| Summary: | In the last two decades, Australia's trade policy shows the dynamics that lead to bilateral
trade agreements and priority to economic considerations. In the midst of these conditions,
Australia initiated the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)
as a regional trade agreement, in which various analysis indicates that this agreement is not
effective in carrying maximum economic benefits for Australia, compared to bilateral trade
agreements. This thesis aims to analyze various driving factors and processes behind
Australia�s initiative for AANZFTA. Three main factors have been identified in this thesis,
these include domestic political factors, economic and military forces, and international
context, through which each factor is interconnected to others. Through this approach, this
thesis concludes that the AANZFTA is part of Australia's endeavors in conducting regional
engagement, thus economic calculation is not regarded as a single consideration that drives
the Australian government initiative on the agreement.
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