The Asean Free Trade Agreement Was Conceptualized in Which Year

October 28, 2021 by  
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The ASEAN Free Trade Agreement, commonly abbreviated as AFTA, is a regional trade agreement among the member countries of the Association of Southeast Asian Nations (ASEAN). It aims to establish a free trade area among the ASEAN member states, reduce trade barriers, and promote economic cooperation and integration in the region.

The concept of AFTA was first introduced in 1991, during the 4th ASEAN Summit held in Singapore. The leaders of the ASEAN member states agreed to create a regional free trade area by 2003, with the end goal of establishing a single market and production base in Southeast Asia.

The framework agreement for AFTA was signed in 1992, and the implementation of the agreement began in phases starting in 1993. The first phase of AFTA involved the reduction of tariffs on intraregional trade for the original ASEAN members: Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand.

In 1995, three more countries joined ASEAN: Vietnam, Laos, and Myanmar. They were given a longer timeframe to implement AFTA, with their own deadlines for tariff reduction. Cambodia joined ASEAN in 1999 and was also given an extended deadline.

By 2015, all ASEAN member states had implemented AFTA, with some exceptions for sensitive products and sectors. AFTA has been credited with boosting trade and investment in the region, as well as improving ASEAN`s negotiating position in global trade talks.

In conclusion, the ASEAN Free Trade Agreement was conceptualized in 1991 during the 4th ASEAN Summit held in Singapore. The framework agreement was signed in 1992 and implementation began in phases starting in 1993. By 2015, all ASEAN member states had implemented AFTA. The agreement has been seen as a success in promoting regional economic cooperation and integration.

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