The Asean-China Free Trade Agreement Came Into Effect In

The ASEAN-India trade agreement came into force on 1 January 2010. The signing of the agreement paved the way for the creation of one of the world`s largest free trade area markets and created opportunities for more than 1.9 billion people in ASEAN and India, with a total GDP of $4.8 trillion. AIFTA is setting up a more liberal and easier market access and investment system between Member States. The agreement provides for tariff liberalization of more than 90% of the products traded between the two dynamic regions. As a result, tariffs for more than 4,000 product lines were agreed to be abolished by 2016 at the earliest. From August 2019, the updated protocol will make changes to the ASEAN-China Free Trade Agreement (ACFTA) by simplifying rules of origin, customs procedures, trade facilitation measures and investment rules. Last year, the total volume of trade between China and ASEAN countries reached a record $587.87 billion, 14.1% higher than the United States for the first time since 1997. For ASEAN, 2018 was also the ninth consecutive year in which China was ASEAN`s largest trading partner, in part because of China`s geographical proximity and the multilateral trade partnership that began in 2004. Changes to the free trade area framework mainly concerned Vietnam. These amendments were intended to help Vietnam reduce tariffs and were cited as guidelines. [14] The free trade agreement reduced tariffs to 7,881 categories of goods, or 90% of goods imported to zero.

[15] This reduction came into effect in China and in the original six ASEAN members: Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. The other four countries are expected to follow in 2015. [16] As soon as the first six signatories reached their target by 2010, the CLMV countries (Cambodia, PDR, Myanmar, Vietnam) adopted the same customs policy, with the same goal to be achieved by 2015. [6] In 2010, the ASEAN-China Free Trade Area became the largest free trade area in terms of population and the third largest in nominal GDP. It was also the third volume of trade after the European Economic Area and the North American Free Trade Area. [12] [7] As more and more countries appear to be opting for increasing protectionism, the Southeast Asian region and China are actively forging enhanced regional and global trade and investment links. In August 2019, changes to the ASEAN-China Free Trade Agreement came into force and simplified the rules governing trade in goods, services and investment in the ASEAN-China Economic Zone, home to more than 1.8 billion people. Over the past decade, trade and investment between ASEAN member states and China has increased significantly under the ASEAN Free Trade Area (ACFTA). The Convention on Trade in Goods was signed in 2004 and implemented by all Member States in July 2005.