Asean China Free Trade Agreement Upgrade

In addition to the Trade in Goods Agreement, ASEAN and China signed the Trade in Services Agreement (ACTISA) on 14 January 2007 for the first package of specific commitments and on 16 November 2011 for the second package of specific commitments. Both packages provide for the extension of services exchanges, with better market access and treatment in sectors/sub-sectors where commitments have been made. The agreement excludes the liberalisation of procurement and government-related services. In addition, a new section on customs procedures and trade facilitation has been added, which specifies operational certification procedures for the application and obtaining of preferential tariffs. The “Form E” established by the protocol verifies the admissibility of products exported for preferential processing. ASEAN members together have a population of more than 650 million. Indonesia accounts for more than 40% of the region`s population and its population has been the most opposed to the agreement. [17] [13] As part of the adjustments to the rules of origin, a number of changes have been made to other rules and criteria, in addition to changes to the rules of origin framework. For example, the definition of transaction price was introduced by the WTO assessment agreement to determine the price of materials under the RVC measure; Encapsulation in the electronics industry has been excluded from the criteria for minimal operations or processes; the simple assembly of products under Chapters 27 (mineral products) and chapters 84, 85 and 90 (mechanical and electronic products) was excluded from the original character; and the definition of “easy” was specified in the SRS. Businesses must consider the additional criteria and the influence these changes will have on the original destination. In addition, China and ASEAN are also working quickly to conclude the Comprehensive Regional Economic Partnership (RCEP) agreement, which aims to promote trade and economic integration between ASEAN members and their six trading partners, namely China, Japan, South Korea, Australia, New Zealand and India. In August 2019, changes to the ASEAN-China Free Trade Agreement came into force and simplified the rules governing trade in goods, services and investment in the ASEAN-China Economic Zone, home to more than 1.8 billion people.

All of this requires that the agreements be implemented faithfully. This is not an easy task considering that national legislation may need to be amended to take account of these new agreements. Since the first ACFTA is excluded, there has been concern about the potential negative impact on production and employment in sensitive sectors in ASEAN Member States. For example, Indonesian producers requested a delay in implementing the initial ACFTA tariff reduction regime for some 228 items, without success. Changes to the free trade area framework mainly concerned Vietnam. These amendments were intended to help Vietnam reduce tariffs and were cited as guidelines. [14] The framework agreement was signed on 4 November 2002 in Phnom Penh, Cambodia, by eleven heads of government. [4]: Hassanal Bolkiah (Sultan of Brunei Darussalam), Hun Sen (Prime Minister of Cambodia), Megawati Soekarnoputri (President of Indonesia), Bounnhang Vorachith (Prime Minister of Laos), Mahathir bin Mohamad (Prime Minister of Malaysia), Than Shwe (Prime Minister Gloria Macapagal-Arroyo (President of the Philippines), Goh Chok Tong (Prime Minister of Singapore), Thaksin Shinawatra (Prime Minister of Thailand), Phan Ven Khi (Prime Minister of Vietnam), Zhu Rongji (Prime Minister of the State Council of the People`s Republic of China). [4] [5] Nevertheless, improvements to the ASEAN-PRC Services Trade Agreement have the potential to significantly strengthen trade relations, given the high growth potential and persistent market impediments to the sector and the impact of trade challenges between the United States and the CPP.

share post: