The Asean Free Trade Area Afta Is an Agreement by the Member Nations of Asean concerning

The ASEAN Free Trade Area (AFTA) is a significant agreement between member nations of the Association of Southeast Asian Nations (ASEAN) that aims to promote free trade and economic growth within the region.

Under the AFTA agreement, the ASEAN member nations, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam have committed to reducing tariffs on goods traded within the region. The agreement has been enforced since 1992, and has since helped ASEAN countries to increase trade flows between them, enhance their competitiveness in the global market, and attract foreign investment.

The main objective of the AFTA agreement is to reduce the trade barriers and promote the free flow of goods and services within the ASEAN region. The agreement covers all traded goods, except for a few exceptions, and includes a gradual reduction of tariffs over a specified period. The members of AFTA have agreed to implement the tariff reduction in phases, starting from 2003 and ending in 2020.

The AFTA agreement has had significant impacts on the ASEAN member nations’ economies, with increased trade flows, foreign investment, and economic growth. The agreement has also led to the establishment of the ASEAN Economic Community (AEC), which aims to create a single market and production base for ASEAN members, which will enable the free flow of goods, services, and investments.

The AFTA agreement has also paved the way for ASEAN members to engage in trade with other regions. The ASEAN member nations have established trade agreements with other major economies such as China, Japan, South Korea, India, and Australia, allowing them to explore new markets and increase exports.

In conclusion, the ASEAN Free Trade Area (AFTA) agreement has been instrumental in promoting economic integration, trade liberalization, and regional cooperation among the ASEAN member nations. The agreement has helped to reduce trade barriers and promote the free flow of goods and services, thereby increasing trade flows between ASEAN members, attracting foreign investment, and opening up new markets for the region. The AFTA agreement has been a vital step towards the establishment of the ASEAN Economic Community (AEC), which will further enhance regional integration and promote economic growth within the ASEAN region.