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 ?
White, III, Note, From Snowplows to Siopao--Trying to Compete in a Global Marketplace: The ASEAN Free Trade Area, 8 TULSA J.
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).
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.
One of these steps is to hasten the reduction of `exclusion lists' for the ASEAN Free Trade Area (AFTA).
ASEAN Free Trade Area, APEC, and the WTO: How They Fit Together
Already the six ASEAN (Association of Southeast Asian Nations) countries have signed the ASEAN Free Trade Area (AFTA) plan, which calls for a mutually supportive economic zone encompassing Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Brunei Darussalam.
As a member of the Association of Southeast Asian Nations (ASEAN), Viet Nam is a signatory to the ASEAN free trade area (AFTA) and to several trade pacts signed between ASEAN and its dialogue partners.
Under the Asean Free Trade Area (Afta), the trade in cement is subject to zero tariff and duties.
In fact, they were introduced many decades ago, including preferential trade agreements like the ASEAN Free Trade Area (AFTA, 1992) and other forms of economic cooperation such as the ASEAN Industrial Joint Venture (AIJV, 1983), Brand-to-Brand Complementary (BBC, 1988) and the ASEAN Industrial Cooperation (AICO, 1996).
By the time, the ASEAN free trade area initiative was being proposed, the Philippines was already ready: we had slashed tariff rates down (and not just for ASEAN trade, but for all trade); and since the era of zero tariffs for intra-ASEAN trade was still some distance off, this was a step that would be relatively easy to take in time.
Moreover, apart from domestic taxes, revenue growth may slow over time with the contribution of trade taxes in total revenue set to decline with ASEAN Free trade Area implementation.

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