0470 Business Envoy March 2024

Australia’s trade agreements in Southeast Asia delivering for business

Indo-Pacific Economic Framework

IPEF

Australia has a multi- layered trade relationship with our ASEAN neighbours. The ASEAN- Australia-New Zealand FTA (AANZFTA) is ASEAN’s highest quality FTA, and the AANZFTA Upgrade, signed on 21 August 2023, will ensure it remains that way.

In addition, the Regional Comprehensive Economic

Economic cooperation is integral to Australia’s partnership with ASEAN on regional and bilateral trade. Australia supports economic cooperation across the region through the Regional Trade for Development (RT4D) program and the Mekong Foreign Investment and Critical Infrastructure Initiative (MFICII). RT4D provides ASEAN Member States with technical assistance and capacity building support to fulfil their obligations under the upgraded AANZFTA and RCEP, while MFICII aims to support Mekong countries (Thailand, Cambodia, Lao PDR, Vietnam) to attract high-quality foreign investment from diverse sources, including in critical infrastructure projects.

The Indo-Pacific Economic Framework for Prosperity (IPEF) brings together fourteen of the largest and most dynamic regional economies to tackle contemporary economic challenges to strengthen regional supply chains, unlock green trade and investment to support the net zero transition, and enhance anti-corruption efforts in the region. With unprecedented coverage and pace, IPEF members have announced a series of substantial outcomes in less than 18 months of negotiations.

Partnership Agreement (RCEP) is the world’s largest free trade agreement by members’ collective GDP. It’s an important piece of regional economic integration, bringing together ASEAN and major regional economies (China, Japan, New Zealand and the Republic of Korea). Australia also has bilateral free trade agreements with Singapore, Malaysia, Indonesia and Thailand which support and deepen our trade and investment relationships. Australia is committed to working with our ASEAN trading partners to ensure these bilateral FTAs are fully implemented and beneficial to our businesses. To learn more, visit the DFAT website here: dfat.gov.au/ trade/agreements/in-force

Building on the significant momentum achieved in San Francisco last year, IPEF Ministers released the final

The Australian Government will initiate the domestic treaty making processes necessary to sign these agreements, which remain subject to consideration by the Federal Executive Council and the Australian Parliament’s Joint Standing Committee on Treaties. At the virtual Ministerial Meeting, Trade Minister Farrell announced that Australia will contribute to the IPEF Catalytic Capital Fund to drive private-sector investment into climate infrastructure projects in ODA-eligible IPEF countries and build a pipeline of bankable sustainable infrastructure projects.

IPEF Ministers also announced the annual IPEF Clean Economy Investor Forum which will bring together the region’s largest investors, innovative start- up entrepreneurs and project proponents for matchmaking and investment facilitation. The inaugural Forum, hosted by Singapore on 6 June 2024, focuses on sustainable infrastructure and climate technology.

texts of the IPEF Clean Economy Agreement, IPEF Fair Economy Agreement and the IPEF Overarching Agreement at a virtual IPEF Ministerial Meeting on 14 March 2023. Negotiated texts are published at dfat.gov.au/trade/ organisations/wto-g20-oecd- apec/indo-pacific-economic- framework.

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business envoy

Department of Foreign Affairs and Trade

Department of Foreign Affairs and Trade

business envoy

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