Which 5 Countries Have Free Trade Agreement With Asean

Jeremy Lyon @ 20-12-2020

Following the signing on 30 January 2003 of the protocol amending the CEPT-AFTA agreement on the elimination of import duties, ASEAN-6 committed to abolishing tariffs on 60% of its IL products by 2003. At that time, tariffs on 64.12% of IL products were abolished by ASEAN-6. Average tariffs for ASEAN-6 under the CEPT programme have now fallen to 1.51 per cent from 12.76 per cent when tariff reductions began in 1993. An international agreement entitled: Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), signed on 27 February 2009 in Cha-am, Phetchaburi, Thailand, has created a free trade area between ASEAN countries, Australia and New Zealand. [13] The CEPT applies only to products originating in ASEAN. The general rule is that the local content of ASEAN must be at least 40% of the FOB value of the treat. The local content of ASEAN can be cumulative, i.e. the value of contributions from different ASEAN members can be combined to meet the 40% requirement. The formula used is as follows: the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) came into force in December 2008. The agreement covers trade in goods, trade in services, investment and economic cooperation. The free trade agreement provides for the abolition of tariffs on 87% of all tariff lines and includes a dispute resolution mechanism. It also allows the return of goods between Member States, the billing of goods by third parties and the accumulation of ASEAN. BOTH ASEAN and Japan have launched several economic cooperation projects that include capacity building and technical assistance in areas of common interest.

These areas include intellectual property rights, trade-related procedures, information and communication technologies, human resource development, small and medium-sized enterprises, tourism and hospitality, transportation and logistics, among others. Unlike the EU, THE AFTA does not apply common external tariffs to imported products. Any ASEAN member may impose tariffs on goods arriving from outside ASEAN on the basis of their national flight plans. However, for products originating in ASEAN, ASEAN members apply a fee of 0 to 5% (younger members from Cambodia, Laos, Myanmar and Vietnam, also known as CMLV countries, have been given additional time for the introduction of reduced tariffs). This is called the Common Effective Preferential Tariff (CEPT). The ASEAN-India trade agreement came into force on 1 January 2010. The signing of the agreement paved the way for the creation of one of the world`s largest free trade area markets and created opportunities for more than 1.9 billion people in ASEAN and India, with a total GDP of $4.8 trillion. AIFTA is setting up a more liberal and easier market access and investment system between Member States. The agreement provides for tariff liberalization of more than 90% of the products traded between the two dynamic regions. As a result, tariffs for more than 4,000 product lines were agreed to be abolished by 2016 at the earliest. The ASEAN Free Trade Area (AFTA) [1] is a trade agreement of the Association of Southeast Asian Nations that supports local trade and local production in all ASEAN countries and facilitates economic integration with regional and international allies.

[2] [3] [4] It is one of the largest and most important free trade zones in the world and, with its network of dialogue partners, has promoted some of the world`s largest multilateral forums and blocs, including Asia-Pacific economic cooperation, the East Asia Summit and regional economic partnership. [5] [6] [7] [9] [10] ASEAN national authorities are also traditionally reluctant to share or cede sovereignty to the authorities of other ASEAN members (although ASEAN trade ministries regularly conduct cross-border visits to conduct on-site inspections as part of anti-dumping investigations).

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