This new analysis proposes to examine two key areas, including port facilities and competitiveness in Internet services. According to the report, reforms in these areas could increase ASEAN trade by 7.5% ($22 billion) and 5.7% ($17 billion). On the other hand, a reduction in tariffs on all ASEAN members on the South-East Asia regional average would increase intra-regional trade by about 2% ($6.3 billion). [12] Although these ASEAN national customs and trade authorities coordinate with each other, disputes may arise. The ASEAN secretariat does not have the legal authority to resolve these disputes, so disputes are resolved bilaterally through informal means or dispute resolution. The ASEAN-India trade agreement came 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 area markets and created opportunities for more than 1.9 billion people in ASEAN and India, with a total GDP of $4.8 trillion. AIFTA is setting up a more liberal and easier market access and investment system between Member States. The agreement provides for tariff liberalization of more than 90% of the products traded between the two dynamic regions.
As a result, tariffs for more than 4,000 product lines were agreed to be abolished by 2016 at the earliest. This ACFTA will create an economic region of 1.7 billion consumers, a regional gross domestic product (GDP) of about $2 trillion and an estimated total trade of $1.23 trillion. It is therefore the largest free trade agreement in the world relative to the size of the population. ASEAN has concluded a number of free trade agreements with other Asian countries that are radically changing the global public procurement and production landscape. It has, for example, a contract with China that has effectively reduced tariff reduction to nearly 8,000 product categories, or 90% of imported goods, to zero. These favourable conditions came into force in China and in ASEAN members, including Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Chris Devonshire-Ellis is the founding partner of Dezan Shira Associates – a specialized foreign direct investment practice that provides multinational companies, business advice, business advice, tax and compliance consulting, accounting, payroll, diligence and financial investigation services for multinationals investing in emerging Asia. Since its inception in 1992, the company has grown into one of Asia`s most diverse full-service consulting firms, with operating subsidiaries in China, Hong Kong, India, Singapore and Vietnam, as well as liaison offices in Italy and the United States. An international agreement entitled: Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), signed on 27 February 2009 in Cha-am, Phetchaburi, Thailand, has created a free trade area between ASEAN countries, Australia and New Zealand. [13] These two agreements have the collective impact that makes ASEAN the strategic hub of global sourcing and manufacturing. With a base of 150 million consumers of the middle class aSEAN, this market, which was then coupled with the 250 million from China and India, represents a middle-class consumer market, with a total free trade of about 650 million people – today. By 2030, in the face of Asia`s growing prosperity and growing dynamism, about 64% of the world`s middle class will be established in Asia, representing 40% of the total global consumption of the middle class.
