The National Farmers Federation (NFF) says Australia’s new free trade deal with its ASEAN neighbours will encourage producers to strengthen overseas ties.
The deal between Australia, New Zealand and South East Asian nations will see beef, dairy, car and pharmaceutical tariffs reduced.
NFF spokesman Ben Fargher says locking in tariffs of 5 per cent or less will give Australian producers confidence to keep building trade relationships.
"That’s particularly important at the moment because we’ve seen countries around the world trying to pull down the shutters on their markets and close their borders under the guise of the global financial crisis," he said.
"So to lock in access into such a growth market, particularly in the current economic climate, is positive."
Mr Fargher says the deal sets a good example for the rest of the world and the deal will boost trade in the region.
"It’s just a pity that some other major trading blocks around the world aren’t as liberal in their market access as countries in ASEAN," he said.