Free trade agreements (FTAs) in Force

Australia has concluded free trade agreements (FTAs) with 11 countries or groups of countries including:

  • Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – effective 30 December 2018.
  • China (ChAFTA – effective 20 December 2016)
  • Japan (JAEPA – effective 15 January 2015)
  • The Republic of Korea (KAFTA – effective 12 December 2014)
  • New Zealand (ANZCERTA – effective 1 January 1983)
  • Singapore (SAFTA – effective 28 July 2003)
  • United States (AUSFTA – effective 1 January 2005)
  • Thailand (TAFTA – effective 1 January 2005)
  • Chile (Australia–Chile FTA – effective 6 March 2009)
  • ASEAN–Australia–New Zealand Free Trade Agreement (AANZFTA – effective 1 January 2010)
  • Malaysia (MAFTA – effective 1 January 2013).

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Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement (FTA) between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam. The agreement was signed by the 11 countries on 8 March 2018 in Santiago, Chile. The 11 countries have a shared vision of the Agreement as a platform that is open to others to join if they are able to meet its high standards.

The ratification of CPTPP by Australia, Canada, Japan, Mexico, New Zealand and Singapore, triggered tariff reductions on entry into force on 30 December 2018, with further tariff reductions on 1 January 2019. Benefits will only apply to those countries that have ratified the agreement.

For Australian agriculture, the CPTPP delivers Japan-Australia Economic Partnership Agreement (JAEPA) ‘plus’ outcomes and new high-quality FTAs with Canada and Mexico, two of the world’s top 20 economies. Further information on the CPTPP is available on the Department of Foreign Affairs and Trade website.

ChAFTA

The China-Australia Free Trade Agreement (ChAFTA) was signed on 17 June 2015 and entered into force on 20 December 2015. ChAFTA has delivered four tariff cuts to date which have supported strong economic growth. The agreement provides significant opportunities for Australia’s agriculture, food, fishery and forestry products by eliminating tariffs on a wide range of our exports including beef, sheep meat, livestock, dairy, wine, seafood, horticulture, hides and skins, barley and sorghum and some other grains. China was Australia’s largest trading partner for agriculture exports worth $13.6 billion in 2017-18 financial year.

The full text of ChAFTA and detailed information about the outcomes are publicly available on the Department of Foreign Affairs and Trade website. To take full advantage of the agreement, businesses are encouraged to refer to a new step by step guide on ChAFTA - Guide to using ChAFTA to export or import.

Further information about tariff reductions under ChAFTA or Australia’s other recent FTAs across multiple products is available at Free Trade Agreement Portal.

For more information on import and export conditions, please see BICON and MICoR.

JAEPA

The Japan-Australia Economic Partnership Agreement (JAEPA) was signed on 8 July 2014 and entered into force on 15 January 2015. It has delivered five tariff cuts to date: one on entry into force, and four on 1 April each year since 2015, along with increased preferential quotas for Australian agricultural exports. The agreement provides valuable preferential access for Australia's agricultural exports by eliminating or significantly reducing tariffs on a wide range of Australian exports including beef, wine, horticulture, seafood, grains and sugar over timeframes of up to 18 years.

JAEPA also includes new quota access for a range of products. Details on quota management arrangements. To stay up-to-date on the Japanese quotas, interested parties can join the subscription list by emailing Quota Admin with your details and ‘Subscribe’ in the heading.

The full text of JAEPA is publicly available on the Department of Foreign Affairs and Trade website. To take full advantage of the agreement, businesses are encouraged to refer to a new step by step guide on JAEPA. Guide to using JAEPA to export and import goods.

Further information about tariff reductions under JAEPA or Australia’s other recent FTAs across multiple products is available at FTA portal.

KAFTA

The Korea-Australia Free Trade Agreement (KAFTA) was signed on 8 April 2014 and entered into force on 12 December 2014. It has delivered six tariff cuts in quick succession: one on entry into force, and five on 1 January each year since 2015. The most recent tariff cut was on 1 January 2019. KAFTA is a strong and liberalising agreement for agriculture that secures improved market access through elimination of very high tariffs on a wide range of exports including beef, wheat, sugar, dairy, wine, horticulture and seafood.
The full text of KAFTA is publicly available on the Department of Foreign Affairs and Trade website. To take full advantage of the agreement, businesses are encouraged to refer to a new step by step guide on KAFTA. Guide to using KAFTA to export and import goods.

ANZCERTA

The Australia New Zealand Closer Economic Relations and Trade Agreement (ANZCERTA), came into effect on 1 January 1983 and is central to the Australia-New Zealand trade and economic relationship. ANZCERTA is one of the worlds’ most open and successful free trade agreements.

As well as underpinning bilateral trade in goods and services, ANZCERTA is the umbrella for close collaboration across biosecurity, customs, transport, regulatory and product standards and business law issues. ANZCERTA does not affect Australia or New Zealand’s ability to impose biosecurity measures to protect animal, plant and human health.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website.

SAFTA

The Singapore-Australia Free Trade Agreement was signed on 17 February 2003 and entered into force on 28 July 2003. SAFTA eliminated tariffs on all goods from entry into force of the Agreement and precludes the use of export subsidies and the application of safeguard measures against each other.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website.

AUSFTA

The Australia-United States Free Trade Agreement (AUSFTA) came into force on 1 January 2005.

AUSFTA delivers greater market access opportunities for Australian business with the elimination of duties on over 97 per cent of US tariff lines for non-agricultural exports and 66 per cent of agriculture tariff lines from day one of the agreement, including lamb, sheep meat and horticulture products. A further nine per cent of agriculture tariffs were eliminated from 2008. Remaining tariffs will continue to fall and duty free quotas continue to increase, including for key Australian agricultural exports such as beef and dairy.

For beef, AUSFTA eliminates all US beef tariffs over time, with the previous in-quota tariff of 4.4 US cents/kg eliminated from 1 January 2005 and the 26.4 per cent over-quota tariff reduced to zero over 18 years. The Agreement also provides for increasing quota access during the 18 year tariff elimination period. From year 19, all Australian beef will be free to enter the US market without tariff or quota restrictions and subject only to a price-based safeguard.

For dairy, AUSFTA provided for the immediate elimination of all in-quota tariffs on dairy products exported from Australia and the reduction of out of quota tariffs over 18 years. The Agreement also allows for duty free access for an increased range of Australian dairy products.

For horticulture, AUSFTA increased duty free access to 99 per cent and eliminated tariffs for a range of horticultural products, including for fresh mangoes (previously 6.6 US cents per kg), fresh macadamia nuts (previously 5 US cents per kg) and mandarins (previously 1.9 US cents per kg).

AUSFTA also provides improved access conditions for a range of other agricultural products exported to the US, including cotton seeds, wool, sheep meat, seafood, wheat gluten, cereals, processed food and forest products.

The full text of AUSFTA is publicly available on the Department of Foreign Affairs and Trade website.

TAFTA

The Thailand-Australia Free Trade Agreement (TAFTA) entered into force on 1 January 2005. Thailand’s high tariff barriers were either eliminated immediately, have since been phased out, or are being phased out over an agreed timeframe. Tariffs have been eliminated for a range of agricultural commodities, including sheep meat, hides and skins, wool and cotton, most fresh fruit and vegetables and a number of dairy products.

A number of agricultural products are subject to tariff rate quotas (TRQs) or special agricultural safeguards (SSGs) under TAFTA. These TRQs and SSGs are being progressively phased out and include products such as mandarins and fresh grapes which phased to zero per cent in 2015 with full tariff and quota elimination in 2016; and some cheese as well as beef and beef offal which phase to zero per cent in 2020 with tariff and quota elimination in 2021.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website and includes further information regarding tariff rate quotas, SSGs and SSG quotas.

Australia–Chile FTA

The Australia - Chile Free Trade Agreement (ACLFTA) entered into force on 6 March 2009. It was Australia’s first FTA with a Latin American country.

The FTA resulted in the immediate elimination on entry into force of Chile’s tariffs for all meat and wine products, as well as on key dairy export lines. All remaining tariffs on both sides were eliminated by year six of the agreement (2015) except for one component of Chile’s sugar tariff which will remain subject to its current ‘price band’ system.

Under a Memorandum of Understanding on Beef Grading, Chile agreed to establish recognition of Australia’s beef grading system. This agreement has provided the Australian red meat industry with significant cost savings when exporting to Chile.

The full text of ACLFTA is publicly available on the Department of Foreign Affairs and Trade website.

AANZFTA

The Association of Southeast Asian Nations (ASEAN)-Australia-New Zealand Free Trade Agreement (AANZFTA) was the first plurilateral FTA that Australia concluded. AANZFTA entered into force on 1 January 2010 for eight of the 12 signatories (Australia New Zealand, Brunei, Myanmar, Malaysia, the Philippines, Singapore and Vietnam). This was followed by Thailand in March 2010, Cambodia and Laos in March 2011 and Indonesia in January 2012.

AANZFTA will eliminate tariffs on 96 per cent of Australia’s current exports to ASEAN nations by 2020 (only 67 per cent of Australia’s exports to the region were tariff-free pre-AANZFTA).

Australia secured a number of tariff reduction and elimination commitments that are of direct benefit for the Australian agriculture sector. These include but are not limited to:

  • Meat and livestock: most meat and live bovine animals phased to zero.
  • Dairy products: all lines phased to zero except some in Indonesia, Malaysia and the Philippines
  • Fish: majority phased to zero and remaining lines 5 per cent or less.
  • Wine and spirits: Phased to zero in the Philippines by 2015 and in Vietnam by 2022, excluded from tariff commitments by Indonesia and Malaysia.
  • Wool and cotton: all lines bound or phased to zero.

The final text of the agreement and further details on outcomes for Australian agricultural products are available on the Department of Foreign Affairs and Trade webiste.

MAFTA

The Malaysia-Australia Free Trade Agreement (MAFTA) was signed on 22 May 2012 and entered into force on 1 January 2013. The agreement builds on commitments made by both countries in Australia’s regional Free Trade Agreement with ASEAN and New Zealand (AANZFTA).

MAFTA delivers important improvements to market access for a range of agricultural portfolio industries. These include:

  • annual increases in tariff quota volumes for liquid milk at zero tariff and liberalisation of the licensing arrangement for imports of liquid milk
  • a phased reduction of rice tariffs from 2023, with all rice tariffs fully eliminated by 2026
  • tariff elimination by 2016 on certain horticulture products, including melons, mangoes, pineapples and longans
  • a commitment from Malaysia to pass on to Australian wine exporters any reduction or elimination of tariffs, or any treatment in the application of import licensing or other non-tariff measures, that Malaysia provides to wine imports from any other country.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website.