UPDATE ON CURRENT FTA NEGOTIATIONS
It has been a while since the introduction of the Korea, Japan and China Free Trade Agreements so BR International feel it is a good time to provide an update for our customers on future Free Trade Agreements ( FTA’s ) which will affect Australia.
Trans Pacific Partnership (TPP ) – The USA have stepped back from the TPP since our last update and the remaining parties ( Australia, Japan, Canada, Mexico, Vietnam, Singapore, Brunei, Malaysia, New Zealand, Chile and Peru ) are still meeting to decide whether this FTA without the USA is beneficial. The USA’s withdrawal should have little effect for Australia as we already have an FTA with them.
Australia-European Union(EU) FTA – Agreement was reached in late 2015 to commence the process towards a comprehensive and high quality FTA between Australia and the European Union. Countries within the union have opposed such an FTA which has delayed progress. It is intended to commence further negotiations by the end of this year with an aim to finalising an agreement in 2019.
Regional Comprehensive Economic Partnership ( RECP ) – This proposed FTA ( involving China, India, Japan, Korea, the ASEAN countries, Australia and NZ ) was launched in late 2012 and has endured 19 rounds of negotiations. It is hoped negotiations will conclude by the middle of next year however the impact on Australia is expected to primarily surround Indian trade as we already have FTA’s with all other participants.
Australia-India FTA – Negotiations have stalled, primarily based around concerns with the treatment of agriculture products from both countries. Whilst both countries have stated they remain committed to an agreement, it is fair to say that no outcome is expected until the RECP has been finalised.
Australia – Indonesia FTA – We already have some free trade with Indonesia via the ASEAN FTA however negotiations for a separate agreement with Indonesia have been ongoing. Despite stalling and resuming on numerous occasions, both countries have set a goal to finalise the agreement by the end of this year however the general consensus is that this is unrealistic.
BR International will continue to keep our clients updated on FTA’s as more information becomes available.
Keeping you updated,
BRi Customs Department
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