Background
From 14 to 17 February 2023, a Cambodian delegation led by H.E. Reach Saravuth, Secretary of State at the Ministry of Commerce and AANZFTA FJC Lead for Cambodia, attended the 20th Meeting of the Joint Committee of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA FJC). The meeting was held at the Pullman Bandung Grand Central Hotel in Bandung, Indonesia, under the chairmanship of Mr. Yusdiman Saman, Deputy Director of the Trade Department of the Ministry of Finance and Economy of Brunei Darussalam.
The session brought together FJC Leads from the 10 ASEAN Member States, Australia and New Zealand, as well as officials from the ASEAN Secretariat. The discussions formed part of the ongoing process to upgrade the AANZFTA agreement, which was identified as a priority economic deliverable for Cambodia in 2022.
Scope of Application
The meeting related to the regional ASEAN-Australia-New Zealand Free Trade Area framework and concerned all AANZFTA participating economies: the 10 ASEAN Member States, Australia and New Zealand. Cambodia participated in its capacity as a party to AANZFTA and as the lead of its national negotiation team for the agreement’s upgrade.
The discussions focused on remaining negotiation issues and follow-up work associated with the AANZFTA Upgrade Negotiations, in preparation for consideration by ASEAN, Australian and New Zealand economic ministers.
Key Provisions or Decisions
During the meeting, the Cambodian delegation head expressed appreciation to Indonesia for hosting the event and noted the smooth organization of the proceedings in Bandung. He reiterated Cambodia’s position and efforts toward the full conclusion of the negotiations to upgrade the AANZFTA regional free trade agreement.
Cambodia encouraged all participating parties to engage in the negotiations on the basis of flexibility and strong commitment, with the aim of concluding the upgrade discussions at this final negotiating round in Bandung. The objective is to enable the ASEAN, Australian and New Zealand economic ministers to sign the second protocol to amend the AANZFTA agreement.
The Joint Committee reviewed outstanding issues, assessed progress and discussed subsequent workstreams related to the AANZFTA Upgrade Negotiations. Reference was made to the earlier announcement by ASEAN, Australia and New Zealand leaders that they had formally concluded negotiations on the upgrade package as a collective achievement.
Implications for Investors, Businesses, or Compliance
The meeting signaled continued progress toward an upgraded AANZFTA framework, in which Cambodia participates as a full party. Once the upgrade and related protocol are finalized and signed by the economic ministers, businesses operating in or trading with Cambodia can expect adjustments within the AANZFTA regime, potentially affecting market access, trade facilitation and related provisions across the covered economies.
For the time being, the update indicates that Cambodia is actively engaged at the negotiation level and supports the timely conclusion of the upgrade process. Specific legal or compliance obligations for investors and traders will depend on the final text of the second protocol and its subsequent implementation by the parties.
Official Source
The information is based on an official communication from the Ministry of Commerce regarding Cambodia’s participation in the 20th AANZFTA FJC meeting in Bandung, Indonesia.
