Afta Agreement

The production trend is therefore to continue to develop products for this huge consumer market, but to place the necessary production capacities for this purpose in a cheaper place. ASEAN`s free trade agreement with China allows regional companies and NCMs operating in Asia to do so. It`s a trend that`s already underway — as we`re seeing at Foxconn, the maker of many components that end up in Apple`s products, which wants to relocate its 1.3 million employees from China and Indonesia, where wages are lower and there`s a large and available workforce. This is a solid strategy that is increasingly being taken up by many manufacturers. The ASEAN Free Trade Area (AFTA) [1] is a trade bloc agreement concluded by the Association of Southeast Asian Nations that supports local trade and production in all ASEAN countries and facilitates economic integration with regional and international allies. [2] [3] [4] Considered one of the most important and important free trade areas in the world, it has promoted, with its network of dialogue partners, some of the world`s largest multilateral forums and blocs, including the Asia-Pacific Economic Cooperation, the East Asia Summit and the Regional Comprehensive Economic Partnership. [5] [6] [7] [8] [9] [10] The revision and improvement of the CEPT regime was one of the most important measures defined under the 2015 CEA to ensure the free movement of goods in the region. The CEPT system was then replaced in 2010 by the new agreement, the ASEAN Trade in Goods Agreement (ATIGA). The AFTA agreement was concluded on 28 January 1992 in Singapore on 1 January 1992. When the AFTA agreement was originally signed, ASEAN had six members, namely Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999.

AFTA now includes the ten ASEAN countries. The four latecomers had to sign the AFTA agreement to join ASEAN, but were given longer deadlines to meet AFTA`s tariff reduction obligations. Again, the ASEAN secretariat can help resolve a dispute, but does not have the legal authority to resolve it. Introduction to tax treaties across Asia In this issue of Asia Briefing Magazine, we see the different types of trade and tax treaties that exist between Asian nations. These include bilateral investment agreements, double taxation treaties and free trade agreements that have a direct impact on companies operating in Asia. .