Australia's Review: Modernising Southeast Asia Free Trade Agreements

The Australian Government Department of Foreign Affairs and Trade conducted a consultation on how Australia can improve, upgrade, modernise and expand the nation’s Free Trade Agreements network in Southeast Asia. Southeast Asia is one of the world’s fastest‑growing regions and is rapidly building out renewable energy systems to meet rising energy demand and net zero commitments. Australia, with its strong clean energy technology base and strategic trade partnerships, can play a pivotal role in supporting this transition. There are opportunities for existing FTAs to reflect emerging trade and investment opportunities in clean energy technologies and related value‑added exports. Trade policy is also underutilised as a tool for climate mitigation despite renewable energy goods and services being central to most countries’ climate strategies. This submission recommends priority areas for FTA modernisation that can be explored and considered: Reduce tariff and non‑tariff barriers to trade in environmental goods and services Embed sustainability and green economy principles into FTA chapters Strengthen regulatory coherence, standards alignment and market access Support the utilisation of FTAs by Australian businesses engaged in clean energy trade. Summary of recommendations Recommendation 1: Expand liberalisation of environmental goods and services. Extend tariff elimination or reduction schedules to cover a broader range of clean energy technologies and services. Recommendation 2: Include dedicated clean energy and sustainability chapters in modernised FTAs that promote trade in low-carbon technologies, align with common standards and support green growth objectives. Recommendation 3: Improve regulatory coherence and standards alignment. Facilitate mutual recognition of clean energy technology standards and certifications to reduce compliance costs for exporters. Recommendation 4: Strengthen trade facilitation measures. Simplify customs procedures, improve transparency of rules of origin and enhance clarity around technical regulations that affect clean energy goods. Recommendation 5: Boost FTA utilisation among Australian businesses in green sectors. Support small and medium-sized enterprises (SMEs) and exporters with information tools, trade facilitation services and targeted guidance on opportunities that can be unlocked through FTAs in Southeast Asia.