China Asean Free Trade Agreement Tariffs


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 creates a more liberal and easier access and investment regime between Member States. The agreement set the liberalization of customs duties on more than 90% of the products traded between the two dynamic regions. It was therefore agreed to eliminate tariffs on more than 4,000 product lines by 2016 at the earliest. The ASEAN-China Free Trade Area (ACFTA) is a free trade area between the ten member states of the Association of Southeast Asian Nations (ASEAN) and the People`s Republic of China. Over the past decade, trade and investment between ASEAN member states and China within the framework of the ASEAN China Free Trade Area (ACFTA) has increased significantly. The Agreement on Trade in Goods was signed in 2004 and implemented by all Member States in July 2005. Under the agreement, the original six ASEAN members and China decided to eliminate tariffs on 90% of their products by 2010, while Cambodia, the Democratic Republic of China, Myanmar and Vietnam – commonly known as clMV countries – had until 2015 to do so. Since the signing of the agreement, China has firmly maintained its position as ASEAN`s largest trading partner. In 2015, ASEAN`s total merchandise trade with China reached $346.5 billion, or 15.2% of ASEAN`s total trade.

In addition, ASEAN received $8.2 billion in foreign direct investment (FDI) from China in 2015, making China the fourth largest source of ASEAN foreign direct investment (FDI). By 2020, ASEAN and China have committed to a common goal of $1 trillion in trade and $150 billion in investment through ACFTA. Starting in August 2019, the updated Protocol will amend the ASEAN-China Free Trade Agreement (ACFTA) by simplifying rules of origin, customs procedures, trade facilitation measures and investment rules. The ASEAN-China Investment Agreement was signed on 15 August 2009 and entered into force on 1 January 2010. It aims to create an enabling environment for investors and their investments from ASEAN and China, and therefore sets out important elements of protection that ensure fair and equitable treatment of investors, non-discriminatory treatment in the event of nationalised or expropriating measures and compensation for losses. It contains provisions allowing investors to transfer and recover profits freely and in freely usable currency, as well as a provision to settle investor-state disputes allowing investors to have recourse to arbitration. The agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) entered into force in January 2010. The Free Trade Agreement is the most comprehensive agreement covering a wide range of issues, including trade in goods and services, investment, intellectual property, competition and economic cooperation. Since its inception, AANZFTA has encouraged trade in goods and services by removing barriers and reducing transaction costs for companies wishing to do business in member states. . . .