ASEAN Free-Trade Area

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ASEAN Free-Trade Area

An agreement between members of ASEAN that seeks the reduction and/or elimination of tariffs between members at the encouragement of foreign direct investment. Goods originating in an ASEAN member state and exported to another may not have a tariff higher than 5% of the value of the good. It was signed in 1992 and became operational in 2003. Since it was originally created, prospective members of ASEAN have been required to sign on to the Free-Trade Area.
References in periodicals archive ?
Mahathir's comment came after Malaysian International Trade and Industry Minister Rafidah Aziz's recent warning to Australia and New Zealand not to use their close economic links with Singapore as a backdoor into AFTA.
AFTA mandates a ceiling of 5% duty on cars and car parts imported from members of the Association of Southeast Asian Nations (ASEAN).
AFTA consists of all 10 members of ASEAN -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Thailand blames Malaysia, a major palm oil producer, of applying AFTA unfairly.
In return Thailand supported an amendment of AFTA rules to allow some members to suspend tariff reductions.
Under AFTA, six leading ASEAN economies have committed to bringing tariffs on most manufactured products, including cars and car parts, to a maximum of 5% by 2002 with a longer implementation period for ASEAN's four newer members.
Thailand must demonstrate that by keeping to the original time frame, there would be a win-win situation for all AFTA members.
Dee Graham, manager of EPRI's AFTA Food Office, ozone works as an oxidant to damage the cell walls of harmful microorganisms, thus killing them and leaving only oxygen - but no tastes, odors or flavors - as a byproduct.
AFTA accounts for 94% of the total Arab trade, according to figures released in late 2006.
The Thai official said a bilateral FTA initiative with other countries outside AFTA would not upset other ASEAN members, although Malaysia has criticized Singapore for separately signing FTAs with other countries without consulting the group.
Zainuddin appeared optimistic about the impact of AFTA on Perodua's exports, although at present exports only account for 1% of its total output abroad.
With the accession of Laos and Myanmar, the total number of items includes in the AFTA list was 45,996, compared with 42,253 in 1997, according an ASEAN report.