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.