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  jata  Malaysia's Free Trade Agreements


ASEAN - Australia, New Zealand


  • The ASEAN, Australia and New Zealand Summit on 30 November 2004 in Vientiane, Lao PDR, agreed to establish the ASEAN, Australia and New Zealand Free Trade Area (AANZFTA).

  • The AANZFTA is a comprehensive and single-undertaking economic agreement that opens up and creates new opportunities for the 650 million peoples of ASEAN, Australia and New Zealand which has a combined economic output of US$4.2 trillion via a platform of a more liberal, facilitative and transparent market access and investment regimes among the signatories to the Agreement.

  • Through the AANZFTA:

    • tariffs will be progressively reduced from entry into force of the Agreement, and eliminated for at least 90 percent of all tariff lines within specified timelines;

    • movement of goods will be facilitated via a more modern and flexible rules of origin, simplified customs procedures and more transparent mechanisms;

    • barriers to trade in services will be progressively liberalized allowing for greater market access to service suppliers in the region;

    • movement of business persons, those engaged in trade and investment activities, will be facilitated; and

    • covered investments will be accorded a range of protection, including the possibility of dealing with disputes via an investor-state dispute settlement mechanism.

  • Economic Ministers of ASEAN, Australia and New Zealand signed the AANZFTA Agreement on 27 February 2009 in Thailand. It is ASEAN's first comprehensive FTA negotiations with Dialogue Partners covering all sectors:

    • trade in goods;

    • investment;

    • trade in services;

    • financial services;

    • telecommunications;

    • electronic commerce;

    • movement of natural persons;

    • intellectual property;

    • competition policy; and

    • economic cooperation.

  • The ASEAN-Australia-New Zealand Free Trade Area Agreement has been implemented by Malaysia on 1 January 2010.

  • For further information on the Agreement, please visit the following link: http://aanzfta.asean.org

  • Please click the following link to view the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area:

[Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area, Cha-am, Thailand, 27 February 2009]



  • Rules of Origin (ROO) for AANZFTA are provided for under Chapter 3 of the Agreement. Trade facilitating ROO have been established under the AANZFTA that would help encourage regional cumulation of inputs benefitting both ASEAN Member States, Australia and New Zealand.

  • For the purposes of Article 4 of Chapter 3 (Goods Not Wholly Produced or Obtained), the formula for calculating the regional value content will be either:

  1. Direct Formula

direct_method (aanzfta)

  1. Indirect/Build-Down Formula

indirect_method (aanzfta)

Note :

  1. AANZFTA Material Cost is the value of originating materials, parts or produce that are acquired or self-produced by the producer in the production of the good;

  2. Labour Cost includes wages, remuneration and other employee benefits;

  3. Overhead Cost is the total overhead expense;

  4. Other Costs are the costs incurred in placing the good in the ship or other means of transport for export including, but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees and service charges;

  5. FOB is the free-on-board value of the goods as defined in Article 1 (Definitions); and

  6.  Value of Non-Originating Materials is the CIF value at the time of importation or the earliest ascertained price paid for all non-originating materials, parts or produce that are acquired by the producer in the production of the good. Non-originating materials include materials of undetermined origin but do not include a material that is self-produced.


  • Building on the services liberalisation under the World Trade Organisation (WTO), the AANZFTA through Chapter 8 on Trade in Services of the Agreement further improves on the commitments and obligations on services trade. Under the AANZFTA, Australia and New Zealand made GATS-plus and commercially meaningful commitments in a number of services sectors.

    • Australia opened up new opportunities for ASEAN service providers in the following sectors/subsectors: legal services, nursing and midwifery, services to mining, communication services, educational services, environmental services, financial services, and transport services.

    • Similarly, New Zealand created new opportunities in legal services, engineering services, veterinary services, construction services, educational services, environmental services and financial services.

  • As a key outcome, services commitments of the AANZFTA Parties/signatories on various services sectors have significantly improved enabling service providers to enjoy greater market access and benefit from improved national treatment commitments as specified in the Parties’ schedules of specific services commitments as follows:

  • Recognising the critical role of financial services and telecommunications sectors in the integration process, the AANZFTA also has a specific Annex on Financial Services, and an Annex on Telecommunication Services, where Parties undertook additional commitments.

  • To facilitate movement of natural persons engaged in trade and investment, the AANZFTA has a Chapter on Movement of Natural Persons (MNP). This Chapter sets out the obligations and commitments on the temporary movement of natural persons including:

    • business visitors

    • installers and servicers

    • executives of businesses, headquartered in a Party, establishing a branch or subsidiary, or other commercial presence in another Party

    • intra-corporate transferees

    • contractual service suppliers

  • Commitments on MNP who are services suppliers (Mode 4) are included in the schedules of MNP commitments. The schedules of MNP commitments specify the conditions and limitations governing those commitments including the length of stay for each category of natural persons included in the schedules. The Schedule of MNP Commitments of all Parties is as follows:


  • The AANZFTA provides a greater level of certainty for investors and their investments. Chapter on Investment of the AANZFTA accords a wide range of protection that includes:

    • Fair and equitable treatment, and full protection and security

    • Non-discriminatory treatment in relation to compensation for losses arising from armed conflict, civil strife or state of emergency

    • Provisions that freely allow transfers relating to covered investments

    • Non-discriminatory expropriation of investments that is done only for public purpose and carried out with due process of law, and receives prompt, adequate and effective compensation

  • The Chapter provides for an investor-state dispute settlement (ISDS) that provides investors recourse to a choice of procedures for settling any investment related issues.

  • Similar to the Chapter on Services, the transparency provisions of the Chapter on Investment requires publication of any measures affecting investors and their covered investments in the internet. It likewise allows interested parties to give their comments on any new measures on investment that is under consideration.

  • For further explanation and other information, also read the “AANZFTA: A Guide for ASEAN Business.”


For matters relating to Preferential Certificate of Origin (CO Form E) / Rules of Origin, please contact:

  1. Ms. Zurina Abd Rahim
    Industry and Trade Support Division
    Email: zurina@miti.gov.my

  2. Ms. Chloe Wong
    Industry and Trade Support Division 
    Email: pswong@miti.gov.my

For other enquiries on policies and tariff lines, please contact following officers:

  1. Ms. Azlina Abdullah
    ASEAN Economic Integration Division
    Email: azlina@miti.gov.my

  2. Mr. Muhammad Ezwan Baharudin
    ASEAN Economic Integration Division
    Email: ezwan@miti.gov.my

MIDA MATRADE MPC MIDF MAI MSI SIRIM Berhad MIMOS Berhad Exim Bank Department of Standards Malaysia (JSM) InvestKL My Gov