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Special And Differential Treatment Under AANZFTA

The AANZFTA provides for special and differential treatment to ASEAN in recognition of the different levels of development among ASEAN Member States, and between ASEAN Member States and Australia and New Zealand. 

For trade in goods, the tariff reduction and elimination schedules are differentiated between ASEAN, Australia, and New Zealand; and the ASEAN 6 (Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, and Thailand) and newer ASEAN Member States (Cambodia, Lao PDR, Myanmar, and Viet Nam) in terms of:

  • coverage at entry into force;
  • phasing of tariff reduction; and
  • final elimination timeline.

Cambodia, Lao PDR, Myanmar, and Viet Nam enjoy a more gradual phasing and longer gestation for elimination of tariffs. In the case of trade in services, the Parties recognize the importance of according special and differential treatment to Cambodia, Lao PDR, Myanmar, and Viet Nam through negotiated commitments relating to:

  • strengthened domestic capacity;
  • improved access to distribution channels and information networks; and
  • commitment in sectors of export interest to the 4 countries.

In recognition of the differences in capacity, the AANZFTA also provides for economic cooperation between and among Parties. The Governments of Australia and New Zealand have provided funding support for the implementation of the Economic Cooperation Work Program under the AANZFTA Economic Cooperation Support Program (AECSP).

Visit the AECSP Overview page.