Background
DFAT is conducting a comprehensive review of Australia’s Free Trade Agreements (FTAs) in Southeast Asia. The goal is to identify opportunities for upgrades that will ensure these agreements continue to benefit Australian businesses and investors.
Southeast Asia is projected to become the world’s fourth-largest economy by 2040, after the United States, China and India, with an expected compound annual growth rate of 4 per cent between 2022 and 2040. Th growth is driven by an expanding middle class with demand for quality products and services. Australia’s two-way trade with Southeast Asia soared to $183.4 billion in 2023.
The review will inform the Australian Government’s FTA upgrade agenda and priorities to 2040. Specifically, the review will:
· Examine market access commitments to ensure they remain comprehensive and commercially meaningful, enabling Australia and our Southeast Asian partners to maximise the benefits of modern trade agreements.
· Consider whether our FTAs have kept pace with relevant international developments, and consider emerging issues such as digital trade and the net zero economy.
· Support Australia’s trade diversification agenda, strengthen our economic integration with Southeast Asia, and bolster our supply chain resilience.
Southeast Asian FTA Upgrade and Modernisation Grant Program
To support this review, the Government has launched a $1.75 million Southeast Asian FTA Upgrade and Modernisation Grant Program. This program will assist Australian industry bodies and representative organisations in undertaking research and analysis to identify and prioritise future trade and investment opportunities that can inform the upgrade of our FTAs with the region.
CMA intends to apply for funding under this program, providing there is sufficient interest from members. The application will seek funding to support research into areas identified by members as needing upgrades in the relevant FTAs, for the benefit of the Australian complementary medicines industry.
Grant Application Criteria
The grant application will be evaluated based on the following four criteria:
· Criterion 1 (20% weighting)
The activity must be within the scope of and relate to modernising or enhancing at least one of Australia’s in-force FTAs with a Southeast Asian economy, or a possible future Australian FTA in the region.
1a. how your activity is in the scope of FTA upgrade negotiations with one or more of Australia’s in-force FTAs with Southeast Asian partners?
1b. how your activity is in the scope of FTA negotiations with one or more Southeast Asian economies?
· Criterion 2 (20% weighting)
The activity must relate to the export of goods, services or investment from Australia or new and emerging progressive trade issues e.g. digital and green economy, labour, gender and energy/ climate change.
2a. which industry, sector, good or service will your activity relate to?
2b. describe why your organisation is representative, recognised or well-placed to conduct activities and provide information about the particular industry, sector, good or service.
· Criterion 3 (40% weighting)
The activity must relate to the enhancement or modernisation of FTAs with a view to identifying barriers, opportunities, ways or approaches to increase Australian exports and investment in Southeast Asia and/or to facilitate trade for Australian businesses.
3a. current or possible barriers or impediments to trade or investment faced by Australian businesses, and potential options to address impediments
3b. opportunities for increased trade or investment for Australian businesses
3c. opportunities to enhance Australia’s approach to new and emerging trade issues (e.g. digital economy, the green economy, sustainable agriculture etc).
· Criterion 4 (20% weighting)
The activity must be forward looking and have consideration for the relevance of the activity to at least 2040.
4a. describe how the activity will inform Australia’s FTA modernisation priorities to 2040.
Call for Comments (Deadline: COB 5 March 2025):
To inform CMA’s grant application, we are seeking your input. Please provide your TOP THREE priority areas that could benefit from updates to Australia’s FTAs with Southeast Asia. For each priority area, please include:
· The relevant FTA
· A clear description of the area/opportunity for research and updating.
Please send your response via email to Miho by the close of business on 5 March 2025. This will allow us to compile the application before the deadline of 24 March 2025.
Relevant FTAs for this grant:
To assist you in identifying priority areas, the relevant FTAs for this grant are:
- Singapore–Australia (SAFTA) – 28 July 2003
- Thailand–Australia (TAFTA) – 1 January 2005
- ASEAN–Australia–New Zealand (AANZFTA) – 1 January 2010 for eight countries: Australia, New Zealand, Brunei, Burma, Malaysia, the Philippines, Singapore and Vietnam. For Thailand: 12 March 2010. For Laos: 1 January 2011. For Cambodia: 4 January 2011. For Indonesia: 10 January 2012. For the Philippines: 2 June 2023.
- Malaysia–Australia (MAFTA) – 1 January 2013
- Regional Comprehensive Economic Partnership (RCEP) – 1 January 2022 for ten countries: Australia, Brunei Darussalam, Cambodia, China, Japan, Laos, New Zealand, Singapore, Thailand and Vietnam. For the Republic of Korea: 1 February 2022. For Malaysia: 18 March 2022. For Indonesia: 2 January 2023. RCEP will enter into force for the Philippines on 2 June 2023.
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