Asean Free Trade Area

Asean china free trade area china is the world s most populous country and is home to the world s largest consumer market at 1 3 billion.

Asean free trade area. It is the world s second largest economy in terms of gdp behind the united states of america. The asean free trade area afta the asean free trade area afta has now been virtually established. The states combined make up one third of the global gdp. This year marks the 10th anniversary of the china asean free trade area which is the biggest in the word and covers 1 9 billion people.

The asean free trade area afta is a trade bloc agreement by the association of southeast asian nations supporting local trade and manufacturing in all asean countries and facilitating economic integration with regional and international allies. An update the asean heads of state and government decided to establish an asean free trade area or afta in 1992. That established a process under which asean discussed a regional economic agreement with its preexisting free trade partners that could lead to an even wider comprehensive economic agreement. Background the creation of the asean free trade area afta was agreed at the 1992 asean summit in singapore.

Asean member countries have made significant progress in the lowering of intra regional tariffs through the common effective preferential tariff cept scheme for afta. However the negotiations had stalled because india which was also to be included in the free trade area left the negotiating table. Rcep is expected to be the world s largest free trade agreement as it will link asean states and china south korea japan new zealand and australia. It is known for its manufactured exports.

Fifteen nations in the asia pacific region have entered into the world s largest free trade agreement which they hope will accelerate the recovery of their economies ravaged by the coronavirus. The objective of afta is to increase the asean region s competitive advantage as a production base geared for the world market. Gao yiming explains how important the area is.