Afta Agreement A
In addition to the China-India Free Trade Agreement, ASEAN also has 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. ensure consistency of the provisions currently set out in the various agreements, documents and decisions of the AFTA Council and the ASEAN Economic Ministers` Meeting (MEA); And these two agreements have the collective influence to make ASEAN a strategic center of global sourcing and manufacturing. With the middle class of 150 million ASEAN consumers, this market, then associated with China and India, alone represents a global consumer market of the middle class, with a total free trade of about 650 million people – today. By 2030, given Asia`s growing prosperity and dynamism, about 64% of the global middle class will be based in Asia, representing 40% of the overall consumption of global small and medium-sized enterprises. The ASEAN Free Trade Area (AFTA)  is a trade bloc agreement concluded by the Association of Southeast Asian Nations that supports local trade and production in all ASEAN countries and facilitates economic integration with regional and international allies.    Considered one of the most important and important free trade areas in the world, it has promoted, with its network of dialogue partners, some of the world`s largest multilateral forums and blocs, including the Asia-Pacific Economic Cooperation, the East Asia Summit and the Regional Comprehensive Economic Partnership.
      The production trend is therefore to continue to develop products for this vast consumer market, but to place the necessary production capacities in a cheaper place. ASEAN`s free trade agreement with China allows regional companies and NCMs operating in Asia to do so. It`s a trend that`s already underway — as we`re seeing at Foxconn, the maker of many components that end up in Apple`s products, which wants to relocate its 1.3 million employees from China and Indonesia, where wages are lower and there`s a large and available workforce. This is a solid strategy that is increasingly being taken up by many manufacturers. Introduction to tax treaties across Asia In this issue of Asia Briefing Magazine, we see the different types of trade and tax treaties that exist between Asian nations. These include bilateral investment agreements, double taxation treaties and free trade agreements that have a direct impact on companies operating in Asia. .