 ASEAN member states' trade with Australia, New Zealand and world, 2006-12

0

20

40

60

80

100

120

140

0

5

10

15

2006 2007 2008 2009 2010 2011 2012

Viet Nam(US$ billion)

Exports to Australia Imports from Australia Exports to New Zealand Imports from New Zealand Total exports Total imports

0

2

4

6

8

10

12

14

0.0

0.2

0.4

0.6

0.8

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1.4

2006 2007 2008 2009 2010 2011 2012

Brunei Darussalam(US$ billion)

0

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6

7

8

9

0.00

0.01

0.01

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0.04

2006 2007 2008 2009 2010 2011 2012

Cambodia(US$ billion)

0

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100

150

200

250

0

5

10

15

2006 2007 2008 2009 2010 2011 2012

Indonesia(US$ billion)

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6

0.00

0.01

0.02

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0.07

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2006 2007 2008 2009 2010 2011 2012

Lao PDR(US$ billion)

0

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2006 2007 2008 2009 2010 2011 2012

Malaysia(US$ billion)

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0.30

2006 2007 2008 2009 2010 2011 2012

Myanmar(US$ billion)

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70

0.0

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1.5

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2006 2007 2008 2009 2010 2011 2012

Philippines(US$ billion)

-

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450

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2006 2007 2008 2009 2010 2011 2012

Singapore(US$ billion)

0

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20

2006 2007 2008 2009 2010 2011 2012

Thailand(US$ billion)

Note: Note: X=exports M= imports. Mirror data used for: Brunei Darussalam: trade with Australia and New Zealand (2007-11), with world (2007-11); Cambodia: trade with New Zealand (2009-10); Lao PDR: trade with Australia and New Zealand (2006, 2011-12), exports to Australia and New Zealand (2007-10), trade with world (2006, 2011-12), exports to world (2007-10).

Source: UNSD, Comtrade database, ITC Trade Map and ASEAN Secretariat.

WT/R

EG284/1/R

ev.1

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Chart 1.2 Australia, trade with ASEAN member states, New Zealand and world

US$ billion

0

20

40

60

80

0

100

200

300

X M X M X M X M X M X M X M X M X M X M X M X M X M

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Australia trade with ASEAN and world, 2000-2012

Viet Nam Thailand Singapore

Philippines Myanmar Malaysia

Lao PDR Indonesia Cambodia

Brunei Darussalam Total exports (left axis) Total imports (left axis)

0

50

100

150

200

250

300

0

20

40

60

80

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Australia trade with New Zealand and world, 2000-2012

Export to New Zealand Import from New Zealand

Total exports (right axis) Total imports (right axis)

X- exports, M=imports.

Source: UNSD, Comtrade database.

WT/R

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- 8 - Chart 1.3 New Zealand, trade with ASEAN member states, Australia and world

US$ billion

0

2

4

6

8

10

0

5

10

15

20

25

30

35

40

X M X M X M X M X M X M X M X M X M X M X M X M X M

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

New Zealand trade with ASEAN and world, 2000-2012

Viet Nam Thailand Singapore

Philippines Myanmar Malaysia

Lao PDR Indonesia Cambodia

Brunei Darussalam Total exports (left axis) Total imports (left axis)

0

5

10

15

20

25

30

35

40

0

2

4

6

8

10

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

New Zealand trade with Australia and world, 2000-2012

Export to Austalia Import from Australia

Total exports (right axis) Total imports (right axis)

X- exports, M=imports.


WT/REG284/1/Rev.1

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1.5. Charts 1.4A, B and C below show the commodity structure of trade based on HS Section between the ASEAN Parties and Australia and New Zealand over the period 2007 to 2009. Australia's largest global exports are minerals, chemicals, precious metals and base metals (together accounting for 70% of its exports). Of these base metals and minerals are important imports for all ASEAN members (the two categories account for 46.4%), although for some, vegetable products are also important imports from Australia. New Zealand's key global exports are animal products, prepared foods, machinery and base metals (together making up 59.9% of its global exports). These account for 71.8% imports by ASEAN countries.

Chart 1.4 ASEAN, Australia and New Zealand: Percentage share of imports with bilateral partners and global trade, 2007-2009

A. ASEAN member states

24

23

10

9

9

7

6

5

9

ASEAN imports from Australia (%)

37

20

9

7

5

43

22

28

ASEAN's Global Imports (%)

47

87

7

6

4

43

3

11

Australia's Global Exports (%)

54

9

9

6

5

4

43 2 5

ASEAN's imports from New Zealand (%)

37

20

9

7

5

4

32

22

8

ASEAN's Global Imports(%)

37

97

6

6

6

5

5

33

210

New Zealand's Global Exports(%)

Total: US$ 16.8 billion Total: US$ 800 billion

Total: US$ 800 billion Total: US$ 27 billion

Total: US$ 160 billion

Total: US$ 2.8 billion

Animal products

Wood pulpVegetable fats & oils

Chemicals

Plastics

Wood& articles of wood

Precious stones

Base metals

Vehicles

Optical

OtherPrepared foods MachineryTextiles

Minerals

Note: No trade data available for Brunei Darussalam, Lao PDR and Myanmar by HS section.


1.6. ASEAN's global exports are mainly machinery, minerals, plastics, chemicals and base metals. Of these Australia's main imports are minerals and machinery accounting for 63%. New Zealand's main imports from ASEAN are also machinery and minerals which accounts for 59.7%.

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B. Australia

44

19

9

9

33

32

9

Australia imports from ASEAN (%)

26

14

149

6

5

4

43

33

27

Australia's Global Imports (%)

38

166

5

5

4

4

332

2210

ASEAN's Global Exports (%)

19

15

13

97

7

6

5

4

4

43 2 3

Australia's imports from New Zealand (%)

26

14

149

6

5

4

4

33

82

7

Australia's Global Imports(%)

37

97

6

6

6

5

5

33

2

10

New Zealand's Global Exports(%)





Animal products


Chemicals

Plastics


Precious stones

Base metals

Vehicles

Optical


Minerals


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C. New Zealand

41

19

9

6

6

32

22

9

New Zealand imports from ASEAN (%)

22

17

1410

6

6

5

4

3

33 2

6

New Zealand's Global Imports (%)

38

166

5

5

4

4

332

2210

ASEAN's Global Exports (%)

15

14

13

1110

8

7

5

42

22

7

New Zealands's imports from Australia (%)

22

17

1410

6

6

5

4

33

82

6

New Zealand's Global Imports(%)

37

97

6

6

6

5

5

33

2

10

Australia's Global Exports(%)





Animal products


Chemicals

Plastics


Precious stones

Base metals

Vehicles

Optical


Minerals


1.2 Trade in services and investment

1.7. On Services, Table 1.2 shows that ASEAN's share of total global services exports was 5.82%, while its share of total services imports was 6.66%. Among ASEAN Parties, Singapore (in 2012), with exports of US$111.9 billion and imports of US$117.7 billion was the world's 7th largest exporter and 6th largest importer, while Lao PDR (in 2011), with exports of US$ 0.5 billion and imports of US$1.2 billion was the smallest exporter and importer ranked at 113 and 138 respectively. In 2012 Australia, with exports of US$51.9 billion and imports of US$63.0 billion, was the 12th ranked exporter and 11th ranked importer of services. In the same year New Zealand had services exports of US$9.9 billion and imports of US$11 billion making it the 35th largest exporter and 41st largest importer of services.

WT/REG284/1/Rev.1

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Table 1.2 Commercial services trade by ASEAN member states, Australia and New Zealand

Exports Imports Value

(billion US$) Share in

World Total (%)

Rank Value (billion US$)

Share in World

Total (%)

Rank

ASEAN Brunei Darussalam (2011)

0.9 0.02 97 1.2 0.03 97

Cambodia (2012) 2.5 0.06 69 1.5 0.04 93 Indonesia (2012) 22.6 0.52 22 33.3 0.80 20 Lao PDR (2011) 0.5 0.01 113 0.3 0.01 138 Malaysia (2012) 37.5 0.86 19 42.0 1.01 19 Myanmar (2011) 0.6 0.01 111 1.1 0.03 100 Philippines (2012) 18.5 0.42 25 14.1 0.34 34 Singapore (2012) 111.9 2.57 7 117.7 2.84 6 Thailand (2012) 49.2 1.13 13 52.5 1.26 14 Viet Nam (2012) 9.5 0.22 37 12.4 0.30 37 Australia (2012) 51.9 1.19 12 63.0 1.52 11 New Zealand 2012) 9.9 0.23 35 11.0 0.26 41

Note: Years vary for the value of trade by each Party as indicated in brackets. Rank excludes intra-EU trade.

Source: WTO Statistics Database, Trade Profiles (September 2013).

1.8. Charts 1.5a and b show the Parties' main traded services. Chart 1.5a shows that for most ASEAN countries travel services are the most important export of commercial services followed by transportation services (the latter especially important for Brunei Darussalam, Malaysia, Singapore and Viet Nam). Imports are dominated by transportation services followed by travel, although for some economies such as for Indonesia, and to a lesser extent Singapore and Thailand, personal, cultural and recreational services form a growing share of imports. For Singapore exports of other business services are important while they show a growing share of imports for Brunei, Singapore and Thailand. Finally insurance services are also important exports and imports for Malaysia.

1.9. Charts 1.6a and b show Australia's global trade in services. Global services receipts have been dominated by charges for the use of intellectual property and personal and cultural services with financial services also forming important exports in 2009 and 2010. Imports of financial services have been important since 2009 as have insurance and pension services. In comparison its key exports and imports to ASEAN countries have been travel, transport and other business services during the 2007-09 period.

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Chart 1.5a ASEAN member states' total trade in commercial services with world, 2000-2012 (Brunei Darussalam, Cambodia, Indonesia, Lao PDR and Malaysia)

0.0

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2.0

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Exports Imports

Transportation servicesTravel

Communications servicesConstruction

Financial services

Computer and information services

Royalties and license fees

Other business services

Personal, cultural and recreational services

US

$ b

illio

n

Insurance services

0.0

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2000

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Brunei Darussalam

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Cambodia

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$ b

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$ b

illio

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Note: No trade data available for Brunei Darussalam (2000, 2010-2012); Indonesia (2003-2012) and Lao

PDR (2012).

Source: UNCTAD.

WT/REG284/1/Rev.1

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Chart 1.5b ASEAN member states' total trade in commercial services with world, 2000-2012 (Myanmar, Philippines, Singapore, Thailand and Viet Nam)

0.0

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1.5

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Exports Imports

Transportation servicesTravel

Communications servicesConstruction

Financial services

Computer and information services

Royalties and license fees

Other business services

Personal, cultural and recreational services

US

$ b

illio

n

Insurance services

0.0

0.5

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Myanmar

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Note: No trade data available for Myanmar (2012) and Viet Nam (2000-2004).

Source: UNCTAD.

WT/REG284/1/Rev.1

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Chart 1.6a Australia services trade with world, 2007-2011

0.0 1.0 2.0 3.0 4.0

exports

imports

exports

imports

exports

imports

exports

imports

exports

imports

2007

2008

2009

2010

2011

(US$ billion)

Manufacturing services on physicalinputs owned by othersMaintenance and repair services n.i.e.

Transport services

Travel services

Construction services

Insurance and pension services

Financial services

Charges for the use of intellectualproperty n.i.e.Telecommunications, computer andinformation servicesOther business services

Personal, cultural and recreationalservices

Chart 1.6b Australia services trade with New Zealand and ASEAN member states, 2007-2009

0.0

0.5

1.0

1.5

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3.0

3.5

BN KH ID LA MY

MM PH SG TH VN NZ

BN KH ID LA MY

MM PH SG TH VN NZ

BN KH ID LA MY

MM PH SG TH VN NZ

BN KH ID LA MY

MM PH SG TH VN NZ

BN KH ID LA MY

MM PH SG TH VN NZ

BN KH ID LA MY

MM PH SG TH VN NZ

export import export import export import

2007 2008 2009

(US$ billion)

Transport services Travel services Other business services Other

Note: BN=Brunei KH=Cambodia ID=Indonesia LA=Lao PDR MY=Malaysia MM=Myanmar PH=Philippines SG=Singapore TH=Thailand VN=Viet Nam NZ= New Zealand.

Australian trade in services data has been provided on the basis of the 6th edition of the International Monetary Fund Balance of Payments Manual (BPM6). The Australian Bureau of Statistics (ABS) ceased compiling Australian trade in services on BPM5 basis in July 2009.

Australia bilateral trade with ASEAN members show the top three (3) services item and the rest were marked as "other" as some of the data received were marked as n.p. (not published).

Source: Australian authorities.

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1.10. Chart 1.7 shows New Zealand's total trade in commercial services between 2000 and 2012. Travel and transportation services are the main commercial services exports while travel, other business services and travel services have been its main imports during this period.

Chart 1.7 New Zealand services trade with world, 2000-2012

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A. New Zealand exports to world2000-2012

(US$ million)

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B. New Zealand imports from world2000-2012

(US$ million)

Transportation servicesTravelCommunications servicesConstruction

Financial servicesComputer and information services

Royalties and license feesOther business servicesPersonal, cultural and recreational services

Insurance services

Source: UNCTAD. 1.11. Table 1.3 below sets out inward and outward FDI for ASEAN Parties to the Agreement for the period 2000-2012. Over the period ASEAN Members' FDI experiences were very different, ranging from Singapore with US$682 billion in inward investment and US$401 billion in outward investment, through to Cambodia with inward investment of US$8.4 billion and outward investment of US$0.4 billion in 2012.

Table 1.3 ASEAN member states: inward and outward foreign direct investment stock, 2000-2012

In billion US$

20

00

20

01

20

02

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04

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05

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20

12

Brunei Darussalam

Inward 3.9 4.4 5.4 8.7 8.9 9.2 9.7 9.9 10.2 10.6 11.2 12.5 13.3

Outward 0.5 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.7 Cambodia Inward 1.6 1.7 1.9 2.0 2.1 2.5 3.0 3.8 4.6 5.2 6.0 6.9 8.4 Outward 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 Indonesia Inward 25.1 15.2 7.1 10.3 15.9 41.2 54.5 79.9 72.2 109 161 186 206 Outward 6.9 - - - - - 1.0 3.2 2.8 3.9 6.7 6.2 11.6 Lao People's Dem. Rep.

Inward 0.6 0.6 0.6 0.6 0.7 0.7 0.9 1.2 1.4 1.6 1.9 2.2 2.5

Outward 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 -Malaysia Inward 52.7 34.0 37.5 41.2 43.0 44.5 53.7 75.8 73.6 79.0 102 115 132 Outward 15.9 8.4 10.2 12.0 12.8 22.0 36.1 58.4 66.9 79.7 97.0 106 120Myanmar Inward 3.2 3.3 3.7 4.4 4.8 4.7 5.2 6.1 6.8 8.0 8.8 9.7 11.9 Outward - - - - - - - - - - - - -Philippines Inward 13.8 10.4 11.6 11.4 12.7 15.0 16.9 20.5 21.7 22.9 25.9 28.2 31.0 Outward 1.0 0.9 1.0 1.3 1.8 2.0 2.1 5.7 5.7 6.1 6.7 7.1 9.0 Singapore Inward 111 137 159 181 212 230 298 400 430 480 594 626 682 Outward 56.8 87.5 101 121 145 160 211 273 251 296 354 378 401Thailand Inward 31.1 34.8 39.9 51.2 55.1 62.8 80.5 96.6 96.6 110 143 151 159 Outward 3.4 4.1 4.3 5.6 5.7 6.5 8.6 9.5 12.1 17.2 23.6 40.7 52.6 Viet Nam Inward 14.7 16.0 17.4 18.9 20.5 22.5 24.9 31.6 41.1 48.7 56.7 64.2 72.5 Outward - - - - - - - - - - - - -

- no data.

Source: UNCTAD.

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1.12. Australia's inward FDI stock with the world has steadily grown over the period 2000-2012. New Zealand's inward FDI stock with the world has also grown steadily over the period.

Chart 1.8 Australia and New Zealand: foreign direct investment stock with world, 2000-2012

0

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FDI stock with world(US$ billion)

Outward Inward

A. Australia B. New Zealand

Source: UNCTAD and Australian authorities (Australia's FDI data for 2007-2010).

2 CHARACTERISTIC ELEMENTS OF THE AGREEMENT

2.1 Background Information

2.1. The Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area was signed by the Parties on 27 February 2009. The Agreement entered into force on 1 January 2010 for Australia, Brunei Darussalam, Malaysia, Myanmar, New Zealand, the Philippines, Singapore and Viet Nam and 12 March 2010 for Thailand. The entry into force of the Agreement for Cambodia was 4 January 2011, Lao PDR 1 January 2011 and Indonesia 10 January 2012. The Agreement was notified to the WTO on 9 April 2010 in document WT/REG284/N/1-2 pursuant to Article XXIV:7(a) of the GATT 1994 and S/C/N/545 and Add.1.

2.2. The text of the Agreement is available from the following websites:

AANZFTA http://www.aanzfta.asean.org ASEAN: http://www.asean.org/news/item/asean-australia-new-zealand-

free-trade-area

New Zealand: http://www.asean.fta.govt.nz

Australia: http://www.dfat.gov.au/trade/fta/asean/aanzfta/index.html

2.3. The Agreement is composed of 18 Chapters, some with annexes and appendices and 4 Annexes. (See Box 2.1). There are also a number of side letters agreed between the Parties which form an integral part of the Agreement. According to the Parties, as part of the AANZFTA package, the Parties also signed an Understanding on Article 1 (Reduction and/or Elimination of Customs Duties) of Chapter 2 (Trade in Goods) of the Agreement Establishing the AANZFTA and an Implementing Arrangement for the AANZFTA Economic Cooperation Work Programme Pursuant to Chapter 12 (Economic Cooperation) of the agreement. Some of the Parties have also signed separate side-letters which address the application of the Agreement between the Parties to those side-letters.

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Box 2.1 Contents of the Agreement

Chapters, and Annexes Title/description Preamble Chapter 1 Establishment of a Free Trade Area, Objectives and General Definitions Chapter 2 Trade in Goods Chapter 3 Rules of Origin Chapter 4 Customs Procedures Chapter 5 Sanitary and Phytosanitary Measures Chapter 6 Standards, Technical Regulations and Conformity Assessment Procedures Chapter 7 Safeguard Measures Chapter 8 Trade in Services Chapter 9 Movement of Natural Persons Chapter 10 Electronic Commerce Chapter 11 Investment Chapter 12 Economic Co-operation Chapter 13 Intellectual Property Chapter 14 Competition Chapter 15 General Provisions and Exceptions Chapter 16 Institutional Provisions Chapter 17 Consultations and Dispute Settlement Chapter 18 Final Provisions Annexes Title Annex 1 Schedules of Tariff Commitments Annex 2 Product Specific Rules

Appendix on the Indicative List of Textile Finishing Processes Annex 3 Schedules of Specific Services Commitments Annex 4 Schedules of Movement of Natural Persons Commitments

Source: The Agreement and related annexes.

2.4. As specified in Chapter 1, Article 2, the Agreement establishes a free trade area between ASEAN, Australia and New Zealand. The objectives of the Agreement, as provided in Article 1 of Chapter 1 are to (a) progressively liberalize and facilitate trade in goods among the Parties, (b) progressively liberalize trade in services among the Parties, (c) facilitate, promote and enhance investment opportunities among the Parties, (d) to establish a co-operative framework for strengthening, diversifying and enhancing trade, investment and economic links among the Parties, and (e) to provide special and differential treatment to ASEAN Member States, especially to the newer ASEAN Member States, to facilitate their more effective economic integration.

3 PROVISIONS ON TRADE IN GOODS

3.1 Import duties and charges, and quantitative restrictions

3.1.1 General provisions

3.1. Article 1 of Chapter 2 provides that except as otherwise provided in the Agreement, each Party shall progressively reduce and/or eliminate customs duties on originating goods of the other Parties in accordance with its schedule of tariff commitments set out in Annex 1.

3.2. Article 2, on acceleration of tariff commitments, provides that nothing in the Agreement shall prevent a Party from entering into arrangements to accelerate or improve tariff commitments made under the Agreement, and notes in Article 2.1 and 2.2 that any such agreement by two or more or all Parties shall be incorporated into the Agreement per Article 6 of Chapter 18. Per Article 2.3 any Party may unilaterally agree to accelerate the reduction or elimination of customs duties, and if so is required to notify the other Parties before the new rate of duty takes effect.

3.3. Article 7 of Chapter 2 of the Agreement concerns quantitative restrictions and non-tariff measures. Article 7.1 provides that Parties shall not adopt or maintain any quantitative restrictions on the import or export of any good except as permitted under the WTO Agreement or the Agreement. Article XI of the GATT is incorporated into the Agreement.

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3.4. Article 7.2 provides that the Parties shall not adopt or maintain any non-tariff measures on the import or export of any good of any other Party except in accordance with WTO rights and obligations or in accordance with the Agreement. Under Article 7.3 the Parties shall ensure that any measures under Article 7.2 are not applied with a view to or with the effect of creating unnecessary obstacles to trade amongst the Parties. Article 7.4 provides that the Goods Committee established under Article 11 shall review non-tariff measures with a view to considering the scope for facilitation of trade in goods between the Parties.

3.5. Each Party must ensure under Article 8 that all automatic and non-automatic import licensing measures are implemented in a transparent and predictable manner, in accordance with the WTO Agreement on Import Licensing Procedures. Article 8.2 provides that each Party must promptly notify the other Parties of existing import licensing measures, and any new or amended measures must also be so notified, to the extent possible 60 days prior to implementation, but in any case 60 days after publication. Information provided under Article 8.2 must meet the requirements of Articles 5.2 and 5.3 of the Agreement on Import Licensing Measures. A Party shall promptly, and to the extent possible, provide information on import licensing requirements of general application upon request from another Party.

3.1.2 Liberalization of trade and tariff lines

3.6. Under Article 4 of Chapter 2 the Parties agree to accord national treatment to the goods of the other Parties in accordance with Article III of GATT, which is incorporated into the Agreement. Article 1 of Chapter 2 provides that except as otherwise provided in the Agreement, each Party shall reduce or eliminate customs duties on originating goods in accordance with its schedule of tariff commitments set out in Annex 1 to the Agreement. Under Annex 1 the base rate of duty upon which further liberalization is to be based is the applied MFN rate on 1 January 2005. According to the Parties, 1 January 2005 is the base rate. Cuts occur in line with the calendar year as identified by the tariff schedules in Annex 1. For example as the entry into force for some Parties was 2010, this included the 2009 and 2010 tariff cuts. All tariff cuts are made in line with the calendar years in Annex 1. The first tariff reduction was to take place on the date of entry into force of the Agreement, followed by 1 January of each subsequent year.1 According to the Parties, AANZFTA establishes a regional FTA in which the tariff commitments in each Party's Annex 1 Schedule of Tariff Commitments applies to imports of originating goods from any of the other 11 Parties.

3.7. Article 9 of Chapter 2 concerns modification of tariff concessions contained in Annex 1 to the Agreement. In exceptional circumstances that cause a Party to face unforeseen difficulties in implementing its tariff concessions, a Party may, with the agreement of all interested Parties, modify or withdraw a concession. The mechanism for negotiations under Article 9 requires that the Party seeking to modify the concession must negotiate with any interested Parties and shall maintain a level of reciprocal and mutually advantageous concessions to the trade of all other Parties no less favourable than that enjoyed prior to such negotiations. The mutually agreed outcome of the negotiations, including compensatory adjustments, shall apply to all Parties and shall be incorporated into the Agreement pursuant to Article 6 (Amendments) of Chapter 18 of the Agreement (Final Provisions).

3.8. Tables 3.1-3.3 show tariff and trade liberalization between the Parties envisaged by the Agreement. While Singapore completes implementation in 2010 upon entry into force of the Agreement, Australia, Brunei Darussalam, Malaysia, New Zealand, the Philippines and Thailand complete their tariff liberalization implementation by 2020, followed by Viet Nam in 2022, Cambodia, Lao PDR and Myanmar in 2024 and Indonesia in 2025.

3.1.2.1 ASEAN

3.9. Table 3.1 shows that 75.4% of Brunei Darussalam's tariff was duty free on an MFN basis in 2010.2 As a result of the Agreement a further 8.4% of the tariff was liberalized for imports from

1 Parties for which the Agreement entered into force on a later date, the initial reduction or elimination

of duties shall be implemented at the level specified for that year in their Schedule (Annex I--General Notes). 2 In 2010 the MFN applied tariff of Brunei Darussalam was composed of 8,300 lines at the HS eight digit

level. Of these 99.37% (8,248 lines) had ad valorem duties; of the remaining lines 52 had specific rates of duty.

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Australia and New Zealand, corresponding to 2.4% of its average imports from Australia and New Zealand during 2007-09; further implementation of its liberalization commitments will result in a further 16.2% of the tariff being liberalized by 2020. Once the Agreement is fully implemented, Brunei Darussalam would have liberalized all but seven tariff lines for imports from Australia and New Zealand.

3.10. Around 13.3% of Cambodia's tariff was duty free for imports on an MFN basis in 2011, corresponding to 35.3% and 4.1% of its imports from Australia and New Zealand during 2007-2009.3 It liberalized a further 0.1% of its tariff on entry into force of the Agreement in 2011. Following full implementation in 2024, 1,214 tariff lines (11.4% of the tariff), corresponding to 49.5% and 30.4% respectively of imports from Australia and New Zealand in 2008-10 will remain dutiable.

3.11. Indonesia's tariff when the Agreement entered into force in 2012 had 996 lines (11.4%) which were duty free on an MFN basis.4 A further 66.8% of the tariff was liberalized in 2012 for imports from Australia and New Zealand, corresponding to 19.7% and 20.6% of Indonesia's imports from these Parties respectively in 2007-09. Once Indonesia fully implements the Agreement in 2025, 532 lines will remain subject to duties, corresponding to 7% and 0.9% respectively of its imports from Australia and New Zealand.

3.12. Lao PDR's 2011 tariff had 8,300 tariff lines none of which were zero on an MFN basis.5 In 2021 it will liberalize 87% of its tariff which accounted for 80.8% and 59.8% of its imports respectively from Australia and New Zealand during 2007-09. A further 291 lines will be liberalized in 2024. By the end of implementation of the Agreement 9.5% of the tariff (787 lines) corresponding to 18.9% and 3.9% of its imports from Australia and New Zealand will remain subject to duties.

3.13. In 2010 when the Agreement entered into force for Malaysia 63.8% of the tariff was duty free on an MFN basis corresponding to 87.3% and 92.4% of its imports from Australia and New Zealand respectively during 2007-09.6 Upon entry into force Malaysia liberalized a further 7.4% of its tariff, corresponding to 2.6% and 1.9% of its imports from Australia and New Zealand. In 2020 when Malaysia completes implementation of its tariff liberalization, 389 lines (3.7%) will remain dutiable corresponding to 3.2% and 1.3% of its imports from Australia and New Zealand.

3.14. Myanmar in 2010 provided MFN duty free access for 394 tariff lines (4.6%) covering 0.4% and 1.4% respectively of its imports from Australia and New Zealand in 2007-09.7 Once it has finished implementing its tariff liberalization commitments in 2024, 1,177 lines (13.6%) of its tariff will remain subject to duties, corresponding to 70% and 3.1% respectively of its imports from Australia and New Zealand.

3.15. The Philippines provided duty free MFN access for 312 lines (3.8%) in 2010. Upon entry into force a further 57% of the tariff was liberalized, covering 63.6% and 77% respectively of its imports from Australia and New Zealand during 2007-09.8 By the end of implementation in 2020 374 lines (4.5%) will remain subject to duties, corresponding to 3.4% and 0.7% of its imports respectively from Australia and New Zealand.

3 In 2011 Cambodia's applied MFN tariff had 10,689 lines at the HS eight digit level, of which 100%

were subject to ad valorem duties. 4 In 2012 Indonesia's applied MFN tariff was composed of 8,735 lines at the HS ten digit level. Of these

99.29% had ad valorem duties and 62 lines had specific duties. 5 In 2011 Lao PDR's applied tariff consisted of 8,300 tariff lines at the HS eight digit level. Of these

8,285 lines (99.82%) had ad valorem rates of duties with 15 lines with no rates as they relate to products that are subject to import prohibitions (poppy seeds, coca leaf etc.).

6 In 2010 Malaysia's MFN applied tariff consisted of 10,389 lines at the HS nine-digit level. Of these lines 10,313 (99.27) had ad valorem rates of duty; 39 and 35 lines respectively had specific and compound rates of duty while two lines were subject to mixed rates of duty.

7 In 2010 Myanmar's MFN applied tariff consisted of 8,627 lines at the HS ten-digit level, 100% of which were subject to ad valorem rates of duty.

8 In 2010 the Philippines' MFN applied tariff consisted of 8,299 lines at the HS eight-digit level. Of these 100% were subject to ad valorem rates of duty.

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3.16. Singapore in 2010 provided duty free access to all but six tariff lines on an MFN basis.9 In 2010 when the Agreement entered into force it liberalized tariffs on these lines, which corresponded to 0.1% of its imports from Australia and a negligible share of imports from New Zealand.

3.17. Thailand provided duty free MFN access for 18.3% of its tariff lines in 2010, corresponding to 69.7% and 24.8% of its imports respectively from Australia and New Zealand during 2007-09.10 In 2010 it liberalized 52.9% of its tariff, which accounted for 17.3% and 29.5% of its imports from Australia and New Zealand. Once it has implemented the Agreement in 2020, 103 lines (1.2%) will remain dutiable corresponding to 0.8% and 15.7% of its imports from Australia and New Zealand.

3.18. Finally Viet Nam provided duty free MFN access for 32.9% of its tariff lines, corresponding to 37.9% and 42.5% of its imports respectively from Australia and New Zealand during 2007-09.11 In 2010 upon entry into force of the Agreement it liberalized a further 58 lines (0.6%) covering 0.2% of imports from Australia and negligible share of imports from New Zealand. By the end of implementation in 2020 753 lines (8.2%) of the tariff will remain subject to duty for imports from Australia and New Zealand.

9 In 2010 Singapore's MFN applied tariff consisted of 8,300 lines at the HS eight-digit level of which all

but six were subject to ad valorem rates of duty. 10 In 2010 Thailand's MFN applied tariff consisted of 8,300 lines at the HS eight-digit level of which

7,532 lines were subject to ad valorem rates of duty; 695 lines had mixed rates of duty, 37 specific rates of duty and 36 other rates of duty.

11 In 2010 Viet Nam's MFN applied tariff consisted of 9,216 lines at the HS ten-digit level. Of these 9,159 were subject to ad valorem rates of duty. Of the remainder 57 had no rates in the tariff as they relate to parts whose customs duties are determined when imported.

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Table 3.1 ASEAN member states: Tariff elimination commitments under the Agreement and corresponding average trade

AS

EAN

M

emb

ers

Duty phase-out period

Number of lines

% of total

lines in ASEAN's

tariff schedule

Average imports (2007-2009) a

from Australia from New Zealand

Value of imports

in million US$

% imports

Value of imports

in million US$

% imports

Bru

nei

D

aru

ssal

am MFN duty free (2010) 6,255 75.4 33.0 92.9 9.4 96.4

2010 698 8.4 0.8 2.4 0.2 2.4 2013 948 11.4 0.7 1.9 0.1 1.0 2015 138 1.7 0.1 0.3 0.0 0.1 2020 254 3.1 0.9 2.5 0.0 0.1

Remain dutiable 7 0.1 0.0 0.0 0.0 0.0 Total 8,300 100.0 35.5 100.0 9.8 100.0

Cam

bo

dia

MFN duty free (2011) 1,418 13.3 7.2 35.3 0.1 4.1 2011 14 0.1 0.0 0.0 0.0 0.0 2021 7,518 70.3 3.1 15.0 1.6 65.1 2024 525 4.9 0.0 0.1 0.0 0.4

Remain dutiable 1,214 11.4 10.1 49.5 0.8 30.4 Total 10,689 100.0 20.5 100.0 2.5 100.0

Ind

ones

ia

MFN duty free (2012) 996 11.4 3,549.8 66.1 275.7 39.3 2012 5,839 66.8 1,057.4 19.7 144.3 20.6 2013 894 10.2 41.0 0.8 0.4 0.1 2014 98 1.1 3.6 0.1 0.0 0.0 2015 235 2.7 31.7 0.6 0.3 0.0 2016 4 0.0 1.8 0.0 0.0 0.0 2017 6 0.1 6.1 0.1 4.2 0.6 2018 4 0.0 1.0 0.0 2.5 0.4 2019 17 0.2 36.2 0.7 77.0 11.0 2020 82 0.9 244.7 4.6 175.4 25.0 2021 1 0.0 6.9 0.1 15.6 2.2 2022 1 0.0 0.0 0.0 0.0 0.0 2023 22 0.3 14.5 0.3 0.0 0.0 2025 4 0.0 0.1 0.0 0.0 0.0

Remain dutiable 532 6.1 376.6 7.0 6.1 0.9 Total 8,735 100.0 5,371.2 100.0 701.3 100.0

Lao

PD

R

Applied tariff (2011) 0 0.0 0.0 0.0 0.0 0.0 2021 7,222 87.0 20.9 80.8 0.04 59.8 2024 291 3.5 0.1 0.3 0.03 36.3


Mal

aysi

a

MFN duty free (2010) 6,625 63.8 2,643.8 87.3 526.2 92.4 2010 765 7.4 78.3 2.6 10.6 1.9 2011 595 5.7 30.8 1.0 11.1 1.9 2012 764 7.4 92.5 3.1 8.9 1.6 2013 715 6.9 52.2 1.7 1.3 0.2 2015 14 0.1 0.7 0.0 0.0 0.0 2016 98 0.9 23.0 0.8 1.1 0.2 2018 2 0.0 0.1 0.0 - - 2020 422 4.1 11.3 0.4 2.9 0.5


Mya

nm

ar MFN duty free (2010) 394 4.6 0.1 0.4 0.1 1.4

2020 4,814 55.8 4.6 13.6 1.2 30.6 2021 1,887 21.9 1.5 4.5 2.0 52.6 2024 355 4.1 3.9 11.4 0.5 12.2

Remain dutiable 1,177 13.6 23.8 70.0 0.1 3.1 Total 8,627 100.0 34.0 100.0 3.9 100.0

Ph

ilip

pin

es MFN duty free (2010) 312 3.8 60.5 7.3 1.8 0.5

2010 4,733 57.0 529.7 63.6 286.9 77.0 2011 702 8.5 49.0 5.9 12.1 3.2 2012 938 11.3 28.6 3.4 8.6 2.3 2013 855 10.3 8.5 1.0 3.0 0.8 2015 285 3.4 93.6 11.2 6.1 1.6 2017 5 0.1 8.6 1.0 22.2 5.9

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AS

EAN

M

emb

ers

Duty phase-out period

Number of lines

% of total

lines in ASEAN's

tariff schedule

Average imports (2007-2009) a

from Australia from New Zealand

Value of imports

in million US$

% imports

Value of imports

in million US$

% imports

2018 22 0.3 16.5 2.0 0.0 0.0 2019 7 0.1 6.5 0.8 29.1 7.8 2020 66 0.8 2.6 0.3 0.1 0.0


Sin

g

apo

re MFN duty free (2010) 8,294 99.9 3,846.9 99.9 599.3 100.0

2010 6 0.1 2.2 0.1 0.1 0.0

Total 8,300 100.0 3,849.0 100.0 599.4 100.0

Thai

lan

d

MFN duty free (2010) 1,522 18.3 2,961.2 69.7 113.7 24.8 2010 4,390 52.9 734.5 17.3 135.2 29.5 2012 542 6.5 27.5 0.6 2.9 0.6 2013 776 9.3 45.6 1.1 16.4 3.6 2015 212 2.6 226.5 5.3 0.7 0.2 2016 67 0.8 139.9 3.3 1.3 0.3 2017 45 0.5 4.8 0.1 0.0 0.0 2019 3 0.0 0.0 0.0 0.0 0.0 2020 640 7.7 73.8 1.7 116.1 25.3


Vie

t N

am

MFN duty free (2010) 3,030 32.9 412.5 37.9 42.3 42.5 2010 58 0.6 0.2 0.0 0.002 0.002 2016 2,079 22.6 404.6 37.2 30.6 30.8 2017 660 7.2 7.0 0.6 5.2 5.2 2018 2,145 23.3 18.4 1.7 2.5 2.5 2019 60 0.7 179.2 16.5 10.9 10.9 2020 431 4.7 8.9 0.8 6.1 6.1


a Period covered for the average imports of Cambodia and Indonesia are 2008-2010 and 2009-2011, respectively.

Note: Based on the HS 2007 nomenclature for all except Cambodia which is based on HS 2002 Nomenclature. No available Viet Nam's import data at the national tariff line level.

Source: WTO estimates based on data provided by ASEAN Secretariat, WTO-IDB and GTA database.

3.1.2.1.2 Australia

3.19. Australia provided MFN duty free entry into its market in 2010 for 46.2% of the tariff (2,773 lines), corresponding to 99.9% of its average imports during 2007-09 from Brunei Darussalam, 21.3% from Cambodia, 68.8% from Indonesia, 68.5% from Lao PDR, 67.2% from Malaysia, 60.3% from Myanmar, 61.5% from the Philippines, 90.4% from Singapore, 31.3% from Thailand, 89.7% from Viet Nam and 45.7% from New Zealand.12 Most of its tariffs were liberalized in 2010 (ranging from 49.8% to 50.2% of remaining tariffs), a further 0.4% in 2015 and the remaining 3.1%-3.5% in 2020 at the end of which 100% of its tariff will be duty free for imports from all AANZFTA Parties (Table 3.2).

12 In 2010 Australia's MFN applied tariff consisted of 6,002 lines at the HS eight digit level. Of these

5,985 (99.72%) had ad valorem rates of duty while 5, 8 and 4 lines were subject to respectively to specific, compound and mixed rates of duty.

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Table 3.2 Australia: Tariff elimination under the Agreement and corresponding average

Value in million US$ (average imports of Australia from ASEAN partners and New Zealand from 2007 to 2009)

Par

tner

s MFN duty free

lines 2010

Duty phase-out period Total

20

10

20

12

20

13

20

14

20

15

20

17

20

19

20

20

Bru

nei

Tariff schedule

No of lines 2,773 3,013 6 22 188 6,002% share 46.2 50.2 0.1 0.4 3.1 100.0

Average imports

Value 856.3 0.4 0.0 0.0 0.0 856.7% share 99.9 0.0 0.0 0.0 0.0 100.0

Cam

bod

ia

Tariff schedule

No of lines 2,773 3,013 6 22 188 6,002% share 46.2 50.2 0.1 0.4 3.1 100.0

Average imports

Value 3.4 6.6 0.2 0.4 5.4 16.0% share 21.3 41.3 1.0 2.8 33.6 100.0

Ind

ones

ia Tariff

schedule No of lines 2,773 2,988 6 14 1 25 3 192 6,002% share 46.2 49.8 0.1 0.2 0.0 0.4 0.0 3.2 100.0

Average imports

Value 2,623.1 1,154.8 0.8 0.1 0.0 2.1 0.6 28.9 3,810.3

% share 68.8 30.3 0.0 0.0 0.0 0.1 0.0 0.8 100.0

Lao

PD

R Tariff

schedule No of lines 2,773 3,013 6 22 188 6,002% share 46.2 50.2 0.1 0.4 3.1 100.0

Average imports

Value 1.7 0.4 0.0 0.0 0.4 2.4% share 68.5 15.1 2.0 0.0 14.5 100.0

Mal

aysi

a

Tariff schedule

No of lines 2,773 3,008 6 22 5 188 6,002% share 46.2 50.1 0.1 0.4 0.1 3.1 100.0

Average imports

Value 4,235.7 1,818.6 0.2 0.2 9.6 238.2 6,302.5

% share 67.2 28.9 0.0 0.0 0.2 3.8 100.0

Mya

nm

ar Tariff


Average imports

Value 11.2 6.2 0.1 0.3 0.9 18.6% share 60.3 33.1 0.4 1.5 4.8 100.0

Ph

ilip

pin

es Tariff


Average imports

Value 320.3 197.2 1.4 0.1 2.1 521.0% share 61.5 37.8 0.3 0.0 0.4 100.0

Sin

gap

ore Tariff


Average imports

Value 8,951.9 933.4 0.3 0.0 12.8 9,898.5

% share 90.4 9.4 0.0 0.0 0.1 100.0

Thai

lan

d Tariff


Average imports

Value 2,448.8 4,449.5 2.7 0.6 911.1 7,812.7

% share 31.3 57.0 0.0 0.0 11.7 100.0

Vie

t N

am

Tariff schedule

No of lines 2,773 3,013 6 22 188 6,002% share 46.2 50.2 0.1 0.4 3.1 100.0

Average imports

Value 3,154.2 335.3 1.9 1.0 24.8 3,517.1

% share 89.7 9.5 0.1 0.0 0.7 100.0

New

Z

eala

nd

Tariff schedule

No of lines 2,773 3,013 6 22 188 6,002% share 46.2 50.2 0.1 0.4 3.1 100.0

Average imports

Value 2,498.9 2,743.1 0.8 1.9 221.6 5,466.3

% share 45.7 50.2 0.0 0.0 4.1 100.0

Note: Based on HS 2007 nomenclature. Only trade falling under HS chapters 1-97 is included. Source: WTO estimates based on data provided by Australia and the WTO-IDB.

WT/REG284/1/Rev.1

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3.1.2.2 New Zealand

3.20. In 2010 New Zealand provided duty free treatment for 59.6% of its tariff (4,344 lines) on an MFN basis.13 These lines corresponding to 100% of its average 2007-09 imports from Brunei Darussalam, 81.3% from Indonesia, 3% from Cambodia, 74.1% from Lao PDR, 44.4% from Myanmar, 80.5% from Malaysia, 80.9% from the Philippines, 94.3% from Singapore, 18.2% from Thailand, 36.4% from Viet Nam and 60% from Australia. Upon entry into force of the Agreement it liberalized a further 25% of the tariff which corresponded to between a negligible share of imports from Brunei, and Myanmar to 18.2% from Thailand. At the end of implementation in 2020 New Zealand will have liberalized all remaining tariffs for imports from all other AANZFTA Parties.

Table 3.3 New Zealand: Tariff elimination commitments under the Agreement and corresponding average

Value in million US$ (average imports of New Zealand from ASEAN partners and Australia from 2007 to 2009) Partners MFN

duty free lines 2010

Duty phase-out period Total

20

10

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

ASEAN/ Australia

No of tariff lines

4,344 1,823

406 22 5 1 2 430 15 8 232 7,288

% share 59.6 25.0 5.6 0.3 0.1 0.0 0.0 5.9 0.2 0.1 3.2 100.0 Brunei Average

imports 277.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 277.5

% share 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 Indonesia

Average imports

486.8 16.2 8.2 2.5 0.2 0.0 0.2 12.5 2.5 7.3 62.4 598.7

% share 81.3 2.7 1.4 0.4 0.0 0.0 0.0 2.1 0.4 1.2 10.4 100.0 Cambodia

Average imports

0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.9 1.2

% share 3.0 12.3 0.6 0.3 0.0 0.0 0.0 11.5 0.8 0.3 71.2 100.0 Lao PDR Average

imports 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1

% share 74.1 16.9 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 7.9 100.0 Myanmar Average

imports 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.6 1.4

% share 44.4 0.5 1.2 2.8 0.0 0.0 0.0 10.4 0.0 0.5 40.2 100.0 Malaysia Average

imports 771.7 87.1 41.3 2.2 0.2 0.0 0.0 8.8 0.1 10.7 36.6 958.6

% share 80.5 9.1 4.3 0.2 0.0 0.0 0.0 0.9 0.0 1.1 3.8 100.0 The Philippines

Average imports

88.6 8.6 3.8 1.6 0.0 0.0 0.0 1.8 0.0 0.6 4.5 109.5

% share 80.9 7.9 3.5 1.4 0.0 0.0 0.0 1.6 0.0 0.6 4.1 100.0 Singapore

Average imports

1,300.1

44.0 13.1 0.3 0.8 0.0 0.0 0.4 0.1 0.4 19.8 1,378.8

% share 94.3 3.2 0.9 0.0 0.1 0.0 0.0 0.0 0.0 0.0 1.4 100.0 Thailand Average

imports 504.3 146.

9 76.9 1.7 0.0 0.0 0.1 13.0 1.6 0.6 61.7 806.8

% share 62.5 18.2 9.5 0.2 0.0 0.0 0.0 1.6 0.2 0.1 7.6 100.0 Viet Nam Average

imports 38.6 8.6 9.0 7.5 0.0 0.6 0.3 8.9 3.3 17.8 11.3 105.9

% share 36.4 8.1 8.5 7.1 0.0 0.6 0.2 8.4 3.1 16.8 10.6 100.0 Australia Average

imports 3,392.

3 1,320.4

320.8

50.5 8.7 0.5 1.3 75.7 1.6 10.1 467.9

5,649.7

% share 60.0 23.4 5.7 0.9 0.2 0.0 0.0 1.3 0.0 0.2 8.3 100.0

Note: Based on HS 2007 nomenclature. Source: WTO estimates based on data provided by New Zealand and the WTO-IDB.

13 In 2010 New Zealand's MFN applied tariff consisted of 7,288 lines at the HS eight digit level. Of these,

7,251 lines (99.49%) were subject to ad valorem rates duty; six lines were subject to specific rates and 31 to other rates of duty.

WT/REG284/1/Rev.1

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3.1.3 Liberalization schedule

3.1.3.1 ASEAN

3.21. Tables 3.4A-J and Chart 3.1 gives further details of tariff liberalization by the ASEAN members by broad HS Section and HS Chapter, respectively. Of the members that complete tariff liberalization by 2020 Brunei Darussalam maintains tariffs in Sections IV and VI (prepared foods, beverages and tobacco products and chemical products respectively), Malaysia in Sections I, II, IV and VII, XV, XVII and XIX (live animals, vegetable products, prepared foods, beverages and tobacco products, plastics and rubber, base metals, vehicles, and arms and ammunition respectively), the Philippines in HS Sections I, II, IV, VI, VII, XI-XIII, XV-XVII and XX, Thailand in Sections I-IV and XI and for Viet Nam in Sections I, II, IV-VII, X-XI, XV-XVII and XIX. For ASEAN members liberalizing by 2024, tariffs will be maintained by Cambodia in all HS Sections except HS XI, XIV, XIX and XXI, by Lao PDR in all HS Sections except HS III, and in all Sections by Myanmar; Indonesia which completes liberalization by 2025 will maintain tariffs in HS Sections I, II, IV-VIII, XI-XII, XIV-XVII and XX.

3.22. Average final tariffs on products remaining dutiable will be US$250/decalitre for Brunei Darussalam, between 6% and 14.4% for Cambodia, between 4.4% and 61.7% for Indonesia, between 3% and 30% for Lao PDR, between 5% and 20.9% for Malaysia, between 1% and 12.1% for Myanmar, between 2.6% and 29.5% for the Philippines, between 10% and 122.5% for Thailand, and between 4.6% and 60% for Viet Nam; Singapore eliminates all tariffs upon entry into force of the Agreement.

Table 3.4 ASEAN member states: Tariff elimination under the Agreement, by HS Section

A. Brunei Darussalam

HS Section

MFN average%

No. of lines

No. of duty-free lines in

MFN 2010

Duty-free lines under the Agreement

Remain dutiable

Avg. Final Tariff

(Dutiable) 2010

2013

2015

2020

I 0.0 344 344 II 0.0 391 375 16 III 0.0 150 150 IV 0.1 386 376 5 5 $250.00/dal V 0.0 198 183 2 13 VI 0.6 1,098 978 84 4 30 2 $250.00/dal VII 2.7 392 334 2 1 19 36 VIII 1.7 84 70 14 IX 12.6 136 48 7 81 X 0.0 224 224 XI 0.7 928 826 83 19 XII 5.3 63 14 31 16 2 XIII 0.8 185 177 1 3 4 XIV 2.1 75 43 32 XV 0.1 825 822 1 2 XVI 10.1 1,805 661 325 656 33 130 XVII 4.7 427 327 3 85 12 XVIII 8.4 339 139 67 109 24 XIX 0.0 28 28 XX 2.6 212 126 59 26 1 XXI 0.0 10 10

Total 3.5 8,300 6,255 698 948 138 254 7 $250.00/dal

Note: Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB.

WT/REG284/1/Rev.1

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B. Cambodia

HS Section

MFN average%

No. of lines


MFN 2011


Remain dutiable

Avg. Final Tariff

(Dutiable) 2011 2021 2024 I 20.0 338 30 1 253 34 20 12.3 II 9.7 388 72 1 250 13 52 7.6 III 7.0 151 115 23 13 6.1 IV 19.6 417 34 266 3 114 13.6 V 7.8 213 72 113 28 14.4 VI 9.2 1,287 220 1,035 32 12.8 VII 9.2 588 189 1 354 44 9.2 VIII 12.1 112 107 5 6.2 IX 9.1 253 251 2 6.0 X 6.6 271 16 225 30 6.3 XI 8.3 1,185 167 1,018 XII 15.2 74 69 5 9.8 XIII 11.4 221 220 1 7.0 XIV 2.0 77 55 22 XV 8.1 1,161 236 886 39 8.3 XVI 14.0 2,202 186 1,284 183 549 8.1 XVII 19.4 1,026 57 11 528 269 161 10.7 XVIII 15.4 398 22 309 67 7.4 XIX 27.5 28 6 22 XX 15.3 287 44 191 52 13.2 XXI 0.0 12 12

Total 12.1 10,689 1,418 14 7,518 525 1,214 9.4


C. Indonesia

HS

Sec

tion

MFN

av

erag

e%

No.

of

lines

No.

of

du

ty-

free

lin

es in

M

FN 2

01

2


Rem

ain

d

uti

able

Avg

. Fi

nal

Ta

riff

(D

uti

able

)

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

25

I 5.0 351 26 270 8 2 1 4 6 1 33 5.6II 5.1 399 41 302 3 4 2 47 5.9III 4.2 153 24 128 1 IV 8.5 391 16 264 1 21 1 6 82 30.0V 3.3 199 71 121 1 6 5.0VI 5.1 1108 109 976 18 1 1 3 61.7VII 8.8 397 2 241 63 21 39 4 27 9.9VIII 6.1 85 30 33 12 1 9 5.0IX 2.2 181 106 73 2 X 4.3 232 45 175 12 XI 10.7 1018 8 574 350 1 4 81 4.9XII 13.7 63 31 31 1 5.0XIII 7.5 196 1 154 25 7 2 7 XIV 6.3 75 13 42 15 5 6.5XV 7.6 927 123 481 68 34 84 7 1 129 4.4XVI 5.3 1871 300 1364 104 5 1 1 1 18 6 3 68 5.1XVII 15.7 469 55 107 109 30 97 2 2 2 13 13 39 19.4XVIII 5.5 347 21 325 1 XIX 6.1 28 25 3 XX 9.4 233 2 145 76 7 1 2 4.5XXI 4.2 12 3 8 1

Total 7.1 8,735 996 5,839 894 98 235 4 6 4 17 82 1 1 22 4 532 8.4


WT/REG284/1/Rev.1

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D. Lao PDR

HS Section

MFN average%

No. of lines


Applied duties in 2011

Duty-free lines under the

Agreement

Remain dutiable

Avg. Final Tariff

(Dutiable) 2021 2024

I 14.6 344 244 95 5 10.0 II 23.5 391 256 123 12 5.0 III 10.4 150 150 IV 22.1 386 299 12 75 23.1 V 6.4 198 157 41 3.0 VI 7.7 1,098 1,059 1 38 6.1 VII 8.4 392 380 1 11 3.0 VIII 16.2 85 70 15 3.0 IX 24.3 136 112 3 21 3.0 X 6.2 224 143 43 38 3.0 XI 9.3 928 914 14 3.0 XII 12.1 63 60 3 3.0 XIII 5.9 185 177 8 3.0 XIV 5.0 75 74 1 3.0 XV 6.2 826 741 85 3.0 XVI 7.0 1,803 1,602 201 3.0 XVII 19.1 427 266 161 22.7 XVIII 6.7 339 315 11 13 3.0 XIX 30.0 28 28 30.0 XX 11.8 212 197 15 3.7 XXI 5.0 10 6 2 2 5.0

Total 10.3 8,300 0 7,222 291 787 10.3

Note: Based on the HS 2007 nomenclature.

Source: WTO estimates based on data provided by the ASEAN Secretariat. E. Malaysia

HS

Sec

tion

MFN

av

erag

e%

No.

of

lines

No.

of

du

ty-

free

lin

es in

M

FN 2

01

0 Duty-free lines under the Agreement

Rem

ain

d

uti

able

Avg

. Fi

nal

Ta

riff

(D

uti

able

)

20

10

20

11

20

12

20

13

20

15

20

16

20

18

20

20

I 2.7 325 280 6 23 1 15 II 2.7 354 262 47 9 1 7 28 9.9 III 2.5 166 98 54 11 2 1 IV 2.6 462 309 18 41 15 7 19 53 V 1.4 203 178 15 3 2 5 16.7 VI 1.9 1,083 941 47 15 8 3 2 67 VII 13.2 655 199 88 7 3 121 4 86 136 11 14.4 VIII 0.3 99 96 3 5.0 IX 1.4 2,024 1,880 28 2 72 42 5.0 X 10.4 333 124 22 65 83 38 1 XI 7.7 1,075 476 15 320 262 2 XII 6.6 84 51 6 6 12 9 XIII 18.2 204 49 14 13 17 42 10 2 57 20.9 XIV 0.4 62 58 3 1 XV 11.3 1,020 299 146 42 131 206 13 183 XVI 5.4 1,257 859 130 23 82 54 2 107 XVII 17.7 463 112 74 5 22 166 9 75 XVIII 0.8 266 247 13 3 3 XIX 14.2 26 2 24 XX 9.1 218 99 35 6 49 29 15.4 XXI 2.0 10 6 4

Total 6.0 10,389 6,625 765 595 764 715 14 98 2 422 389 10.0

Note: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included.

Based on the HS 2007 nomenclature.

Source: WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB.

WT/REG284/1/Rev.1

- 29 -

F. Myanmar

HS Section

MFN average

%

No. of lines


MFN 2010


Remain dutiable

Avg. Final Tariff

(Dutiable) 2020 2021 2024 I 7.4 362 71 156 55 11 69 8.2 II 6.7 485 106 149 172 9 49 4.8 III 2.2 189 2 117 23 27 20 4.5 IV 15.0 430 6 46 39 15 324 10.5 V 1.6 207 24 98 39 42 4 1.0 VI 2.7 1,122 49 883 71 50 69 3.9 VII 2.9 392 212 42 88 50 4.0 VIII 7.8 84 44 19 2 19 5.0 IX 10.4 156 13 31 26 46 40 4.6 X 2.8 226 16 5 200 1 4 3.0 XI 10.9 929 2 334 539 2 52 4.6 XII 7.1 65 37 13 1 14 4.1 XIII 3.7 193 91 98 4 5.0 XIV 14.9 81 9 10 62 5.5 XV 2.9 831 15 705 84 6 21 5.1 XVI 2.7 1,812 80 1,417 138 47 130 5.4 XVII 7.7 443 10 110 136 2 185 12.1 XVIII 4.7 345 244 93 3 5 5.0 XIX 9.6 28 28 9.6 XX 6.9 237 125 89 3 20 8.8 XXI 4.0 10 1 1 8 4.4

Total 5.4 8,627 394 4,814 1,887 355 1,177 7.9


Source: WTO estimates based on data provided by the ASEAN Secretariat.

G. The Philippines

HS

Sec

tion

MFN

av

erag

e%

No.

of

lines

No.

of

du

ty-

free

lin

es in

M

FN 2

01

0 Duty-free lines under the Agreement

Rem

ain

d

uti

able

Avg

. Fi

nal

Ta

riff

(D

uti

able

)

20

10

20

11

20

12

20

13

20

15

20

17

20

18

20

19

20

20

I 10.6 344 133 57 33 26 52 6 17 20 14.9 II 10.4 391 2 183 57 44 27 37 16 25 26.6 III 7.5 150 86 7 6 36 13 2 IV 11.5 386 83 69 74 51 81 1 8 19 29.5 V 2.5 197 6 148 21 22 VI 3.3 1,098 9 924 64 43 9 34 9 6 3.9 VII 7.2 392 2 207 47 34 17 85 10.4 VIII 7.1 84 53 2 1 28 IX 7.3 136 14 37 40 18 22 5 X 4.9 224 123 36 23 15 13 5 9 XI 10.7 928 3 137 122 275 375 9 7 6.8 XII 9.5 63 29 6 10 6 2 10 3.7 XIII 7.0 185 2 91 5 54 14 2 17 9.5 XIV 5.2 75 50 4 21 XV 5.6 825 10 453 42 91 74 6 149 5.1 XVI 2.9 1,805 233 1,322 72 88 69 21 4.7 XVII 13.4 427 293 3 71 36 10 14 2.6 XVIII 2.5 339 31 290 13 5 XIX 13.5 28 1 6 21 XX 7.1 212 90 48 39 29 5 1 5.0 XXI 7.6 10 8 2

Total 6.5 8,299 312 4,733 702 938 855 285 5 22 7 66 374 9.6

Note: Tariff lines subject to in-quota rates are excluded in the computation.



WT/REG284/1/Rev.1

- 30 -

H. Singapore

HS Section

MFN average % No. of lines No. of duty-free lines in MFN 2010


I 0.0 344 344 II 0.0 391 391 III 0.0 150 150 IV 0.0 386 380 6 V 0.0 198 198 VI 0.0 1,098 1,098 VII 0.0 392 392 VIII 0.0 84 84 IX 0.0 136 136 X 0.0 224 224 XI 0.0 928 928 XII 0.0 63 63 XIII 0.0 185 185 XIV 0.0 75 75 XV 0.0 825 825 XVI 0.0 1,805 1,805 XVII 0.0 427 427 XVIII 0.0 339 339 XIX 0.0 28 28 XX 0.0 212 212 XXI 0.0 10 10

Total 0.0 8,300 8,294 6

Note: Based on the HS 2007 nomenclature. Source: WTO estimates based on data in the WTO-IDB.

I. Thailand

HS Section

MFN average

%

No. of lines

No. of duty-free

lines in MFN 2010


Rem

ain

d

uti

able

Avg

. Fi

nal

Ta

riff

(D

uti

able

)

20

10

20

12

20

13

20

15

20

16

20

17

20

19

20

20

I 16.6 344 20 158 7 70 1 83 5 26.0 II 34.3 391 8 120 30 174 2 57 60.6 III 34.8 150 73 42 17 18 122.5 IV 31.5 386 2 98 30 195 39 22 54.5 V 2.7 198 73 120 1 2 2 VI 3.5 1,098 515 513 43 9 3 15 VII 7.3 392 49 280 33 26 1 1 2 VIII 14.4 84 2 47 2 27 4 2 IX 9.8 136 2 84 24 16 10 X 4.5 224 80 144 XI 21.6 928 5 370 1 10 201 23 11 306 1 10.0 XII 23.1 63 17 46 XIII 11.1 185 23 147 2 5 1 7 XIV 6.1 75 50 11 14 XV 6.8 825 223 394 114 10 3 26 11 44 XVI 5.1 1,805 369 1,330 43 48 2 13 XVII 32.6 427 23 117 12 123 4 4 144 XVIII 5.0 339 73 255 11 XIX 25.7 28 4 24 XX 16.0 212 79 133 XXI 11.0 10 1 9

Total 12.8 8,300 1,522 4,390 542 776 212 67 45 3 640 103 65.1

Note: For the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included.



WT/REG284/1/Rev.1

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J. Viet Nam

HS Section

MFN average

%

No. of lines

No. of duty-free

lines in MFN 2010


Rem

ain

d

uti

able

Avg

. Fi

nal

Ta

riff

(D

uti

able

)

20

10

20

16

20

17

20

18

20

19

20

20

I 11.1 356 90 73 30 92 22 16 33 9.1 II 15.9 396 64 2 103 73 117 22 11 4 13.0 III 15.1 151 2 73 76 IV 29.2 396 31 27 10 159 8 44 117 22.6 V 6.7 209 60 1 93 2 15 38 13.8 VI 3.7 1,202 719 2 312 48 55 3 47 16 16.9 VII 9.6 451 80 5 213 49 48 1 55 15.7 VIII 13.2 86 30 18 5 32 1 IX 8.2 139 57 40 5 36 1 X 13.0 289 38 130 19 66 11 25 5.0 XI 12.2 952 93 71 100 683 5 60.0 XII 25.6 63 3 8 6 46 XIII 17.6 202 19 3 77 18 85 XIV 11.1 75 11 34 28 2 XV 7.7 932 388 26 168 78 131 1 15 125 6.9 XVI 6.6 2,130 982 16 481 181 129 1 233 107 4.6 XVII 22.1 575 86 2 56 5 168 37 221 18.8 XVIII 4.6 346 237 46 11 52 XIX 6.6 30 23 7 28.1 XX 18.7 226 13 1 52 20 140 XXI 6.0 10 4 4 2

Total 10.6 9,216 3,030 58 2,079 660 2,145 60 431 753 14.0

Note: Tariff lines subject to in-quota rates are excluded in the computation. Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB. 3.23. Chart 3.1 compares average remaining preferential tariffs under the Agreement and their corresponding MFN average rates by HS Chapter. For Cambodia while tariffs remain in most HS Chapters once the Agreement is implemented, Cambodia makes additional concessions in the form of lower preferential duties for imports from Australia and New Zealand, with the margin of preference between average preferential and MFN tariffs ranging from 0.29% to 30% in HS 19 and 86 respectively.14 For Indonesia, the average preferential tariff is lower than the corresponding MFN average in almost all HS Chapters except HS 5, 10, 22, 27, 30, and 96 with the margin of preference ranging from 1% for HS 4 and 94 to 65% for HS 21 and 33. For Lao PDR final average preferential tariffs are lower in most HS Chapters except HS 5, 12, 22, 36, 88, 93, and 97 with the margin of preference ranging from 2% for HS 25, 27-30, 32 and 34-41 to 37% for HS 97. For Malaysia the average preferential tariff is lower in HS 1, 2, 4, 72, 87 and 93 with margins of preference ranging from 6.67% for HS 1 to 35.71% for HS 4; specific duties are found in HS 22. For Myanmar lower preferential average duties are applied in all HS Chapters except for HS 5, 10-13, 25-30, 47, 48, 50, 68, 73, 89, 93 and 97 with margins of preference ranging from 0.4% for HS 40 to 15% in HS 51 and 96. In the Philippines lower preferential average duties are found in all HS Chapters except HS 17 with margins of preference ranging from 1% in HS 10 to 35% in HS 1. For Thailand apart from HS Chapters 6 and 12, there is no difference between the final preferential average and MFN average suggesting no preferential market access for the other chapters in which Thailand maintains duties once the Agreement is implemented. The margin of preference in HS 6 is 44.2% and 0.1% in HS 12. For Viet Nam, lower preferential average duties are found in all HS Chapters in which duties remain except HS 12, 13, 27, 36, 38, 63, 89 and 93. The margins of preference range from between 0.5% in Chapter 30 to 30.3% in HS 73.

3.24. There are no charts for Singapore and Brunei Darussalam. While Singapore eliminates tariffs on all remaining six lines under the Agreement, the average MFN rate for these lines is not possible to calculate as no ad valorem equivalent tariffs are available. Similarly, for Brunei Darussalam's remaining duties are specific for which no ad valorem equivalent rates are available.

14 Tariffs are reduced in HS 11, 12, 24-27, 33, 35, 64, 66, 67 and 82.

WT/REG284/1/Rev.1

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Chart 3.1 ASEAN member states: Average of dutiable rates, by HS chapter

0

5

10

15

20

25

30

35

40

2 6 8 10 12 16 18 20 22 25 28 32 34 38 40 42 48 64 66 72 74 82 84 87 89 91 95

Ave

rage

rat

e of

dut

y (%

)

HS Chapter

Cambodia

0

20

40

60

80

100

120

140

160

1 3 5 7 10 16 21 24 27 33 42 62 65 72 74 85 94

Ave

rage

rat

e of

dut

y (%

)

HS Chapter

Indonesia

0

5

10

15

20

25

30

35

40

45

5 13 22 24 27 29 32 35 37 39 41 43 45 48 50 56 59 62 64 70 72 74 76 79 83 85 87 89 93 95 97

Ave

rage

rat

e of

dut

y (%

)

HS Chapter

Lao PDR

0

10

20

30

40

50

60

1 2 4 8 10 22 24 40 72 87 93

Ave

rate

rat

e of

dut

y (%

)

HS Chapter

Malaysia

0

5

10

15

20

25

30

35

2 5 9 12 16 19 22 25 29 33 39 42 48 54 58 61 64 68 73 83 87 93 97

Ave

rage

rat

e of

dut

y (%

)

HS Chapter

Myanmar

0

5

10

15

20

25

30

35

40

45

50

1 2 3 4 7 10 11 16 17 18 23 28 30 39 40 56 57 64 66 70 72 73 84 85 87 94

Ave

rage

rat

e of

dut

y (%

)

HS Chapter

Philippines

0

20

40

60

80

100

120

140

4 6 7 8 9 10 12 15 17 21 23 24 50

Ave

rage

rat

e of

dut

y (%

)

HS Chapter

Thailand

0

10

20

30

40

50

60

70

2 3 8 12 13 16 17 22 24 27 30 36 38 39 40 48 63 72 73 83 84 85 87 89 93

Ave

rage

rat

e of

dut

y (%

)

HS Chapter

Viet Nam

MFN Preferential Note: For the calculation of averages, specific rates are excluded and the ad valorem part of alternate

rates are included. There is no chart for Brunei Darussalam's remain dutiable because it only contains specific duties (HS chapters 21 and 33). Indonesia's HS chapters 11 and 17, Lao PDR's HS chapter 13 and Malaysia's HS chapter 22 only contain specific duties. HS chapters solely covered in red portion indicate that MFN tariffs are equal to the preferential duties.

Source: WTO Secretariat estimates, based on data provided by ASEAN Secretariat and WTO-IDB.

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3.1.3.2 Australia and New Zealand

3.25. Tables 3.5 and 3.6 show tariff elimination by Australia and New Zealand respectively by HS Section. Australia liberalizes most tariffs across all HS Sections in 2010 for all other AANZFTA Parties. Of the tariffs to be liberalized at the end of implementation in 2020, most are found in HS Section XI (textiles and textile articles). New Zealand also undertakes most of its tariff liberalization upon entry into force of the Agreement in 2010 although significant liberalization took place in 2012 and is expected further in 2017. Of the tariffs to be liberalized at the end of implementation in 2020 most are also found in Section XI.

Table 3.5 Australia: Tariff elimination under the Agreement, by HS Section

HS

Sec

tion

MFN No. of duty-free lines

Ave

rag

e (%

)

No.

of

lines

Du

ty-f

ree

lines

Indonesia Malaysia

20

10

20

12

20

13

20

14

20

15

20

19

20

20

20

10

20

12

20

15

20

17

20

20

I 0.0 231 224 7 7 II 0.7 262 223 39 39 III 2.0 46 28 18 18 IV 2.7 261 119 140 2 140 2V 0.4 191 177 14 14 VI 1.4 872 629 237 6 237 6VII 4.5 238 24 209 5 209 5VIII 3.6 92 29 57 6 57 6IX 3.3 142 49 89 4 89 4X 3.7 288 74 214 214 XI 5.3 917 161 576 6 22 152 576 6 22 152XII 2.6 64 31 33 33 XIII 3.5 162 50 112 112 XIV 1.0 53 42 11 11 XV 3.5 588 172 411 5 411 5XVI 2.9 949 406 537 6 537 6XVII 3.5 239 73 141 14 1 3 3 4 161 5XVIII 0.9 246 202 44 44 XIX 1.5 20 14 6 6 XX 3.5 134 39 93 2 93 2XXI 0.0 7 7 Total 2.9 6,002 2,773 2,988 6 14 1 25 3 192 3,008 6 22 5 188

HS

Sec

tion

MFN No. of duty-free lines

Ave

rag

e (%

)

No.

of

lines

Du

ty-

free

lin

es

Thailand Rest of AANZFTA Partiesa

2010 2012 2015 2020 2010 2012 2015 2020

I 0.0 231 224 7 7 II 0.7 262 223 39 39 III 2.0 46 28 18 18 IV 2.7 261 119 140 2 140 2V 0.4 191 177 14 14 VI 1.4 872 629 237 6 237 6VII 4.5 238 24 209 5 209 5VIII 3.6 92 29 57 6 57 6IX 3.3 142 49 89 4 89 4X 3.7 288 74 214 214 XI 5.3 917 161 576 6 22 152 576 6 22 152XII 2.6 64 31 33 33 XIII 3.5 162 50 112 112 XIV 1.0 53 42 11 11 XV 3.5 588 172 411 5 411 5XVI 2.9 949 406 537 6 537 6XVII 3.5 239 73 141 25 166 XVIII 0.9 246 202 44 44 XIX 1.5 20 14 6 6 XX 3.5 134 39 93 2 93 2XXI 0.0 7 7 Total 2.9 6,002 2,773 2,988 6 22 213 3,013 6 22 188

a Brunei Darussalam, Cambodia, Lao PDR, Myanmar, New Zealand, Philippines, Singapore and Viet Nam.

Note: Based on HS 2007 nomenclature. Source: WTO estimates based on data provided by Australia and the WTO-IDB.

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Table 3.6 New Zealand: Tariff elimination under the Agreement, by HS Section

HS Section

MFN average %

No. of lines

MFN Duty-free lines 2012

Number of duty-free lines

20

10

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

I 0.8 251 209 42 II 1.1 300 234 64 1 1 III 0.9 58 47 8 2 1 IV 2.5 482 238 230 5 9 V 0.3 189 178 11 VI 0.7 951 824 107 4 1 6 9 VII 2.9 389 172 168 23 1 8 17 VIII 2.5 102 54 31 3 1 1 7 5 IX 2.5 205 102 50 32 5 4 12 X 0.0 228 228 XI 4.1 1,059 491 24 71 2 344 127 XII 5.7 106 38 9 41 15 3 XIII 2.2 226 128 76 11 3 1 1 6 XIV 1.2 68 52 12 1 1 2 XV 2.4 802 417 177 170 4 5 15 1 13 XVI 2.6 1,178 562 552 44 20 XVII 3.3 233 103 112 16 1 1 XVIII 0.9 240 190 42 8 XIX 1.8 35 21 12 2 XX 3.6 179 49 96 15 6 6 7 XXI 0.0 7 7

Total 2.3 7,288 4,344 1,823 406 22 5 1 2 430 15 8 232

Note: based on HS 2007 nomenclature. Source: WTO estimates based on data provided by New Zealand and the WTO-IDB. 3.1.4 Tariff rate quotas

3.26. Tariff rate quotas maintained by Malaysia and Viet Nam in respect of imports from Australia and New Zealand are described in Annex 2 to this Factual Presentation. Both Parties also maintain WTO TRQs for these products for which they provide additional preferences to Australia and New Zealand through lower in-quota duties and also out of quota duties during a transitional period.

3.2 Rules of origin

3.27. Chapter 3, Articles 1-19 and its Annex on Operational Certification Procedures (Rules 1-25 and Appendixes 1 and 2) concern rules of origin. Annex 2 to the Agreement contains Product Specific Rules.

3.28. Article 1 sets out definitions used in the Chapter. Article 2 concerns originating goods. A good shall be considered to be originating if it is either (a) wholly produced or obtained in a Party as provided in Article 3 of Chapter 3, (b) not wholly produced or obtained in a Party but satisfies the requirements of Article 4 of Chapter 3, or (c) produced in a Party exclusively from originating materials from one or more of the Parties and meets all other requirements of Chapter 3. Article 2.2 provides that a good which complies with the origin requirements of Article 2.1 will retain eligibility for preferential tariffs if it is exported to a Party and subsequently re-exported to another Party.

3.29. Article 3 of Chapter 3 concerns goods wholly produced or obtained. It specifies in sub-paragraphs (a)-(j) the goods that for the purposes of Article 2.1(a) are considered to be wholly produced or obtained.

3.30. Article 4 of Chapter 3 concerns goods not wholly produced or obtained.

3.31. Article 4 of Chapter 3 concerns goods not wholly produced or obtained. Article 4.2 provides that goods subject to product specific rules shall be treated as originating goods if they meet the

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applicable product specific rules. Product Specific Rules are set out in Annex 2 to the Agreement. If a good is specified in Annex 2 and the provisions permit a choice of rule between RVC, CTC, a specific process of production or any combination thereof, Article 4.4 requires the Parties to permit the producer or exporter to decide which rule to use to determine origin. For goods not listed in the Product Specific Rules, Article 4.1 provides that goods shall be treated as originating goods if: (a) the good has a regional value content (RVC) of not less than 40% of FOB calculated using the formulae set out in Article 5 of Chapter 3, and the final process of production is performed in a Party15; or (b) all non-originating materials used in the production of the good have undergone a change in a Party in tariff classification (CTC) at the HS four digit level. Under Article 4.3, if goods are not specified in Annex 2 (Product Specific Rules) a Party shall permit the producer or exporter of the good to decide whether to use the RVC or CTC method.

3.32. Article 5.2 requires that the value of goods under Chapter 3 be determined in accordance with Article VII of the GATT 1994 and the Agreement on Customs Valuation.

3.33. The rules on cumulation permit goods complying with the origin requirements of Article 2 which are used in another Party as an input in production of another good to be considered to originate in the Party where the working or processing took place (Article 6). Article 7 describes the minimal operations and processing that shall not be taken into account in determining whether or not a good is originating.16 The de minimis rules in Article 8 permit a good that does not satisfy the CTC requirement pursuant to Article 4 to nonetheless be considered as originating if the value of non-originating materials used that did not meet the CTC requirement do not exceed 10% of the fob value of the final good; for goods in HS 50-63 in addition to the above, the good may be considered originating if the weight of all non-originating materials used in the production of the good that did not meet the CTC requirement does not exceed 10% of the total weight of the good.

3.34. Article 9.1 of Chapter 3 provides that in the determination of the origin of a good, accessories, spare parts, tools and instructional or other information materials presented with the good shall be considered part of the good but shall be disregarded in determining whether all of the non-originating materials have undergone the applicable change in tariff classification, subject to the conditions set out in Article 9.1(a) and (b). Article 9.2 provides that if the good is subject to a regional value requirement, the value of accessories, spare parts, tools and instructional materials presented with the good shall be taken into account as originating or non-originating materials in calculating the regional value content of the good. Article 10 provides that the determination of whether identical and interchangeable materials are originating shall be made either by physical segregation of the materials or by use of generally accepted accounting principles of stock control or inventory management practice. Article 11 concerns treatment of packing materials and containers. Article 11.1 provides that such materials shall not be taken into account in determining the origin of any good. Article 12 provides that an indirect material shall be treated as originating material in accordance with generally accepted accounting principles in the Party in which the goods are produced.

3.35. Article 11 concerns treatment of packing materials and containers. Article 11.1 provides that the packing materials and containers for transportation and shipment of a good shall not be taken into account in determining the origin of any good. Article 11.2 provides that packing materials and containers in which a good is packaged for retail sale, when classified together with that good, shall not be taken into account in determining whether all of the non-originating materials used in the production of the good have met the applicable change in tariff classification requirements for the good. Article 11.3 provides if a good is subject to a regional value content requirement, the value of the packing materials and containers in which the good is packaged for retail sale shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good. Article 12 provides that an indirect material shall be treated as originating material in accordance with generally accepted accounting principles in the Party in which the goods are produced.

3.36. Article 14, on direct consignment of goods, provides that a good will retain its originating status if the good has been transported to the importing Party without passing through any

15 Article 5 sets out two formulas for calculating regional value content, (a) direct and (b) indirect or

build down. 16 Such as ensuring preservation in good condition for the purposes of transport or storage, packing,

facilitating shipment or transportation and simple processes. content, (a) direct and (b) indirect or build down.

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non-Party or, in cases where the good has transited through a non-Party, has met the conditions in Article 14(b).

3.37. Article 15 concerns the issue of certificates of origin. Article 16 permits the Customs Authority of an importing Party to deny claims for preferential tariff treatment when (a) the good does not qualify as originating or (b) the importer, exporter or producer fails to comply with any relevant requirements of Chapter 3. Article 17 requires that importing parties grant producers, exporters and importers the right of appeal in matters relating to the eligibility for preferential tariff treatment.

3.38. Article 18 creates a Sub-Committee on rules of origin ("ROO") whose functions are set out in Article 18.1. The Parties advise that the Sub-Committee has met seven times since 2010. Article 18.3 provides that the ROO Sub-Committee shall commence a review of Article 6 (cumulative rules of origin) no earlier than 12 and no later than 18 months from entry into force of the Agreement. According to the Parties, the Sub-Committee commenced its discussion on AANZFTA cumulation in June 2011, 18 months after entry into force of the Agreement. Since then, the ROO Sub Committee has met three times. Parties have not yet reached consensus on additional provisions on cumulative rules of origin, and discussions are ongoing.

3.39. Article 18.4 requires that the ROO Sub-Committee shall review the application of the chemical reaction and other chemical process rules and other Product specific rules identified by Parties within no less than 12 months and no later than 18 months of entry into force of the Agreement. The Parties advise that the ROO Sub-Committee commenced its review of the application of the chemical reaction and other chemical process rules and other product specific rules in September 2011. The review of the AANZFTA product specific rules is still on-going and is expected to be finalised in 2014. The ROO Committee shall submit to the Goods Committee a final report within 3 years of entry into force of the Agreement, but this time-period has been extended by the Goods Committee. Article 19 concerns consultations, review and modification under the Chapter.

3.40. Chapter 3 contains an Annex on Operational Certification Procedures. In rules 1-25 it sets out the operational procedures on the issuance and verification of Certificates of Origin and other related administrative matters required to be observed by each Party. The verification of origin by the Customs Authority shall be in accordance with domestic laws and regulations and administrative practices. It may be carried out retroactively through a request for further information or a verification visit. The authority will provide written advice on the eligibility of the goods for preferential treatment within 60 days from the receipt of all information requested. It may suspend preferential treatment to a good that is the subject of a verification action for the duration of the action or any part thereof. The goods may be released to the importer subject to any administrative measures deemed necessary, provided they are not subject to import prohibition or restriction and there is no suspicion of fraud. Any suspended preferential tariff treatment shall be reinstated if the Customs Authority determines that the good qualified for preferential treatment. Appendix 1 to the Annex specifies minimum data requirements for an application for a certificate of origin. Appendix 2 to the Annex sets out minimum data requirements for a certificate of origin.

3.3 Export duties and charges, and quantitative restrictions

3.41. Under Article 7 of Chapter 2 no Party may maintain export prohibitions or quantitative restrictions or any non-tariff measures on exports to any other Party except in accordance with its WTO rights and obligations and the Agreement. Furthermore each Party shall ensure the transparency of any permitted non-tariff measures and shall ensure that such measures are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to trade among the Parties.

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3.4 Regulatory provisions on trade in goods

3.4.1 Standards

3.4.1.1 Sanitary and phytosanitary measures

3.42. Chapter 5, Articles 1-11 concern sanitary and phytosanitary measures. Article 1 sets out the objectives of the Chapter. Article 2 provides that the Chapter applies to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade among the Parties.

3.43. In Article 4.1 of Chapter 5 the Parties reaffirm their rights and obligations with respect to each other under the SPS Agreement. Article 5.1 provides that the Parties shall strengthen co-operation on equivalence in accordance with the SPS Agreement and relevant international standards, guidelines and recommendations. Article 5.2 permits the competent authorities of the Parties to develop equivalence arrangements and take decisions thereon, in particular with regard to Article 4 of the SPS Agreement and the guidance provided by international standard setting bodies and by the WTO Committee on Sanitary and Phytosanitary Measures, per Article 12 of the SPS Agreement.

3.44. Article 6 of Chapter 5 requires each Party to provide each other Party with a description of its competent authorities, their division of responsibilities and a contact point to facilitate distribution of requests or notifications in accordance with the Chapter. Article 7 on notification, requires in Article 7.2 that the Parties provide timely and appropriate information directly to the contact points of the relevant Parties when (a) a change in animal or plant health status may affect existing trade, (b) significant sanitary or phytosanitary non-compliance associated with an export consignment is identified by the importing Party, and (c) provisional SPS measures are taken against or affecting the exports of another Party. Article 8 on co-operation requires in Article 8.1 that Parties explore opportunities for further co-operation, collaboration and information exchange with the other Parties on SPS matters of mutual interest.

3.45. Article 9 on consultations requires that when a Party considers that a SPS measure affecting trade between it and another Party warrants further discussion, it may, through the contact points, require a detailed explanation of the SPS measure and if necessary request consultations to try to resolve any concerns on specific issues arising from application of the measure. The requested Party shall respond promptly and shall enter into consultations within 30 days. The Parties shall make every effort to reach a mutually satisfactory resolution within 60 days, or as agreed. If the consultations fail to reach resolution the matter shall be forwarded to the FTA Joint Committee.

3.46. In Article 10.1 the Parties have established a Sub-Committee on SPS which was required to meet within 1 year of entry into force of the Agreement. The Sub-Committee shall review the progress made by the Parties in implementing their commitments under the Chapter, and may set up subsidiary working groups as required. The Sub-Committee has met twice, in 2011 and 2012.

3.47. Article 11 provides that Chapter 17 of the Agreement (Dispute Settlement) is not applicable to any matter arising under Chapter 5.

3.4.1.2 Technical barriers to trade

3.48. Chapter 6, Articles 1-13 concern standards, technical regulations and conformity assessment procedures. The objectives of the Chapter are set out in Article 1.

3.49. Article 2 of Chapter 6 provides that the Chapter applies to all standards, technical regulations and conformity assessment procedures of the Parties that may affect trade in goods between the Parties except (a) purchasing specifications prepared by governmental bodies for the production or consumption requirements of such bodies, and (b) SPS measures covered by Chapter 5. Article 2.2 notes that nothing in the Chapter shall limit the right of a Party to have or develop standards, technical regulations and conformity assessment procedures as necessary to fulfil a legitimate objective, which expressly include, inter alia, national security requirements, prevention of deceptive practices, protection of human health or safety, animal or plant life or health or the environment.

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3.50. Article 3 of Chapter 6 provides that the definitions used in Annex 1 of the TBT Agreement shall apply to the Chapter. In Article 4.1 the Parties affirm their rights and obligations under the TBT Agreement. In Article 4.2 the Parties undertake to take such reasonable measures as are available to them to ensure compliance with the implementation of the Chapter by local government and non-governmental bodies within their territory which are responsible for the preparation, adoption and application of standards, technical regulations and conformity assessment procedures.

3.51. Article 5.1 of Chapter 6 requires the Parties to ensure that their standardising bodies accept and comply with Annex 3 to the TBT Agreement with respect to the preparation, adoption and application of standards. Article 5.2 exhorts the Parties to encourage standardising bodies to exchange information with those bodies in other Parties. Co-operation shall include (a) exchange of information on standards, (b) exchange of information relating to standard setting procedures and (c) co-operation in the work of international standardising bodies of mutual interest.

3.52. Article 6 of Chapter 6 concerns technical regulations. Article 6.1 provides that where international standards exist or are imminent, each Party is required to use them as a basis for their technical regulations, except if those international standards would be an ineffective or inappropriate means to fulfil the legitimate objectives pursued. Article 6.2 on equivalence requires each Party to give "positive consideration" to accepting as equivalent technical regulations of another Party even if those regulations differ from the first Party's own regulations, provided that the first Party is satisfied that the regulations adequately fulfil the objectives of its regulations. If a Party does not accept another Party's regulations as equivalent it shall notify the other Party and explain the reasons for its decision.

3.53. Article 7 of Chapter 6 concerns conformity assessment procedures. Each Party shall give positive consideration to accepting the results of conformity assessment procedures of other Parties even if those procedures differ from the first Party's own procedures, provided it is satisfied those procedures offer an assurance of conformity with applicable technical regulations equivalent to its own (Article 7.1). Article 7.2 requires each Party to enhance the acceptance of the results of conformity assessment procedures conducted in the territories of other Parties. The Parties are permitted to choose a broad range of approaches, which include: (a) recognition by a Party of the results of conformity assessment by other Parties; (b) recognition of cooperative arrangements between accreditation bodies in the territories of the Parties; (c) mutual recognition of conformity assessment procedures conducted by Parties located in the territory of each Party; (d) accreditation of conformity assessment bodies in the territory of another Party; (e) use of existing regional and international multilateral recognition agreements and arrangements; (f) designating conformity assessment bodies located in the territory of another Party, and (g) suppliers' declarations of conformity. Article 7.3 requires the Parties to exchange information on the approaches set out in Article 7.2 (a)-(g).

3.54. Article 8 of Chapter 6 concerns co-operation between the Parties in the field of standards, technical regulations and conformity assessment procedures. A range of possible types of co-operation activities are set out in Article 8.2. Article 9 sets out the modalities for the holding of consultations between the Parties on issues relating to the implementation of Chapter 6. Article 10, on agreements or arrangements, exhorts the Parties to seek to identify trade facilitating initiatives regarding standards, technical regulations and conformity assessment procedures. In Article 11 the Parties restate their commitment to the transparency and prior notification requirements of the TBT Agreement. Article 12 concerns the obligation to designate and notify contact points; Article 12.4 obliges the Parties to ensure that its contact points facilitate the exchange of covered information in response to all reasonable information requests by a Party. Article 13 establishes a Sub-Committee on Standards, Technical Regulations and Conformity Assessment Procedures (STRACAP). The Sub-Committee has met once, in 2011 and contact points have also been exchanged.

3.4.2 Safeguard mechanisms

3.4.2.1 Global safeguards

3.55. Article 9.1 of Chapter 7 provides that the Agreement does not confer any additional rights or obligations on the Parties with respect to global safeguard measures. Article 9.3 provides that

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except as provided in Article 6 (transitional safeguards), a Party shall not apply or maintain safeguard measures on a good subject to a measure applied pursuant to Article XIX of the GATT 1994, and the safeguards Agreement, the Agreement on Agriculture or any other relevant provisions of the WTO Agreement.

3.56. Article 9.3 provides that a Party considering the imposition of a global safeguard measure on an originating good of another Party shall initiate consultations with that Party or Parties as far in advance as practicable.

3.4.2.2 Bilateral safeguards

3.57. Chapter 7, Articles 1-9 concerns the imposition of safeguards under the Agreement. Chapter 7 applies to safeguard measures adopted or maintained by a Party affecting trade in goods among the Parties, during the transitional safeguard period stipulated under the Agreement as three years from the date on which the tariff on a good is reduced to its final level (whether the tariff is eliminated or bound at a specified level) under the Agreement.

3.58. Article 3 provides that if as the result of reduction or elimination of the tariff under the Agreement an originating good is being imported into the territory of another Party in such increased quantities in absolute or relative (to domestic production) terms and under such conditions as to cause or threaten serious injury to a domestic industry that produces like or directly competitive goods, that Party may use one of two actions: the suspension of a further reduction in the rate of customs duty applying to the good under the Agreement (Article 3(a)) or increase the rate of customs duty on the good to the lesser of (i) the mfn applied rate of duty on the good in effect at the time the action is taken, or (ii) the mfn applied rate of duty in effect on the immediately preceding the date of entry into force of the Agreement (Article 3(b)).

3.59. Article 4 requires that any investigation that leads to the imposition of duty be done pursuant to the same procedures as those provided for in Article 3 and 4.2 of the WTO Safeguards Agreement, which are incorporated into and made part of the Agreement mutatis mutandis (Article 4.1). Article 4.2 provides that the competent authorities must complete any investigation expeditiously and in any event within one year following initiation. Article 5 sets out the notification requirements for the Party conducting the investigation. Article 6 sets out the scope and duration of transitional safeguard measures. Article 6.1 provides that a safeguard measure may not be maintained (a) longer than necessary to prevent or remedy serious injury and facilitate adjustment; (b) for a period longer than two years, extendable for one further year upon proper investigation per Article 4 of the Agreement, or (c) for more than three years (including any extension period). A safeguard measure shall not be applied against an ASEAN originating good as long as its share of imports of the good in the importing Party does not exceed 3% of total imports from the other Parties, provided that Parties with less than 3% import share collectively account for not more than 9 % of total imports from other Parties (Article 6.2). Article 6.7 provides that a Party shall not apply a safeguard measure to an originating good imported up to the limit of a tariff rate quota applied in accordance with Annex 1 schedules of tariff commitments.

3.60. Under Article 7 a provisional measure cannot be applied for more than 200 days per the requirements of Article 7.2, and any time under provisional measure shall be counted towards the maximum duration of a safeguard measure as set out in Article 6 of Chapter 7.

3.61. Article 8 concerns the award of compensation to an exporting Party or Parties whose goods would be subject to a safeguard measure under Chapter 7. Article 8.1 requires the Party proposing to apply a safeguard measure to consult the exporting Party or Parties who would be affected by the measure on mutually agreed adequate means of trade compensation in the form of substantially equivalent concessions or other obligations to those existing under the Agreement. In seeking compensation under Article 8.1, Article 8.2 permits the Parties to hold consultations in the Goods Committee, within 30 days from the date on which the safeguard measure was applied. Article 8.3 provides that if no agreement can be reached on compensation under Article 8 within 30 days the Party or Parties subject to the measure may unilaterally suspend concessions for the minimum period necessary to achieve substantially equivalent effects. The right of suspension of concessions shall not be exercise for the first two years that a safeguard is in effect, if the measure has been applied on the basis of an absolute increase in imports.

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3.62. Article 9 of Chapter 7 sets out the relationship between the Agreement, Article XIX of the GATT 1994, the Safeguards Agreement and Article 5 of the Agreement on Agriculture. The Parties may not apply or maintain a safeguard or provisional measure subject to a measure that the Party has applied pursuant to Article XIX of GATT 1994, and the Safeguards Agreement and the Agreement on Agriculture or any other relevant provisions in the WTO Agreement.

3.63. Under a side letter, New Zealand and Singapore agree not to take safeguard measures under Chapter 7 of the Agreement against goods originating in the other party from the date of entry into force for Singapore.17 According to the Parties the side letters are an Arrangement between New Zealand and Singapore that set out their joint understanding as to the application of the safeguard measures under Chapter 7 of the Agreement in accordance with Art 31.3(a) of the Vienna Convention on the Law of Treaties.

3.4.2.3 Balance of Payments safeguards

3.64. Under Chapter 15 there are provisions for the use of restrictive import measures by the Parties in the case of serious balance of payments and external financial difficulties or threat thereof in accordance with GATT 1994 and the Understanding on the Balance of Payments Provisions of GATT 1994 in Annex 1A of the WTO Agreement (Article 4).

3.4.3 Anti-dumping and countervailing measures

3.65. The Agreement contains no specific provisions on anti-dumping or countervailing duties.

3.4.4 Subsidies and State-aid

3.66. The Agreement contains no specific provisions on subsidies and State aid. As noted above, Article 3 of Chapter 2 provides that consistent with their rights and obligations under the WTO Agreement, each Party agrees to eliminate and not reintroduce all forms of export subsidies for agricultural goods destined for other Parties to the Agreement.

3.4.5 Customs-related procedures

3.67. Chapter 4, Articles 1-13 concern customs procedures and applies to customs procedures applied to goods traded among the Parties. Article 1 provides that the objectives of the Chapter are to (a) ensure predictability, consistency and transparency in the application of customs laws and regulations, (b) promote efficient, economical administration of customs procedures and the expeditious clearance of goods, (c) simplify customs procedures, and (d) promote cooperation among the customs administrations of the Parties.

3.68. Article 4.1 of Chapter 4 concerns customs procedures and facilitation and requires that each Party ensure that its customs procedures and practices are predictable, consistent, transparent and facilitate trade, including through the expeditious clearance of goods. Article 5 on customs co-operation permits the customs administration of each Party to assist the customs administration of each other Party in relation to (a) the implementation and operation of the chapter, (b) developing and implementing customs best practices and risk management techniques, (c) providing advance notice of changes to laws, regulations, guidelines and procedures that would affect the operation of the Agreement, (d) simplifying and harmonising customs procedures, (e) advancing technical skills and the use of technology and (f) application of the Agreement on Customs Valuation.

3.69. Article 6, on use of automated systems, provides in Article 6.1 that customs administrations of parties will endeavour to have its own system that supports electronic customs transactions. Article 7, on valuation, requires the Parties to determine the customs value of goods traded among them in accordance with provisions of the Agreement on Customs Valuation. Article 8 sets out the process of obtaining advance determinations and rulings on the tariff classification of goods, questions arising from the application of the principles of the Agreement on Customs Valuation and/or origin of goods. Article 9, on risk management, requires the Parties to administer customs

17 Dated 27 February 2009. Available at: http://www.asean.fta.govt.nz/aanzfta-related-new-zealand-

specific-side-instruments/.

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procedures so as to facilitate the clearance of low-risk goods and focus on high-risk goods. Where a customs authority determines that the inspection of goods is not necessary to authorise clearance of goods from customs control, that Party shall endeavour to provide a single point for the documentary or electronic processing of those goods.

3.70. Article 10 on confidentiality sets out in Article 10.1 limitations on the right to require information from a Party and in 10.2 requires that a Party receiving information maintain the confidentiality of that information. Article 11 concerns the designation of enquiry points. Article 12 requires the customs administrations of the Parties to encourage consultations with each other regarding significant customs issues that affect goods traded between the Parties. Article 13 on review and appeal requires Parties to ensure that importers have access to administrative review within the customs administration (Article 13.1), that appeal decisions be provided to the appellant in written form together with reasons for the decision (Article 13.2).

3.4.6 Fees and charges

3.71. Article 5.1 of Chapter 2 of the Agreement requires that fees and charges in connection with importation and exportation be consistent with the GATT 1994. Article 5.2 requires the Parties to make available the details of such fees and charges, and to the extent possible, make the information available on the internet. Article 5.3 prohibits the Parties from requiring consular transactions such as related fees and charges in connection with the importation of any good from any other Party.

3.5 Sector-specific provisions on trade in goods

3.72. The Agreement contains no sector-specific provisions on trade in goods.

4 PROVISIONS ON TRADE IN SERVICES AND INVESTMENT

4.1 Scope and definitions

4.1. Chapter 8, Articles 1-24, the Annexes on Financial Services and Telecommunications, and Annex 3 concern trade in Services. Article 1 sets out the scope and coverage of the Chapter. Chapter 11, Articles 1-28 (and its Annex on Expropriation and Compensation) concern Investment. There are also separate chapters on the movement of natural persons (Chapter 9) and Electronic commerce (10).

4.2. The definitions used in Chapter 8 are set out in Article 2. Per Article 1.4, Chapter 8 does not apply to measures affecting (a) government procurement, (b) subsidies or grants, (c) services supplied in the exercise of governmental authority within the territory of each Party as defined in Article 2(q) of Chapter 8 of the Agreement. Like the GATS Annex on Air Transport Services, the Chapter does not apply in respect of air transport services, measures affecting traffic rights however granted, or measures affecting services directly granted to the exercise of traffic rights, other than measures affecting (i) aircraft repair and maintenance, (ii) the selling and marketing of air transport services, and (iii) computer reservation system services. Article 1.6 provides that the Chapter does not apply to measures affecting natural persons seeking access to the employment market of another Party, nor measures regarding citizenship, residence or employment on a permanent basis.18

4.3. Article 22.1 of Chapter 8 (Services) provides that Chapter 11 (Investment) does not apply to measures adopted or maintained by a Party to the extent that they are covered by the Chapter, although Article 22.2 expressly incorporates (a) Articles 6 (Treatment of Investors), (b) Article 7 (Compensation for Losses) (c) Article 8 (Transfers), (d) Article 9 (Expropriation and Compensation), (e) Article 10 (Subrogation) and (f) Section B (Investment Disputes between a Party and an Investor).

4.4. Chapter 11 (Investment) provides in Article 1 that the Chapter shall apply to measures adopted or maintained by a Party relating to (a) investors of any other Party, and (b) covered investments. Chapter 11 does not apply to (b) government procurement, (c) subsidies or grants

18 Chapter 9 of the Agreement governs the movement of natural persons.

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provided by a Party, (d) services supplied in the exercise of government authority by the relevant body or authority of a Party, which is any service supplied neither on a commercial basis nor in competition with one or more service suppliers. Definitions, including "covered investment" used in Chapter 11 are set out in Article 2 of Chapter 11.

4.5. Article 3 of Chapter 11 sets out the relationship of Chapter11 to other Chapters. Article 3.1 provides that Chapter 11 does not apply to measures of a Party to the extent they are covered by Chapter 8 (Services) or Chapter 9 (Movement of Natural Persons). Article 3.2 provides that notwithstanding Article 3.1, Articles 6 (Treatment of Investment), 7 (Compensation for losses), 8 (Transfers), 9 (Expropriation and Compensation), 10 (Subrogation) and Section B (Investment disputes between a Party and an Investor) shall apply to any measure affecting the supply of a service by a service supplier of a Party through commercial presence in the territory of any one of the other Parties, only to the extent that the measures relate to a covered investment and an obligation under this Chapter, regardless of whether such a sector is scheduled in Annex 3 (Schedules of Specific Services Commitments).

4.2 Denial of benefits

4.6. Article 21 of Chapter 8 (Services) concerns Denial of Benefits and mirrors Article XXVII of the GATS.

4.7. Article 11 of Chapter 11 (Investment) concerns the denial of benefits and sets out the circumstances in which a Party may deny the benefits of the Chapter. Article 11.3 concerns definitions of juridical person applying to Thailand. Article 11.4 provides that the Philippines may deny the benefits of the Chapter if the listed domestic laws are breached.

4.3 General provisions on trade in services and investment

4.3.1 Market access

4.8. Article 4 of Chapter 8 concerns market access and mirrors GATS Article XVI. Unless expressly permitted in its Annex 3 or 4 Schedules, Article 4.2 provides that in sectors in which market access commitments are undertaken, the measures which a Party shall not maintain (unless the Party's schedule on services commitments or movement of natural persons provides otherwise) are defined in sub paragraphs (a)-(f).

4.3.2 National treatment and MFN

4.9. Article 3 of Chapter 8 (Services) concerns national treatment, and mirrors Article XVII of the GATS. Article 3.1 provides that in all sectors described in the schedules of commitments in Annex 3 (Schedules of Specific Services Commitments) or Annex 4 (Movement of Natural Persons) and any reservations therein, each Party shall accord to services and services suppliers of another Party treatment no less favourable than that it accords to its own like services and service suppliers.

4.10. Article 4 of Chapter 11 (Investment) provides that each Party shall accord to investors of another Party and covered investments, in relation to establishment, acquisition, expansion, management, conduct, operation, liquidation, sale, transfer or other disposition of investments, treatment no less favourable that it accords in like circumstances to its own investors and their investments. Article 5 of Chapter 11 prohibits the application of any measure which is inconsistent with the WTO Agreement on TRIMs.

4.11. Article 6 of Chapter 11 (Investment) provides in Article 6.1 that each Party shall accord to covered investments fair and equitable treatment and full protection and security. Article 6.2 provides context for the interpretation of (a) fair and equitable treatment and (b) full protection and security. Article 6.2(c) provides that those concepts do not require treatment beyond that required under customary international law and does not create any additional substantive rights. Indonesia is not subject to Article 6.2(c). Article 7 provides for compensation for losses suffered by investors owing to armed conflict, civil strife or state of emergency, and requires that compensation be provided on a national treatment and MFN basis.

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4.12. Article 3.2 of Chapter 8 (Services) provides that a Party may meet the requirement of Article 3.1 by according to services and service suppliers of another Party either formally identical treatment or formally different treatment to that it accords to its own services or service suppliers. Article 3.3 provides that formally identical or formally different treatment shall be considered less favourable if it modifies the conditions of competition in favour of services or suppliers of services of the Party compared to like services or services suppliers of any other Party.

4.13. Article 4.1 of Chapter 8 provides that in respect of market access each Party shall accord services and service suppliers of any other Party treatment no less favourable than that provided for under its Annex 3 (Schedules of Specific Services Commitments) or Annex 4 (Movement of Natural Persons) schedules.

4.14. Article 7 of Chapter 8 concerns MFN treatment. Article 7.1 provides that after entry into force of the Agreement, if a Party enters into an agreement with a non-party that provides for treatment of services or service providers that is more favourable than that accorded to Parties under the Agreement, a Party may request consultations to discuss the possibility of extending treatment that is no less favourable than the treatment in the other agreement to the Agreement. Article 7.2 provides that no Party shall be obliged to apply the obligation in Article 7.1 to any bilateral or plurilateral agreement between an individual ASEAN member state or states and non-parties or Australia or New Zealand. Article 7.4 provides that a Party shall not be obliged to enter into consultations in relation to treatment provided under any international agreement that was signed or entered into force prior to the Agreement.

4.3.3 Commercial presence

4.15. Chapter 8 of the Agreement defines the term commercial presence in Article 2(b) and incorporates protections for commercial presence in Article 22 (Treatment and Protection of Commercial Presence). Commitments in relation to the right to establish a commercial presence are set out in the Parties' schedules of commitments on Services (Annex 3).

4.16. Article 3.2 of Chapter 11 (Investment) provides that Article 6 (Treatment of Investment) Article 7 (Compensation for losses), Article 8 (Transfers), Article 9 (Expropriation and Compensation), Article 10 (Subrogation) and Section B (Investment Disputes between a Party and an Investor) shall apply to any measure affecting the supply of a service by a service supplier of a Party through commercial presence in the territory of any one of the other Parties pursuant to Chapter 8 (Services), to the extent that such measures relate to a covered investment, regardless of whether the Party has scheduled such a services commitment in its Annex 3 Schedule.

4.3.4 Movement of natural persons

4.17. Chapter 9, Articles 1-9 concerns the movement of natural persons. Article 1 sets out the objectives of the Chapter, which are (a) to provide for rights and obligations additional to those set out in Chapter 8 (Services) and Chapter 11 (Investment) in relation to the movement of natural persons, (b) facilitate the movement of natural persons engaged in the conduct of trade and investment, (c) establish streamlined, transparent procedures for immigration formalities for the temporary entry of natural persons for whom the Chapter applies, and (d) protect the integrity of the Parties borders and protect the domestic labour force and permanent employment in the territories of the Parties.

4.18. Article 2 of Chapter 9 sets out the scope of the Chapter and notes in Article 2.1 that it will apply as set out in each Party's Schedule of specific commitments in Annex 4 (Schedules of Movement of Natural Persons Commitments) to measures affecting the temporary entry of natural persons of a Party into the territory of another Party, which may include (a) business visitors, (b) installers and servicers, (c) executives of a business headquartered in a Party establishing a branch or subsidiary or other commercial presence, (d) intra-corporate transferees, or (e) contractual service providers. The Chapter does not apply to measures affecting natural persons seeking access to the employment market of another Party, nor shall it apply to measures regarding citizenship, residence or employment on a permanent basis. Definitions used in the Chapter are set out in Article 3. In accordance with its Annex 4 commitments, Article 4 requires each Party to grant temporary entry or extension of temporary stay in accordance with Chapter 9, provided the natural persons (a) follow prescribed application procedures for the immigration

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formalities sought, and (b) meet all relevant eligibility requirements for entry to the granting Party. Article 4.2 requires that any fee imposed in respect of the processing of an immigration formality shall be reasonable.

4.19. Article 9 on application of dispute settlement procedures provides in Article 9.1 that the Parties shall endeavour to settle any differences arising through consultations. Article 9.2 provides that a Party may not use the dispute settlement mechanism set out in Chapter 17 unless (a) the matter involves a pattern of practice, and (b) the natural persons concerned have exhausted all available domestic remedies.

4.20. The commitments of the Parties in relation to movement of natural persons under the Agreement are set out below in Table 4.1.

4.21. New Zealand has signed side letters with the Philippines and Viet Nam permitting temporary entry for personnel (registered nurses from the Philippines and Chefs and Engineering professionals from Viet Nam) and working holiday schemes with these two countries19. New Zealand has also signed a side letter with Indonesia permitting temporary entry of personnel (Indonesian Chefs, Indonesian Halal Slaughterers and Indonesian Bahasa Teaching Aides. These side letters are Arrangements between New Zealand and the respective country and are instruments of less than treaty status. Although these arrangements were negotiated in the context of AANZFTA they set out additional stand-alone commitments in respect of temporary entry for personnel and in the case of the Philippines and Viet Nam working holiday schemes.

Table 4.1 Movement of Natural Persons under the Agreement

Category Migratory Condition Length of Stay Brunei Darussalam

Intra-Corporate Transferee executive, manager, or specialist (defined terms in Schedule)

Three years, extendable for up to 2 additional years, maximum period of 5 years

Cambodia Business Visitors Business Visitor (defined term in

Schedule) Initial stay of 30 days, extendable to 90 days

Setting up commercial establishment (defined term in Schedule)

No maximum duration of stay

Intra-Corporate Transferee (a) Executives; (b) Managers, (c) Specialists

Temporary residency and work permit required - issued for 2 years, renewable annually to maximum of total five years

Indonesia Business Visitors Business Visitors 60 days, extendable to 120 day maximum. Intra-Corporate Transferees Directors, managers, technical

experts/advisers (economic needs test applies

Subject to local labour and immigration laws and regulations, two year stay extendable twice (6 year maximum)

Laos, Peoples Democratic Republic of Business Visitor The temporary stay of a business

visitor is subject to a maximum duration of 90 days.

60 day maximum for natural persons in the categories listed under Intra-Corporate transferees; temporary residency and work permit will be issued for up to 6 months which may be renewed for up to one year as long as the conditions indicated for each category are satisfied.

Intra-Corporate Transferee (Subject to maximum percentages) (a) Executives, (b) Managers, (c) Specialists, (defined terms in Schedule).

6 months, renewable up to maximum of 1 year.

Malaysia Intra-Corporate Transferee (a) Senior Managers, (b) 3

Specialists or experts (defined terms in Schedule)

Maximum 10 years

Others (a) Specialists or experts, (b) Professionals

Maximum 10 years

19 Dated 27 February 2009. Available at: http://www.asean.fta.govt.nz/aanzfta-related-new-zealand-

specific-side-instruments/

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(c) business visitors not based in Malaysia (d) Installers or maintainers (defined terms in Schedule)

Maximum 90 days Maximum 6 months

Myanmar Business Visa Business Visitor 70 days, extendable to one year and further

extension to total of 1 year

Management, Professional and Technical Experts

One year, may be extendable.

The Philippines Intra-Corporate Transferees Intra Corporate transferees,

(defined term, subject to conditions set out in Schedule)

Entry and temporary stay for one year, which may be extended.

Investors Investor (defined term, subject to conditions set out in Schedule)

Entry and temporary stay for one year, which may be extended.

Singapore Intra-Corporate Transferees (a) Managers, (b) Executives, (c)

Specialists (defined term in Schedule)

Two years extendable for up to 3 years each time, for a total term not exceeding 8 years.

Thailand Business Visitors (a) service sellers, 90 days (b) Persons establishing

commercial presence (defined terms subject to conditions in Schedule)

90 days, extendable to 1 year

Intra-Corporate transferee Executives (defined in and subject to conditions in Schedule) Managers (defined in and subject to conditions in Schedule) Specialist (defined in and subject to conditions in Schedule)

One year, extendable annually to maximum of 4 years

Viet Nam Intra-Corporate Transferees Managers, executives and

specialists (defined in and subject to conditions in Schedule).

Three years, extendable.

Other personnel Other personnel (defined in and subject to conditions in Schedule)

3 years or duration of contract whichever is less

Service sales persons Service sales persons (defined in and subject to conditions in Schedule)

Maximum 90 days.

Persons establishing a commercial presence (defined in and subject to conditions in Schedule)

Maximum 90 days.

Contractual Service suppliers

Contractual Service suppliers 90 days, or duration of contract whichever is less

Source: Brunei Darussalam's, Cambodia's, Indonesia's, Lao PDR's, Malaysia's, Myanmar's, The Philippines', Singapore's, Thailand's, Viet Nam's, Australia's and New Zealand's Annex 4 Schedule of Movement of natural persons commitments.

4.3.5 Australia and New Zealand

4.22. Australia and New Zealand's commitments on the movement of natural persons only apply with respect to Parties from the ASEAN Member States. Australia and New Zealand exchanged letters setting out an agreement to limit application of the AANZFTA between each other, given the Australia-New Zealand Closer Economic Relations Trade Agreement and its related agreements and understandings (CER). Under the exchange of letters, Australia and New Zealand agreed to consider the merits of having certain chapters of the AANZFTA, including the chapter on the movement of natural persons apply between each other. In the interim, Australia and New Zealand agreed that those other chapters shall not create rights and obligations between them.

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Table 4.2 Australia

Category Migratory Condition Length of Stay

Business Visitor (i) service sellers Initial stay of 6 months, maximum of 12 months

(ii) business visitors (negotiations or meetings)

Maximum 3 month stays

(iii) business visitors (investors) Maximum 3 month stays (iv) business visitors (sale of goods -

non retail) Maximum 3 month stays

Intra Corporate Transferee*

(i) Executives, senior managers, (ii) Specialists

(i) 4 years with the possibility of extensions up to 14 years (ii) 2 year periods with the possibility of extension. (i) and (ii) subject to sponsorship arrangements

Contractual Service Suppliers*

(i) Contractual Service suppliers (independent professionals)

(ii) Contractual Service suppliers trade technical professional skills

Employer sponsorship required and - subject to various additional conditions that may change - up to 12 months with possibility of extension

Independent Professional Independent Executives Maximum of 2 years

Source: Australia's Annex 4 Schedule of Movement of natural persons commitments.

*Spouses of these categories are accorded full working rights when the partner is permitted a stay of more than 12 months. Spouse length of stay is for the same period as the temporary entrant.

Table 4.3 New Zealand

Category Migratory Condition Length of Stay Business Visitor Business Visitor for business

purposes (defined in Schedule) No more than 3 months stay in any year.

Intra-Corporate Transferee Executive, manager or specialist (defined in Schedule)

Maximum 3 years Maximum 3 years Maximum 3 years

Installers/Servicers Installer/servicer of machinery or equipment (defined in Schedule)

Maximum 3 month entry in any 12 months

Independent Service Suppliers Independent Professionals (defined in Schedule), subject to economic needs test

Maximum stay 12 months

Source: New Zealand's Annex 4 Schedule of Movement of natural persons commitments. 4.23. Indonesia's horizontal commitments under mode 4 cover directors, managers and technical experts/advisors for an initial period of two years, as under its GATS schedule. However, the extension period is doubled from one to two years as compared to the GATS. Intra-corporate transferees are subject to an economic needs test, like under the GATS. Entry for 60 days, extendable by 120 days, has been granted to business visitors, which are not covered by the GATS schedule.

4.4 Other measures on Investment

4.24. Article 8 of Chapter 11 (Investment) concerns financial transfers relating to a covered investment. Article 8.1 requires that each Party to the Agreement allow all transfers relating to a covered investment to be made freely and without delay into and out of its territory. Article 8.1(a)-(b) sets out an illustrative list of such transfers. Article 8.2 requires that such transfers be made in a freely usable currency at the market rate of exchange prevailing at the time of transfer. Article 8.3(a)-(h) list circumstances in which a Party may prevent or delay such a transfer.

4.25. Article 9 of Chapter 11 concerns expropriation and compensation20, and sets out, in Article 9.1, a general prohibition on expropriation or nationalisation of a covered investment. Article 9.1(a)-(d) establishes 4 criteria for an exception to this provision. The parameters for

20 Chapter 11 also contains an Annex on Expropriation and Compensation, which provides guidance on interpretation of Article 9 of Chapter 11 (Expropriation and Compensation).

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compensation are set out in Article 9.2(a)-(d). Article 10 concerns subrogation of rights in respect of investments.

4.26. Article 12 of Chapter 11 (Investment) provides for reservations.21 Article 12.1 sets out express reservations on the application of Article 4 (National Treatment) and in respect of Laos Article 5 (Prohibition of Performance Requirements) for reservations set out in List I of the Parties' Schedules of Reservations, which refers to a negative list annex. Article 12.2 concerns the same reservations set out in List II of the Parties Schedules of Reservations. A footnote to Article 12 clarifies that Article 12 will only apply subject to the Work Programme provided for in Article 16. Article 13 concerns Transparency. Article 15 provides for special and differential treatment for newer ASEAN States by the Parties.

4.27. A work programme for the Chapter is established by Article 16, and requires the Parties to enter into discussions on schedules of reservations under the Chapter and treatment of investment in services which does not qualify as commercial presence in Chapter 8, the application of most-favoured-nation treatment to the Chapter, and procedures for the modification of schedules of reservations. The Parties clarified that the lists are not available yet. Discussions as indicated in the Work Programme (Article 16 and 17 of Chapter 11), were still on-going and overseen by the Committee on Investment (COI).22 Article 16 (Work Programme) of Chapter 11, paragraph 3 stated that the Parties shall conclude the discussions referred to in Paragraphs 1 and 2 within five years from the date of entry into force of this Agreement unless the Parties otherwise agree. A Committee on Investment is established by Article 17, and its functions are set out in Article 17.3.

4.28. Section B, Articles 18-28 of Chapter 11 concern the process for resolution of investment disputes between a Party and an investor of a Party, including the process for arbitration of any resulting claims. Article 18.2 provides that the Section shall not apply to investment disputes which occurred prior to the entry into force of the Agreement. Article 18.3 provides that a natural person possessing the nationality or citizenship of a Party may not pursue a claim against that Party under Section B.23

4.5 Liberalization commitments

4.29. Article 6 of Chapter 8 (Services) provides that the Parties shall enter into successive rounds of negotiations, starting 3 years after entry into force of the Agreement and periodically thereafter as determined by the FTA Joint Committee with a view to further improving specific commitments so as to progressively liberalize trade in services between the Parties. The AANZFTA Committee on Trade in Services (CTS) has met twice to undertake preparatory work for the next round of negotiation, including through consideration of existing proposals and implementation of the related ECWP projects.24

4.30. Article 8 concerns Schedules of Specific Commitments and provides in Article 8.1 that each Party shall set out the commitments it undertakes in respect of Article 3 (National Treatment) Article 4 (Market Access) and Article 5 (Additional Commitments) in a Schedule. Article 8.2 requires that any measures inconsistent with Market Access and National Treatment shall be inscribed in the column relating to market access (and in such a case shall be considered to also provide a qualification to national treatment). Schedules of Specific Services Commitments are set out in Annex 3. As noted above, specific commitments in respect of the presence of natural persons of a Party are set out in Annex 4 (Schedules of Movement of Natural Persons Commitments) of the Agreement (Article 8.3).

21 Note 11 to Article 12 provides "The application of this Article is subject to Article 16 (Work

Programme)." 22 According to the Parties, the Committee on Investment has met in accordance with Articles 16 and

17. The most recent meeting (19-21 June, 2013) included discussions on the approach to agreeing schedules of reservations but did not commence negotiations.

23 Article 18.4(e) provides that a disputing investor means an investor of a Party that makes a claim against another Party on its own behalf and may include an investor of a Party that makes a claim on behalf of a juridical person of the disputing Party that the investor owns or controls.

24 According to the Parties, at its second meeting (June 2013), the Committee on Trade in Services agreed to undertake preparatory work seeking to ensure that Parties arrive at a common and shared understanding of issues to be addressed in the review of commitments. This decision was noted by the AANZFTA FTA Joint Committee in June 2013 and by Ministers at the ASEAN Economic Ministers-Closer Economic Relations Ministerial meeting (August 2013).

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4.31. Like Article XXI of the GATS, Article 9 permits the Parties to modify or withdraw any commitment in Annex 3 or 4 at any time 3 years after the entry into force of the Agreement, pursuant to the procedures set out in Article XXI of the GATS.25

4.5.1 ASEAN

4.5.1.1 Brunei Darussalam

4.32. Brunei Darussalam's commitments under the GATS and the Agreement are set out in Table 4.4 below. Brunei has added commitments under architectural services (CPC 8671) and in communication services it has added telex and telegraph services. Brunei has also made new commitments in construction services, where it has bound modes 2 and 3 in both the market access and national treatment columns.

Table 4.4 Brunei Darussalam: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)

Sectors GATS FTA 1. BUSINESS SERVICES A. Professional services √ Improved B. Computer and related services √ √ C. Research and development - - D. Real estate - - E. Rental/Leasing services without operators √ √ F. Other - - 2. COMMUNICATION SERVICES A. Postal - - B. Courier - - C. Telecommunication √ √ D. Audiovisual - - E. Other - - 3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

- √

4. DISTRIBUTION SERVICES - - 5. EDUCATION SERVICES - - 6. ENVIRONMENTAL SERVICES - - 7. FINANCIAL SERVICES A. All insurance and insurance-related services √ √ B. Banking and other financial services - New 8. HEALTH RELATED AND SOCIAL SERVICES - - 9. TOURISM AND TRAVEL RELATED SERVICES A. Hotels and restaurants - New B. Travel agencies and tour operators - - C. Tourist guides - - D. Other - - 10. RECREATIONAL, CULTURAL AND SPORTING SERVICES - - 11. TRANSPORT SERVICES A. Maritime - New B. Internal waterways - - C. Air √ √ D. Space - - E. Rail - - F. Road - - G. Pipeline - - H. Services auxiliary to all modes of transport - - I. Other - - 12. OTHER SERVICES NOT INCLUDED ELSEWHERE - -

Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: Brunei Darussalam's Schedule of Specific Commitments under the GATS (S/DCS/W/BRN) and

Annex under the Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4.

25 Article 9.1 references WTO document S/L/80 of 29 October 1999.

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4.5.1.2 Cambodia

4.33. Cambodia's commitments under the GATS and the Agreement are set out in Table 4.5 below and are unchanged. Cambodia's services schedule under the Agreement does not refer to the Telecoms Reference Paper.

Table 4.5 Cambodia: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)

Sectors GATS FTA 1. BUSINESS SERVICES

A. Professional services √ √ B. Computer and related services √ √ C. Research and development - - D. Real estate - - E. Rental/Leasing services without operators √ √ F. Other - -

2. COMMUNICATION SERVICES A. Postal - - B. Courier √ √ C. Telecommunication √ √ D. Audiovisual - - E. Other - -

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

√ √

4. DISTRIBUTION SERVICES √ √ 5. EDUCATION SERVICES √ √ 6. ENVIRONMENTAL SERVICES √ √ 7. FINANCIAL SERVICES

A. All insurance and insurance-related services √ √ B. Banking and other financial services √ √

8. HEALTH RELATED AND SOCIAL SERVICES √ √ 9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and restaurants √ √ B. Travel agencies and tour operators √ √ C. Tourist guides √ √ D. Other - -

10. RECREATIONAL, CULTURAL AND SPORTING SERVICES

√ √

11. TRANSPORT SERVICES A. Maritime √ √ B. Internal waterways - - C. Air √ √ D. Space - - E. Rail - - F. Road √ √ G. Pipeline √ √ H. Services auxiliary to all modes of transport - - I. Other - -

12. OTHER SERVICES NOT INCLUDED ELSEWHERE - -

Commitments in the GATS schedule.

-: No commitments either under the GATS or the Agreement.

New: New commitments made under the Agreement.

Not scheduled: Commitment in the GATS schedule, but not under the Agreement.

Source: Cambodia's Schedule of Specific Commitments under the GATS (GATS/SC/140) and Annex under the Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4.

4.5.1.3 Indonesia

4.34. Indonesia's commitments under the GATS and the Agreement are set out below in Table 4.6. In its horizontal national treatment limitations column, Indonesia has removed limitations on modes 1 and 2 and the mode 3 Income Tax Law reservation as set out under the GATS. It has undertaken new commitments on legal services under the Agreement. Indonesia's commitments in respect of computer services are broader compared to the GATS. For that sector

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as well as computer and related services, and research and development both market access and national treatment have improved modes 1 and 2 from "unbound" to "none". Under communication services, Indonesia has reduced the number and extent of limitations on market access, although the commitments under the Agreement retain a foreign equity limit of 35% and a compulsory joint venture requirement. Indonesia's market access and national treatment commitments under telecommunications services are simplified and more liberal than under the GATS. Indonesia confirmed the new and improvement of commitments in certain services sectors. However, on the definition of Joint venture, Indonesia clarified that the definition in its GATS Schedule and AANZFTA is the same.

4.35. Indonesia has removed the exception in the definition for construction for buildings (CPC 512) and thus broadened the covered subsector as well as taken a new commitment on building completion and finishing work (CPC 517) and installation work (CPC 516) under the Agreement.

4.36. New commitments have been made under the Agreement in respect of education services, compared to the GATS. For financial services, Indonesia has increased permitted equity limits from 49% to 51% for the acquisition of local banks. Its commitments on health are new in comparison to the GATS. In tourism, it has added international hotel operator (CPC-91135) and tourism consultancy services (CPC-91136) and meal serving services with full restaurant services (CPC-64210).

4.37. Under maritime services under transport services, Indonesia has added in additional commitments on access to and use of port facilities. It has also added a commitment in maritime auxiliary services and taken new commitments on energy services. According to the Parties, the essence of the additional commitments were to express additional undertakings, not limitations. In that context, Indonesia's additional commitments on maritime services in AANZFTA had not reduced the scope of commitments.

Table 4.6 Indonesia: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)


A. Professional services √ Improved B. Computer and related services √ Improved C. Research and development - √ D. Real estate - - E. Rental/Leasing services without operators - - F. Other √ Improved

2. COMMUNICATION SERVICES A. Postal - - B. Courier - - C. Telecommunication √ Improved D. Audiovisual - - E. Other - -


√ Improved

4. DISTRIBUTION SERVICES - - 5. EDUCATION SERVICES - New 6. ENVIRONMENTAL SERVICES - - 7. FINANCIAL SERVICES

A. All insurance and insurance-related services √ √ B. Banking and other financial services √ Improved

8. HEALTH RELATED AND SOCIAL SERVICES - √ 9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and restaurants √ Improved B. Travel agencies and tour operators √ Same C. Tourist guides - - D. Other - New


- -

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Sectors GATS FTA 11. TRANSPORT SERVICES

A. Maritime √ Improved B. Internal waterways - - C. Air - - D. Space - - E. Rail - - F. Road - - G. Pipeline - - H. Services auxiliary to all modes of transport - - I. Other - -

12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New (energy services)

Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: Indonesia's Schedule of Specific Commitments under the GATS (S/DCS/W/IDN) and Annex under

the Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4.

4.5.1.4 Lao PDR

4.38. According to the Parties, as the AANZFTA was concluded and effective before Lao PDR became a WTO Member, Lao PDR's commitment under AANZFTA to a certain extent are narrower than its commitments under the GATS which was concluded later in time. Australia and New Zealand may seek market access under GATS when entering the Lao PDR market. Thus, although Lao PDR has undertaken commitments on legal and also engineering services under the GATS, these are not included in its commitments under the Agreement. Lao has taken new commitments in respect of landscape architectural services (CPC 86742). For other business services, compared to its GATS commitments Lao does not record commitments in the following sub-sectors: (e) technical testing and analysis services, (h) services incidental to mining, (m), related scientific and technical consulting services, (n) maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment) or (t) speciality design services.

4.39. Under communication services courier services are not recorded in Lao's commitments under the Agreement. On telecommunications, the joint venture requirement has been retained but the mode 3 foreign equity limit of 60% has been removed compared to the GATS. For basic telephony, Lao's market access restrictions have generally been reduced compared to the GATS, although (h), (i) and (j) are now subject to a joint venture requirement in comparison to "none" under the GATS. In construction services equity requirements present in Lao's GATS commitments have been eliminated under the Agreement. In respect of distribution, Lao's GATS commitments have been removed from its commitments under the Agreement. Lao's GATS commitments in respect of primary education are not included under the Agreement, although other education sub-sectors benefit from reduced market access and national treatment limitations under the Agreement.

4.40. For environmental services, Lao has broadened the sub-sectoral definitions by removing CPC exceptions. On Financial Services, in banking, there are a reduced number of sub-sectors in which commitments are made in comparison with the GATS, although the remaining sub-sectors generally benefit from the removal of equity limits and clearer and reduced market access and national treatment limitations. Although Lao had undertaken commitments on insurance, health, and air transport under the GATS, under the Agreement those sectors are not the subject of commitments.

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Table 4.7 Lao PDR: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)


A. Professional services √ √ B. Computer and related services √ √ C. Research and development √ - D. Real estate - - E. Rental/Leasing services without operators - - F. Other √ Not Scheduled

2. COMMUNICATION SERVICES

A. Postal - - B. Courier √ - C. Telecommunication √ √ D. Audiovisual - - E. Other - -


√ √

4. DISTRIBUTION SERVICES √ Not Scheduled 5. EDUCATION SERVICES √ √ 6. ENVIRONMENTAL SERVICES √ √ 7. FINANCIAL SERVICES

A. All insurance and insurance-related services √ Not Scheduled B. Banking and other financial services √ √

8. HEALTH RELATED AND SOCIAL SERVICES √ Not Scheduled 9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and restaurants √ √ B. Travel agencies and tour operators √ √ C. Tourist guides - - D. Other √ -


- -

11. TRANSPORT SERVICES A. Maritime - - B. Internal waterways - - C. Air √ - D. Space - - E. Rail - - F. Road - - G. Pipeline - - H. Services auxiliary to all modes of transport - - I. Other - -

12. OTHER SERVICES NOT INCLUDED ELSEWHERE

- -

Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: Lao PDR's Schedule of Specific Commitments under the GATS (GATS/SC/150) and Annex under the

Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4.

4.5.1.5 Malaysia

4.41. Table 4.8 below sets out the services commitments of Malaysia under the Agreement in comparison to its commitments under the GATS. In its horizontal commitments under the GATS Malaysia has increased the threshold for approval of acquisitions, mergers and takeovers from RM 5 million under the GATS to RM10 million. In respect of accounting and taxation services Malaysia has improved the mode 3 market access aggregate foreign investment limit from 30% in the GATS to 40%. The English language qualification examination requirement set out in the additional commitments section of Malaysia's GATS schedule is removed under the Agreement. According to the Parties the elimination of the English language qualification examination is an improvement. For multidisciplinary services (architecture, engineering and quantity surveying) Malaysia has

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added a mode 3 limitation that includes a maximum foreign equity limit of 30% and a prohibition on foreign directors. The Parties considered that this represented an improvement in Malaysia's market access commitments. Malaysia has added new commitments on urban planning, and landscaping services compared to the GATS. Under the Agreement Malaysia has not included its GATS commitments on medical speciality services. Under computer services, it has improved upon its GATS commitments by replacing its limitations on market access with "none" across the market access and national treatment columns. It has added the subsector of data processing services (CPC 843) and the maximum shareholding for mode 3 in advertising services has been increased to 49% from 30% under the GATS.

4.42. For telecommunications, Malaysia has increased the maximum foreign equity limit to 49% from 30% under the GATS. On audiovisual services, the number of market access limitations has been reduced but the subsector of broadcasting services in which it has GATS commitments has been removed. In construction services Malaysia has increased the maximum foreign equity limit to 49% from 30% and has taken new commitments in education services.

4.43. In financial services, with regard the acceptance of deposits in the banking sector, Malaysia has reduced the market access limitations in the GATS and under national treatment removed the maximum foreign shareholding limit of 30% (this limit has also been removed in respect of lending). Improvements have also been made under leasing, where under market access the 30% equity limit has been increased to 49%. For health services, it has added two new subsectors, medical speciality services (CPC 93122) and veterinary services (CPC 932). Market access limitations in mode 3 on private hospital services (CPC 93110) has seen an increase in permitted foreign shareholding in a joint venture from 30% to 49%. In tourism and travel related services, foreign equity limits in hotels and restaurants have been increased to 49% from 30% under Malaysia's GATS commitments. Under transport services, in international maritime transport, Malaysia has removed the exclusion on government cargo.

Table 4.8 Malaysia: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)


A. Professional services √ Improved B. Computer and related services √ Improved C. Research and development √ √ D. Real estate - - E. Rental/Leasing services without operators √ √ F. Other √ √


A. Postal - - B. Courier - - C. Telecommunication √ √ D. Audiovisual √ √ E. Other - -


√ Improved

4. DISTRIBUTION SERVICES - - 5. EDUCATION SERVICES - New 6. ENVIRONMENTAL SERVICES - - 7. FINANCIAL SERVICES

A. All insurance and insurance-related services √ Improved B. Banking and other financial services √ Improved

8. HEALTH RELATED AND SOCIAL SERVICES √ Improved 9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and restaurants √ Improved B. Travel agencies and tour operators √ √ C. Tourist guides - - D. Other - √


√ √

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Sectors GATS FTA 11. TRANSPORT SERVICES

A. Maritime √ Improved B. Internal waterways - - C. Air - - D. Space - - E. Rail - - F. Road - - G. Pipeline - - H. Services auxiliary to all modes of transport - - I. Other - -

12. OTHER SERVICES NOT INCLUDED ELSEWHERE

√ √

Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: Malaysia's Schedule of Specific Commitments under the GATS (S/DCS/W/MYS) and Annex under the


4.5.1.6 Myanmar

4.44. A comparison of Myanmar's services commitments under the Agreement with its GATS commitments is set out below in Table 4.9. In comparison to its horizontal limitations scheduled under the Agreement, under the GATS Myanmar had no horizontal restrictions. Under the Agreement Myanmar has entered a broad range of new sectors and sub-sectors. In comparison, under the GATS Myanmar only has commitments in one sector (tourism and travel related services, where modes 1 to 3 were bound at "none" in the market access column and for modes 1 and 2 "none" in respect of national treatment). That sector is not the subject of commitments under the Agreement.

Table 4.9 Myanmar: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)


A. Professional services - New B. Computer and related services - New C. Research and development - - D. Real estate - - E. Rental/Leasing services without operators - - F. Other - New

2. COMMUNICATION SERVICES A. Postal - - B. Courier - - C. Telecommunication - - D. Audiovisual - New E. Other - -


- New

4. DISTRIBUTION SERVICES - - 5. EDUCATION SERVICES - √ 6. ENVIRONMENTAL SERVICES - - 7. FINANCIAL SERVICES

A. All insurance and insurance-related services - - B. Banking and other financial services - -

8. HEALTH RELATED AND SOCIAL SERVICES - - 9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and restaurants √ - B. Travel agencies and tour operators √ - C. Tourist guides - - D. Other - -

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Sectors GATS FTA 10. RECREATIONAL, CULTURAL AND SPORTING SERVICES

- -

11. TRANSPORT SERVICES A. Maritime - New B. Internal waterways - - C. Air - New D. Space - - E. Rail - - F. Road - - G. Pipeline - - H. Services auxiliary to all modes of transport √ - I. Other - -


Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: Myanmar's Schedule of Specific Commitments under the GATS (S/DCS/W/MMR) and Annex under


4.5.1.7 The Philippines

4.45. Table 4.10 below sets out the commitments of the Philippines under the Agreement in comparison to the GATS.

4.46. In its horizontal limitations, the Philippines has introduced new limitations on national treatment for permanent residents. It has taken new commitments in professional services and other sectors, compared to the GATS (the latter mostly relating to energy resource development). Under telecommunications, the Philippines has added new sub-sectors (a)-(g), broadening the coverage under the sector in comparison to its GATS commitments. Commitments under education and environment are also new in comparison to the GATS. On insurance, the maximum permissible percentage of voting stock under mode 3 has been lifted from 40% to 51%. On banking, the mode 3 national treatment restriction has been moved to the national treatment column, and GATS numerical limitations on branches have been eliminated.

4.47. On tourism, the definition of restaurants has been widened in comparison with its GATS commitments. The mode 3 prohibition on foreign equity in independent hotel restaurants has been removed and commitments in air transport have also been improved with the new commitment on off-line carriers.

Table 4.10 The Philippines: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)


A. Professional services - New

B. Computer and related services - - C. Research and development - - D. Real estate - - E. Rental/Leasing services without operators - - F. Other - New


A. Postal - New B. Courier √ √ C. Telecommunication √ Improved D. Audiovisual - - E. Other - -


- New

4. DISTRIBUTION SERVICES - - 5. EDUCATION SERVICES - New 6. ENVIRONMENTAL SERVICES - New

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Sectors GATS FTA 7. FINANCIAL SERVICES

A. All insurance and insurance-related services √ Improved B. Banking and other financial services √ Improved

8. HEALTH RELATED AND SOCIAL SERVICES - - 9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and restaurants √ Improved B. Travel agencies and tour operators √ Improved C. Tourist guides - - D. Other √ √


- -

11. TRANSPORT SERVICES A. Maritime √ √ B. Internal waterways - - C. Air √ Improved D. Space - - E. Rail √ Not scheduled F. Road √ √ G. Pipeline - - H. Services auxiliary to all modes of transport √ √ I. Other - -

12. OTHER SERVICES NOT INCLUDED ELSEWHERE - - Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement.

Source: Philippines' Schedule of Specific Commitments under the GATS (S/DCS/W/PHL) and Annex under the Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4.

4.5.1.8 Singapore

4.48. Table 4.11 sets out the services commitments of Singapore under the Agreement in comparison to the GATS. In respect of many services subsectors, under the Agreement, Singapore has undertaken commitments that use definitions which include specific CPC references, in contrast to its commitments under the GATS. According to the Parties, using CPC references would allow for greater certainty on the scope of the covered subsectors, and provide more clarity to businesses on the market access committed in the sectors. It also allows for greater harmonization across service sectors in different economies.

4.49. Taxation services has benefitted from the elimination of the GATS mode 1 national treatment limitation. Architectural services (CPC 8671) is a newly committed subsector. Engineering Services (CPC 8672) has improved with a minimum 51% of directors requiring to be registered, in comparison to 66% under the GATS. New subsectors have been added under the Agreement with respect to technical testing and analysis services. Distribution services is a new sector in comparison to Singapore's GATS commitments.

4.50. In respect of financial services, in banking, Singapore has made improvements in some mode 3 market access limitations. Health is a newly committed sector. In respect of travel agencies, Singapore has improved mode 3 market access compared to the GATS. International maritime passenger transport is a newly committed subsector.

Table 4.11 Singapore: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)


A. Professional services √ Improved B. Computer and related services √ √ C. Research and development √ Improved D. Real estate - New E. Rental/Leasing services without operators - New

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Sectors GATS FTA F. Other √ Improved

2. COMMUNICATION SERVICES A. Postal - - B. Courier √ √ C. Telecommunication √ √ D. Audiovisual √ Improved E. Other - -


√ √

4. DISTRIBUTION SERVICES - New 5. EDUCATION SERVICES - New 6. ENVIRONMENTAL SERVICES - New 7. FINANCIAL SERVICES

A. All insurance and insurance-related services √ √ B. Banking and other financial services √ Improved

8. HEALTH RELATED AND SOCIAL SERVICES - New 9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and restaurants √ √ B. Travel agencies and tour operators √ Improved C. Tourist guides √ √ D. Other - -


A. Entertainment - New B. News agency - - C. Libraries, archives, museums and other cultural services

√ √

D. Sporting and other recreational services - New E. Other

- -

11. TRANSPORT SERVICES A. Maritime √ Improved B. Internal waterways - - C. Air - - D. Space - - E. Rail - - F. Road - - G. Pipeline - - H. Services auxiliary to all modes of transport - - I. Other - -


Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: Singapore' Schedule of Specific Commitments under the GATS (S/DCS/W/SGP) and Annex under the


4.5.1.9 Thailand

4.51. Table 4.12 below sets out Thailand's commitments under the Agreement in comparison to the GATS. In its horizontal commitments Thailand has noted (in both the market access and national treatment column) that Parties to the Agreement shall not exercise rights in relation to permanent residents under the Agreement.

4.52. Under business services, in engineering and urban planning, mode 1 market access now states "none" compared to "unbound" under the GATS. Other computer services: software training services for staff of clients (part of CPC 84900) is a new subsector. Under telecommunications, in its horizontal limitations at the beginning of the section, the foreign equity participation limit has been increased to 25%. The telecommunications reference paper is not referred to in the schedule under the Agreement. Under education, Thailand has added higher and adult education as well as foreign language tuition. Under hotels, Thailand has added camping and caravan site services.

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Table 4.12 Thailand: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)

Sectors GATS FTA 1. BUSINESS SERVICES A. Professional services √ Improved B. Computer and related services √ Improved C. Research and development - - D. Real estate - - E. Rental/Leasing services without operators √ √ F. Other √ √ 2. COMMUNICATION SERVICES

A. Postal - - B. Courier - - C. Telecommunication √ Improved D. Audiovisual √ √ E. Other - - 3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

√ √

4. DISTRIBUTION SERVICES √ √ 5. EDUCATION SERVICES √ Improved 6. ENVIRONMENTAL SERVICES √ √ 7. FINANCIAL SERVICES A. All insurance and insurance-related services √ √ B. Banking and other financial services √ √ 8. HEALTH RELATED AND SOCIAL SERVICES - - 9. TOURISM AND TRAVEL RELATED SERVICES A. Hotels and restaurants √ Improved B. Travel agencies and tour operators √ √ C. Tourist guides - - D. Other √ √ 10. RECREATIONAL, CULTURAL AND SPORTING SERVICES

√ √

11. TRANSPORT SERVICES A. Maritime √ √ B. Internal waterways - - C. Air √ √ D. Space - - E. Rail √ √ F. Road √ √ G. Pipeline - - H. Services auxiliary to all modes of transport √ √ I. Other - - 12. OTHER SERVICES NOT INCLUDED ELSEWHERE - -

Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: Thailand's Schedule of Specific Commitments under the GATS (S/DCS/W/THA/Rev.1) and Annex

under the Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4.

4.5.1.10 Viet Nam

4.53. Viet Nam's commitments under the Agreement and the GATS are compared in Table 4.13 below. Viet Nam has added, under mode 3 market access, the right for foreign lawyers organizations to employ Vietnamese lawyers. Under education services it has added a list of permitted fields of study in the horizontal schedule note to the sector.

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Table 4.13 Viet Nam: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)

Sectors GATS FTA 1. BUSINESS SERVICES A. Professional services √ Improved B. Computer and related services √ √ C. Research and development √ √ D. Real estate - - E. Rental/Leasing services without operators √ √ F. Other √ √ 2. COMMUNICATION SERVICES

A. Postal - - B. Courier √ √ C. Telecommunication √ √ D. Audiovisual √ √ E. Other - - 3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

√ √

4. DISTRIBUTION SERVICES √ √ 5. EDUCATION SERVICES √ Improved 6. ENVIRONMENTAL SERVICES √ √ 7. FINANCIAL SERVICES A. All insurance and insurance-related services √ √ B. Banking and other financial services √ √ 8. HEALTH RELATED AND SOCIAL SERVICES √ √ 9. TOURISM AND TRAVEL RELATED SERVICES A. Hotels and restaurants √ √ B. Travel agencies and tour operators √ √ C. Tourist guides - - D. Other - √ 10. RECREATIONAL, CULTURAL AND SPORTING SERVICES

√ √

11. TRANSPORT SERVICES A. Maritime √ √ B. Internal waterways √ √ C. Air √ √ D. Space - - E. Rail √ √ F. Road √ √ G. Pipeline - - H. Services auxiliary to all modes of transport √ √ I. Other - - 12. OTHER SERVICES NOT INCLUDED ELSEWHERE - -

Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: Viet Nam's Schedule of Specific Commitments under the GATS (GATS/SC/142) and Annex under the


4.5.2 Australia and New Zealand

4.54. Australia and New Zealand have services commitments in relation to each other contained in the Protocol on Trade in Services to the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) 1988 and its related agreements and understandings (CER). Australia and New Zealand exchanged letters setting out an agreement to limit application of the AANZFTA between each other, given ANCERTA and CER. Under the exchange of letters, Australia and New Zealand agreed to consider the merits of having certain chapters of the AANZFTA, including the chapter on Trade in Services, Annex on Financial Services and Annex on Telecommunications, apply between each other. In the interim, those chapters will not create rights and obligations between Australia and New Zealand.

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4.5.2.1 Australia

4.55. In its services commitments under the Agreement, Australia has bound a number of improvements in comparison to its commitments under the GATS (see Table 4.14 below). At a horizontal level, Australia's descriptions of the requirement to submit investments to examination under the Foreign Acquisitions and Takeovers Act 1975 now includes specific threshold amounts. According to the Parties the effect of these indicated thresholds for FATA review was to grant more liberal access compared to the GATS. Under the GATS all foreign investment may be subject to FATA review, irrespective of the level of investment. Australia's AANZFTA commitments limit the circumstances in which a proposed investment would be subject to FATA review.

4.56. Under Business Services, Professional Services, Legal Services, a broader range of legal services are now the subject of commitments under the Agreement in comparison to the GATS. Full access is now granted to the domestic law (host-country law) sub-sector of Australia's legal services market. Australia has also included legal arbitration and conciliation/mediation services to its covered subsectors. On accounting, Australia has moved a residency requirement from the market access to the national treatment column, improving the access available under the commitment. Under nursing, its commitments under the Agreement include services supplied by registered nurses and midwives, a new subsector not contained in its GATS commitments. Under computer and related services Australia has amended the definition of the sector, now defining it by reference to CPC 84, (now only excluding measures relating to content covered by CPC 844 and 849, an improvement compared to its more specific commitments for listed sub-sectors under the GATS). Under services incidental to mining, Australia's commitments under the Agreement contain a broader definition of the subsector vis-a-vis its GATS commitments. Under related scientific and technical consulting services, Australia's commitments under the Agreement define this subsector by reference to CPC 8675, compared to the GATS, resulting in a broader commitment. Under telecommunications Australia's conditions on mode 3 market access have been reduced in scope, resulting in a broader commitment. Under education services (other education services), Australia has expanded the illustrative list of services described in the definition of the subsector. For environmental services it has replaced "unbound" under mode 1 market access with "none" and has a different definition of the committed subsector, as well as new subsectors (C. protection of ambient air and climate (CPC 9404)", D. remediation and cleanup of soil and water CPC 9406 and F. protection of biodiversity and landscape (CPC 9406)26 and G. other environmental and ancillary services (CPC) 9409).

4.57. Australia's mode 1 and 3 market access restrictions on investment under the Agreement on Financial Services are reduced in number and apparent scope. For banking, several market access and national treatment restrictions have been removed in comparison to its GATS schedule. For transport, Australia has undertaken new additional commitments on port services in respect of maritime transport services. Maritime cargo handling, customs clearance and maritime agency services are new subsectors compared to Australia's GATS commitments. Australia has also made new commitments in rail transport services and taken new sub sectoral commitments under services auxiliary to all modes of transport.

Table 4.14 Australia: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)

Sectors GATS FTA 1. BUSINESS SERVICES A. Professional services √ Improved B. Computer and related services √ √ C. Research and development √ √ D. Real estate √ √ E. Rental/Leasing services without operators √ √ F. Other √ Improved 2. COMMUNICATION SERVICES A. Postal - - B. Courier - - C. Telecommunication √ Improved D. Audiovisual - - E. Other - -

26 Per footnote 5 to Australia's Services Schedule under the Agreement, "Australia's commitments under

items 6.D and 6.F combine to cover the entirety of CPC 9406 services."

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Sectors GATS FTA 3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

√ Improved

4. DISTRIBUTION SERVICES √ Improved 5. EDUCATION SERVICES √ Improved 6. ENVIRONMENTAL SERVICES √ Improved 7. FINANCIAL SERVICES A. All insurance and insurance-related services √ Improved B. Banking and other financial services √ Improved 8. HEALTH RELATED AND SOCIAL SERVICES √ √ 9. TOURISM AND TRAVEL RELATED SERVICES A. Hotels and restaurants √ √ B. Travel agencies and tour operators √ √ C. Tourist guides √ √ D. Other - - 10. RECREATIONAL, CULTURAL AND SPORTING SERVICES

√ √

11. TRANSPORT SERVICES A. Maritime √ Improved B. Internal waterways - - C. Air √ √ D. Space - - E. Rail - New F. Road √ √ G. Pipeline √ √ H. Services auxiliary to all modes of transport √ Improved I. Other - - 12. OTHER SERVICES NOT INCLUDED ELSEWHERE - -

Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. New: New commitments made under the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS Not scheduled: Commitment in the GATS schedule, but not under the Agreement. 4.5.2.2 New Zealand

4.58. A comparison of New Zealand's commitments under the Agreement with its GATS commitments is found in Table 4.15 below. Under professional services, for legal services, New Zealand's commitments under the Agreement appear more liberal than the GATS, with an expanded list of covered sub-sectors in which practice is permitted. On taxation services the definition of the covered subsector under the Agreement adds the CPC code 86301. On engineering services a national treatment limitation in respect of modes 1 and 3 has been removed. Subsectors in which new commitments are made are integrated engineering services and consultancy related to urban planning and landscape architecture.

4.59. Under computer and related services New Zealand has added maintenance and repair of office machinery and equipment including computers (CPC 845) and other computer services (CPC 849). Under other business services New Zealand has added the subsectors of management consulting services (CPC 865) and services related to management consulting (CPC 866) as are placement and supply services of personnel (CPC 872), photographic services (CPC 875) and convention services (CPC 87909), credit reporting services (CPC 87901) and collection agency services (CPC 87902), interior design services (CPC 87907), telephone answering services (CPC 87903) duplicating services (CPC 87904) and other business services the inclusion of which are an improvement compared to its commitments under the GATS.

4.60. Under other, New Zealand has added renting services related to equipment for construction of demolition of buildings or civil engineering, with operator (CPC 518). Under financial services, in non-life insurance services, New Zealand has removed its market access mode 1 and 3 limitations in favour of the Apple and Pear Marketing Board. This mode 1 and 3 limitation has also been removed from New Zealand's Insurance Intermediation Services.

4.61. Under education services New Zealand has improved its commitments under the Agreement by adding (CPC 929). Similarly, whereas in GATS New Zealand did not make any commitments in Environmental Services, under the Agreement New Zealand also makes commitments across (CPC 9401, 9402, 9403, 9404, 9405, 9406 and 9409).

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Table 4.15 New Zealand: comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4)


A. Professional services √ Improved B. Computer and related services √ Improved C. Research and development - - D. Real estate √ √ E. Rental/Leasing services without operators √ √ F. Other √ Improved

2. COMMUNICATION SERVICES A. Postal - - B. Courier - √ C. Telecommunication √ √ D. Audiovisual √ √ E. Other -

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Improved 4. DISTRIBUTION SERVICES √ √ 5. EDUCATION SERVICES √ Improved 6. ENVIRONMENTAL SERVICES - Improved 7. FINANCIAL SERVICES

A. All insurance and insurance-related services √ Improved B. Banking and other financial services √ √

8. HEALTH RELATED AND SOCIAL SERVICES - 9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels and restaurants √ √ B. Travel agencies and tour operators √ √ C. Tourist guides √ √ D. Other -

10. RECREATIONAL, CULTURAL AND SPORTING SERVICES - 11. TRANSPORT SERVICES

A. Maritime √ √ B. Internal waterways - √ C. Air √ √ D. Space - √ E. Rail √ √ F. Road √ √ G. Pipeline √ √ H. Services auxiliary to all modes of transport I. Other -

12. OTHER SERVICES NOT INCLUDED ELSEWHERE -

Note: √: Commitments in the GATS schedule. -: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. New: New commitments made under the Agreement. Not scheduled: Commitment in the GATS schedule, but not under the Agreement. Source: New Zealand's Schedule of Specific Commitments under the GATS (S/DCS/W/NZL) and Annex under


4.6 Regulatory provisions

4.6.1 Domestic regulation

4.62. Article 10 of Chapter 8 concerns domestic regulation. Article 10.1 mirrors GATS Article VI.1 and provides that in sectors where specific commitments are undertaken each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner. Article 10.2 mirrors GATS Article VI.4 and provides that the Parties will jointly review the results of WTO negotiations on domestic regulation pursuant to Article VI.4 of the GATS and shall amend Article 10 after consultations in order to bring the results of those negotiations into effect under this Agreement. Article 10.3 mirrors GATS Article VI.3. Article 10.2 mirrors GATS Article VI.5(b). Article 10.5 mirrors and expands on Article VI.3 of the GATS, adding greater specificity to the treatment of an incomplete application and reasons for the rejection of an application. Article 10.6 mirrors GATS Article VI.6. Article 10.7 requires the Parties to permit the use of ordinary business names, to the extent of its domestic laws and regulations.

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4.6.2 Recognition

4.63. Article 16 of Chapter 8 concerns recognition. Articles 16.1-4 mirror GATS Article VII.1-3 and 5 respectively. Article 16.3 requires the Parties to encourage competent bodies in its territory to enter into negotiations for agreement or arrangements on recognition of, inter alia, professional qualifications licensing and registration requirements.

4.6.3 Subsidies

4.64. Article 18 on Subsidies provides in Article 18.1 that the Parties will review issue of disciplines on subsidies in light of any disciplines agreed under Article XV of the GATS. Article 18.2 reproduces most elements of GATS Article XV.

4.6.4 Safeguards

4.65. Article 19 of Chapter 8 concerns Safeguard measures. Article 19.2 permits a Party which considers that substantial adverse impact to a service sector has occurred as a result of its implementation of its commitments under the Agreement, that Party may request consultations with the other Party or Parties. The requested Party or Parties shall enter into consultations with the first Party. Per Articles 19.3 and 19.4, any measures taken under Article 19.2 shall be mutually agreed by the Parties concerned, and notified to the other Parties as soon as practicable and at the next meeting of the Services Committee established under Article 24 of the Agreement.

4.66. Under Article 4 of Chapter 15 any Party experiencing difficulties with its balance of payments may adopt or maintain restrictions on trade in services on which it has undertaken commitments, including on payments or transfers for transactions or adopt or maintain restrictions on payments or transfers related to covered investments as defined in Article 2(a) of Chapter 11 (Investments). Article 4.2 provides that any restrictions under Article 4.1(b) and (c) must comply with Articles 4.2(a)-(e). Any restrictions adopted under Article 4.1 must be notified to the other Parties.

4.6.5 Other

4.67. Article 11 of Chapter 8 concerns transparency. It sets out obligations in relation to publication of measures affecting trade in services and international agreements to which a Party is a signatory and contact points.

4.68. Article 17 of Chapter 8 on Payments and Transfers mirrors Article XI of the GATS, with the exception of the cross reference to Article 4 of Chapter 15 (see below).

4.69. Article 20 of Chapter 8 concerns increasing participation for newer ASEAN Member States in which the Parties note the need to increase the participation of newer ASEAN Member States by according special and differential treatment to them and facilitating their participation in the Chapter through commitments relating to the objectives set out in sub-paragraphs 20(a)-(d).

4.70. Article 23.1 of Chapter 8 incorporates the GATS Annex on Telecommunications by reference, and in 23.2 notes that additional provisions on financial services and telecommunications are set out in Chapter 8's Annexes. Article 24 of Chapter 8 establishes a Committee on Trade in Services. Its functions are set out in Article 24.2 (a)-(f).

4.71. Article 9 of Chapter 11 concerns expropriation and compensation for covered investments, and prohibits expropriation and compensation except if it is (a) for a public purpose, (b) done in a non-discriminatory manner, (c) on payment of prompt, adequate and effective compensation and (d) done in accordance with due process of law. The modalities for payment of compensation are set out in Article 9.2-6.

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4.7 Sector specific provisions on trade in services

4.7.1 Financial Services

4.72. Chapter 8 includes an Annex on Financial Services. The Annex comprises Articles 1-8, and very closely follows the GATS Annex on Financial Services. Article 5 concerns regulatory transparency.

4.73. Article 5 of the Annex on Financial Services establishes obligations in order to ensure that measures of general application adopted or maintained by a Party (Article 5.2) or self-regulatory organisations (Article 5.3) are promptly published or otherwise made publicly available. Article 5.4 relates to the provision of enquiry points. Articles 5.5-5.8 relate to procedural arrangements concerning treatment of administrative decisions on applications to provide financial services.

4.74. Article 6 on financial services exceptions provides that nothing in the Chapter shall prevent a Party from taking measures necessary to secure compliance with its laws or regulations consistent with the Chapter, including those relating to deceptive and fraudulent practices and other matters listed in the Article. Article 7, on transfers of information and processing of information, provides in Article 7.1 that a Party shall not take measures that (a) prevent transfers of information, including transfers of data by electronic means, necessary for the conduct of the ordinary business of a financial service supplier, (b) prevent the processing of information necessary for the conduct of the ordinary business of a financial service supplier, or (c) prevent transfers of equipment necessary for the conduct of the ordinary business of a financial service supplier, subject to importation rules consistent with international agreements. Article 7.2 sets out derogations from the principles set out in Article 7.1. Article 8 mirrors Article 4 of the GATS Annex on Financial Services.

4.7.2 Telecommunications services

4.75. Chapter 8, Articles 1-13 (and Appendix) contains an Annex on Telecommunications. That Annex incorporates elements of the GATS Annex on Telecommunications and the Reference Paper on Basic Telecommunications. Definitions are set out in Article 2 of the Annex.

4.76. Article 3 concerns transitional arrangements, for the application of certain key obligations under the Annex. Article 3 provides that a Party may delay the application of the obligations under Articles 4 (Competitive Safeguards), 6 (Interconnection), 7 (Co-location), 8 (Leased Circuits Services) and Article 9.2 (Resolution of Disputes) which are set out in the Appendix to the Annex on Transitional Arrangements. Brunei, Cambodia, Laos, Myanmar, Singapore, Thailand and Viet Nam have all set out transitional reservations in that Appendix. According to the Parties, the transitional arrangements vary among the Parties (e.g. a new telecommunications law comes into force after expiration of the last concession contract). Except for Brunei Darussalam and Singapore, all the other ASEAN Parties with transitional arrangements will have to verify if the conditions set out in the transitional arrangements have lapsed. For Lao PDR, the transition period for LAO PDR is still valid as it is stated in the "Appendix on Transitional Arrangements" that the obligation applies for 3 years after the date of Laos' accession to the WTO. Laos became a WTO member on 2 February 2013. For Thailand, the obligation in Article 9.2 was applied on the date of entry into force of the agreement. The obligations in Articles 4, 6, 7 and 8 will apply after the expiration of the last concession contract, in 2018.

4.77. Article 4 of the Annex on Telecommunications concerns Competitive Safeguards and provides that (subject to Article 3) each Party shall prevent suppliers of public telecommunications transport networks or services from engaging in anti-competitive practices. An inclusive list of such practices is set out in Article 4.2 of the Annex. Article 5 on Licensing requires that when licences are required, all measures relating to telecommunication transport networks or services are published or otherwise made publicly available. An inclusive list of information required to be included is set out Article 5.1(a)-(g).

4.78. Article 6 of the Annex on Telecommunications concerns interconnection and closely follows the Reference Paper on Basic Telecommunications. Footnote 2 to that Article contains an express reservation in respect of Thailand and Viet Nam in respect of cross-border supply of services. Article 7 on Co-location, requires in Article 7.1 that the Parties ensure that major suppliers in its

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territory (a) provide to suppliers of public telecommunications physical co-location of equipment necessary for interconnection and (b) if not practicable for technical reasons, cooperate with suppliers of public telecommunications transport networks or services of other Parties to find and implement a practical and commercially viable alternative solution.

4.79. Article 9 on resolution of disputes requires that a supplier of public telecommunications transport networks or services of another Party who requests interconnection shall have recourse to a telecommunications regulatory body to resolve disputes in relation to such interconnection. Article 10 on transparency exhorts the Parties to try and make information it is required to publish available on the internet.

4.80. Article 11 concerns telecommunications regulatory bodies. Article 11.1 requires each Party to establish or maintain a telecommunications regulatory body. Articles 11.2-5 set out the minimum requirements for such bodies under the Annex.27

4.81. Article 12 of the Annex describes the universal service obligation, and mirrors Article 3 of the Basic Telecoms Reference Paper.

4.7.3 E-Commerce

4.82. Chapter 10, Articles 1-10 concern Electronic Commerce. The objectives of the Chapter are set out in Article 1, (a) to promote electronic commerce among the Parties, (b) enhance co-operation regarding development of electronic commerce, and (c) promote the wider use of electronic commerce globally.

4.83. Article 3 concerns transparency. Article 3.1 requires that each Party publish make publicly available all relevant measures of general application pertaining to the operation of the Chapter. Article 4 on Domestic Regulatory Frameworks requires each Party to adopt or maintain laws and regulations that take into account the UNICTRAL Model Law on Electronic Commerce (1996). Article 5 concerns Electronic Authentication and Digital Certificates and requires in Article 5.1 that each Party maintain or adopt measures based on international norms for electronic authentication that (a) permit participants in the transactions to determine the authentication methods for their electronic transactions, (b) do not limit the recognition of authentication technologies and implementation models, and (c) permit participants in electronic transactions to have an opportunity prove their transactions comply with the Party's domestic laws and regulations.

4.84. Article 6 concerns online customer protection using electronic commerce and in Article 6.1 requires Parties to ensure protection at least equivalent to that provided to customers of other forms of commerce under relevant laws and conditions. Article 7.1 requires the Parties to ensure appropriate protection for the personal data of users of electronic commerce. Article 8.1 on paperless trading exhorts the Parties to where possible work towards the implementation of initiatives which provide for the use of paperless trading. In Article 9.1 the Parties agree to encourage co-operation in research and training activities that would enhance the development of electronic commerce and provides a list of cooperative activities in Article 9.1(a)-(h). Article 10 provides that Chapter 10 is not subject to the provisions of Chapter 17 on Dispute Settlement.

5 GENERAL PROVISIONS OF THE AGREEMENT

5.1 Transparency

5.1. Article 6.1 of Chapter 2 incorporates Article X of the GATT 1994. Article 6.2 requires the Parties, to the extent possible under domestic law, to make laws, regulations, decisions and rulings covered by Article 6.1 available on the internet.

5.2. Article 7.3 provides that Parties must ensure the transparency of non-tariff measures permitted under Article 7.2. Article 7.4 requires the Goods Committee to submit an initial report on

27 Thailand: The National Broadcasting and Telecommunications Commission is Thailand’s telecommunications’ regulatory body acting in accordance with Articles 11.2-5 under the annex;

Australia: the Australian Competition and Consumer Commission (ACCC) is the regulatory authority; New Zealand: New Zealand has a telecommunications regulatory body. The Ministry of Business,

Innovation and Employment and the Commerce Commission act in this capacity.

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non-tariff measures within two years of entry into force of the Agreement. According to the Parties, the Committee has launched the review, including through the exchange of information on non-tariff measures by the Parties, holding policy workshops to identify key issues and review previous international work in this area and initiating a research project, including the conduct of a business survey, to assist the review.

5.2 Current payments and capital movements

5.3. Article 17.1 of Chapter 8 provides that except in the case of circumstances envisaged in Article 4 (Measures to Safeguard the Balance of Payments) of Chapter 15 (General Provisions and Exceptions), a Party shall not apply restrictions to international transfers or payments for current transactions relating to its commitments under the Agreement.

5.4. Article 8 of Chapter 11, on transfers, provides in Article 8.1 that each Party shall allow all transfers relating to an investment to be made freely and without delay into and out of its territory. An illustrative list of such transfers is set out in Article 8.1(a)-(g). Article 8.2 provides that such transfers shall be allowed to be made in a freely usable currency at the market rate of exchange. Article 8.3(a)-(h) sets out in an inclusive list of the circumstances in which a Party may prevent or delay a transfer, notwithstanding the provisions of Article 8.1 and 8.2.

5.3 Exceptions

5.5. Chapter 15, Articles 1-5 set out general provisions and exceptions. Article 1, on general exceptions, provides in Article 1.1 that for the purposes of Chapter 2 (Goods), Chapter 3 (Origin), Chapter 4 (Customs Procedures), Chapter 5 (SPS), Chapter 6 (Standards, Technical Regulations and Conformity Assessment Procedures), Article XX of the GATT 1994 is incorporated into the Agreement.

5.6. Article 1.2 of Chapter 15 provides that for the purposes of Chapter 8 (Services), Chapter 9 (Movement of Natural Persons) and Chapter 11 (Investment) Article XIV of the GATS and its footnotes are incorporated into the Agreement.

5.7. Article 1.3 of Chapter 15 sets out the Parties understanding that Article XX(f) of GATT 1994 includes measures necessary to protect national treasures or specific sites of historical or archaeological value, or measures necessary to support creative arts of national value. Article 1.3 includes a footnote on the phrase "creative arts". Article 1.4 provides that for the purposes of Chapter 8 (Services) and Chapter 11 (Investment) nothing in those Chapters shall be construed to prevent the adoption or enforcement by a Party of measures necessary to protect national treasures or specific sites of historical or archaeological value, or measures necessary to support creative arts of national value. Like Article 1.3, Article 1.4 also includes a footnote on the phrase "creative arts". Article 1.5 requires that a Party hold consultations on any needed adjustments to maintain the overall balance of commitments if any action is taken under Article 1.4.

5.8. Article 2 of Chapter 15 describes security exceptions. Article 3 on taxation measures provides in Article 3.1 that nothing in the Agreement shall apply to taxation measures, except in the circumstances set out in Article 3.2. Article 3.5 sets out the hierarchy of the Agreement and double taxation conventions. Article 5 of Chapter 15 concerns the Treaty of Waitangi.

5.4 Accession and Withdrawal

5.9. There are no provisions on accession to the Agreement.

5.10. Article 8.1 of Chapter 18 provides that any Party may withdraw from the Agreement upon 6 months advance written notice to the other Parties. Per Article 8.2, The Agreement will be terminated if (a) Australia withdraws, (b) New Zealand withdraws or (c) the Agreement is in force for less than 4 ASEAN Member States.

5.11. Under Article 8 the Parties agree to review the Agreement with a view to furthering its objectives in 2016 and every five years thereafter.

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5.5 Institutional framework

5.12. Chapter 16, Articles 1-2 concern Institutional Provisions of the Agreement. Article 1.1 establishes a free trade agreement Joint Committee (FTA Committee). The functions of the FTA Committee are set out in Article 2 (a)-(f). Article 1.3 permits the FTA Committee to establish subsidiary bodies. The subsidiary bodies are the Committee on Trade in Goods established under Chapter 2, Article 11; the Services Committee established under Article 24 of Chapter 8; the Investment Committee under Article 17 of Chapter 11; and the Intellectual Property Committee under Article 12 of Chapter 13. The FTA Joint Committee has held five meetings since 2010.

5.13. The Committee on Trade in Goods may meet at the request of any Party to the Agreement to consider any matter under Chapter 2 (Goods), Chapter 3 (Rules of Origin), Chapter 4 (Customs Procedures), Chapter 5 (Sanitary and Phytosanitary Measures), Chapter 6 (Standards, Technical Regulations and Conformity Assessment Procedures) and Chapter 7 (Safeguard Measures). The functions of the Goods Committee are set out in Article 11.2 of Chapter 2. The Goods Committee also has sub committees for rules of origin, SPS and Standards and technical regulations. The Goods Committee has held eight meetings since 2010.

5.14. Article 10 of Chapter 2 requires that the Parties designate contact points on any matter relating to the Chapter. When a Party considers that any proposed or actual measure of another Party may materially affect trade in goods between the Parties, the Party may request detailed information or consultations in relation thereto. The other Party shall promptly respond to such requests. Article 12 requires the Parties to take reasonable measures as may be available to them to ensure observance of the provisions of the Chapter by regional and local governments and authorities within its territories.

5.15. Chapter 12, Articles 1-8 concern economic co-operation between the Parties. Article 1.1 provides that the Parties affirm the importance of ongoing economic co-operation initiatives between ASEAN, Australia and New Zealand, and agree to complement their existing economic partnership in areas of mutual interest. Article 4-7 set out the structure and implementation of the economic cooperation work programme. Article 8 provides that the provisions of Chapter 17 on Dispute Settlement shall not apply to any matter under Chapter 11. The Ad-Hoc Economic Cooperation Budget Sub-Committee reports to the FTA Joint Committee and has met eight times since 2010.

5.6 Dispute settlement

5.16. Chapter 17 on Consultations and Dispute Settlement contains Articles 1-21, and Annexes on Rules of Procedure for Arbitral Tribunal Proceedings and Optional Procedures for Composing Arbitral Tribunals. A diagram describing the process for dispute settlement is set out below.

5.17. Article 2 of Chapter 17 contains the definitions used in the Chapter. Article 3, on scope and coverage, provides in Article 3.1 that the Chapter applies to the avoidance or settlement of disputes arising under the Agreement. It does not apply to disputes under Chapter 5 (SPS), Chapter 10 (Electronic Commerce), Chapter 12 (Economic Co-operation) and Chapter 14 (Competition). Article 3.3 provides that (except as provided in Article 5 of Chapter 17) the Chapter is without prejudice to the rights of a Party to have recourse to dispute settlement under other agreements to which that Party is party.

5.18. Article 5 of Chapter 17 provides in Article 5.1 that where a dispute arises under the Agreement and another international agreement to which the Parties to the dispute are party, the Complaining Party will have the choice of forum. That forum shall then be used to the exclusion of other possible for a in respect of that matter. According to the Parties, if a Complaining Party selects dispute settlement under Chapter 17, this would preclude the Responding Party from pleading the WTO Agreement is the proper forum. In the same way, if the Complaining Party selects dispute settlement under the DSU, the Responding Party would be precluded from pleading that AANZFTA was the proper forum.

5.19. Articles 6 and 7 make up Section B of Chapter 17. Article 6 sets out the procedure for consultations with respect to a dispute under the Chapter. Article 6.4 provides that upon receipt of a written request for consultations, the Responding Party shall reply within 7 days and enter into

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consultations within (a) 10 days in the case of urgency or perishable goods, or (b) 30 days. Per Article 6.5, if the Responding Party does not enter into consultations within the time-limit or otherwise agrees, the Complaining Party may proceed directly to the establishment of an arbitral tribunal pursuant to Article 8. Article 6.6 sets out the obligations of the Parties to cooperate with and pursue a good faith solution through consultations. Article 7 of Chapter 17 permits the Parties, at any time, to agree to good offices, conciliation or mediation (Article 7.1).

5.20. Section C, Articles 8-14 set out the adjudication provisions of Chapter 17. Per Article 8, a Party may request the establishment of an arbitral tribunal per Article 11 if (a) the Responding Party fails to enter into consultations in accordance with Article 6.4, or (b) if consultations fail to resolve the a dispute within 20 days of receipt of request (urgency/perishable goods) or 60 days or any other period agreed between the Parties. Article 9 sets out the procedures for multiple complaints, Article 10 describes the modalities for third party interventions in a matter before an arbitral tribunal.

5.21. Article 11 of Chapter 17 provides in Article 11.2 that an arbitral panel shall consist of 3 arbitrators, appointed and nominated per Articles 11.9 and 11.10. Procedures for composing arbitral tribunals and the required expertise of arbitrators are set out in Articles 11.3-13. In the event that the Parties cannot reach agreement about the arbitrators to be appointed to an arbitral tribunal Article 11.7 permits the Parties to request the Director-General of the WTO make the appointments. According to the Parties the Director-General of the WTO has made no such appointments under the Agreement. Once composed, the functions, terms of reference, report and working method of the arbitral tribunal must comply with the requirements of Article 12.1-10. The procedures of the tribunal are set out in Article 13 and the Annex on Rules of Procedure for Arbitral Tribunals. Article 13.1 permits the tribunal, upon request by a Party or on its own initiative, to derogate from those procedures. Panels may request information from any individual or body which it deems appropriate per Article 13.12. The modalities for issuing the report of the tribunal are set out in Articles 13.13-16.

5.22. Section D, Articles 15-17 of Chapter 17 concern Implementation. Article 15.1 provides that where an arbitral tribunal finds that the Responding Party has failed to carry out its obligations under the Agreement, the Responding Party shall comply with its obligations under the Agreement (Article 15.1). Article 15.2 provides that within 30 days of the presentation of the report to the Parties to the dispute, the Responding Party shall notify the Complaining Party of its intentions with respect to implementation. The "reasonable period of time" for implementation under Article 15.2(c) is residually defined in Article 15.6 as 15 months. Under Article 16.2 a request for a compliance review may only be made after (a) the expiry of a reasonable period of time or (b) a notification to the Complaining Party by the Responding Party that it has complied with the obligation in Article 15.1. Compliance Reviews, and the composition and constitution of a Compliance Review Tribunal are described in Article 16.

5.23. Article 17 of Chapter 17 concern Compensation and Suspension of Concessions or other obligations. Per Article 17.1, compensation is voluntary, and, if granted, shall be consistent with the Agreement. Article 17.3 provides that if no satisfactory compensation has been agreed within 30 days of a request for negotiations for compensation per Article 17.3, the Complaining Party may then notify the Responding Party (and all other Parties) that it is suspending the application of the concessions or other obligations under the Agreement to the level of nullification and impairment, with effect 30 days from such notification. Further disciplines on the right of the Complaining Party to suspend the application of concessions or other obligations and the role of the arbitral panel to examine the same are set out in Article 17.4-11.

5.24. Section E of Chapter 17 contains Articles 18-21. Article 18 on Special and Differential Treatment involving Newer ASEAN Member States, requires, inter alia, that sympathetic consideration be given to the special situation of newer ASEAN Member States. Article 19 concerns expenses in arbitral proceedings, including costs. Article 21.1 provides that all proceedings under the Chapter shall be conducted in the English language. The Annex to Chapter 17 sets out detailed rules of procedure for arbitral proceedings. The Annex on Optional Procedures for Composing Arbitral Tribunals includes, in Optional Procedures A and B, the possibility that the Director General of the WTO may appoint the third arbitrator to an arbitral panel.

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Chart 5.1 - Chapter 17, Annex on Rules of Procedure for Arbitral Tribunal proceedings

20 days (Art.97.2)

75 days - Art. 16.5

within 7 days (Art. 6.4)

Written request for Consultations (Art. 6)

Consultations (Art. 6.6)

Written request for the appointment of arbitral

tribunal (Art. 8)

Appointment of arbitrators by each Party/Composition

of arbitral tribunal (Art. 6.5, 6.6, 6.7)

Issuance of arbitral tribunal's draft report to the Parties (Art. 13.13)

Issuance of arbitral tribunal's final report (Art. 13.3)

9 months from establishment

Publication of the final arbitral tribunal report to all Parties (Art. 13.16)

Agreement on the reasonable period of time to solve

the dispute (Art. 15.5)

–

Negotiations on mutually acceptable compensation

(Art.17)

Opportunity for the Parties to review the

draft (Art. 13.14)

No indication on time limit

Agreement on the existence or

consistency with the measure taken with

the recommendations of the aribitral tribunal

(Art. 16.1)

Failure to agree - refer to compliance review

tribunal (Art. 16.1, 16.2)

30 days (Art. 17.3)

No agreement (Art. 17.3)

Request by the complaining Party to the original arbitral

tribunal to determine the appropriate level of any suspension of

concessions or benefits to the Party complained against (Art. 17.8, 17.10)

Response to the written request (Art. 6.4)

Determination of the reasonable period of time by the arbitral tribunal (Art. 15.5) Terms of

reference (Art. 12.2)

Fix timetable (Art. 13.3)

Determination by the compliance review (Art. 12.3)

30 days(Art. 17.8)

if inconsistent

Failure to agree on the reasonable period of time - refer

to the Chair of the original arbitral tribunal (Art. 15.5)

45 days (Art. 15.5

(max. 15 months, Art. 15.6)

20 days or 60 days (Art. 8.1)

Not more than 30 days(10 for urgency)

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5.7 Relationship with other agreements concluded by the Parties

5.25. In the Preamble to the Agreement the Parties reaffirm their respective rights, obligations and undertakings under the WTO Agreement and other existing international agreements and arrangements. In Article 2.1 of Chapter 18 the Parties reaffirm their rights and obligations under the WTO Agreement and other agreements to which the Parties are party. Article 2.2 provides that nothing in the Agreement shall be construed to derogate from any right or obligation of a Party under the WTO Agreement and other agreements to which the Parties are party. Article 2.3 provides that in the event of an inconsistency between this and any other agreement to which two or more Parties are party shall immediately consult with a view to finding a mutually satisfactory solution.

5.26. Article 3 of Chapter 18 provides that if any international agreement or part thereof referred to in the Agreement is amended the Parties shall consult on whether it is necessary to amend the Agreement unless the Agreement provides otherwise.

5.27. Under side letters signed between New Zealand and Brunei and New Zealand and Singapore, these parties confirm that nothing in the AANZFTA will derogate from their rights and obligations under the Trans-Pacific SEP agreement. Where either agreement provides different treatment for an exporter, service supplier or investor from these Parties, that exporter, service supplier or investor is entitled to claim the more favourable of the treatments provided under either agreement.28 According to the Parties the side letters regarding the AANZFTA's relation with other agreements are intended to ensure that Parties can continue to grant and claim the more favourable treatment, if any, committed under other agreements. Under side letters exchanged between Australia and New Zealand the two parties agree that the following provisions of the AANZFTA shall not create any rights and obligations new them with regard to safeguard measures (Chapter 7), investment (Chapter 11) and dispute settlement (Chapter 17).29 Furthermore, nothing in the AANZFTA shall be construed to derogate from any rights and obligations under the Closer Economic Relations Agreement between Australia and New Zealand.

5.28. Table 5.1 below sets out other regional trade agreements to which the Parties are party.

Table 5.1 ASEAN and Australia and New Zealand: Participation in other regional trade agreements (notified and non-notified, in force), as of 23 June 2014

RTA Name Date of entry into

force

Type of Agreement

GATT/WTO Notification

Year WTO Provision

ASEAN Member States – Collectively

ASEAN - Republic of Korea 01.01.10 01.05.09

Goods Services

2010 GATT Art. XXIV & Enabling ClauseGATS Art. V

ASEAN - India 01.01.10 Goods 2010 Enabling Clause

ASEAN - Japan 01.12.08 Goods 2009 GATT Art. XXIV

ASEAN - China 01.01.05 01.07.07

Goods Services

2005 2008

Enabling Clause GATS Art. V

ASEAN Free Trade Area (AFTA)

28.01.92 Goods 1992 Enabling Clause

Individual ASEAN Member States

Singapore - Chinese Taipei 19.04.14 Goods & Services 2014 GATT Art. XXIV & GATS Art. V

28 Letters dated 27 February 2009 exchanged between New Zealand and Brunei and New Zealand and

Singapore. Available at: http://www.asean.fta.govt.nz/aanzfta-related-new-zealand-specific-side-instruments/ 29 The following provisions of the Agreement however do create rights between Australia and New

Zealand: Chapters 1-3 and Chapter 15 which shall only apply between Australia and New Zealand to the extent that the Agreement creates and modifies existing rights and obligations between them. The side letters dated 27 February 2009 are available at: http://www.asean.fta.govt.nz/aanzfta-related-new-zealand-specific-side-instruments/

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Costa Rica - Singapore 01.07.13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V

Malaysia - Australia 01.01.13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V

Chile - Malaysia 25.02.12 Goods 2013 GATT Art. XXIV

India - Malaysia 01.07.11 Goods & Services 2011 Enabling Clause & GATS Art. V

New Zealand - Malaysia 01.08.10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V

Japan - Viet Nam 01.10.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V

Peru - Singapore 01.08.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V

China - Singapore 01.01.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V

Japan - Philippines 11.12.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V

Brunei Darussalam - Japan 31.07.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V

Japan - Indonesia 01.07.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V

Pakistan - Malaysia 01.01.08 Goods & Services 2008 Enabling Clause & GATS Art. V

Japan - Thailand 01.11.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V

Panama - Singapore 24.07.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V

Japan - Malaysia 13.07.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V

Trans-Pacific Strategic Economic Partnershipa

28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V

Republic of Korea – Singapore


Jordan – Singapore 22.08.05 Goods & Services 2006 GATT Art. XXIV & GATS Art. V

India – Singapore 01.08.05 Goods & Services 2007 GATT Art. XXIV & GATS Art. V

Thailand - New Zealand 01.07.05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V

Thailand – Australia 01.01.05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V

United States - Singapore 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V

Singapore – Australia 28.07.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V

EFTA – Singapore 01.01.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V

Japan – Singapore 30.11.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V

Asia Pacific Trade Agreement (APTA) - Accession of China


New Zealand - Singapore 01.01.01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V

Lao People's Democratic Republic – Thailand


Global System of Trade Preferences among Developing Countries (GSTP)b


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Asia Pacific Trade Agreement (APTA)c


Protocol on Trade Negotiations (PTN)d


Singapore - Gulf Cooperation Council (GCC)

01.09.13 Goods & Services Not notified

Thailand - Peru 31.12.11 Goods Not notified

India - Thailand Early Harvest

01.09.04 Goods Not notified

Thailand - Bahrain Early Harvest

29.12.02 Goods Not notified

Australia

Malaysia – Australia 01.01.13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V

Australia – Chile 06.03.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V

Thailand – Australia 01.01.05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V

United States - Australia 01.01.05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V

Singapore - Australia 28.07.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V

Australia - New Zealand (ANZCERTA)

01.01.83 01.01.89

Goods Services

1983 1995

GATT Art. XXIV GATS Art. V

South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA)e


Australia - Papua New Guinea (PATCRA)

01.02.77 Goods 1976 GATT Art. XXIV

New Zealand

New Zealand - Chinese Taipei


Hong Kong, China - New Zealand


New Zealand - Malaysia 01.08.10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V

China - New Zealand 01.10.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V

Trans-Pacific Strategic Economic Partnershipa


Thailand - New Zealand 01.07.05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V

New Zealand - Singapore 01.01.01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V

Australia - New Zealand (ANZCERTA)

01.01.83 01.01.89

Goods Services

1983 1995

GATT Art. XXIV & GATS Art. V

South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA)e


Source: WTO Secretariat. a Members are: Brunei Darussalam, Chile, New Zealand and Singapore. b ASEAN States which are parties to the GSTP: Indonesia, Malaysia, Myanmar, Philippines, Singapore,

Thailand, Viet Nam. c ASEAN State which is a party to APTA: Lao People's Democratic Republic. d ASEAN State which is a party to the PTN: Philippines. e Members are: Australia, Cook Islands, Fiji, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, New Zealand, Niue, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.

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5.8 Government procurement

5.29. The Agreement contains no express provisions on government procurement.

5.9 Competition

5.30. Chapter 14, Articles 1-4 concern Competition. Article 1 sets out the basic principles of the Chapter, and notes in Article 1.4 that nothing in the Chapter requires a Party to develop specific competition related measures to address anti-competitive practices or prevents a Party from adopting policies in other fields, for example to promote economic development. Article 2 concerns cooperation between the Parties on competition. Article 3 requires the Parties to designate contact points for technical co-operation and information exchange under the Chapter. According to the Parties the contact points have been notified and a Committee on Competition was established in August 2013 and held its first meeting in November 2013 specifically for this purpose. Article 4 provides that Chapter 17 on Dispute Settlement shall not apply to any matter under Chapter 14.

5.10 Intellectual property rights

5.31. Chapter 13, Articles 1-12 concern Intellectual Property. Article 1 provides that the Parties confirm their commitment to reducing impediments to trade and investment by promoting deeper economic integration through effective and adequate creation, utilisation, protection and enforcement of intellectual property rights, taking into account the different levels of economic development and capacity, differences in legal systems and the need to ensure a balance of rights of right holders and the legitimate interests of users.

5.32. In Article 3 of Chapter 13, each Party affirms its rights and obligations under the WTO TRIPS Agreement. Article 4, on National Treatment, provides in Article 4.1 that each Party shall accord to the nationals of each other Party treatment no less favourable than it accords to its own nationals with regard to protection30 of intellectual rights, subject to the exceptions provided in the TRIPS Agreement and in the multilateral agreements concluded under the auspices of WIPO.

5.33. Article 5 of Chapter 13 concerns Copyright, Article 6 on Government use of software, Article 7 on Trademarks and Geographical Indications and Article 8 Genetic Resources, Traditional knowledge and Folklore. Article 9 on Cooperation provides in Article 9.1 that in view of the significant differences in capacity between some of the Parties, when a Party's implementation of this Chapter is inhibited by capacity constraints, each other Party shall (upon request) endeavour to provide cooperation to that Party to assist in the implementation of the Chapter. Articles 9.2-9 concern other co-operation activity under the Chapter. Article 10.1-3 set out efforts of the Parties to provide transparency in intellectual property. Article 11 provides that the Chapter shall not derogate from any transitional period for implementing a provision of the TRIPS Agreement that has been or may be agreed by the Council in TRIPS established pursuant to Article IV of the TRIPS Agreement, either before or after entry into force of the Agreement. Article 12 establishes and sets out the operation of a Committee on Intellectual Property.

5.34. Under Article 9.5 Chapter 11, no compensation in the case of issuance of a compulsory licence will be granted in relation to intellectual property rights under the TRIPS Agreement.

5.11 Environment and Labour

5.35. New Zealand and the Philippines signed a Memorandum of Agreement on Labour Cooperation. In Article 2.1 of the Memorandum on Labour Cooperation, the parties have reaffirmed their obligations as members of the ILO and their commitment to the principles of the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up (1998).

5.36. New Zealand and the Philippines have also signed Memorandum of Agreement on Environmental Cooperation.

5.37. In addition to the aforementioned side letters, New Zealand and Indonesia signed a Memorandum of Understanding between the Government of the Republic of Indonesia and the

30 Footnote 1 to Chapter 13 sets out a definition of the term "protection".

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Government of New Zealand on Environmental Cooperation and a Memorandum of Understanding between the Government of the Republic of Indonesia and the Government of New Zealand on Labour Cooperation.

5.38. According to the Parties the side letters referred to above to which New Zealand is a party have Treaty status and contain legal obligations. They are instruments that were negotiated in the context of the Agreement and have legal status in their own right.

5.12 Economic Cooperation

5.39. According to the Parties, Chapter 13 of the Agreement on Economic Cooperation records the agreement of AANZFTA Parties to support implementation of AANZFTA through economic cooperation activities that are trade or investment related as set out in a separate work program mutually determined by the Parties prior to the entry-into-force of the Agreement.

5.40. The chapter text, together with a separate Economic Cooperation Work Programme (ECWP), establishes the framework for trade- and investment-related cooperation to assist implementation of the AANZFTA. The ECWP does not have Treaty-level status but the Implementing Agreement formally integrates the ECWP into the overall FTA package.

5.41. The ECWP is currently focused on nine broad areas of activity:

• Rules of Origin • Sanitary and Phytosanitary Measures • Standards Technical Regulations and Conformity Assessment Procedures • Services • Investment • Intellectual property • Sectoral integration • Customs • Competition

5.42. The ECWP is to be implemented over five years after entry into force of AANZFTA and is estimated to cost up to AUD 20 million. The funding is delivered largely by Australia and New Zealand through the AANZFTA Economic Cooperation Support Program (AECSP), with 'in kind' contributions from ASEAN Member States. The ECWP is regularly reviewed by the FTA Joint Committee to assess its overall effectiveness with individual activities developed and/or scrutinised by the relevant committee and Ad Hoc Economic Cooperation Budget Sub-Committee.

5.43. ECWP projects implemented to date cover a broad range of topics, including: the establishment of an ASEAN Regional Diagnostic Network; enhancement of implementation of rules of origin; implementation of Harmonised System transposition of tariff schedules; introduction of a regional scheme to monitor AANZFTA tariff preference utilisation; comprehensive regional patent examination training; capacity building on statistics of international trade in services; non-Mode 3 investment in services.

5.44. An independent review of the AECSP was undertaken in Year 3 of the program's implementation. The review team assessed and rated the progress of the AECSP against seven evaluation criteria: relevance, effectiveness, efficiency, sustainability, gender equality, monitoring and evaluation, and analysis and learning. The AECSP Independent Progress Report is available at: http://aid.dfat.gov.au/Publications/Pages/aanzfta-ecsp-ipr-2013.aspx.

5.45. A response to the AECSP Independent Progress Report was prepared by the ASEAN Secretariat, the Australian Department of Foreign Affairs and Trade and New Zealand Ministry of Foreign Affairs and Trade. The partners agreed with most of the Report's recommendations and partially agreed with the gender and monitoring and evaluation recommendations. The Management Response to the Independent Progress Report is available at: http://aid.dfat.gov.au/Publications/Pages/aanzfta-ecsp-ipr-2013-mgt-response.aspx.

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ANNEX 1

MARKET ACCESS INDICATORS

1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual imports and MFN average rates in force on the date of entry into force of the Agreement are shown below in Tables A1.1 (ASEAN member states), A1.2 (Australia) and A1.3 (New Zealand). The figures are shown for total, agricultural and non-agricultural products.

2. On entry into force of the Agreement in 2010, 75.4% of Brunei Darussalam's tariff was duty-free on an MFN basis; 97.7% of agricultural products were duty-free and 71.8% of non-agricultural products were duty-free. Upon the Agreement's entry into force, an additional 8.4% of the tariff became duty-free, providing Australian and New Zealand exporters an average margin of preference of 40% for non-agricultural products while 100% for agricultural products. At the end of the Agreement's implementation period, only 0.1% remained dutiable on the overall basis, where 0.4% belonged to agricultural products and 100% duty-free for non-agriculture.

3. In 2011, 13.3% of Cambodia's overall MFN tariff was duty-free, 11.6% for agricultural products and 13.5% for non-agricultural products. With the entry into force of the Agreement Australian and New Zealand exporters received a relative margin of preference of 4.1% overall, 7.3% for agricultural and 3.4% for non-agricultural products. No significant liberalization will take place until 2021 (ten years from entry into force), where 83.7% of the total lines are expected to become duty-free, 78.9% for agricultural products and 84.4% for non-agricultural products.

4. Indonesia's share of duty-free lines at the MFN level in 2012 was 11.4%, 9.3% for agricultural products and 11.7% for non-agricultural products. Upon the Agreement's entry into force, an additional 66.8% became duty-free on an overall basis, and for agricultural and non-agricultural products; 73.6% and 65.8% of agricultural and non-agricultural lines became duty free. This allows Australian and New Zealand exporters to enjoy a relative margin of preference of 78.9% on an overall basis, and 69.5% and 79.2% for agricultural and non-agricultural products, respectively. At the end of implementation in 2025, the remaining dutiable lines will be 6.1%, 12.4% for agricultural products and 5.1% for non-agricultural products.

5. In the case of Lao PDR, the duty-free lines will transpire in 2021 which is 87% share of duty-free lines on an overall basis, 71.2% for agricultural products and 89.5% for non-agricultural products. This will give Australian and New Zealand exporters a relative margin of preference of 83.5% overall, 82.4% in agriculture and 84.3% in non-agriculture. By the end of implementation period, the share of duty-free lines will increase to 90.5% on an overall basis, 91.3% for agricultural products and 90.4% for non-agricultural products.

6. On entry into force of the Agreement in 2010, Malaysia's duty-free lines were at 71.1% overall, where 82.7% in agriculture and 69.6% in non-agriculture. Malaysia's trading partners under the Agreement enjoyed a relative margin of preference of 46.7% on an overall basis, 42.9% on agriculture and 46.9% on non-agriculture. By the end of implementation period, the remaining dutiable products are 3.7% on an overall basis, 8.1% for agricultural products and 3.2% for non-agricultural products.

7. On the Agreement's entry into force for Myanmar in 2010, 4.6% were duty-free on an overall basis which remained in that level over several periods. Duty free tariffs increase in 2020 to 60.4% overall, 43.1% for agricultural products and 63.5% for non-agricultural products. This will give Australian and New Zealand exporters a margin of preference of 48.1% on an overall basis, 31.8% for agriculture and 55.1% for non-agricultural products. By the end of implementation period, the share of duty-free lines is expected to increase to 86.4% overall, 71.7% in agriculture and 89% in non-agriculture.

8. On entry into force of the Agreement in 2010, the Philippines' share of duty-free lines increased to 60.8% on an overall basis, 44.4% for agricultural products and 63.4% for non-agricultural products. This gave Australian and New Zealand's exporters a relative margin of preference of 60% on an overall basis, 48.5% in agriculture and 63.8% in non-agriculture. By the

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end of implementation period, the remaining dutiable products on an overall basis are expected to be at 4.5%, 5.4% for agriculture and 4.4% for non-agricultural products.

9. Singapore only has 0.1% dutiable products at the MFN level for 2010. Upon the Agreement's entry into force, all of the products were duty-free.

10. In 2010, Thailand had 18.3% share of duty-free lines at the MFN level. It increased to 71.2% upon the Agreement's entry into force on an overall basis. This gave the Australian and New Zealander exporters a relative margin of preference of 64.8% on an overall basis, 59.1% in agriculture and 67% in non-agriculture. By the end of implementation period, the remaining dutiable for total products is expected to be at 1.2% and 9% for agricultural products, while the non-agricultural products are expected to be 100% duty-free.

11. In 2010, Viet Nam had 32.9% share of duty-free lines at the MFN level which remained at almost the same level until it increased in 2016 to 56.1%. This will give a relative margin of preference of 60.4% on an overall basis, 61% in agriculture and 59.6% in non-agriculture to Viet Nam's trading partners under the Agreement. By the end of implementation period, the remaining dutiable is expected to be at 8.2% overall, 9.1% in agriculture and 8% in non-agricultural products.

Table A1. 1 ASEAN member states: Indicators of MFN tariff rates and preferential rates for imports from Australia and New Zealand

Origin of goods

Year ALL PRODUCTS Agricultural products a Non-agricultural products Average applied

tariff Share of

duty-free tariff lines (%)

Average applied tariff

Share of duty-free

tariff lines (%)


Share of duty-free tariff lines (%)

Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

Brunei Darussalam MFN 2010 3.5 14.3 75.4 0.0 5.0 97.7 4.0 14.4 71.8

Australia/ 2010 2.1 13.3 83.8 0.0 0.0 98.2 2.4 13.3 81.5 New 2011 1.7 11.0 83.8 0.0 0.0 98.2 2.0 11.0 81.5

Zealand 2012 1.1 7.2 83.8 0.0 0.0 98.2 1.3 7.2 81.5 2013 0.6 13.3 95.2 0.0 0.0 99.6 0.7 13.3 94.5 2014 0.6 13.2 95.2 0.0 0.0 99.6 0.7 13.2 94.5 2015 0.5 18.2 96.9 0.0 0.0 99.6 0.6 18.2 96.4 2016 0.5 18.1 96.9 0.0 0.0 99.6 0.6 18.1 96.4 2017 0.5 18.0 96.9 0.0 0.0 99.6 0.6 18.0 96.4 2018 0.5 18.0 96.9 0.0 0.0 99.6 0.6 18.0 96.4 2019 0.5 18.0 96.9 0.0 0.0 99.6 0.6 18.0 96.4 2020 0.0 0.0 99.9 0.0 0.0 99.6 0.0 0.0 100.0 Cambodia

MFN 2011 12.1 13.9 13.3 15.0 16.9 11.6 11.7 13.6 13.5 Australia/ 2011 11.6 13.4 13.4 13.9 15.7 11.7 11.3 13.1 13.6

New 2012 11.6 13.4 13.4 13.9 15.7 11.7 11.3 13.1 13.6 Zealand 2013 11.2 12.9 13.4 12.9 14.6 11.7 11.0 12.7 13.6

2014 11.2 12.9 13.4 12.9 14.6 11.7 11.0 12.7 13.6 2015 9.4 10.9 13.4 11.2 12.6 11.7 9.2 10.7 13.6 2016 9.4 10.9 13.4 11.2 12.6 11.7 9.2 10.7 13.6 2017 7.7 8.8 13.4 9.4 10.6 11.7 7.4 8.6 13.6 2018 7.6 8.8 13.4 9.3 10.5 11.7 7.4 8.5 13.6 2019 6.4 7.4 13.4 7.5 8.5 11.7 6.2 7.2 13.6 2020 6.2 7.2 13.4 7.3 8.2 11.7 6.1 7.0 13.6 2021 2.0 12.2 83.7 2.6 12.5 78.9 1.9 12.1 84.4 2022 1.6 9.9 83.7 2.3 10.8 78.9 1.5 9.7 84.4 2023 1.6 9.7 83.7 2.2 10.6 78.9 1.5 9.6 84.4 2024 1.1 9.4 88.6 1.8 11.4 84.5 1.0 9.1 89.2 2025 1.1 9.4 88.6 1.8 11.4 84.5 1.0 9.1 89.2 Indonesia

MFN 2012 7.1 8.0 11.4 5.9 6.6 9.3 7.2 8.2 11.7 Australia/ 2012 1.5 7.2 78.2 1.8 14.7 82.9 1.5 6.6 77.5

New 2013 1.1 10.5 88.5 1.8 14.6 83.0 1.0 9.8 89.3 Zealand 2014 1.0 10.3 89.6 1.8 14.7 83.2 0.9 9.5 90.6

2015 0.8 11.5 92.3 1.7 14.0 83.2 0.7 10.8 93.7 2016 0.7 10.6 92.3 1.7 13.9 83.2 0.6 9.6 93.7

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Origin of goods


tariff Share of



Share of duty-free

tariff lines (%)



Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

2017 0.7 10.4 92.4 1.6 13.9 83.5 0.6 9.4 93.8 2018 0.7 10.0 92.5 1.6 13.4 83.6 0.6 9.1 93.8 2019 0.7 9.8 92.7 1.5 13.2 83.9 0.5 8.9 94.0 2020 0.6 10.3 93.6 1.4 16.3 86.6 0.5 8.9 94.6 2021 0.6 10.0 93.6 1.3 15.9 86.7 0.5 8.7 94.6 2022 0.6 9.8 93.6 1.3 15.6 86.8 0.5 8.5 94.6 2023 0.5 9.7 93.9 1.2 16.6 87.6 0.4 8.3 94.8 2024 0.5 9.6 93.9 1.2 16.2 87.6 0.4 8.2 94.8 2025 0.5 8.4 93.9 1.1 14.5 87.6 0.4 7.1 94.9 Lao PDR

MFN 2011 10.3 10.3 0.0 19.3 19.3 0.0 8.9 8.9 0.0 Australia/ 2011 9.9 9.9 0.0 18.4 18.4 0.0 8.5 8.5 0.0

New 2012 9.9 9.9 0.0 18.4 18.4 0.0 8.5 8.5 0.0 Zealand 2013 9.5 9.5 0.0 16.6 16.6 0.0 8.4 8.4 0.0

2014 9.5 9.5 0.0 16.6 16.6 0.0 8.4 8.4 0.0 2015 8.4 8.4 0.0 13.9 13.9 0.0 7.5 7.5 0.0 2016 8.4 8.4 0.0 13.9 13.9 0.0 7.5 7.5 0.0 2017 6.7 6.7 0.0 9.8 9.8 0.0 6.2 6.2 0.0 2018 6.6 6.6 0.0 9.8 9.8 0.0 6.1 6.1 0.0 2019 4.7 4.7 0.0 7.5 7.5 0.0 4.2 4.2 0.0 2020 3.6 3.6 0.0 5.7 5.7 0.0 3.3 3.3 0.0 2021 1.7 12.9 87.0 3.4 11.9 71.2 1.4 13.4 89.5 2022 1.5 11.3 87.0 2.8 9.9 71.2 1.2 11.9 89.5 2023 1.3 10.5 87.0 2.8 9.9 71.2 1.1 10.8 89.5 2024 1.1 11.7 90.5 1.7 21.2 91.3 1.0 10.5 90.4 2025 1.0 10.3 90.5 1.6 20.4 91.3 0.9 8.9 90.4 Malaysia

MFN 2010 6.0 16.7 63.8 2.8 10.6 71.2 6.4 17.2 62.8 Australia/ 2010 3.2 11.3 71.1 1.6 11.1 82.7 3.4 11.3 69.6

New 2011 2.4 10.7 76.9 1.3 13.8 87.7 2.6 10.6 75.5 Zealand 2012 1.8 11.6 84.2 1.1 13.9 89.1 1.9 11.5 83.6

2013 1.4 16.0 91.1 1.0 12.6 89.2 1.4 16.4 91.3 2014 1.2 14.3 91.1 0.9 11.8 89.2 1.3 14.6 91.3 2015 1.0 12.3 91.2 0.8 11.2 89.8 1.1 12.4 91.4 2016 0.9 11.7 92.2 0.8 10.5 89.8 0.9 11.9 92.5 2017 0.7 9.6 92.2 0.7 10.2 89.8 0.7 9.5 92.5 2018 0.5 7.3 92.2 0.7 9.6 89.8 0.5 7.1 92.5 2019 0.5 6.2 92.2 0.7 9.6 89.8 0.4 5.8 92.5 2020 0.3 10.0 96.3 0.6 12.5 91.9 0.3 9.5 96.8 Myanmar

MFN 2010 5.4 5.7 4.6 8.5 9.6 11.8 4.9 5.1 3.3 Australia/ 2010 5.4 5.7 4.6 8.5 9.6 11.8 4.9 5.1 3.3

New 2011 5.3 5.6 4.6 8.5 9.6 11.8 4.7 4.9 3.3 Zealand 2012 5.3 5.6 4.6 8.5 9.6 11.8 4.7 4.9 3.3

2013 5.3 5.6 4.6 8.5 9.6 11.8 4.7 4.9 3.3 2014 5.3 5.6 4.6 8.5 9.6 11.8 4.7 4.9 3.3 2015 4.7 4.9 4.6 7.5 8.5 11.8 4.2 4.3 3.3 2016 4.7 4.9 4.6 7.5 8.5 11.8 4.2 4.3 3.3 2017 3.9 4.1 4.6 6.5 7.4 11.8 3.4 3.6 3.3 2018 3.9 4.1 4.6 6.5 7.4 11.8 3.4 3.6 3.3 2019 3.9 4.1 4.6 6.5 7.4 11.8 3.4 3.5 3.3 2020 2.8 7.0 60.4 5.8 10.1 43.1 2.2 6.2 63.5 2021 1.7 9.4 82.2 4.6 13.7 66.7 1.1 7.7 85.1 2022 1.4 7.9 82.2 3.7 11.1 66.7 1.0 6.6 85.1 2023 1.2 6.9 82.2 2.9 8.8 66.7 0.9 6.2 85.1 2024 1.1 7.9 86.4 2.7 9.7 71.7 0.8 7.0 89.0 2025 1.1 7.9 86.4 2.7 9.7 71.7 0.8 7.0 89.0 The Philippines

MFN 2010 6.5 6.7 3.8 10.3 10.3 0.2 5.8 6.1 4.3 Australia/ 2010 2.6 6.5 60.8 5.3 9.6 44.4 2.1 5.8 63.4

New 2011 1.8 5.9 69.2 4.3 10.2 57.8 1.4 4.9 71.1 Zealand 2012 1.2 6.0 80.6 3.2 10.2 69.1 0.8 4.8 82.4

2013 0.8 8.7 90.9 2.6 13.3 80.3 0.5 6.8 92.5

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Origin of goods


tariff Share of



Share of duty-free

tariff lines (%)



Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

2014 0.8 8.2 90.9 2.5 12.6 80.3 0.5 6.4 92.5 2015 0.6 10.8 94.3 2.1 21.2 90.3 0.4 7.6 94.9 2016 0.6 10.1 94.3 1.9 19.7 90.3 0.4 7.2 94.9 2017 0.6 9.9 94.3 1.8 18.7 90.3 0.4 7.2 95.0 2018 0.5 9.9 94.6 1.7 17.4 90.3 0.3 7.5 95.3 2019 0.5 10.0 94.7 1.7 18.3 90.9 0.3 7.4 95.3 2020 0.4 9.6 95.5 1.3 24.4 94.6 0.3 6.6 95.6 Singapore

MFN 2010 0.0 0.0 99.9 0.0 0.0 99.5 0.0 0.0 100.0 Australia/

New Zealand

2010 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0

Thailand MFN 2010 12.8 15.7 18.3 30.1 31.2 3.3 10.0 12.7 20.7

Australia/ 2010 4.5 15.8 71.2 12.3 20.1 38.5 3.3 14.0 76.4 New 2011 4.1 14.1 71.2 11.0 17.9 38.5 3.0 12.6 76.4

Zealand 2012 2.9 12.9 77.8 9.5 17.9 46.7 1.8 10.5 82.7 2013 2.3 17.9 87.1 7.6 47.9 83.7 1.4 11.7 87.7

2014 2.1 16.5 87.1 7.6 47.5 83.7 1.2 10.1 87.7 2015 1.9 18.5 89.7 7.5 47.2 83.7 1.0 10.7 90.6 2016 1.7 17.9 90.5 7.5 46.8 83.7 0.8 9.3 91.6 2017 1.6 17.4 91.0 7.4 47.0 83.8 0.6 7.9 92.2 2018 1.4 15.5 91.0 7.4 46.6 83.8 0.4 5.5 92.2 2019 1.4 15.5 91.0 7.4 46.8 83.9 0.4 5.5 92.2 2020 0.8 65.1 98.8 5.6 65.1 91.0 0.0 0.0 100.0 Viet Nam

MFN 2010 10.6 15.8 32.9 18.2 21.1 13.9 9.4 14.7 35.6 Australia/ 2010 10.1 15.2 33.5 17.1 19.9 14.1 9.1 14.3 36.3

New 2011 9.9 14.9 33.5 16.7 19.4 14.1 8.9 14.1 36.3 Zealand 2012 9.0 13.6 33.5 14.8 17.2 14.1 8.2 12.9 36.3

2013 8.5 12.8 33.5 13.5 15.7 14.1 7.7 12.2 36.3 2014 7.3 11.0 33.5 11.5 13.4 14.1 6.7 10.6 36.3 2015 6.2 9.3 33.5 9.7 11.3 14.1 5.7 8.9 36.3 2016 4.2 9.7 56.1 7.1 11.9 40.8 3.8 9.3 58.3 2017 3.3 9.1 63.2 5.8 11.7 50.5 2.9 8.6 65.1 2018 2.0 15.8 86.5 4.2 21.5 80.6 1.7 14.4 87.4 2019 1.8 14.8 87.2 3.7 25.0 85.1 1.5 12.9 87.5 2020 1.5 20.2 91.8 3.5 38.0 90.9 1.3 17.0 92.0 2021 1.5 19.1 91.8 3.4 37.5 90.9 1.2 15.8 92.0 2022 1.1 14.0 91.8 2.4 26.1 90.9 0.9 11.8 92.0

a WTO Definition.

Note: Tariff lines subject to in-quota rates are excluded in the computation (for Malaysia, The Philippines and Viet Nam); for the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included (for Malaysia and Thailand).

Based on the HS 2007 nomenclature for all ASEAN except Cambodia which is based on HS 2002 nomenclature.


12. Australia had 46.2% duty-free tariff lines in 2010 on an MFN basis, where 71.2% and 42.7% respectively of agricultural products and non-agricultural products were duty free. Upon the Agreement's entry into force, 96% of Australia's tariff became duty-free for imports from Indonesia and Thailand, 96.3% on imports from Malaysia, and 96.4% on imports from Brunei Darussalam, Cambodia, Lao PDR, Myanmar, Philippines, Singapore and Viet Nam on an overall basis. This gave the ASEAN exporters a margin of preference of 89.7% on an overall basis, 100% in agriculture and 87.1% in non-agriculture. All are 100% duty-free at the end of implementation period.

13. In 2010, New Zealand had 59.6% of products already duty-free on an MFN basis, 65.2% of agricultural products were duty-free while 58.7% of non-agricultural products were duty-free.

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Upon the Agreement's entry into force, 84.6% of New Zealand's tariffs were duty-free for imports from ASEAN, of which 98.1% for agricultural products and 82.5% for non-agricultural products. This gave ASEAN exporters to New Zealand a relative margin of preference of 56.5% overall, 94.1% in agriculture and 54.2% in non-agriculture. All are 100% duty-free at the end of the implementation period.

Table A1. 2 Australia: Indicators of MFN tariff rates and preferential rates for imports from ASEAN and New Zealand

Origin of goods


tariff Share

of duty-free tariff lines (%)


Share of duty-

free tariff lines (%)


Share of


Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

MFN 2010 2.9 5.3 46.2 1.4 5.0 71.2 3.1 5.4 42.7Indonesia 2010 0.3 8.2 96.0 0.0 5.0 99.7 0.4 8.2 95.5

2011 0.3 8.2 96.0 0.0 5.0 99.7 0.4 8.2 95.5 2012 0.3 8.2 96.1 0.0 5.0 99.7 0.4 8.2 95.6 2013 0.3 8.4 96.3 0.0 5.0 99.7 0.3 8.4 95.8 2014 0.3 8.4 96.3 0.0 5.0 99.7 0.3 8.4 95.9 2015 0.3 8.2 96.8 0.0 5.0 99.7 0.3 8.3 96.3 2016 0.3 8.2 96.8 0.0 5.0 99.7 0.3 8.3 96.3 2017 0.3 8.2 96.8 0.0 5.0 99.7 0.3 8.3 96.3 2018 0.3 8.2 96.8 0.0 5.0 99.7 0.3 8.3 96.3 2019 0.3 8.3 96.8 0.0 5.0 99.7 0.3 8.3 96.4 2020 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0Malaysia 2010 0.3 8.5 96.3 0.0 5.0 99.7 0.4 8.5 95.8

2011 0.3 8.5 96.3 0.0 5.0 99.7 0.4 8.5 95.8 2012 0.3 8.5 96.4 0.0 5.0 99.7 0.3 8.5 95.9

2013 0.3 8.5 96.4 0.0 5.0 99.7 0.3 8.5 95.9 2014 0.3 8.5 96.4 0.0 5.0 99.7 0.3 8.5 95.9 2015 0.3 8.3 96.8 0.0 5.0 99.7 0.3 8.3 96.4 2016 0.3 8.3 96.8 0.0 5.0 99.7 0.3 8.3 96.4 2017 0.3 8.4 96.9 0.0 5.0 99.7 0.3 8.4 96.5 2018 0.3 8.4 96.9 0.0 5.0 99.7 0.3 8.4 96.5 2019 0.3 8.4 96.9 0.0 5.0 99.7 0.3 8.4 96.5 2020 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0Thailand 2010 0.3 8.2 96.0 0.0 5.0 99.7 0.4 8.2 95.5

2011 0.3 8.2 96.0 0.0 5.0 99.7 0.4 8.2 95.5 2012 0.3 8.2 96.1 0.0 5.0 99.7 0.4 8.2 95.6 2013 0.3 8.2 96.1 0.0 5.0 99.7 0.4 8.2 95.6 2014 0.3 8.2 96.1 0.0 5.0 99.7 0.4 8.2 95.6 2015 0.3 8.0 96.5 0.0 5.0 99.7 0.3 8.0 96.0 2016 0.3 8.0 96.5 0.0 5.0 99.7 0.3 8.0 96.0 2017 0.3 8.0 96.5 0.0 5.0 99.7 0.3 8.0 96.0 2018 0.3 8.0 96.5 0.0 5.0 99.7 0.3 8.0 96.0 2019 0.3 8.0 96.5 0.0 5.0 99.7 0.3 8.0 96.0 2020 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0Rest of 2010 0.3 8.6 96.4 0.0 5.0 99.7 0.4 8.6 95.9AANZFTA 2011 0.3 8.6 96.4 0.0 5.0 99.7 0.4 8.6 95.9Parties b 2012 0.3 8.5 96.5 0.0 5.0 99.7 0.3 8.6 96.0 2013 0.3 8.5 96.5 0.0 5.0 99.7 0.3 8.6 96.0 2014 0.3 8.5 96.5 0.0 5.0 99.7 0.3 8.6 96.0 2015 0.3 8.4 96.9 0.0 5.0 99.7 0.3 8.4 96.5 2016 0.3 8.4 96.9 0.0 5.0 99.7 0.3 8.4 96.5 2017 0.3 8.4 96.9 0.0 5.0 99.7 0.3 8.4 96.5 2018 0.3 8.4 96.9 0.0 5.0 99.7 0.3 8.4 96.5 2019 0.3 8.4 96.9 0.0 5.0 99.7 0.3 8.4 96.5 2020 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0

a WTO Definition.

b Brunei Darussalam, Cambodia, Lao PDR, Myanmar, New Zealand, Philippines, Singapore and Viet Nam.


Source: WTO estimates based on data provided by Australia and the WTO-IDB.

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Table A1. 3 New Zealand: Indicators of MFN tariff rates and preferential rates for imports from ASEAN and Australia

Origin of

goods


tariff Share

of duty-free tariff lines (%)




Share of


Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

Overall (%)

On dutiable

(%)

MFN 2010 2.3 5.7 59.6 1.7 5.0 65.2 2.4 5.8 58.7ASEAN/ 2010 1.0 6.6 84.6 0.1 5.0 98.1 1.1 6.6 82.5Australia 2011 0.9 5.9 84.6 0.1 4.5 98.1 1.0 5.9 82.5 2012 0.7 7.5 90.2 0.1 5.0 98.7 0.8 7.5 88.8 2013 0.7 7.5 90.5 0.1 5.0 98.7 0.8 7.6 89.2 2014 0.7 7.3 90.6 0.1 4.7 98.7 0.8 7.3 89.3 2015 0.7 7.3 90.6 0.1 4.7 98.7 0.8 7.3 89.3 2016 0.7 7.3 90.6 0.1 4.7 98.7 0.8 7.4 89.3 2017 0.2 6.5 96.5 0.0 3.0 99.0 0.3 6.6 96.1 2018 0.2 6.2 96.7 0.0 3.0 99.0 0.2 6.4 96.3 2019 0.2 6.3 96.8 0.0 3.0 99.0 0.2 6.5 96.5 2020 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0

a WTO Definition.


Source: WTO estimates based on data provided by New Zealand and the WTO-IDB.

14. Tables A1.4-A1.7 show market access for Australia's top 25 exports in the ASEAN market, while Tables A1.8-A1.11 show market access for New Zealand's top 25 exports in the ASEAN market. Australia's top 25 exports to Brunei Darussalam, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand and Viet Nam accounted for 68.6% of its average global exports during 2007-09 and between 36 and 106 tariff lines in these parties. Of these lines between 2 and 75 lines were duty free and between zero and 65 lines were subject to duty (zero for Singapore, 7 for New Zealand, 8 Brunei Darussalam, 53 for Malaysia, 67 for Thailand, 70 for Viet Nam, 75 for Myanmar and 81 for the Philippines). As a result of the Agreement and at the end of the transition period, Malaysia will maintain duties on 14 lines (motor vehicles and wine), Myanmar on 32 (motor vehicles, certain medicines, gold, copper cathodes, and wine) and Viet Nam on 45 lines (motor vehicles, wine, certain medicines, and light oils), while all remaining tariffs will be eliminated by Brunei Darussalam, New Zealand, the Philippines, Singapore, and Thailand by the end of their respective implementation periods.

15. Table A1.5 shows market access in Cambodia's market for Australia's top 25 exports which accounted during 2008-10 for 71.7% of Australia's global exports and covered by 156 lines in Cambodia's tariff. Of these lines 100 were subject to duties, while 56 were duty-free on an MFN basis in 2011. Upon entry into force of the Agreement, Cambodia liberalized one line in 2011 (motor vehicles, accounting for 0.5% of Australia's global exports). Further liberalization is due in 2021 (9 lines including motor vehicles and petroleum oils) and 2024 (26 lines relating to motor vehicles). At the end of implementation 64 lines will remain subject to duty in Cambodia for Australian exports (including 45 lines relating to motor vehicles, 14 lines relating to light oils and preparations, four lines for wine and frozen boneless beef (1 line).

16. Table A1.6 shows market access in Indonesia's market for Australia's top 25 exports, which accounted for 73.4% of Australia's global exports in 2009-11 and 92 tariff lines. Of these lines 6 were duty free on an MFN basis. Upon entry into force of the Agreement in 2012, 26 lines were liberalized by Indonesia for imports from Australia with 13 lines liberalized in 2013 and 8 in 2014. Further liberalization is planned for 2015, 2019 and 2020. At the end of liberalization Indonesia will maintain tariffs on 9 lines (relating to motor vehicles, wine and cathodes).

17. Table A1.7 shows market access in Lao PDR's market for Australia's top 25 exports, which accounted for 71.7% of Australia's global exports and relating to 83 lines all of which are dutiable on an MFN basis. None of these tariff lines will be liberalized for imports from Australia until 2021 (ten years after the Agreement's entry into force for Lao PDR) when 35 lines will become duty free, followed by a further 4 lines in 2024. Once the Agreement is fully implemented, 44 lines will

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remain subject to duty for imports from Australia (26 lines relating to motor vehicles, 13 for light oils and preparations, 4 relating to wine and 1 line relating to petroleum products).

18. Table A1.8 shows market access for New Zealand's top 25 exports in the markets of Australia, Brunei Darussalam, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam, which on average accounted for 52.4% of New Zealand's average global exports during 2007-09 and between 33 and 103 tariff lines in these parties. Of these lines between zero and 65 were subject to duties on an MFN basis (zero for Singapore, 8 for Brunei Darussalam, 10 for Australia, 53 Malaysia, 57 Thailand, 62 Philippines, 64 Myanmar and 65 Viet Nam). As a result of the Agreement and at the end of the transition period, Brunei Darussalam will maintain tariffs on 1 line (frozen sheep meat), Malaysia will maintain duties on 14 lines (malt extract and dairy fats), Myanmar on 18 (milk products, wine, other food preparations, malt extract, and gold), Thailand on 2 lines (powdered milk) and Viet Nam on 4 lines (wine). All remaining tariffs will be eliminated by Australia and the Philippines at the end of their respective transition periods.

19. Table A1.9 shows market access in Cambodia's market for New Zealand's top 25 exports which accounted during 2008-10 for 53.2% of its average global exports during 2007-09 and were covered by 111 lines of which 3 were duty free on an MFN basis. Cambodia will liberalize 80 lines in 2021 (ten years following entry into force) and a further 3 lines in 2024. At the end of implementation, Cambodia will maintain tariffs for imports from New Zealand on 25 lines (including malt extract, aluminium, wine, powdered milk, frozen beef and some fruit).

20. Table A1.10 shows market access in Indonesia's market for New Zealand's top 25 exports which accounted during 2009-11 for 54.2% of its average global exports. They were covered by 68 lines, of which 56 were subject to duties on an MFN basis. At entry into force of the Agreement Indonesia liberalized 38 tariff lines; further liberalization is scheduled for 2017 (1 line), 2019 (1 line), 2020 (3 lines) and 2021(1 line). At the end of implementation 12 lines will remain subject to duty for imports from New Zealand (relating mainly to food preparations and wine).

21. Table A1.11 shows market access in Lao PDR's market for New Zealand's top 25 exports which averaged during 2008-10 53.2% of its global exports and 64 tariff lines, all of which were dutiable at the MFN level. Lao PDR will liberalize tariff lines in 2021 (50 lines) and 2024 (60 lines). At the end of implementation of the Agreement Lao PDR will retain tariffs for 8 lines for imports of wine, coniferous logs, frozen boneless beef, and unwrought gold from New Zealand.

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HS heading

Sh

are

in

glo

bal

ex

por

ts

MFN(2010) Dutiable lines Tariff phase-out(Final year)

Rem

ain

d

uti

able

No. of Duty-Free linesB

N

MY

MM

NZ

PH

SG

TH

VN

BN

MY

MM

NZ

PH

TH

VN

BN

MY

MM

NZ

PH

TH

VN

270112 18.2 2 1 2 1 2 2 1 2 1 2018 2016 2016 260111 12.9 1 2 1 1 1 1 1 1 2020 2015 710813 6.9 1 1 1 1 1 1 1 1 2010 2016 2016 MM 270900 4.4 3 1 1 3 3 3 1 3 3 2010 2021 2010 271111 3.7 1 1 1 1 1 1 1 1 2020 2018 2010 VN 281820 2.9 1 1 1 1 1 1 1 1 2020 2010 260300 2.0 1 1 1 1 1 1 1 1 2020 2015 2010 100190 1.8 4 2 4 1 1 4 4 3 3 1 2011 2016 2016 760110 1.7 1 1 2 1 1 1 1 1 2020 2010 300490 1.6 14 15 3 1 14 1 17 14 13 13 18 2024 2010 2016 2020 MM/VN 271011 1.5 6 13 2 13 7 1 13 13 13 13 2020 2010 2024 2018 2010 VN 740311 1.3 1 1 1 1 1 1 1 1 2010 2015 MM 020230 1.2 1 1 1 1 1 1 1 1 2020 2012 2020 2018 220421 1.2 4 4 2 4 3 4 4 4 2010 2015 2020 MY/MM/VN 020130 1.0 1 1 1 1 1 1 1 1 2020 2012 2020 2018 510111 1.0 1 1 1 1 1 1 1 1 2020 2010 2010 260800 0.8 1 1 1 1 1 1 1 1 2020 2010 2010 760120 0.8 1 1 2 1 1 1 1 1 2020 2010 870323 0.7 19 1 19 37 19 2 19 19 19 2013 2012 2012 2020 2020 MY/MM/VN 870324 0.7 7 1 7 11 7 2 7 7 9 2010 2020 2012 2010 2020 2020 MM/VN 260200 0.6 1 1 1 1 1 1 1 1 2020 2010 260400 0.5 1 1 1 1 1 1 1 1 2020 2010 2010 100300 0.4 1 1 1 1 1 1 1 1 2011 2010 790111 0.4 1 2 1 1 1 1 1 1 2010 2010 440122 0.4 1 1 1 1 1 1 1 1 2013 2012 2021 2010 2016 2016 Total 68.6 75 50 8 29 2 83 16 36 8 53 75 7 81 67 70 MY=14

MM=32 VN=45

Note: Singapore MFN tariffs of the above products are all duty-free.

- contains duty-free and specific duties; sp= contains specific duties only.

BN=Brunei Darussalam; MY=Malaysia; MM=Myanmar; PH=Philippines; SG=Singapore; TH=Thailand; VN=Viet Nam; NZ= New Zealand. Based on HS 2007 nomenclature. Source: WTO Secretariat based on data provided by the ASEAN Secretariat and UNSD, Comtrade database.

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Table A1. 5 Cambodia: Market access opportunities under the agreement for Australia's top 25 exports to the world, 2008-2010

Australia's top export products in 2008-2010

Access Conditions to Cambodia's import markets MFN (2011) Duty-free in Remain

dutiable HS heading Share in global exports

(%)

Average MFN applied rate

(%)

No. of tariff linesDuty-free

Dutiable 2011 2021 2024

270112 19.9 0 2 260111 16.9 0 1 710813 6.7 0 2 270900 4.3 7 3 3 271111 4.1 0 1 281820 2.5 7 1 1 260300 2.0 0 1 100190 1.9 0 4 300490 1.5 0 29 760110 1.4 0 1 271011 1.2 15.9 14 14 020230 1.1 35 1 1 740311 1.1 0 1 020130 0.9 35 1 1 220421 0.9 15 4 4 510111 0.8 7 1 1 260200 0.7 0 1 760120 0.6 0 1 870323 0.6 32.9 3 47 2 15 30 260800 0.6 0 1 870324 0.5 29.5 5 27 1 11 15 100300 0.4 0 1 260400 0.4 0 1 260700 0.4 0 1 440122 0.4 7 1 1

Total of above 71.7 56 100 1 9 26 64


Source: WTO estimates based on data provided by the ASEAN Secretariat, WTO-IDB and UNSD, Comtrade database.

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Table A1. 6 Indonesia: Market access opportunities under the agreement for Australia's top 25 exports to the world, 2009-2011

Australia's top export products in

2009-2011

Access Conditions to Indonesia's import markets MFN (2012) Duty-free in Remain

dutiable HS

heading Share

in global

exports (%)

Average MFN

applied rate (%)


Dutiable

2012 2013 2014 2015 2019 2020

260111 21.2 0.0 1 270112 18.7 5.0 2 2 710813 6.4 5.0 1 1 270900 4.3 0.0 3 271111 4.1 5.0 1 1 281820 2.2 5.0 1 1 100190 2.1 2.5 2 2 2 260300 2.1 0.0 1 300490 1.3 4.7 1 14 14 760110 1.2 0.0 1 740311 1.1 5.0 1 1271011 1.1 0.0 13 020230 1.1 5.0 1 1 510111 0.9 5.0 1 1 020130 0.8 5.0 1 1 220421 0.7 0.0 4 4520100 0.6 0.0 1 260200 0.6 0.0 1 260800 0.6 5.0 1 1 760120 0.5 0.0 1 260700 0.5 5.0 1 1 100300 0.4 0.0 1 870323 0.4 29.4 33 13 8 1 7 4260400 0.3 5.0 1 1 120510 0.3 5.0 1 1 Total of above

73.4 26 66 26 13 8 1 7 2 9

Note: Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by the ASEAN Secretariat, WTO-IDB and UNSD, Comtrade

database.

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Table A1. 7 Lao PDR: Market access opportunities under the agreement for Australia's top 25 exports to the world, 2008-2010 Australia's top export products in

2008-2010 Access Conditions to Lao PDR's import markets

MFN (2011) Duty-free in

Remain dutiable HS heading Share in

global exports (%)

Average MFN applied rate(%)


Dutiable 2021 2024

270112 19.9 5.0 - 2 2 260111 16.9 5.0 - 1 1 710813 6.7 5.0 - 1 1 270900 4.3 5.0 - 3 2 1271111 4.1 5.0 - 1 1 281820 2.5 5.0 - 1 1 260300 2.0 5.0 - 1 1 100190 1.9 5.0 - 4 4 300490 1.5 10.0 - 14 14 760110 1.4 5.0 - 1 1 271011 1.2 18.1 - 13 13020230 1.1 30.0 - 1 1 740311 1.1 5.0 - 1 1 020130 0.9 30.0 - 1 1 220421 0.9 30.0 - 4 4510111 0.8 5.0 - 1 1 260200 0.7 5.0 - 1 1 760120 0.6 5.0 - 1 1 870323 0.6 40.0 - 19 19260800 0.6 5.0 - 1 1 870324 0.5 40.0 - 7 7100300 0.4 5.0 - 1 1 260400 0.4 5.0 - 1 1 260700 0.4 5.0 - 1 1 440122 0.4 10.0 - 1 1

Total of above 71.7 0 83 35 4 44


Source: WTO estimates based on data provided by the ASEAN Secretariat, WTO-IDB and UNSD, Comtrade database.

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Table A1. 8 Australia and ASEAN member states: Market Access Opportunities under the Agreement for New Zealand's top 25 exports to the world in 2007-2009 (Australia, Brunei Darussalam, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Nam)

HS heading

Sh

are

in

glo

bal

ex

po

rts

MFN (2010) Dutiable lines Tariff phase-out (Final year)

Rem

ain

d

uti

able

No. of Duty-Free lines A

U

BN

MY

PH

SG

TH

VN

AU

BN

MY

MM

PH

TH

VN

AU

BN

MY

MM

PH

TH

VN

040221 7.8 1 2 1 2 2 2 2 2 2024 2010 2020 2016 270900 4.9 2 3 2 3 3 3 3 3 2021 2010 020230 3.6 1 1 1 1 1 1 1 1 2020 2012 2020 2018 020442 3.3 1 1 1 1 1 1 1 1 1 2010 2020 2010 2013 2016 040210 3.2 1 2 1 2 2 2 2 6 2024 2010 2019 TH 040690 2.6 1 1 1 1 1 1 1 1 1 2010 2021 2011 2020 2017 760110 2.5 1 1 1 1 1 1 1 1 2020 2010 081050 2.3 1 1 2 1 1 1 1 1 2021 2011 2013 2016 040510 2.3 1 1 1 1 1 1 1 1 2021 2019 2020 2017 220421 2.1 4 15 4 4 4 4 4 4 2010 2015 2020 MM/VN 440320 1.9 1 13 2 2 2 2 1 2 2 2013 2010 2024 2010 440710 1.8 1 1 1 1 2 1 1 1 1 2010 2013 2024 2010 2010 040490 1.5 1 1 1 1 1 1 1 1 2010 2020 MM 040590 1.4 1 4 4 2 4 4 4 4 2024 2010 2020 2020 MY 020422 1.3 1 1 1 1 1 1 1 1 2020 2010 2013 2016 350110 1.3 1 1 1 1 1 1 1 1 2021 2010 2010 2019 020443 1.2 1 1 1 1 1 1 1 1 2020 2010 2013 2016 BN 210690 1.1 16 1 21 2 5 21 21 21 24 2010 2024 2015 2013 2018 MM 190190 1.1 7 7 1 37 7 7 7 10 2010 2013 2021 2019 2010 2020 MY/MM 710812 1.0 1 2 2 2 11 2 2 2 2013 2010 2019 MM 510121 1.0 1 1 1 1 1 1 1 1 2020 2010 2010 350190 0.9 1 2 1 2 2 2 2 2 2021 2010 2010 2016 080810 0.9 1 1 1 1 1 1 1 1 2021 2011 2010 2016 470321 0.7 1 1 2 1 1 1 1 1 2021 2010 020890 0.7 1 1 1 1 1 1 1 2 2012 2021 2011 2013 2016 Total 52.4 23 56 50 2 64 7 10 10 8 53 64 62 57 65 BN=1

MY=14 MM=18 TH=2 VN=4

Note: Singapore MFN tariffs of the above products are all duty-free. - contains duty-free and specific duties; sp= contains specific duties only. AU=Australia; BN=Brunei Darussalam; MY=Malaysia; MM=Myanmar; PH=Philippines; SG=Singapore; TH=Thailand; VN=Viet Nam. Based on HS 2007 nomenclature.

Source: WTO Secretariat based on data provided by the ASEAN Secretariat and UNSD, Comtrade database.

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Table A1. 9 Cambodia: Market access opportunities under the agreement for New Zealand's top 25 exports to the world, 2008-2010

New Zealand's top export products in 2008-2010

Access Conditions to Cambodia's import markets MFN (2011) Duty-free

in Remain dutiable HS heading Share in global

exports (%) Average MFN applied rate

(%)

No. of tariff linesDuty-free Dutiable 2021 2024

040221 8.6 15.0 2 2270900 5.1 7.0 3 3 020230 3.6 35.0 1 1020442 3.2 35.0 1 1 040210 3.2 15.0 8 7 1040510 2.6 7.0 1 1040690 2.4 35.0 1 1440320 2.4 7.0 24 24 081050 2.3 7.0 1 1220421 2.2 15.0 4 4760110 2.1 0.0 1 440710 1.8 7.0 3 3 040590 1.7 7.0 4 3 1040490 1.4 35.0 2 2 020422 1.4 35.0 1 1 020443 1.2 35.0 1 1710812 1.1 0.0 2 350110 1.1 7.0 1 1 190190 1.1 15.0 14 3 11210690 0.9 7.0 31 31 350190 0.9 7.0 1 1 510121 0.9 7.0 1 1 080810 0.8 7.0 1 1470321 0.7 7.0 1 1 020890 0.6 35.0 1 1

Total of above 53.2 3 108 80 3 25 Note: Based on the HS 2002 nomenclature. Source: WTO estimates based on data provided by the ASEAN Secretariat, WTO-IDB and UNSD, Comtrade

database.

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Table A1. 10 Indonesia: Market access opportunities under the agreement for New Zealand's top 25 exports to the world, 2009-2011

New Zealand's top export products in 2009-2011

Access Conditions to Indonesia's import markets MFN (2012) Duty-free in Remain

dutiable HS heading Share in global

exports (%)

Average MFN

applied rate (%)

No. of tariff lines

Duty-free

Dutiable

20

12

20

17

20

19

20

20

20

21

040221 9.8 5.0 2 1 1 270900 4.5 0.0 3 020230 3.6 5.0 1 1 040210 3.3 5.0 2 1 1 020442 3.2 5.0 1 1440320 3.0 0.0 3 040510 2.8 5.0 1 1 081050 2.3 5.0 1 1 220421 2.2 0.0 4 4040690 2.1 5.0 1 1 760110 2.0 0.0 1 040590 2.0 5.0 4 3 1 440710 1.8 0.0 3 020422 1.4 5.0 1 1040490 1.3 5.0 1 1 710812 1.2 2.5 1 1 1 020443 1.1 5.0 1 1190190 1.0 5.0 8 8 210690 0.9 39.5 21 16 5350110 0.9 5.0 1 1 510121 0.9 5.0 1 1 080810 0.8 5.0 1 1 350190 0.8 5.0 2 2 470321 0.7 0.0 1 901920 0.6 5.0 1 1

Total of above 54.2 12 56 38 1 1 3 1 12 Note: Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by the ASEAN Secretariat, WTO-IDB and UNSD, Comtrade

database.

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Table A1. 11 Lao PDR: Market access opportunities under the agreement for New Zealand's top 25 exports to the world, 2008-2010 New Zealand's top export products in

2008-2010 Access Conditions to Lao PDR's import markets

MFN (2011) Duty-free in

Remain dutiable HS heading Share in global

exports (%) Average MFN applied rate

(%)


Dutiable 2021 2024

040221 8.6 5.0 - 2 2 270900 5.1 5.0 - 3 2 1020230 3.6 30.0 - 1 1 020442 3.2 30.0 - 1 1 040210 3.2 5.0 - 2 2 040510 2.6 10.0 - 1 1 040690 2.4 10.0 - 1 1 440320 2.4 20.0 - 2 2081050 2.3 30.0 - 1 1 220421 2.2 30.0 - 4 4760110 2.1 5.0 - 1 1 440710 1.8 20.0 - 1 1 040590 1.7 10.0 - 4 4 040490 1.4 5.0 - 1 1 020422 1.4 30.0 - 1 1 020443 1.2 30.0 - 1 1 710812 1.1 5.0 - 2 1 1350110 1.1 5.0 - 1 1 190190 1.1 10.0 - 7 7 210690 0.9 10.0 - 21 21 350190 0.9 5.0 - 2 2 510121 0.9 5.0 - 1 1 080810 0.8 30.0 - 1 1 470321 0.7 5.0 - 1 1 020890 0.6 30.0 - 1 1

Total of above 53.2 0 64 50 60 8 Note: Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by the ASEAN Secretariat, WTO-IDB and UNSD, Comtrade

database.

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22. Tables A1.12-A1.21 show market access in Australia and New Zealand for ASEAN's top 25 exports. Table A1.12 shows market access opportunities for Brunei Darussalam, whose top 25 exports accounted for 99.3% of its global exports in 2007-09 and covered under 27 tariff lines in Australia of which 15 were already duty free on an MFN basis, and 37 lines in New Zealand, of which 18 were duty free. Upon entry into force of the Agreement in 2010, 9 lines were liberalized by Australia and 5 by New Zealand, followed by 1 line each in 2012. While Australia will liberalize the remaining 2 lines subject to duty in 2020 at the end of the transition period, New Zealand will liberalize 2 lines in 2017 and the remaining 11 lines in 2020.

23. Table A1.13 shows market access opportunities for Cambodia's top 25 global exports in Australia and New Zealand. These products accounted for 83.8% of Cambodia's global exports in 2007-09 and were covered by 27 lines in Australia of which 4 were duty free on an MFN basis and 40 lines in New Zealand of which 8 were duty free. At entry into force of the Agreement in 2010 Australia liberalized 9 lines, and will liberalize 2 and 12 lines in 2015 and 2020 respectively. New Zealand liberalized 1 line in 2013 followed by 18 and 13 lines in 2017 and 2020. At the end of implementation, no lines will remain subject to duty.

24. Table A1.14 shows market access opportunities for Indonesia's top 25 exports in Australia and New Zealand. These products accounted for 52.6% of Indonesia's global exports during 2007-09 and were covered by 27 and 28 lines respectively in Australia and New Zealand in 2010 on an MFN basis of which 23 were duty free. Australia liberalized 3 lines in 2010 with the last line subject to duties to be liberalized in 2020. New Zealand liberalized 1 line in 2010 and is scheduled to remove tariffs on 1 line in 2017, 2 in 2018 and the remaining 1 line in 2019. At the end of implementation no lines will remain subject to duty.

25. Table A1.15 shows market access opportunities for Lao PDR's top 25 exports in Australia and New Zealand. During 2007-09 these products accounted for 84.8% of its global exports and were covered by 28 and 49 tariff lines in Australia and New Zealand respectively. In 2010 when the Agreement entered into force 10 and 8 lines, respectively were liberalized by Australia and New Zealand. Australia further liberalized 2 lines in 2012 and will remove tariffs on the remaining 4 lines in 2020. New Zealand will liberalized 2 lines in 2017 and the 16 remaining lines subject to duty in 2020.

26. Table A1.16 shows market access opportunities for Malaysia's top 25 exports in Australia and New Zealand which in 2007-09 accounted for 47.8% of its global exports and were covered by 46 and 89 lines in Australia and New Zealand respectively of which 6 lines were dutiable in Australia and 19 lines in New Zealand. These lines were liberalized by Australia and New Zealand upon the Agreement's entry into force in 2010.

27. Table A1.17 shows market access opportunities for Myanmar's top 25 exports in Australia and New Zealand which in 2008-10 accounted for 84.7% of its global exports and 5 lines in Australia and 35 lines in New Zealand of which 3 and 7 lines, respectively were dutiable on an MFN basis. Australia liberalized 2 lines in 2010 when the Agreement entered into force and the remaining 1 line in 2012. New Zealand liberalized 2 lines in 2010 and is scheduled to remove tariffs on 3 lines in 2017 and 2 lines in 2020. B the end of implementation of the Agreement, all tariff lines will be liberalized.

28. Table A1.18 shows market access opportunities for the Philippines' top 25 exports in Australia and New Zealand, which accounted for 60.2% of its global exports in 2007-09. These exports were covered by 39 tariff lines in Australia of which 11 were subject to MFN tariffs and 62 tariff lines in New Zealand of which 21 subject to MFN tariffs. Australia liberalized all 11 lines subject to duties when the Agreement entered into force in 2010. New Zealand liberalized 19 lines in 2010, followed by 1 line in 2012. Tariffs on the last line are to be liberalized in 2017.

29. Table A1.19 shows market access opportunities for Singapore's top 25 exports in Australia and New Zealand. In 2007-09, these products accounted for 55.7% of Singapore's global exports and were covered by 46 tariff lines in Australia and 99 in New Zealand of which 7 and 23 respectively were dutiable on an MFN basis. Australia liberalized all 7 lines subject to tariffs in in 2010. New Zealand liberalized 22 lines in 2010 when the Agreement entered into force and the remaining 1 line in 2012.

30. Table A1.20 shows market access opportunities for Thailand's top 25 exports in Australia and New Zealand in 2007-09 which accounted for 37.5% of its global exports. These products were covered by 49 lines in Australia and 84 in New Zealand of which 13 and 24 respectively were

WT/REG284/1/Rev.1

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subject to duties on an MFN basis. In 2010 on entry into force of the Agreement Australia liberalized 10 lines in 2010 with the remaining 3 lines to become duty free in 2020. New Zealand liberalized 21 lines in 2010 followed by the remaining 3 in 2012.

31. Table A1.21 shows market access opportunities for Viet Nam's top 25 exports in Australia and New Zealand in 2007-09 which accounted for 49.6% of its global exports. They were covered by 41 lines in Australia and 91 in New Zealand of which 14 and 37 were respectively subject to MFN duties. In 2010 Australia liberalized 13 lines and the last remaining dutiable line is due to be liberalized in 2020. New Zealand liberalized 13 lines in 2010 and 1 line in 2012. Eight lines each are to be liberalized in 2017 and 2018 to be followed by 3 and 4 lines respectively in 2019 and 2020. No lines will remain subject to duties once the Agreement is fully implemented.

Table A1. 12 Australia and New Zealand: Market access opportunities under the agreement for Brunei Darussalam's top 25 exports to the world, 2007-2009

Brunei Darussalam's top export products in 2007-

2009

Australia New Zealand MFN 2010 Duty-free in MFN 2010 Duty-free in

HS heading

Share in global

exports (%)

Average (%)

No of lines

Average (%)

No of lines

Du

ty-

free

Du

tiab

le

20

10

20

12

20

20

Du

ty-

free

Du

tiab

le

20

10

20

12

20

17

20

20

270900 55.3 0 2 0.0 1 271111 41.3 0 1 0.0 1 711319 0.5 5 1 1 2.5 1 1 1 611020 0.4 10 1 1 10.0 1 1610610 0.4 10 1 1 10.0 2 1 1710239 0.3 0 1 0.0 1 710231 0.2 0 1 0.0 1 610510 0.2 10 1 1 10.0 2 1 1720430 0.1 0 1 0.0 1 710812 0.1 0 1 0.0 1 611420 0.1 10 1 1 10.0 1 1610462 0.1 10 1 1 10.0 1 1610910 0.1 10 1 1 10.0 3 3611090 0.1 10 1 1 10.0 1 1843143 0.0 5 1 1 1.7 2 1 1 720449 0.0 0 1 0.0 1 720410 0.0 0 1 0.0 1 890190 0.0 2.5 1 1 1 3.3 2 4 4 910111 0.0 0 1 0.0 1 740400 0.0 0 1 0.0 1 611030 0.0 10 1 1 10.0 1 1030613 0.0 0 1 0.0 1 621149 0.0 10 1 1 10.0 1 1760200 0.0 0 1 0.0 1 720429 0.0 0 1 0.0 1

Total of above 99.3 15 12 9 1 2 18 19 5 1 2 11

Note: Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by Australia, New Zealand, WTO-IDB and ITC Trade Map.

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Table A1. 13 Australia and New Zealand: Market access opportunities under the agreement for Cambodia's top 25 exports to the world, 2007-2009 Cambodia's top export products in

2007-2009 Australia New Zealand

MFN 2010 Duty-free in MFN 2010 Duty-free in

HS heading Share in global exports

Average (%)

No of lines

Ave

rag

e (%

) No of lines

Du

ty-

free

Du

tiab

le

20

10

20

15

20

20

Du

ty-

free

Du

tiab

le

20

13

20

17

20

20

490700 26.9 2.5 1 1 1 0.0 2 611090 11.6 10.0 1 1 10.0 1 1610469 7.5 10.0 1 1 10.0 1 1610690 4.0 10.0 1 1 10.0 2 2610349 3.4 10.0 1 1 10.0 2 2611011 3.2 10.0 1 1 10.0 1 1610590 2.4 10.0 1 1 10.0 2 2610342 2.2 10.0 1 1 10.0 2 1 1610839 1.8 10.0 1 1 10.0 1 1610461 1.7 10.0 1 1 10.0 1 1640320 1.7 0.0 1 6.7 1 2 2611020 1.6 10.0 1 1 10.0 1 1610910 1.6 10.0 1 1 10.0 3 3610339 1.5 10.0 1 1 10.0 1 1610990 1.5 10.0 1 1 10.0 3 3610429 1.5 10.0 1 1 10.0 1 1610341 1.2 10.0 1 1 10.0 1 1250590 1.2 0.0 1 0.0 1 610439 1.2 10.0 1 1 10.0 1 1621010 1.1 7.5 2 1 1 10.0 1 1610610 1.1 10.0 1 1 10.0 2 1 1610462 1.0 10.0 1 1 10.0 1 1871200 1.0 5.0 1 1 2.5 1 1 1 400129 0.9 0.0 1 0.0 3 610329 0.9 10.0 1 1 10.0 1 1Total of above

83.8 4 23 9 2 12 8 32 1 18 13

Note: Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by Australia, New Zealand, WTO-IDB and UNSD, Comtrade

database.

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Table A1. 14 Australia and New Zealand: Market access opportunities under the agreement for Indonesia's top 25 exports to the world, 2007-2009 Indonesia's top export products in


MFN 2010 Duty-free in



Average (%)

No of lines

Avg. (%)

No of lines

Du

ty-

free

Du

tiab

le

20

10

20

20

Du

ty-

free

Du

tiab

le

20

10

20

17

20

18

20

19

271111 8.2 0.0 1 0.0 1 270900 8.0 0.0 2 0.0 1 270112 6.1 0.0 1 0.0 1 151110 4.4 0.0 1 0.0 1 151190 4.0 0.0 1 0.0 1 400122 3.6 0.0 1 0.0 1 260300 3.4 0.0 1 0.0 1 270119 2.3 0.0 1 0.0 1 271390 1.3 0.0 1 0.0 1 750110 1.2 0.0 1 0.0 1 800110 1.1 0.0 1 0.0 1 470329 0.9 0.0 1 0.0 1 740311 0.8 0.0 1 0.0 1 151321 0.8 0.0 1 0.0 1 180100 0.7 0.0 1 0.0 1 401110 0.7 5.0 1 1 7.5 2 1 1 852580 0.7 2.5 1 1 1 0.0 1 640319 0.7 5.0 1 1 6.7 1 2 2940360 0.7 5.0 1 1 5.0 1 1090111 0.7 0.0 1 0.0 1 710812 0.6 0.0 1 0.0 1 030613 0.6 0.0 1 0.0 1 740319 0.5 0.0 1 0.0 1 852190 0.4 0.0 1 0.0 1 260400 0.4 0.0 1 0.0 1 Total of above

52.6 23 4 3 1 23 5 1 1 2 1


database.

WT/REG284/1/Rev.1

- 94 -

Table A1. 15 Australia and New Zealand: Market access opportunities under the agreement for Lao PDR's top 25 exports to the world, 2007-2009 Lao PDR's top export products in


MFN 2010 Duty-free in MFN 2010 Duty-free in


Average (%)

No of lines

Average (%)

No of lines

Du

ty-f

ree

Du

tiab

le

20

10

20

12

20

20

Du

ty-f

ree

Du

tiab

le

20

10

20

17

20

20

740311 35.3 0.0 1 0.0 1 440799 9.1 3.3 1 2 2 1.7 6 3 3 260300 8.1 0.0 1 0.0 1 271600 7.1 0.0 0.0 440399 4.5 0.0 1 0.0 1 090111 2.8 0.0 1 0.0 1 620520 2.1 10.0 1 1 10.0 2 2620343 1.9 10.0 1 1 10.0 1 1611030 1.9 10.0 1 1 10.0 1 1100590 1.5 0.0 1 0.0 1 620342 1.3 10.0 1 1 10.0 1 1440729 1.0 3.3 1 2 2 1.0 4 1 1 610990 1.0 10.0 1 1 10.0 3 3400121 0.8 0.0 1 0.0 1 611020 0.7 10.0 1 1 10.0 1 1610510 0.7 10.0 1 1 10.0 2 1 1252010 0.7 0.0 1 0.0 1 610910 0.6 10.0 1 1 10.0 3 3280469 0.6 0.0 1 0.0 1 270119 0.6 0.0 1 0.0 1 854430 0.5 5.0 1 1 5.0 1 4 4 440929 0.5 5.0 1 1 1.7 2 1 1610711 0.5 10.0 1 1 10.0 1 1610520 0.4 10.0 1 1 10.0 2 1 1100630 0.4 0.0 1 0.0 1 Total of above

84.8 12 16 10 2 4 23 26 8 2 16

Note: Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by Australia, New Zealand, WTO-IDB and ITC Trade Map.

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Table A1. 16 Australia and New Zealand: Market access opportunities under the agreement for Malaysia's top 25 exports to the world, 2007-2009

Malaysia's top export products in

2007-2009

Australia New Zealand



2010 HS

heading

Share in

global exports

Average (%)

No of lines

Average (%)

No of lines

Duty-free Dutiable

20

10

20

20

Duty-free Dutiable

270900 5.7 0.0 2 0.0 1 271111 5.5 0.0 1 0.0 1 151190 4.8 0.0 1 0.0 1 854231 3.4 0.0 1 0.0 1 847130 2.7 0.0 1 0.0 1 271019 2.5 0.0 12 1.1 30 8 8854239 2.1 0.0 1 0.0 1 851770 2.0 2.5 1 1 1 1.7 4 2 2852990 1.9 2.5 2 2 2 2.8 4 5 5844399 1.6 0.0 1 1.7 2 1 1847170 1.5 0.0 1 0.0 1 847330 1.5 0.0 1 0.0 1 854232 1.5 0.0 1 0.0 1 271011 1.2 0.0 5 0.0 2 851762 1.2 0.0 1 0.6 7 1 1854233 1.2 0.0 1 0.0 1 400122 1.0 0.0 1 0.0 1 401519 1.0 5.0 2 1 1 0.0 2 151110 0.9 0.0 1 0.0 1 151620 0.9 0.0 1 1.7 2 1 1852352 0.9 0.0 1 2.5 1 1 1854129 0.8 0.0 1 0.0 1 847180 0.8 0.0 1 0.0 1 852872 0.7 5.0 1 1 0.0 1 854190 0.7 0.0 1 0.0 1 Total of above

47.8 40 6 5 1 70 19 19


database.

WT/REG284/1/Rev.1

- 96 -

Table A1. 17 Australia and New Zealand: Market access opportunities under the agreement for Myanmar's top 25 exports to the world, 2008-2010 Myanmar's top export products

in 2008-2010 Australia New Zealand


MFN 2010 Duty-free in HS

heading Share in global

exports Average

(%) No of lines

Average (%)

No of lines

Duty-free

Du

tiab

le

20

10

20

12

Duty-free

Du

tiab

le

20

10

20

17

20

20

271121 46.8 0.0 1 0.0 1 071331 6.9 0.0 1 0.0 1 440349 5.6 0.0 1 0.0 1 440399 4.7 0.0 1 0.0 1 071390 4.1 0.0 1 0.0 1 071339 1.6 0.0 1 0.0 1 400121 1.4 0.0 1 0.0 1 120740 1.3 0.0 1 0.0 1 100630 1.2 0.0 1 0.0 1 710399 1.1 0.0 1 2.5 1 1 1 260200 0.9 0.0 1 0.0 1 030269 0.9 0.0 1 0.0 3 640399 0.9 5.0 1 1 6.7 1 2 2160520 0.9 0.0 1 1.7 2 1 1 620193 0.7 10.0 1 1 10.0 1 1030613 0.7 0.0 1 0.0 1 250590 0.7 0.0 1 0.0 1 030379 0.7 0.0 1 0.0 3 260111 0.6 0.0 1 0.0 1 270900 0.6 0.0 2 0.0 1 740311 0.5 0.0 1 0.0 1 071320 0.5 0.0 1 0.0 2 620530 0.5 10.0 1 1 10.0 2 1 1271600 0.5 0.0 0.0 710310 0.4 0.0 1 0.0 1 Total of above

84.7 22 3 2 1 28 7 2 3 2

Note: Coverage period is from 2008-2010 (No export data are available for Myanmar for 2007). Based on the HS 2007 nomenclature. Source: WTO estimates based on data provided by Australia, New Zealand, WTO-IDB and ITC Trade Map.

WT/REG284/1/Rev.1

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Table A1. 18 Australia and New Zealand: Market access opportunities under the agreement for the Philippines' top 25 exports to the world, 2007-2009

Philippines' top export products in 2007-2009

Australia New Zealand MFN 2010 Duty-

free in 2010

MFN 2010 Duty-free inHS heading Share in

global exports

Average (%) No of lines

Ave

rag

e (%

)

No of lines

Du

ty-

free

Du

tiab

le

Du

ty-

free

Du

tiab

le

20

10

20

12

20

17

854390 10.2 1.7 2 1 1 1.4 5 2 2 854890 10.2 0.0 2 0.0 1 847170 3.5 0.0 1 0.0 1 847130 3.0 0.0 1 0.0 1 854150 2.6 0.0 1 0.0 1 740311 2.4 0.0 1 0.0 1 854430 1.8 5.0 1 1 5.0 1 4 4 850440 1.7 2.5 1 1 1 1.3 3 1 1 851770 1.7 2.5 1 1 1 1.7 4 2 2 852990 1.7 2.5 2 2 2 2.8 4 5 5 854231 1.6 0.0 1 0.0 1 854232 1.6 0.0 1 0.0 1 854233 1.6 0.0 1 0.0 1 854239 1.6 0.0 1 0.0 1 900659 1.5 0.0 1 0.0 1 844331 1.5 0.0 1 2.5 1 1 1 844332 1.5 0.0 1 1.0 4 1 1 847160 1.4 0.0 1 0.0 1 852841 1.4 0.0 1 0.0 1 852851 1.4 0.0 1 0.0 1 852861 1.4 0.0 1 0.0 1 844399 1.4 0.0 1 1.7 2 1 1 870830 1.3 3.6 2 5 5 3.0 2 3 2 1151311 1.1 0.0 1 5.0 1 1847330 1.1 0.0 1 0.0 1

Total of above 60.2 28 11 11 41 21 19 1 1


database.

WT/REG284/1/Rev.1

- 98 -

Table A1. 19 Australia and New Zealand: Market access opportunities under the agreement for Singapore's top 25 exports to the world, 2007-2009 Singapore's top export products

in 2007-2009 Australia New Zealand

MFN 2010 Duty-free in2010


HS heading

Sh

are

in

glo

bal

ex

por

ts

Ave

rag

e (%

)

No of lines

Ave

rag

e (%

)

No of lines

Du

ty-f

ree

Du

tiab

le

Du

ty-f

ree

Du

tiab

le

20

10

20

12

854239 13.8 0.0 1 0.0 1 271019 10.6 0.0 12 1.1 30 8 8 271011 4.8 0.0 5 0.0 2 854231 3.5 0.0 1 0.0 1 844399 3.4 0.0 1 1.7 2 1 1 847330 2.7 0.0 1 0.0 1 847170 2.0 0.0 1 0.0 1 854290 2.0 0.0 1 0.0 1 851712 1.6 0.0 1 0.0 1 300490 1.3 0.0 1 0.0 3 843143 1.2 5.0 1 1 1.7 2 1 1 854190 1.0 0.0 1 0.0 1 880330 1.0 0.0 1 0.0 1 852329 0.8 0.0 1 1.1 7 2 2 854232 0.7 0.0 1 0.0 1 852990 0.7 2.5 2 2 2 2.8 4 5 5 292250 0.6 0.0 1 0.0 1 853690 0.6 2.5 1 1 1 5.0 1 1 710813 0.6 0.0 1 0.0 1 851762 0.5 0.0 1 0.6 7 1 1 854129 0.5 0.0 1 0.0 1 890520 0.5 2.5 1 1 1 2.5 1 1 1 711319 0.4 5.0 1 1 2.5 1 1 1851770 0.4 2.5 1 1 1 1.7 4 2 2 292249 0.4 0.0 1 0.0 1

Total of above 55.7 39 7 7 76 23 22 1


database.

WT/REG284/1/Rev.1

- 99 -

Table A1. 20 Australia and New Zealand: Market access opportunities under the agreement for Thailand's top 25 exports to the world, 2007-2009 Thailand's top export products in



MFN 2010 Duty-free in HS heading Share in global

exports Average

(%) No of lines Average (%) No of lines

Du

ty-

free

Du

tiab

le

20

10

20

20

Du

ty-

free

Du

tiab

le

20

10

20

12

847170 6.6 0.0 1 0.0 1 271019 3.2 0.0 12 1.1 30 8 8100630 2.6 0.0 1 0.0 1 870421 2.2 5.0 2 2 1.7 2 1 1710812 2.1 0.0 1 0.0 1 847330 2.0 0.0 1 0.0 1 854231 1.8 0.0 1 0.0 1 854239 1.4 0.0 1 0.0 1 870323 1.3 5.0 4 1 3 6.7 1 2 1 1400122 1.2 0.0 1 0.0 1 870899 1.1 3.8 1 3 3 4.1 3 8 8400121 1.1 0.0 1 0.0 1 160414 1.0 5.0 1 1 2.5 1 1 1271011 1.0 0.0 5 0.0 2 711319 1.0 5.0 1 1 2.5 1 1 1841510 1.0 5.0 1 1 5.0 1 1270900 0.8 0.0 2 0.0 1 400110 0.8 0.0 1 0.0 1 160232 0.8 0.0 1 1.7 2 1 1160520 0.8 0.0 1 1.7 2 1 1854232 0.8 0.0 1 0.0 1 030613 0.8 0.0 1 0.0 1 490700 0.8 2.5 1 1 1 0.0 2 291736 0.7 0.0 1 0.0 1 880330 0.7 0.0 1 0.0 1 Total of above

37.5 36 13 10 3 60 24 21 3


database.

WT/REG284/1/Rev.1

- 100 -

Table A1. 21 Australia and New Zealand: Market access opportunities under the agreement for Viet Nam's top 25 exports to the world, 2007-2009

Viet Nam's top export products in 2007-2009

Australia New Zealand MFN 2010 Duty-free

in MFN 2010 Duty-free in

HS heading

Sh

are

in

glo

bal

exp

orts

(%

)

Ave

rag

e (%

)

No of lines

Ave

rag

e (%

)

No of lines

Du

ty-f

ree

Du

tiab

le

20

10

20

20

Du

ty-f

ree

Du

tiab

le

20

10

20

12

20

17

20

18

20

19

20

20

270900 14.9 0.0 2 0.0 1 100630 4.1 0.0 1 0.0 1 090111 3.4 0.0 1 0.0 1 030613 2.3 0.0 1 0.0 1 270111 2.2 0.0 1 0.0 1 640399 2.1 5.0 1 1 6.7 1 2 2 030429 2.0 0.0 1 0.0 1 640319 1.5 5.0 1 1 6.7 1 2 2 844332 1.4 0.0 1 1.0 4 1 1 080132 1.4 0.0 1 0.0 1 400129 1.4 0.0 1 0.0 3 640411 1.2 2.5 1 1 1 8.0 1 4 1 3 271019 1.2 0.0 12 1.1 30 8 8 940350 1.1 5.0 1 1 5.0 1 1854430 1.1 5.0 1 1 5.0 1 4 4 611020 1.1 10.0 1 1 10.0 1 1711319 1.1 5.0 1 1 2.5 1 1 1 940360 1.1 5.0 1 1 5.0 1 1610910 0.9 10.0 1 1 10.0 3 3640299 0.9 2.5 1 1 1 6.7 1 2 2 940169 0.7 5.0 1 1 5.0 1 1640419 0.7 2.5 1 1 1 8.0 1 4 2 2 710812 0.7 0.0 1 0.0 1 640219 0.7 5.0 1 1 6.7 1 2 1 1 852580 0.6 2.5 1 1 1 0.0 1

Total of above 49.6 27 14 13 1 54 37 13 1 8 8 3 4


database.

WT/R

EG284/1/R

ev.1

- 101 - ANNEX 2

Table A2. 1 Malaysia: Tariff rate quotas for products originating in Australia and New Zealand HS Code

Des

crip

tion

Qu

ota

MFN

20

10

(%

)

Preferential tariffs(%)

Un

it

Par

tner

In-quota volume

20

10

20

11

20

12

20

13

-2

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

010391000 (Live

swine)

Weighing <50kg

I 20 10 5 5 0 Hd AU 101 102 103 104 105 106 107 108 109 110 112 O 20 20 18 18 15 NZ 101 102 103 104 105 106 107 108 109 110 112

010392000 Weighing 50kg or>

I 20 10 5 5 0 Hd AU 101 102 103 104 105 106 107 108 109 110 112 O 20 20 18 18 15 NZ 101 102 103 104 105 106 107 108 109 110 112

Day old chicks of the species gallus domesticus, weighing not more than 185 gram 010511900 I 20 10 5 5 0 Hd

AU 353,500 357,035 360,605 364,211 367,854 371,532 375,247 379,000 382,790 386,618 390,484

O 20 20 15 15 10 NZ 202,000 204,020 206,060 208,121 210,202 212,304 214,427 216,571 218,737 220,924 223,134 Meat of swine: carcasses and half-carcasses 020311000 fresh or

chilled I 50 20 15 10 0 Kg AU 510 510 515 520 526 531 536 541 547 552 558 O 50 45 35 30 25 NZ 505 510 515 520 526 531 536 541 547 552 558

020321000 frozen I 50 20 15 10 0 Kg AU 4,080 4,080 4,121 4,162 4,204 4,246 4,289 4,331 4,375 4,418 4,463 O 50 45 35 30 25 NZ 4,040 4,080 4,121 4,162 4,204 4,246 4,289 4,331 4,375 4,418 4,463

Meat of fowls of the species g. domesticus not cut in pieces 020711000 fresh

or chilled I 40 15 10 5 0 Kg AU 255 255 258 260 263 265 268 271 273 276 279 O 40 35 30 25 20 NZ 253 255 258 260 263 265 268 271 273 276 279

020712000 frozen I 40 15 10 5 0 Kg AU 17,170 17,342 17,515 17,690 17,867 18,046 18,226 18,409 18,593 18,779 18,966 O 40 35 30 25 20 NZ 30,300 30,603 30,909 31,218 31,530 31,846 32,164 32,486 32,811 33,139 33,470

Edible cuts and offal of the species gallus domesticus, frozen 020714000 I 40 15 10 5 0 Kg AU 292,900 295,829 298,787 301,775 304,793 307,841 310,919 314,028 317,169 320,340 323,544

O 40 35 30 25 20 NZ 16,665 16,832 17,000 17,170 17,342 17,515 17,690 17,867 18,046 18,226 18,409 Of fat content, by weight, milk: liquid 040110110 not >

1%:

I 50 15 10 5 0 L AU 606,000 612,060 618,181 624,362 630,606 636,912 643,281 649,714 656,211 662,773 669,401 O 50 40 35 30 20 NZ 151,500 153,015 154,545 156,091 157,652 159,228 160,820

Documents

Committee on Regional Trade Agreements FACTUAL PRESENTATION