Semarang, 21 August 2023 – Minister of Trade Zulkifli Hasan signed the 2nd Protocol to Amend the Agreement to Establish the ASEAN–Australia-New Zealand Free Trade Area (AANZFTA) in Semarang, Central Java today, Monday (21/8). The signing was carried out on the sidelines of the 55th ASEAN Economic Ministers' Meeting (AEM Meeting).
“There are three new chapters in the second amendment of the AANZFTA, namely on micro, small and medium enterprises (MSMEs); trade and sustainable development; and procurement of government goods/services. These additions can increase the unimpeded flow of trade in goods and services for Indonesia to the ASEAN, Australia and New Zealand markets through the modernization of trade practices. In addition, it will provide opportunities for Indonesian business actors and investors by increasing market access in the trade, services, and investment sectors,” explained the Minister of Trade, Zulkifli Hasan.
Trade Minister Zulkifli Hasan mentioned a number of other benefits for Indonesia. First, providing facilitation and certainty for the business climate and consumer protection. Second, increasing the use and adoption of digital technology in trade including electronic payment systems and telecommunication access.
Third, being responsive to challenges and crises in the future through an agreement to ease the facilitation of trade in essential goods. Fourth, open areas of cooperation, information exchange, and capacity building for MSMEs, procurement of government goods/services, as well as trade and sustainable development.
"The addition of new chapters and several value-added elements to the previous chapters on AANZFTA aims to ensure that the improvements to the AANZFTA is of high quality, responsive to global challenges, and supports the smooth running of business in the region,” explained Trade Minister Zulkifli Hasan.
Trade Minister Zulkifli Hasan revealed that this addition was also to support the unimpeded flow of goods during the pandemic, deepen liberalization of services and investment, support electronic trade and digital transformation, and facilitate the participation of MSMEs in international trade.
According to the Minister of Trade, Zulkifli Hasan, the second amendment regulates several value-added elements of the previous chapters, including trade in goods; rules of origin, customs procedures, trade facilitation, electronic trading, business competition, trade in services, and investment.
The second AANZFTA amendment protocol was signed by Brunei Darussalam, Indonesia, Malaysia, Singapore, Australia and New Zealand. Other ASEAN Economic Ministers will sign this protocol on an ad-referendum basis.
The target for implementing the protocol is 2024 or 60 days after Australia, New Zealand and at least four ASEAN member countries submit their instruments of ratification to the ASEAN Secretariat. The AANZFTA protocol itself began negotiations in 2020 and ended negotiations on June 27, 2023.
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For further information please contact:
Ani Mulyati
Head of Public Relations Bureau
Ministry of Trade
Email: pusathumas@kemendag.go.id
Dina Kurniasari
Director of ASEAN Negotiations
Directorate General of International Trade Negotiations
Ministry of Trade
Email: asean@kemendag.go.id
Photo caption: Minister of Trade Zulkifli Hasan signed the 2nd Protocol to Amend the Agreement to Establish the ASEAN–Australia-New Zealand Free Trade Area (AANZFTA) in Semarang, Central Java today, Monday (21/8). The signing was carried out on the sidelines of the 55th ASEAN Economic Ministers' Meeting (AEM Meeting).