Asean Free Trade Agreement With External Partners

An international treaty entitled: Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), signed on 27 February 2009 in Cha-am, Phetchaburi, Thailand, established a free trade area between ASEAN countries, Australia and New Zealand. [13] The EU also funds trade-related regional projects, such as: in addition to the China-India Free Trade Agreement, ASEAN has also concluded a combined free trade agreement with Australia and New Zealand, known as AANZFTA. The agreement, which will also be phased in, has eliminated tariffs on 67% of all products traded between regions and will be extended to 96% of all products by 2020. This is the first time that ASEAN has begun negotiations for a free trade agreement covering all sectors, including goods, services, investment and intellectual property rights, making it the most comprehensive trade agreement ever negotiated by ASEAN. For more details on this agreement, click here. Chris Devonshire-Ellis is the founding partner of Dezan Shira & Associates, a specialized foreign direct investment practice that offers multinationals investing in emerging Asian countries, business creation, business consulting, tax and compliance consulting, accounting, payroll, due diligence and financial control. Since its inception in 1992, the company has become one of Asia`s most diverse full-service consulting firms, with operational offices in China, Hong Kong, India, Singapore and Vietnam, as well as liaison offices in Italy and the United States. ASEAN has a similar free trade agreement with India, which is being phased in and is in the process of reducing tariffs to 90% of all goods traded between ASEAN and India. From 2016, import and export tariffs on more than 4,000 products will be abolished. This will have a similar effect to that of the China Free Trade Agreement, as it opens up the Indian consumer market to ASEAN industrial products. Indeed, India has a considerable middle-class consumer market of around 250 million, although it is not growing as fast in the short term as China. The ASEAN-India Free Trade Agreement will also be extended to services, discussions are already at an advanced stage and a conclusion is expected before the end of the year. For more details on the ASEAN-India Free Trade Agreement, click here.

The ASEAN-India Trade in Goods Agreement entered 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 markets and created opportunities for more than 1.9 billion people in ASEAN and India, with a combined GDP of $4.8 trillion. AIFTA establishes a more liberal and facilitating market access and investment regime between Member States. .