AUSTRALIA'S LARGEST FREE TRADE AGREEMENT WITH ASEAN STARTS

By Neville D'Cruz

MELBOURNE, Jan 4 (Bernama) -- Australian Trade Minister Simon Crean Monday
welcomed the start of Australia's largest free trade agreement (FTA), the
Asean-Australia-New Zealand Free Trade Agreement, saying the FTA is an important
building block towards deepening Australia's economic integration with the
dynamic Asian region.

The historic agreement will span 12 economies with more than 600 million
people and a combined Gross Domestic Product (GDP) of A$3.1 trillion.

The commencement of this agreement is a major milestone and opens up
significant opportunities for Australian businesses in one of the world's
fastest-growing regions, he said in a statement.

With Asia leading the global economic recovery and with six out of 10 Asean
markets expected to register double-digit growth this year as forecast by the
Organisation for Economic Cooperation and Development (OECD), there is great
potential for Australian exporters to enter new markets, he said.

As of today, the agreement covers around 70 per cent of Australia's trade
with Asean countries with which "we do not have bilateral FTAs," Crean said.

The agreement includes immediate removal of a 10 per cent tariff on A$9.6
million Australian processed cheese exports (in 2008) to Malaysia and abolition
of a five per cent tariff on A$7.2 million fresh grapes export to Malaysia

"By 2020, the deal will eliminate tariffs on 96 per cent of our current
exports to Asean nations," Crean said.

Asean accounted for 15 per cent of Australia's trade worth A$83 billion in
2008 and 2009, which was as large as Australia's trade with China, the country's
biggest trading partner.

The Asean-Australia-New Zealand Free Trade Agreement is Australia's first
multi-country FTA and the most comprehensive FTA ever concluded by Asean.

In addition to Australia and New Zealand, the FTA was binding on Brunei,
Myanmar, Malaysia, the Philippines, Singapore and Vietnam.

Indonesia, Cambodia, Laos and Thailand are expected to ratify the agreement
early this year.

"I urge the Australian business community to take full advantage of the
many benefits that this far-reaching agreement has to offer," Crean added.
-- BERNAMA