Acfta China Agreement

ASEAN members together have a population of more than 650 million. Indonesia accounts for more than 40% of the region`s population and its population has been the most opposed to the agreement. [17] In addition, China and ASEAN are also working quickly to conclude the Comprehensive Regional Economic Partnership (RCEP) agreement, which is expected to promote economic and trade integration between ASEAN members and their six trading partners: China, Japan, South Korea, Australia, New Zealand and India. The framework agreement was signed by eleven heads of government on 4 November 2002 in Phnom Penh, Cambodia. [4]: Hassanal Bolkiah (Sultan of Brunei Darussalam), Hun Sen (Prime Minister of Cambodia), Megawati Soekarnoputri (President of Indonesia), Bounnhang Vorachith (Prime Minister of Laos), Mahathir bin Mohamad (Prime Minister Minister of Malaysia), Than Sh (Prime Minister of Burma), Gloria Macapagal-Arroyo (President of the Philippines), Goh Chok Tong (Prime Minister of Singapore), Thaksin Shinawatra (Prime Minister of Thailand), Phan Ven Khi (Prime Minister of Vietnam) , Zhu Rongji (Prime Minister of the State Council of the People`s Republic of China). [4] [5] In accordance with the current regional and global economic landscape, the protocol amending the framework agreement for global economic cooperation between ASEAN and China was signed on 22 November 2015 at the 27th ASEAN Summit. The modernization of ACFTA aims to further streamline and improve economic cooperation, including changes to the agreement on trade in goods, services, investment and economic and technical cooperation (ECOTECH). The free trade agreement reduced tariffs to 7,881 product categories, or 90% of imported products at zero. [15] This reduction came into effect in China and in the original six ASEAN members: Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. The other four countries are expected to follow in 2015. [16] The ASEAN-China Framework Agreement on Comprehensive Economic Cooperation was signed at the 6th ASEAN-China Summit in November 2002, and the full implementation of the ASEAN-China Free Trade Agreement in January 2010 provided a solid basis for strengthening ASEAN-China economic relations.

Note: ACFTA Form E is a preferential certificate of origin that is recognised as proof of origin by recipient countries (ACFTA member states) in order to obtain preferential treatment. In August 2019, changes to the ASEAN-China Free Trade Agreement came into force and simplified the rules governing trade in goods, services and investment in the ASEAN-China Economic Zone, home to more than 1.8 billion people. On 1 January 2010, the average tariff rate on Chinese products sold in ASEAN countries increased from 12.8% to 0.6% until the remaining ASEAN members implemented the free trade area. Meanwhile, the average tariff rate on ASEAN products sold in China increased from 9.8% to 0.1%. [13] Up to 2015, ASEAN`s total merchandise trade with China reached $346.5 billion (15.2% of ASEAN trade), and ACFTA accelerated growth in Chinese direct investment and trade cooperation. [6] The process between registering and receiving PCO would generally take less than a month. For more information, click here. Agreement on the dispute settlement mechanism of the Framework Agreement for Global Economic Cooperation between China and ASEAN (Chinese version) ACFTA, implemented on 1 January 2010, provided the necessary platform for deepening economic engagement.

Economic relations intensified following the signing of the framework agreement and subsequently the ASEAN-China Free Trade Agreement in 2004, which provides a solid basis for increased trade and investment flows between ASEAN and China.

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