The Department of Trade and Industry (DTI) said it signed two key economic instruments on Feb. 14, 2024 to enhance the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) and the ASEAN-Hong Kong, China FTA (AHKFTA).
“The finalization of the second protocol to amend the AANZFTA represents another milestone in our work to further strengthen regional trade and investment flows between ASEAN, Australia and New Zealand. We want to ensure the agreement continues to benefit businesses and reinforce our strategic links in the region,”said Trade Secretary Alfredo Pascual.
The second protocol updates the original AANZFTA signed in 2009 and the first protocol signed in August 2014, respectively.
The new provisions respond to the evolving multidimensional challenges in the business environment and seek to maintain the agreement as a relevant, high-quality FTA and complement the region-to-region efforts to strengthen supply chain resilience, inclusivity and sustainable development, according to the DTI.
The improved commitments under the agreement included new chapters on government procurement, trade and sustainable development and micro, small and medium enterprises (MSMEs).
It also features new rules to boost merchandise trade under the chapter on trade in goods and dustoms procedure such as facilitating trade of essential goods during humanitarian crises and addressing related issues on non-tariff measures.
Market access commitments under the amended AANZFTA chapter on trade in services will provide greater stability for Filipino businesses interested in investing and providing services in Australia and New Zealand. These include sectors such as professional services, education, transportation, construction, tourism, and banking services, among others.
Other key provisions under the Second Protocol are the professional services and education services cooperation annexes, which provide a framework for relevant authorities to negotiate initiatives on the mutual recognition of professional qualifications, licensing, or registration in professional services sectors or bilateral or regional cooperation.
These will allow recognition of educational qualifications, digital education, blended learning, and other diverse forms of education delivery. They will further assist Filipino professionals in practicing their profession in Australia and New Zealand.
There are also enhanced provisions to promote electronic payments in the region, competition rules to lower barriers and consumer protection to ensure fair trade practices.
Meanwhile, under the first protocol to amend the AHKFTA, the amendments focus on liberal origin rules for manufacturing products that will allow traders to claim lower tariffs.
Activities and other segments include food preparations, polystyrene, jewelry, woven fabrics, and denim. Simple rules will allow traders to claim the lower tariffs in the agreement.