ASEAN Free Trade Area (AFTA)
ConceptAbout
The ASEAN Free Trade Area (AFTA) is a pivotal trade bloc agreement established by the Association of Southeast Asian Nations (ASEAN) to enhance economic integration among its member states. Signed in 1992, AFTA aims to create a competitive regional market by eliminating tariffs and non-tariff barriers, thus fostering intra-ASEAN trade and attracting foreign direct investment. The agreement comprises ten countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. AFTA's primary mechanism is the Common Effective Preferential Tariff (CEPT) scheme, which sets tariff rates between 0% and 5% for goods traded within ASEAN. The ASEAN Trade in Goods Agreement (ATIGA) further supports AFTA by streamlining trade processes and eliminating tariffs on virtually all product lines. This framework promotes economic efficiency, lowers business costs, and expands market opportunities for businesses in the region. AFTA also facilitates broader economic partnerships through ASEAN's individual free trade agreements with major global economies.
