While many industries are eager for tariffs to fall on things as diverse as textiles, rubber, vegetable oils and steel, a few are nervously waiting to see whether the agreement will mean boom or bust for their businesses. The new free-trade zone, which will remove tariffs on 90 percent of traded goods, is expected to increase that commerce still more. It encompasses 1. The free-trade area is expected to help Asean countries increase exports, particularly those with commodities that resource-hungry China desperately wants. The China-Asean free trade area has faced less vocal opposition than the European and North American zones, perhaps because tariffs were already low and because it was unlikely to alter commerce patterns radically, analysts say. However, some manufacturers in Southeast Asia are concerned that cheap Chinese goods may flood their markets, once import taxes are removed, making it more difficult for them to retain or increase local market shares.
ASEAN–China Free Trade Area
ASEAN Free Trade Area - Wikipedia
The ASEAN bloc have largely cancelled all import and export duty taxes on items traded between them, with the exception of Cambodia, Laos, Myanmar and Vietnam, who continue to impose nominal duties on certain items. However, these too will be completely lifted as of December 31st, , meaning that the entire region will be duty free from this date. ASEAN has entered into a number of free trade agreements with other Asian nations that are now radically altering the global sourcing and manufacturing landscape. It has a treaty with China, for example, that has effectively done away with reduced tariffs on nearly 8, product categories, or 90 percent of imported goods, to zero.
ASEAN’s Free Trade Agreements: An Overview
Vietnam joined in , Laos and Myanmar in and Cambodia in Temporary exclusions 2. Sensitive agricultural products 3.
The aim of these FTAs is to encourage and promote businesses of all sizes in ASEAN to trade regionally as well as internationally without tariff barriers. Businesses with operations in ASEAN can use the FTAs to gain easy access to new export markets for their products at low costs, and benefit from simplified export and import procedures. The FTA is the most comprehensive agreement covering a wide range of issues including trade in goods and services, investment, intellectual property, competition as well as economic cooperation. Since its inception, the AANZFTA has encouraged trade in goods and services by removing barriers and reducing transaction costs for companies wanting to do business in member countries. According to the agreement, 99 percent of the Australia-New Zealand trade in goods with Indonesia, Malaysia, the Philippines, and Vietnam will be duty-free by