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INVESTMENT POTENTIAL
Brunei Darussalam views free trade
agreements (FTA) as a vital part of its
foreign trade policy to maximise free
and open trade for its people in an
ever-globalising world. The country has
been actively engaged in FTAs through
its membership in ASEAN as well as on
a bilateral basis. Brunei through ASEAN
has concluded FTAs with a number of
countries including Australia and New
Zealand, China, India, Japan and South
Korea.
Brunei is the country coordinator for
the ASEAN-Australia-New Zealand Free
Trade Area (AANZFTA) and its upgrade
negotiation which started in 2021. The
following year on November 13, the three
parties announced substantial conclusion
of the negotiations to upgrade AANZFTA.
The upgraded AANZFTA will open up
new opportunities as new elements have
been incorporated into the agreement
Free Trade Agreements
such as micro, small and medium
enterprises (MSMEs) as well as trade and
sustainable developments.
With the upgrade, the agreement
maintains its high standard, is responsive
towards emerging challenges, takes into
account modern trade practices and
remains commercially meaningful to
businesses in the region. The upgraded
AANZFTA is also expected to facilitate
growth and development of an inclusive
and sustainable regional economy.
Meanwhile, the Regional Comprehensive
Economic Partnership (RCEP) entered
into force on January 1, 2022 for Brunei,
Australia, Cambodia, China, Japan, Laos,
New Zealand, Singapore, Thailand and
Vietnam, followed by other countries at
a later date.
The RCEP agreement involves all 10
ASEAN member states and five of its
major trading partners - Australia, New
Zealand, Japan, China and South Korea.
With this agreement, ASEAN resolves to
keep markets open while strengthening
regional economic integration towards
post-pandemic inclusive recovery.
As the world’s biggest free trade
agreement, RCEP will facilitate global
value chains and trade within the
region. The entry into force of the RCEP
agreement will pave the way for the
creation of a free trade area that covers
30 per cent of global gross domestic
product (GDP) and 30 per cent of
the world population, in addition to
accounting for almost a third of global
FDI inflows andover one-quarter of global
trade in goods and services according to
World Bank data. Non-RCEP companies
can also take advantage of RCEP benefits
by locating and operating in the region.
The government previously said signing
the RCEP would support the region’s
post-pandemic recovery efforts while
strengthening economic and trade links.
Each member of RCEP is expected to
gradually eliminate tariffs on over 90 per
cent of goods tradedwithin the bloc over
20 years.
With all of the RCEP participating
countries already a trade partner for
Brunei, the signed agreement further
signifies Brunei’s commitment to
heighten trade relations and flows. With
the agreement in place, Brunei is working
to ensure that its infrastructure is up to
date and on par with the standards of
other RCEP countries. In line with this
effort, Brunei has launched the Brunei
Darussalam National Single Window
(BDNSW), a one-stop portal enabling
applicants to submit standardised
information and documents to meet
legal import, export and customs-transit
requirements.
The RCEP will also help improve
market access thus creating more
opportunities for local SMEs to enter
the global market and export their
products internationally.