Asean free trade area

See Article History Alternative Title: Association of Southeast Asian Nations ASEAN, in full Association of Southeast Asian Nations, international organization established by the governments of IndonesiaMalaysiathe PhilippinesSingaporeand Thailand in to accelerate economic growthsocial progress, and cultural development and to promote peace and security in Southeast Asia. Brunei joined infollowed by Vietnam inLaos and Myanmar inand Cambodia in Held together somewhat tenuously in its early years, ASEAN achieved a new cohesion in the mids following the changed balance of power in Southeast Asia after the end of the Vietnam War.

Asean free trade area

The commitment undertaken by Malaysia in the AIFTA is to eliminate import duties on 6, products or tariff lines by 31 December Duties on another 1, tariff lines would be eliminated by 31 December The import duties on 1, tariff lines which are considered to be products where domestic industries require some level of protection will be reduced to 5 per cent by 31 December The gradual reduction and elimination of duties are also to allow domestic industries sufficient time to adjust to increased competition.

Asean free trade area

On her part, India will undertake to eliminate import duties on 7, tariff lines or products by 31 December and 1, tariff lines by 31 December The import duties on 1, tariff lines will be reduced to 5 per cent by 31 December Overall, by the end of71 percent of products exported to India will be able to enter the market duty free and another 10 per cent of products by In addition, duties on another 10 per cent of products will be reduced to 5 per cent.

This import duty elimination and reduction over the next years will open market for Malaysian exports to India. In the FTA negotiations, both ASEAN and India have agreed to allow between per cent of tariff lines or products to be excluded from tariff reduction commitments, taking into account the level of development of these products in their respective countries.

Malaysia excluded tariff lines from tariff concessions. The products excluded are selected poultry products, tropical fruits and rice, iron and steel, automotive products, chemicals, alcoholic beverages; tobacco and tobacco products, and used tyres.

These products are excluded based on intensive consultations held with the domestic industries which need longer time frame to enhance their competitiveness vis-a-vis India.

The products excluded from concessions by India are mainly agricultural products, textiles, iron and steel, automotive and ceramic tiles and this involves a total of 1, tariff lines.

ASEAN Free Trade Area - Wikipedia

What are the conditions exporters need to fulfill to enjoy the preferential tariff? Compliance to Rules of Origin ROO is important in exporting products under the preferential trading arrangements. In other words, to qualify for the preferential tariffs under the AIFTA, exporters must have at least 35 per cent regional value content or originating materials plus the product must have undergone some form of processing at the final point of exports.

RVC is calculated as follows: In addition to meeting the RVC, the product must have undergone change in tariff sub-heading.ASEAN’s future will be defined by how it handles external challenges such as shifting trade dynamics and Beijing’s growing dominance in Asia.

ASEAN, in full Association of Southeast Asian Nations, international organization established by the governments of Indonesia, Malaysia, the Philippines, Singapore, and Thailand in to accelerate economic growth, social progress, and cultural development and to promote peace and security in Southeast Asia.

Brunei joined in . Under AFTA, six members of the Association of Southeast Asian Nations (ASEAN) cut tariffs on nearly 8, items. The six countries include Malaysia, Indonesia, Singapore, the Philippines, Brunei and Thailand. Cambodia, Laos, Burma and Vietnam will later. Under the Asean Economic Community (AEC), a single regional common market of Asean countries will be created by The regional integration's objective is to create a competitive market of over million people in Asean countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

2 the Association of Southeast Asian Nations which reflect the commitment of India and ASEAN to establish the ASEAN-India Free Trade Area covering trade .

Under the Asean Economic Community (AEC), a single regional common market of Asean countries will be created by The regional integration's objective is to create a competitive market of over million people in Asean countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

ASEAN–India Free Trade Area - Wikipedia