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ASEAN Free Trade Area

Area of Cooperation

Goods and Dispute Resolution

Sign Date

January 1, 1992

In Force Date

January 1, 1992

Summary

Initiated in 1992, ASEAN Free Trade Area (AFTA) main mechanism used to reduce tariffs in ASEAN. It originally contained six members (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) the other four members (Vietnam -1995, Laos -1997, Myanmar-1997 and Cambodia-1999) joined after the original agreement was signed. In order to join ASEAN, they had to agree to AFTA. The overall objective of AFTA is to encourage more foreign investment to ASEAN and establish ASEAN as a world competitor by eliminating both tariff and non-tariff barriers within ASEAN. Over the next 15 years, ASEAN agreed to reduce tariffs 0-5%.
http://www.aseansec.org/19346.htm

Rules of Origin
I. No tariff heading change necessary
II. Minimum contnt: 45 percent (35 percent for LDC's)
III. No specific manufacturing process required
 
Contingency
I. Anti-dumping: allowed after consultation
II. Countervailing duties: allowed after consultation
III. Safeguards: allowed after consultation
 
Official Document

http://www.aseansec.org/12375.htm

 
News/Studies

I. “ASEAN speeds up free trade move”
http://news.bbc.co.uk/1/hi/world/asia-pacific/4050563.st

II. “ASEAN confident of concluding FTAs with partners by 2013” 
http://www.channelnewsasia.com/stories/economicnews/view/296149/1/.html

III. “ASEAN Summit to focus on security, trade and energy issues”   
http://english.people.com.cn/200612/07/eng20061207_329630.html

IV. “From AFTA towards an ASEAN Economic Community...and beyond”                                                               http://www.cris.unu.edu/admin/documents/20050310133227.OP%202005%202%20-LC-PDL-SV-ASEAN-2005.pdf

V. Regional Business Development in ASEAN : AFTA”       
 
http://www.aseansec.org/10331.html

VI.  “Looking Beyond AFTA: Prospects and Challenges for Inter-Regional Trade” 
http://dirp4.pids.gov.ph/ris/pdf/pidsdps0110.PDF                                        

 
Scope

                                                               i.      Regional (ESCAP)

 
Rules of Origin

                                                               i.      No tariff heading change necessary

                                                             ii.      Minimum content: 45% (35% for LDC's)

                                                            iii.      No specific manufacturing process required

 
Contingency

                                                               i.         Anti - Dumping : allowed, after consultation

                                                             ii.         Countervailing Duties : allowed, after consultation

 
News/Studies

                                                               i.      “ASEAN speeds up free trade move”         

                                    http://news.bbc.co.uk/1/hi/world/asia-pacific/4050563.stm

                                                             ii.      “ASEAN confident of concluding FTAs with partners by 2013”  http://www.channelnewsasia.com/stories/economicnews/view/296149/1/.html

                                                            iii.      “ASEAN Summit to focus on security, trade and energy issues”   http://english.people.com.cn/200612/07/eng20061207_329630.html

                                                           iv.      “From AFTA towards an ASEAN Economic Community...and beyond”                                                                http://www.cris.unu.edu/admin/documents/20050310133227.OP%202005%202%20-LC-PDL-SV-ASEAN-2005.pdf

                                                             v.      “Regional Business Development in ASEAN : AFTA”         
http://www.aseansec.org/10331.htm

                                                           vi.      “Looking Beyond AFTA: Prospects and Challenges for Inter-Regional Trade”                                               http://dirp4.pids.gov.ph/ris/pdf/pidsdps0110.PDF

 
Additional Links

                                                               i.      http://mba.tuck.dartmouth.edu/cib/trade_agreements_db/archive/Bangkok.pdf

                                                             ii.      http://www.aseansec.org/pdf/afta.pdf

                                                            iii.      http://www.aseansec.org/12025.htm

                                                           iv.      “Us-ASEAN Business Council”                            
http://www.us-asean.org/afta.asp

                                                             v.      “ASEAN Free Trade Area”                                   
http://intl.econ.cuhk.edu.hk/rta/index.php?did=1

                                                           vi.      http://www.moc.go.th/thai/dbe/AFTA-NET.html

                                                          vii.      http://www.arts.monash.edu.au/ausapec/iss5.htm

                                                        viii.      http://www.us-asean.org/afta.htm