ASEAN Free-Trade Area

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.
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With the ASEAN free-trade area or AFTA, Filipinos get to choose from a variety of goods in the market at competitive and affordable prices with an opportunity to increase the competitive edge of businesses in the region through the elimination of taxes on imports and exports and non-tariff barriers.

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