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 ?
Since the implementation of ASEAN Free Trade Area (AFTA) agreement to reduce import tax to 0% at the beginning of this year, exporters foresee a healthy overall growth in 2010, despite the slow recovery of the global economic environment.
Among third-party FTAs in effect within the Asia Pacific region, the ASEAN Free Trade Area (AFTA) was the most utilized, with about a third of firms engaged in trade (33.
If an ASEAN free trade area can be made to function strongly, then laggards like the Philippines and Laos and Cambodia can expect to benefit economically in the same way that Portugal, Spain and Greece have boomed since joining the EU.
As party to the ASEAN Free Trade Area (AFTA) tariff reduction scheme, Malaysia has begun to lower import duties this year.
The ASEAN Free Trade Area allows British firms low-duty access to the regional market.
The plant has since June exported 3-Series limousines to Indonesia to exploit a low tariff regime provided under the ASEAN Free Trade Area scheme.
Regardless of ASEAN's motive, some analysts wonder how ASEAN is going to proceed with the project when it has yet to finalize its intra-regional tariff regime under the ASEAN Free Trade Area initiative.
Tan Sri Dato' Dr Lau Ban Tin, director of BIG Industries Bhd, told Malaysian businesses to react to the slowdown and to the future challenges of globalisation, the advent of the ASEAN Free Trade Area (AFTA) and the World Trade Organisation (WTO).
Indonesia should enter the Asean Free Trade Area Agreement, which is to remove all trade barriers including those on oil products by 2015.
But Japanese firms, mainly in the general machinery and automotive sectors, are showing strong interest in investing in ASEAN as the group is moving toward the formation of an ASEAN Free Trade Area by 2002, it said.
To meet the economic challenge of China's attractiveness to foreign investments, the ASEAN countries will have to combine their markets in an ASEAN free trade area," Lee said.
ASEAN Free Trade Area, APEC, and the WTO: How They Fit Together

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