Brunei Darussalam views Free Trade Agreements (FTAs) as a vital
part of its foreign trade policy to maximise the potentials of free and
open trade for its people in an ever-globalising world. With a
relatively free and open trading regime, as well as a small but highly
educated workforce, Brunei Darussalam sees engagement on FTAs as an
important step in ensuring that its people, goods, services and
investments have continued access to wider markets around the world.
Brunei Darussalam, which is largely seen in the international
community as a producer of oil and gas, is currently undertaking a
number of projects in a bid to further diversify its economy. In this
regard, the Government of Brunei Darussalam strongly believes that
active engagement of FTAs with a number of key strategic partners will
open up markets for Brunei’s exports and services as well as help
facilitate the flow of foreign direct investment into Brunei Darussalam.
Overview of Brunei FTAs
Brunei Darussalam has been actively engaged in FTAs through its membership in ASEAN as well as on a bilateral basis.
Bilaterally, Brunei Darussalam has concluded an Economic
Partnership Agreement with Japan (the Brunei-Japan Economic Partnership
Agreement or “BJEPA”) and a plurilateral agreement with Chile, New
Zealand and Singapore (the Trans Pacific Strategic Economic Partnership
or more commonly referred to as the “P4”)
The
BJEPA is
Brunei Darussalam’s first bilateral free trade agreement. The Agreement
was signed by the leaders of both Brunei Darussalam and Japan on 18
June 2007, and entered into force on 31 July 2008. The Agreement is
hoped to enhance Brunei Darussalam’s investment climate and encourage
foreign direct investments (FDI) through greater predictability and
transparency. Market access between Brunei Darussalam and Japan will
also be improved in terms of goods (through the reduction of import
duties) and services. Marking the long-standing relationship between
both countries, the Agreement also has chapters on Energy, Improvement
of Business Environment and Cooperation which will help further
strengthen bilateral ties to a higher level of partnership.
Brunei signed the
P4
on 2 August 2005 and deposited its Instrument of Provisional
Application to New Zealand as the depository of the Agreement on 12 June
2006. The Agreement came into force for Brunei Darussalam on 12 July
2006, and will bring about strategic benefits for all four partners,
Brunei Darussalam, Chile, New Zealand and Singapore, and in effect build
a bridge between Latin America, the Pacific and Asia. It will encourage
Brunei, Chile, Singapore and New Zealand to pool their expertise,
ideas, technology and resources to improve their competitiveness on the
global market. The Agreement will also help advance shared objectives in
APEC and the WTO.
The P4 also has side agreements, namely the Environment Cooperation
Agreement and Labour Cooperation Memorandum of Understanding, to
reflect a shared desire to encourage and promote sound labour and
environment practices. These agreements establish mechanisms for
on-going cooperation and dialogue on labour and environment issues.
Brunei Darussalam, along with P4 partners, are currently
negotiating with Australia, Malaysia, Peru, the United States and Viet
Nam, to expand the P4 and upon its conclusion, it will be referred to as
the Trans-Pacific Partnership (TPP). The expansion of the P4 to TPP
will produce a high-quality Agreement that addresses new and emerging
trade issues not yet adequately dealt with in existing trade agreements.
