In addition to the ASEAN Free Trade Area (FTA) among ASEAN member states, the regional trading bloc has signed several free trade agreements with some of the major economies in the Asia-Pacific region. These include the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), the ASEAN-China Free Trade Agreement (ACFTA), the ASEAN-India Free Trade Agreement (AIFTA), the ASEAN-Korea Free Trade Agreement (AKFTA) and the ASEAN-Japan Comprehensive Economic Partnership (AJCEP). The aim of these free trade agreements is to encourage and encourage companies of all sizes in ASEAN to act both regionally and internationally without tariff barriers. Companies with branches in ASEAN can use free trade agreements to easily access new export markets for their low-cost products and to benefit from simplified export and import procedures. Some RCEP members, including Australia, Brunei, Cambodia, Malaysia, Myanmar, New Zealand, Singapore and Thailand, have only one tariff plan that applies to all other members. In other words, exports to these countries from each RCEP member receive the same tariff, with a few minor exceptions. On the other hand, the rest of the countries have some variations in their schedules. For example, Indonesia, Vietnam, China and Korea have a timetable for ASEAN and separate timetables for dialogue partners. Meanwhile, Japan only has a customs plan, but there are discrepancies in the schedule indicated in the “Remarks” column.
While not ideal, this kind of flexibility in planning customs obligations has been a common feature in previous ASEAN+1 free trade agreements. Nevertheless, retailers need to find the associated tariff line and see which tariff can apply to which countries. The ASEAN-China Comprehensive Economic Cooperation Framework Agreement (ACFTA) was signed in November 2002. The ACFTA agreement contained provisions on economic cooperation and identified areas of cooperation. In November 2015, as part of a joint effort to elevate ASEAN-China relations to a higher level, the parties agreed to sign the Protocol amending the Framework Agreement on Comprehensive Economic Cooperation and certain agreements between the Association of Southeast Asian Nations (ASEAN) and the People`s Republic of China (the Protocol). Under the Protocol, the Parties agreed to explore and implement economic cooperation measures on the basis of mutual benefit in the following areas: Negotiations on an investment protection agreement are also under way with Myanmar (Burma). The CEPT applies only to goods originating in ASEAN. The general rule is that the local content of ASEAN should be at least 40% of the FOB value of the thing.
ASEAN`s local content can be cumulative, meaning that the value of inputs from different ASEAN members can be combined to meet the 40% requirement. The following formula is used: The ASEAN-Korea Merchandise Trade Agreement was signed in 2006 and entered into force in 2007. It defines the preferential trade regime for goods between ASEAN member states and South Korea, which allows 90% of the products traded between ASEAN and Korea to be treated duty-free. .