Trade between Laos and Australia and New Zealand is set to become easier and less costly thanks to a new Asean-Australia-New Zealand free trade agreement. Australia Ambassador to Lao Dr Michele Forster said yesterday “the Asean-Australia-New Zealand Free Trade Agreement came into force in Australia on January 1 this year and is set to come into force in Laos shortly. The agreement will eliminate tariffs on over 90 percent of imports from Australia and New Zealand to Laos and maintain the zero tariffs on all exports from Laos to these countries. Australia and Laos have significant trade and investment ties. Australian companies have made a strong contribution to Laos’ economic development, particularly in the mining and financial services sectors. For Laos, another very important aspect of the agreement is that it includes an emphasis on economic cooperation, to build capacity and help maximize the benefits that the FTA will deliver. In 2008-2009, two-day trade between Laos and Australia was worth A$ 15 million (almost US$ 14 million) Australia’s exports to Laos were worth A$ 14 million (almost US$ 13 million) and imports from Laos to Australia were worth A$ 1 million (over US$ 900.000). The agreement covers 12 countries with a combined population of 600 million, and encompasses a region with a combined GDP of more than A$ 3.1 trillion (US$ 2.8 trillion).
Source: Vientiane Times
