Submission: Southeast Asia Free Trade Agreements Modernisation
Australia’s free trade agreements (FTAs) with Southeast Asia have been central to supporting trade, investment and economic integration across the region, yet many of these agreements were negotiated more than 20 years ago, before the emergence of today’s green economy.
To ensure Australia’s FTAs remain fit for purpose, the Department of Foreign Affairs and Trade (DFAT) is undertaking a comprehensive review of Australia’s Southeast Asia FTAs to determine whether existing agreements remain relevant and commercially meaningful.
The review is informed by Australia’s Southeast Asia Economic Strategy to 2040, which highlights the region’s projected growth and its importance to Australia’s long-term economic and strategic interests.
As part of this process, DFAT called for submissions on how Australia’s FTAs with Southeast Asia could be strengthened, modernised or expanded.
The Australian Sustainable Finance Institute (ASFI) has made a submission to the review, setting out three core messages:
Environmental goods should be prioritised in modernised FTAs, including through the use of Environmental Goods Lists in regional agreements to reduce tariff and non-tariff barriers and improve consistency across markets.
Trade agreements alone are not sufficient to unlock sustainable capital flows, and should be complemented by broader coordination across trade, foreign, development and climate finance policy to support green investment between Australia and Southeast Asia.
Greater alignment of green and transition finance standards is critical to reducing information gaps, lowering perceived investment risks and enabling capital to flow more efficiently across borders.
To read ASFI’s full submission to the Southeast Asia Free Trade Agreements modernisation review, download the submission below.