The document summarizes several free trade agreements involving ASEAN countries:
1) The ASEAN-China Free Trade Area (ACFTA) agreement established a free trade area between ASEAN countries and China on January 1, 2010, creating a market of 1.91 billion consumers.
2) The ASEAN-Japan Comprehensive Economic Partnership (AJCEP) agreement signed in 2008 aims to further liberalize trade and investment between ASEAN countries and Japan, who have a combined GDP of $6.4 trillion.
3) The ASEAN-Korea Free Trade Area (AKFTA) agreement signed from 2005-2009 established preferential arrangements to reduce and eliminate tariffs between ASEAN countries and
The Trans Pacific Partnership Agreement – Commitments above WTO Level - An A...Dr. Oliver Massmann
The Trans-Pacific Partnership Agreement (TPP) aims to liberalize trade and investment and address new trade issues among 12 Pacific Rim countries that account for 40% of global GDP. It establishes a free trade zone with commitments beyond the World Trade Organization (WTO) level, including further tariff reductions, opening services sectors, strengthening investment protections, and setting dispute settlement procedures. Vietnam would significantly benefit from the TPP, with projections of a 13.6% boost to GDP by 2025. Finalization of the agreement took many rounds of tough negotiations, and it will take effect once 6 countries ratifying 85% of the bloc's GDP approve it, which is projected for 2018.
The key points of the budget are:
1) The fiscal deficit is projected to be 5.2% of GDP for the current year and 4.8% for next year as the government pledges further fiscal consolidation.
2) No change in personal income tax slabs but a tax credit of Rs. 2000 is provided for those with income up to Rs. 5 lakhs. Surcharge is increased for high income individuals and companies.
3) Service tax and customs duty rates remain unchanged while excise duty and import duty are increased on some items like cigarettes, SUVs, mobiles and set-top boxes.
4) Measures to boost investment in infrastructure like infrastructure
describes that what is GST, why it is being implemented and what taxes will be replaced by GST. benefits of GST will be covered under this presentation
An article on Role of Company Secretaries in GST Era was published in Souvenir of 43rd National Convention of Institute of Company Secretaries of India. Article was contributed by Team : Lex Bolster Global LLP.
Dear Friends,
As we all know that GST has been introduced w.e.f 01/07/2017 and this could be a landmark move. For reference of all, I have attached a brief introduction for your reference.
3rd August 2016 became a historic day for economic reforms when Rajya Sabha passed the constitutional amendment bill to GST and paved the way for major taxation reforms. Almost all the political parties have broadly agreed.
India Union Budget 2016 - An Overview | A BDO India PublicationOperations BDO
Dear Reader, India Budget 2016 was delivered by the Finance Minister, Mr. Arun Jaitley on February 29,2016. This Budget appears a sincere attempt to deliver on key expectations and address major challenges within the economic constraints. The budget has been spelt with fiscal consolidation at the core defining the pillars for growth of the economy and leaves a lot of the year to unfold. BDO India LLP brings together an analysis of key changes set out in the Union Budget in their proprietary: INDIA UNION BUDGET 2016 - An Overview.
The Trans Pacific Partnership Agreement – Commitments above WTO Level - An A...Dr. Oliver Massmann
The Trans-Pacific Partnership Agreement (TPP) aims to liberalize trade and investment and address new trade issues among 12 Pacific Rim countries that account for 40% of global GDP. It establishes a free trade zone with commitments beyond the World Trade Organization (WTO) level, including further tariff reductions, opening services sectors, strengthening investment protections, and setting dispute settlement procedures. Vietnam would significantly benefit from the TPP, with projections of a 13.6% boost to GDP by 2025. Finalization of the agreement took many rounds of tough negotiations, and it will take effect once 6 countries ratifying 85% of the bloc's GDP approve it, which is projected for 2018.
The key points of the budget are:
1) The fiscal deficit is projected to be 5.2% of GDP for the current year and 4.8% for next year as the government pledges further fiscal consolidation.
2) No change in personal income tax slabs but a tax credit of Rs. 2000 is provided for those with income up to Rs. 5 lakhs. Surcharge is increased for high income individuals and companies.
3) Service tax and customs duty rates remain unchanged while excise duty and import duty are increased on some items like cigarettes, SUVs, mobiles and set-top boxes.
4) Measures to boost investment in infrastructure like infrastructure
describes that what is GST, why it is being implemented and what taxes will be replaced by GST. benefits of GST will be covered under this presentation
An article on Role of Company Secretaries in GST Era was published in Souvenir of 43rd National Convention of Institute of Company Secretaries of India. Article was contributed by Team : Lex Bolster Global LLP.
Dear Friends,
As we all know that GST has been introduced w.e.f 01/07/2017 and this could be a landmark move. For reference of all, I have attached a brief introduction for your reference.
3rd August 2016 became a historic day for economic reforms when Rajya Sabha passed the constitutional amendment bill to GST and paved the way for major taxation reforms. Almost all the political parties have broadly agreed.
India Union Budget 2016 - An Overview | A BDO India PublicationOperations BDO
Dear Reader, India Budget 2016 was delivered by the Finance Minister, Mr. Arun Jaitley on February 29,2016. This Budget appears a sincere attempt to deliver on key expectations and address major challenges within the economic constraints. The budget has been spelt with fiscal consolidation at the core defining the pillars for growth of the economy and leaves a lot of the year to unfold. BDO India LLP brings together an analysis of key changes set out in the Union Budget in their proprietary: INDIA UNION BUDGET 2016 - An Overview.
This document provides an overview of Goods and Services Tax (GST) in India, including:
1) GST is a comprehensive indirect tax that will replace existing indirect taxes levied by the central and state governments. It is proposed to be implemented in India from April 2016.
2) GST is based on a value-added tax system and is levied on the supply of goods and services. It aims to create a unified national market by reducing the cascading effect of tax on the cost of goods and services.
3) The introduction of GST has been in discussion in India since 2000. A bill was introduced in parliament in 2014 and passed in 2016. GST will be implemented concurrently by
As the Empowered Committee of Finance Ministers granted in-principle nod to the draft of Model GST Law, it was placed in the
public domain on 14th June, 2016, with the government seeking feedback and comments from trade and industry. It is a laudable
way forward with optimism to see it implemented in full swing by April 2017.
GST is a destination based value added tax which will remove trade barriers and create one common Indian market. By providing
seamless credit of input tax across entire supply chain, it will remove the cascading effects of tax, thereby reducing the cost of
indigenous goods and services and making them more competitive in the international market.
The discussion paper outlines India's proposed Goods and Services Tax (GST) framework with a dual GST structure comprising of Central GST and State GST. It proposes subsuming various central and state levies within GST and a threshold for basic exemption. Inter-state supplies will be taxed under Integrated GST while ensuring seamless input tax credit across states. Compliance procedures around registrations, returns and refunds are also covered along with special provisions for imports, exports and inter-state movement of goods. Key aspects like tax rates and transitional mechanisms require further clarity.
This document discusses the impact of Goods and Services Tax (GST) implementation on India's hospitality sector. It notes that hospitality is a fast-growing industry that includes food, lodging, and travel. GST is a destination-based value-added tax that aims to replace existing indirect taxes. For hotels, GST's 18% tax rate on room tariffs could increase costs for higher-priced hotels but reduce costs for others. While GST may streamline processes, the hospitality industry faces increased technological and compliance costs as well as higher taxes than competitors in countries like Singapore and Japan. Overall, the effects of GST on the hospitality industry are mixed.
The report contain Impact of GST on Hospitality sectors and various provision that are applicable to Goods and Service Tax for Hotels, Restaurant sector in India.
It covers Rates of GST, Provision of place of supply, valuation
The document discusses the key aspects of the Goods and Services Tax (GST) framework in India. It notes that GST will be a dual GST with both central and state governments levying tax concurrently on a common base. There will be four types of GST - CGST, SGST, IGST and UGST. The document outlines the GST rates, exclusions, input tax credit rules, valuation rules and place of supply rules. It also summarizes the impact of GST on various stakeholders like traders, manufacturers, service providers, consumers and the central and state governments. Overall, GST is expected to simplify and harmonize the indirect tax system in India.
Vietnam has pursued greater international economic integration by joining the WTO in 2007 and other international organizations. This has opened Vietnam up to foreign trade and investment according to WTO principles. Vietnam plays an active role in ASEAN economic cooperation which aims to establish a common economic zone by 2015. The EU is one of Vietnam's major trading partners, though Vietnam seeks a free trade agreement to strengthen economic ties. Germany in particular has increased its trade with Vietnam since 2009 and is an important foreign investor, though Vietnam would like to see even greater German investment.
India plans to implement the Goods and Services Tax (GST) in October 2012 to create a unified indirect tax system. GST will combine multiple taxes into a single tax applied to the supply of goods and services. It will be administered as two separate taxes - Central GST and State GST. Inter-state transactions will be taxed under Integrated GST. While most taxes will be subsumed, some items like petroleum products, alcohol, and electricity may remain outside the GST regime. The government is considering a revenue neutral GST rate of 18-22% but rates for goods and services have not been finalized.
The implementation of GST will help the hospitality and tourism industry by reducing costs for customers, harmonizing taxes, and reducing business transaction costs. Under GST, the hospitality sector stands to benefit from standardized uniform tax rates and easier input tax credit utilization. Key rates include 0% for hotels below ₹999, 12% for ₹1000-₹2499, 18% for ₹2500-₹7499, and 28% for above ₹7500. Non-AC restaurants serving alcohol will be taxed at 18%. While economy air travel will be cheaper at 5%, business class tickets will be dearer at 12%. Restaurants expect costs and prices to decrease due to lower
This document provides an overview of the Goods and Services Tax (GST) that is expected to be implemented in India from April 1, 2016. It discusses the background and need for GST, the proposed dual GST model of CGST and SGST, which existing taxes will be subsumed under GST, how interstate transactions will be taxed, key issues still to be addressed, and the important role information technology will play in the success of GST implementation. It also provides guidance to companies on preparing for the transition to the new indirect tax system.
Concept note of Goods & Service Tax (GST) in IndiaANAND GAWADE
The document provides an overview of the proposed Goods and Services Tax (GST) in India. Some key points:
- GST aims to simplify and harmonize India's indirect tax system by subsuming multiple taxes into a single tax applied to the supply of goods and services.
- It will be a dual GST with the Center and States concurrently levying taxes on every supply. Credits from taxes paid at earlier stages can be used to offset taxes on later stages.
- GST is expected to reduce costs, increase tax compliance, and foster a common Indian market to boost economic growth.
- A GST Council will be created to make recommendations on tax rates and ensure cooperation between the
Tax on Banking Transaction & Status of Gilgit BaltistanAnchan Baltistani
The document discusses the imposition of a 0.6% withholding tax on non-cash banking transactions in Gilgit-Baltistan by the Pakistani government. It argues that this is illegal since Gilgit-Baltistan is not officially part of Pakistan and locals have no representation in government. While the tax was temporarily reduced to 0.3%, locals reject any such levy since the region's status is disputed and it has no constitutional rights. The document demands that Pakistan officially accept Gilgit-Baltistan and give its people constitutional representation before imposing any taxes.
After a decade of negotiations, hectic parleys, many climb down and heart burn, India is ready to bring in what has been touted as Independent India's most celebrated tax reform, the Goods and Services Tax.
Goods and service tax - GST- A detailed explanation with examplesShakir Shaikh
The document provides an overview of the Goods and Services Tax (GST) that was introduced in India in 2017. It explains that GST is a comprehensive indirect tax on the supply of goods and services that aims to replace multiple taxes levied by the central and state governments. The key aspects covered include the constitutional amendment needed to implement GST, the various tax components under GST, input tax credit provisions, tax rates, and exemptions. Examples are also provided to illustrate how tax calculations work under the GST framework for domestic and international transactions.
The Finance Minister outlined the implementation plan for Goods and Services Tax (GST) in India, targeting April 1, 2017. States must ratify the bill by a 50% majority. Legal frameworks and the GST Council must be established. The GST Network is developing front-end and back-end modules to be ready by December 2016 for testing until March 2017. Registration, payment, and return modules will be available. Training of 60,000 tax officers will occur in phases and challenges remain around the revenue base, compensation, exemptions, laws, limits, and dual control.
GST is a comprehensive indirect tax that will replace multiple taxes into a single tax applicable at all stages of supply of goods and services. It is based on the principle of destination and follows a dual GST model with CGST imposed by the central government and SGST by state governments. Exports are zero-rated while imports attract an IGST in addition to basic customs duty. GST will merge several indirect taxes and is divided into multiple tax slabs with the maximum rate being 28%. Certain items like alcohol and petroleum products are temporarily exempted from GST.
The document discusses the Goods and Services Tax (GST) that was introduced in India. It provides an overview of the existing taxation system including sales tax, VAT, excise duty, and service tax. It explains the problems with the current system and the need for GST to simplify taxation. GST is a dual GST model with Central GST and State GST levied on the same base. It aims to remove cascading of taxes and create a unified national market. Key benefits of GST include reduced prices, improved logistics, and a more transparent and efficient tax system.
The document provides an overview of the Goods and Services Tax (GST) framework proposed for implementation in India. It discusses the need for GST to simplify the country's indirect tax structure. The framework would introduce CGST, SGST and IGST at the central, state and inter-state level respectively to replace existing taxes. It also covers key aspects like the tax base, rates, credit mechanism and the information technology infrastructure required for a smooth transition to the GST regime.
The document discusses the Regional Comprehensive Economic Partnership (RCEP), a proposed free trade agreement between the 10 ASEAN countries and their six FTA partners - India, China, Japan, South Korea, Australia and New Zealand. The RCEP would cover 3.5 billion people, 30% of global GDP, and aim to eliminate 92% of tariffs. However, India faces challenges in extracting meaningful concessions for its services sector from other countries. While India wants a balanced agreement, other countries have not offered substantial commitments to movement of professionals. If implemented, the RCEP could negatively impact many small Indian industries and farmers that may not be able to compete with increased imports. Negotiations are ongoing to resolve issues around tar
- Trade between India and Pakistan has fluctuated over time, with Pakistan typically having a favorable balance until the early 1990s when it shifted in India's favor.
- Granting MFN status to India would require Pakistan to treat Indian imports no less favorably than imports from other WTO members under the principle of non-discrimination.
- There are arguments both for and against granting MFN status to India based on potential economic benefits and risks regarding increased imports and trade imbalance.
The document summarizes the Association of Southeast Asian Nations (ASEAN) which was established in 1967 and has 10 member countries. It describes ASEAN's establishment of a free trade area through reducing tariffs and eliminating non-tariff barriers to promote regional economic integration and create a single market of 500 million people. By 2002, tariffs had been reduced to 5% or less for most goods traded within ASEAN countries. The free trade area aims to eliminate all import duties by 2010-2015.
This document provides an overview of Goods and Services Tax (GST) in India, including:
1) GST is a comprehensive indirect tax that will replace existing indirect taxes levied by the central and state governments. It is proposed to be implemented in India from April 2016.
2) GST is based on a value-added tax system and is levied on the supply of goods and services. It aims to create a unified national market by reducing the cascading effect of tax on the cost of goods and services.
3) The introduction of GST has been in discussion in India since 2000. A bill was introduced in parliament in 2014 and passed in 2016. GST will be implemented concurrently by
As the Empowered Committee of Finance Ministers granted in-principle nod to the draft of Model GST Law, it was placed in the
public domain on 14th June, 2016, with the government seeking feedback and comments from trade and industry. It is a laudable
way forward with optimism to see it implemented in full swing by April 2017.
GST is a destination based value added tax which will remove trade barriers and create one common Indian market. By providing
seamless credit of input tax across entire supply chain, it will remove the cascading effects of tax, thereby reducing the cost of
indigenous goods and services and making them more competitive in the international market.
The discussion paper outlines India's proposed Goods and Services Tax (GST) framework with a dual GST structure comprising of Central GST and State GST. It proposes subsuming various central and state levies within GST and a threshold for basic exemption. Inter-state supplies will be taxed under Integrated GST while ensuring seamless input tax credit across states. Compliance procedures around registrations, returns and refunds are also covered along with special provisions for imports, exports and inter-state movement of goods. Key aspects like tax rates and transitional mechanisms require further clarity.
This document discusses the impact of Goods and Services Tax (GST) implementation on India's hospitality sector. It notes that hospitality is a fast-growing industry that includes food, lodging, and travel. GST is a destination-based value-added tax that aims to replace existing indirect taxes. For hotels, GST's 18% tax rate on room tariffs could increase costs for higher-priced hotels but reduce costs for others. While GST may streamline processes, the hospitality industry faces increased technological and compliance costs as well as higher taxes than competitors in countries like Singapore and Japan. Overall, the effects of GST on the hospitality industry are mixed.
The report contain Impact of GST on Hospitality sectors and various provision that are applicable to Goods and Service Tax for Hotels, Restaurant sector in India.
It covers Rates of GST, Provision of place of supply, valuation
The document discusses the key aspects of the Goods and Services Tax (GST) framework in India. It notes that GST will be a dual GST with both central and state governments levying tax concurrently on a common base. There will be four types of GST - CGST, SGST, IGST and UGST. The document outlines the GST rates, exclusions, input tax credit rules, valuation rules and place of supply rules. It also summarizes the impact of GST on various stakeholders like traders, manufacturers, service providers, consumers and the central and state governments. Overall, GST is expected to simplify and harmonize the indirect tax system in India.
Vietnam has pursued greater international economic integration by joining the WTO in 2007 and other international organizations. This has opened Vietnam up to foreign trade and investment according to WTO principles. Vietnam plays an active role in ASEAN economic cooperation which aims to establish a common economic zone by 2015. The EU is one of Vietnam's major trading partners, though Vietnam seeks a free trade agreement to strengthen economic ties. Germany in particular has increased its trade with Vietnam since 2009 and is an important foreign investor, though Vietnam would like to see even greater German investment.
India plans to implement the Goods and Services Tax (GST) in October 2012 to create a unified indirect tax system. GST will combine multiple taxes into a single tax applied to the supply of goods and services. It will be administered as two separate taxes - Central GST and State GST. Inter-state transactions will be taxed under Integrated GST. While most taxes will be subsumed, some items like petroleum products, alcohol, and electricity may remain outside the GST regime. The government is considering a revenue neutral GST rate of 18-22% but rates for goods and services have not been finalized.
The implementation of GST will help the hospitality and tourism industry by reducing costs for customers, harmonizing taxes, and reducing business transaction costs. Under GST, the hospitality sector stands to benefit from standardized uniform tax rates and easier input tax credit utilization. Key rates include 0% for hotels below ₹999, 12% for ₹1000-₹2499, 18% for ₹2500-₹7499, and 28% for above ₹7500. Non-AC restaurants serving alcohol will be taxed at 18%. While economy air travel will be cheaper at 5%, business class tickets will be dearer at 12%. Restaurants expect costs and prices to decrease due to lower
This document provides an overview of the Goods and Services Tax (GST) that is expected to be implemented in India from April 1, 2016. It discusses the background and need for GST, the proposed dual GST model of CGST and SGST, which existing taxes will be subsumed under GST, how interstate transactions will be taxed, key issues still to be addressed, and the important role information technology will play in the success of GST implementation. It also provides guidance to companies on preparing for the transition to the new indirect tax system.
Concept note of Goods & Service Tax (GST) in IndiaANAND GAWADE
The document provides an overview of the proposed Goods and Services Tax (GST) in India. Some key points:
- GST aims to simplify and harmonize India's indirect tax system by subsuming multiple taxes into a single tax applied to the supply of goods and services.
- It will be a dual GST with the Center and States concurrently levying taxes on every supply. Credits from taxes paid at earlier stages can be used to offset taxes on later stages.
- GST is expected to reduce costs, increase tax compliance, and foster a common Indian market to boost economic growth.
- A GST Council will be created to make recommendations on tax rates and ensure cooperation between the
Tax on Banking Transaction & Status of Gilgit BaltistanAnchan Baltistani
The document discusses the imposition of a 0.6% withholding tax on non-cash banking transactions in Gilgit-Baltistan by the Pakistani government. It argues that this is illegal since Gilgit-Baltistan is not officially part of Pakistan and locals have no representation in government. While the tax was temporarily reduced to 0.3%, locals reject any such levy since the region's status is disputed and it has no constitutional rights. The document demands that Pakistan officially accept Gilgit-Baltistan and give its people constitutional representation before imposing any taxes.
After a decade of negotiations, hectic parleys, many climb down and heart burn, India is ready to bring in what has been touted as Independent India's most celebrated tax reform, the Goods and Services Tax.
Goods and service tax - GST- A detailed explanation with examplesShakir Shaikh
The document provides an overview of the Goods and Services Tax (GST) that was introduced in India in 2017. It explains that GST is a comprehensive indirect tax on the supply of goods and services that aims to replace multiple taxes levied by the central and state governments. The key aspects covered include the constitutional amendment needed to implement GST, the various tax components under GST, input tax credit provisions, tax rates, and exemptions. Examples are also provided to illustrate how tax calculations work under the GST framework for domestic and international transactions.
The Finance Minister outlined the implementation plan for Goods and Services Tax (GST) in India, targeting April 1, 2017. States must ratify the bill by a 50% majority. Legal frameworks and the GST Council must be established. The GST Network is developing front-end and back-end modules to be ready by December 2016 for testing until March 2017. Registration, payment, and return modules will be available. Training of 60,000 tax officers will occur in phases and challenges remain around the revenue base, compensation, exemptions, laws, limits, and dual control.
GST is a comprehensive indirect tax that will replace multiple taxes into a single tax applicable at all stages of supply of goods and services. It is based on the principle of destination and follows a dual GST model with CGST imposed by the central government and SGST by state governments. Exports are zero-rated while imports attract an IGST in addition to basic customs duty. GST will merge several indirect taxes and is divided into multiple tax slabs with the maximum rate being 28%. Certain items like alcohol and petroleum products are temporarily exempted from GST.
The document discusses the Goods and Services Tax (GST) that was introduced in India. It provides an overview of the existing taxation system including sales tax, VAT, excise duty, and service tax. It explains the problems with the current system and the need for GST to simplify taxation. GST is a dual GST model with Central GST and State GST levied on the same base. It aims to remove cascading of taxes and create a unified national market. Key benefits of GST include reduced prices, improved logistics, and a more transparent and efficient tax system.
The document provides an overview of the Goods and Services Tax (GST) framework proposed for implementation in India. It discusses the need for GST to simplify the country's indirect tax structure. The framework would introduce CGST, SGST and IGST at the central, state and inter-state level respectively to replace existing taxes. It also covers key aspects like the tax base, rates, credit mechanism and the information technology infrastructure required for a smooth transition to the GST regime.
The document discusses the Regional Comprehensive Economic Partnership (RCEP), a proposed free trade agreement between the 10 ASEAN countries and their six FTA partners - India, China, Japan, South Korea, Australia and New Zealand. The RCEP would cover 3.5 billion people, 30% of global GDP, and aim to eliminate 92% of tariffs. However, India faces challenges in extracting meaningful concessions for its services sector from other countries. While India wants a balanced agreement, other countries have not offered substantial commitments to movement of professionals. If implemented, the RCEP could negatively impact many small Indian industries and farmers that may not be able to compete with increased imports. Negotiations are ongoing to resolve issues around tar
- Trade between India and Pakistan has fluctuated over time, with Pakistan typically having a favorable balance until the early 1990s when it shifted in India's favor.
- Granting MFN status to India would require Pakistan to treat Indian imports no less favorably than imports from other WTO members under the principle of non-discrimination.
- There are arguments both for and against granting MFN status to India based on potential economic benefits and risks regarding increased imports and trade imbalance.
The document summarizes the Association of Southeast Asian Nations (ASEAN) which was established in 1967 and has 10 member countries. It describes ASEAN's establishment of a free trade area through reducing tariffs and eliminating non-tariff barriers to promote regional economic integration and create a single market of 500 million people. By 2002, tariffs had been reduced to 5% or less for most goods traded within ASEAN countries. The free trade area aims to eliminate all import duties by 2010-2015.
ASEAN has played an important role in facilitating regional economic integration in Asia Pacific. While ASEAN has established various agreements and initiatives to create a single market, such as ASEAN Free Trade Area (AFTA), ASEAN Framework Agreement on Services (AFAS), and ASEAN Investment Area (AIA), there are still shortcomings including the speed and quality of integration as well as lack of political will and institutional capacity. However, ASEAN has emerged as a hub for regional economic cooperation and free trade agreements with major countries, demonstrating its importance for trade and investment connectivity in the wider Asia Pacific region.
EU-VIETNAM FREE TRADE AGREEMENT AND INVESTMENT PROTECTION AGREEMENT – MOST LI...Dr. Oliver Massmann
The document summarizes key aspects of the EU-Vietnam Free Trade Agreement (EVFTA) and Investment Protection Agreement (EVIPA). It discusses the following key points:
1) The EVFTA was signed in 2019 and provides for the elimination of over 99% of tariffs between the EU and Vietnam. This will significantly increase market access for goods and services.
2) The EVIPA establishes an investment tribunal for settling disputes between investors and states and ensures fairness and independence in the dispute resolution process.
3) Once ratified, the agreements are expected to boost economic growth in both the EU and Vietnam through increased trade and investment opportunities across various sectors.
It involves 12 countries: the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.
The pact aims to deepen economic ties between these nations, slashing tariffs and fostering trade to boost growth.
Member countries are also hoping to foster a closer relationship on economic policies and regulation.
The agreement could create a new single market something like that of the EU.
Pretty big indeed. The 12 countries have a collective population of about 800 million - almost double that of the European Union's single market. The 12-nation would-be bloc is already responsible for 40% of world trade.
The deal is a remarkable achievement given the very different approaches and standards within the member countries, including environmental protection, workers' rights and regulatory coherence - not to mention the special protections that some countries have for certain industries
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
A free trade area is a group of countries that have signed an agreement to reduce or eliminate tariffs and quotas between member countries. This allows nations to specialize in goods they are comparatively efficient at producing, increasing overall efficiency and profits. Free trade agreements further reduce trade barriers and create more stable markets. Examples include NAFTA, ASEAN, and the European Union. The ASEAN Free Trade Area agreement aims to increase ASEAN's competitiveness and attract foreign investment by expanding intra-regional trade through tariff reductions. This has led to increased trade, investment, and economic growth among member nations.
The document discusses the Indo-Asean Free Trade Agreement (FTA). Some key points:
- The FTA aims to eliminate tariffs between India and ASEAN nations over a period of time through normal and sensitive tracks, with rules of origin requiring a minimum 35% value addition within ASEAN/India.
- It allows for non-tariff measures and safeguards by member countries. Tariff reductions will benefit certain Indian exports and imports from ASEAN nations.
- India's exports to ASEAN grew from $19 billion in 2008-2009 to $18 billion in 2009-2010, while imports increased from $25 billion to $26 billion over the same period. Specific industries may face
LAWYER IN VIETNAM DR. OLIVER MASSMANN - EU-VIETNAM FREE TRADE AGREEMENTDr. Oliver Massmann
The EU-Vietnam Free Trade Agreement (EVFTA) was concluded in 2015 after 14 rounds of negotiations. It aims to eliminate over 99% of tariffs between the EU and Vietnam, providing significant opportunities for trade and investment. The EVFTA was later split into separate trade and investment agreements, and its ratification is still pending. Once in effect, it will boost Vietnam's GDP by 10-15% and exports by 30-40% over 10 years by opening EU markets of over 500 million consumers to Vietnamese goods and services. The EVFTA also commits Vietnam to reforms improving market access for EU firms in areas like government procurement, services, and investment dispute settlement. It establishes a new standard for comprehensive free trade
Lawyer in Vietnam Dr. Oliver Massmann New Comprehensive and Progressive Agre...Dr. Oliver Massmann
Lawyer in Vietnam Dr. Oliver Massmann New Comprehensive
and Progressive Agreement for the Trans-Pacific Partnership
signed by Members States - WHAT IS IN FOR YOU?
The document provides an overview of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It discusses the origins of the TPP agreement and how 11 countries agreed to continue it as the CPTPP after the US withdrew. Key commitments in the CPTPP beyond the WTO include further reducing tariffs, opening markets in services and investment, establishing rules for e-commerce, government procurement, and an investor-state dispute settlement mechanism. The CPTPP will help Vietnam access larger markets and attract investment while restructuring its economy. It is expected to boost Vietnam's exports by over 37% until 2025 by lowering trade barriers.
The World Trade Organisation (WTO) was established in 1995 and superseded the General Agreement on Tariffs and Trade (GATT). The WTO aims to help trade flow freely between its 132 member countries according to agreed upon rules. It covers trade in goods, services, and intellectual property. Key aspects of the WTO include negotiated tariff reductions, rules on agriculture, subsidies, anti-dumping measures, settling trade disputes, and special provisions for developing countries. While the WTO aims to promote free trade, some critics argue it does not adequately address power imbalances between developed and developing nations and could undermine local industries in poorer countries.
Impacts of bimstec free trade area a cge analysisAlexander Decker
This document discusses the potential impacts of establishing a free trade area among the countries of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation). It first provides background on BIMSTEC and the framework agreement signed in 2004 to establish a free trade area. It then summarizes key aspects of the framework agreement, including the timetable for tariff reduction, rules of origin, dispute settlement procedures, and customs cooperation. The document also presents data showing that intra-BIMSTEC trade currently makes up a low percentage of total trade for most member countries. Through computational modeling, the author aims to examine the potential economic outcomes of the BIMSTEC free trade area.
Session 2 archanun how aec promote intra_asean trade evidence from thailandntuperc
To gain better understanding of prospects and challenges of AEC, the paper examines whether and how exporters actually respond to tariff preferential schemes of AEC. The core analysis in this paper is an analysis of FTA administrative records of Thailand over the decade ending in 2015. Firms applying AEC preferential schemes were for market access into the original ASEAN members. Products exported under the FTA preferential schemes are highly concentrated, dominated by 4 sectors, i.e. Automotive (both vehicles and auto parts), electrical appliances, petrochemical products, and processed foods. Among ASEAN members, Indonesia had the highest utilization rate, followed by the Philippines and Vietnam. By contrast, Malaysia, another major trading partners of Thailand within ASEAN, recorded rather low utilization rate, i.e. about one-fourth of total export. The high cost of compiling with ROO would explain the low utilization rate to a certain extent. There are also cumbersome in government procedures. The key policy inference is that ROO and their related administrative procedures would be an area where policy makers should pay attention.
The role of LABUAN in the ASEAN Economic Community 2015Stephen Ong
This policy study discusses the role of Labuan in the new ASEAN Economic Community 2015 onwards as an international financial centre and offshore tax haven that allows money laundering of Malaysia's elites and tax evading crony capitalists...
VIETNAM - EVALUATION OF THE IMPLEMENTATION OF THE EU-VIETNAM FREE TRADE AGREE...Dr. Oliver Massmann
VIETNAM - EVALUATION OF THE IMPLEMENTATION OF THE EU-VIETNAM FREE TRADE AGREEMENT AND THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP
The document introduces the ASEAN Economic Community (AEC), which aims to create a single market by 2015. It discusses ASEAN's structure and key elements of economic integration like the ASEAN Free Trade Area. While progress has been made in reducing tariffs and facilitating the flow of goods, services and investment, ASEAN lacks strong central governance and enforcement mechanisms relative to groups like the EU. The development of the AEC faces tensions between further economic integration and members' reluctance to yield sovereignty.
VIETNAM – BANKING AND FINANCING SUSTAINABLE GROWTH - Issues and Solutions - ...Dr. Oliver Massmann
VIETNAM – BANKING AND FINANCING SUSTAINABLE GROWTH
- Issues and Solutions - Impact of the Key Trade Agreements
CPTPP, EUVNFTA and Investment Protection Agreement
The Trans-Pacific Partnership (TPP) agreement aims to eliminate tariffs and non-tariff barriers between 12 countries representing 26% of world trade. It has the potential to revitalize global trade by reducing protectionism and setting standards. However, world trade has slowed in recent years due to weaker demand, changing supply chains, and rising protectionism. The TPP could help reverse this trend by lowering trade barriers and encouraging more offshoring and global supply chains. While the TPP may provide significant benefits, these will be gradual as changes will be implemented over 10 years and national approvals are still needed.
The document discusses several issues in Vietnam's banking sector and outlook on major trade agreements. It summarizes that Vietnam has seen strong economic growth but faces issues like non-performing loans and need for further digitalization. Two major trade agreements, the TPP 11 and EUVNFTA, are highlighted that are expected to boost foreign investment and bring benefits to Vietnam's banking sector by increasing market access and ensuring fair competition. The document also notes new regulations are needed regarding bank accounts for non-legal entities and simplifying banking documentation.
Andy technology renewable energy. no ghge. 120 ppmgoogle
The document describes a new technology called Catapult Energy that harnesses renewable energy from the ocean to provide thrust and power without greenhouse gas emissions. It works by installing structures at depths of 3,500-6,000 meters underwater that could generate over 1.23 million pounds of thrust per square foot and supply energy to transportation industries like automotive, rail, shipping, and aerospace as well as power plants. This new technology is estimated to save $14.4 trillion annually globally by replacing fossil fuel infrastructure and needs $360 billion in initial investment over two years.
The document discusses the efficiency of air motors compared to electric vehicles (EVs). It states that air motors can be more efficient than EVs and can power various transportation methods like bikes, cars, trucks, and rail. Air is compressed isothermally in multiple stages by a water pump at pressures of 3, 6, 9, and 12 kg/cm2, saving up to 50% of energy through regeneration. Tables show comparisons of efficiency and costs for different vehicles powered by gas, electricity, and compressed air. Air motors can range in size from 100mm diameter to 1360mm diameter and are used for electric motors in domestic, industrial, and transportation applications without overhead electric lines.
This document outlines transportation options and their associated costs, speeds, fuel efficiency and returns on investment. It compares trucks, rail, ferries, containerships, jets and missiles based on metrics like cost per kilometer transported, fuel efficiency and speed. It also lists contact information for M Andy Appan, a 48-year-old engineering expert from India and Malaysia.
This document identifies potential areas for international business partnerships and transportation technologies with high returns. It outlines opportunities in areas like automotive, bullet trains, cargo and container ships, ferries, oil tankers, gas platforms, and jet technologies that can operate at speeds from 1200 to 3600 km/h. It also discusses opportunities for all types of thermal power plants that do not require boilers or turbines and can use various fuels. The document claims these "Andy technologies" can reduce fuel use and emissions by 33% for the same power output. Large investments could be recouped within two years, reducing carbon emissions and generating annual returns of $15 trillion.
Andy technology automotive cost paid back in daysgoogle
1) Andy Bearing and Jet technology can reduce fuel consumption and pay back the additional cost in a short period of time for vehicles like bikes, cars, and trucks compared to same vehicles without the technology.
2) For bikes, the extra cost is paid back in 15 days, for cars the extra cost is paid back in 38 days, and for trucks the extra cost is paid back in 63 days through reduced fuel costs from improvements in rolling friction and speed.
3) The document provides examples of fuel cost savings calculations based on usage hours and distance traveled to show the payback period for the added costs of Andy Bearing and Jet technologies for different vehicle types.
1. Andy Transport Technology proposes new engine and bearing designs that can double or triple speed while reducing fuel consumption by 1/3 for the same ton-horsepower output in automotive, rail, ship, jet, and missile transport.
2. The new Andy Engine design uses a modified slider crank mechanism to generate 3 times the torque of a conventional engine for the same changes in pressure-volume, allowing it to develop the same power in 1/3 the volume or 300% power in the same volume while consuming the same fuel.
3. The Andy Bearing fits below non-drive wheels to reduce rolling friction and drag, potentially doubling vehicle speed when taking up 50% of the load.
This document identifies potential areas for international business partnerships and transportation technologies with high returns. It outlines opportunities in areas like automotive, bullet trains, cargo and container ships, ferries, oil tankers, gas platforms, and jet technologies that can operate at speeds from 1200 to 3600 km/h. It also discusses opportunities for all types of thermal power plants that do not require boilers or turbines and can use various fuels. The document claims these "Andy technologies" can reduce fuel use and emissions by 33% for the same power output. Global investments in these technologies could yield $15 trillion annually in returns while demonstrating technologies with a $2 million investment.
The document contains technical specifications for two sea car prototypes developed by Delhi Firm Data Andy. The first prototype weighs 10 tons, can carry 40 passengers at 600 kmph with 330 horsepower at a cost of 1.2 Cr Rs. The second larger prototype weighs 100 tons, can carry 200 passengers at 600 kmph with 50 horsepower at a cost of 5 Cr Rs. Both were developed by lead engineer Muthukal Andy Appan with a technical demonstration of the first prototype in Chennai.
The document provides 10 tips for creating an economical FPSO (floating production storage and offloading vessel). The tips include splitting the FPSO into a drillship and FSO to reduce capital costs, using an Andy Rotary Engine to power the vessel and reduce operating costs associated with fuel, implementing proper staffing and management, adopting efficient technologies, and aiming for a 20% internal rate of return at $50 per barrel of oil to ensure the project's viability. By following these tips, the document estimates that $108 million in capital costs could be saved, covering ongoing operating expenses.
This document describes mechanical engineering design services offered by Andy Engine, Andy Bearing, and Jet that enable low carbon technologies. Key points include:
- Andy Technology allows all transports and power plants to use 1/3 the fuel and emit 33-66% less carbon emissions for the same output.
- For transports, this means 6 times the fuel efficiency, 16.7% lower carbon emissions per km or ton-km carried. Automotive vehicles could achieve 60 kmpl and trucks 25 kmpl.
- For power plants, fuel and carbon emissions would be reduced by 33% per MW generated for all fuel types including coal, crude, LNG and biofuels.
- Investment is invited for
This document describes mechanical engineering design services offered by Andy Engine, Andy Bearing, and Jet that enable low carbon technologies. Key points include:
- Andy Technology allows all transports and power plants to use 1/3 the fuel and emit 33-66% less carbon emissions for the same output.
- For transports, this means 6 times the fuel efficiency, 16.7% lower carbon emissions per km or ton-km carried. Automotive vehicles could achieve 60 kmpl and trucks 25 kmpl.
- For power plants, fuel and carbon emissions would be reduced by 33% per MW generated for all fuel types including coal, crude, LNG and biofuels.
- Investment is invited for
Civil engineering services offerd for businessgoogle
This document lists civil engineering design services offered such as mega structures like towers over 1000m tall and wheel towers 333m in diameter, float bridges from 300m to 30km long, and over bridges with spans from 1km to 3km. Other services include designing hangers over 1000m x 1000m that are 20m to 200m high, pre-cast concrete roads from 8m to 52m wide and 150mm thick, and burnt brick walls and floors/ceilings using local soil and wood without cement or steel. The services are offered by Muthukal Andy Appan, a 50-year expert in civil engineering from India.
The document introduces the Andy Rotary Engine, a new multi-VISTA technology that can burn all fuels with 1/3 the fuel and volume of traditional engines to produce the same horsepower. The Andy Engine has no boiler or turbine and is suitable to replace internal and external combustion engines in automotive, rail, ship, and power plant applications. When combined with Andy Bearings and Jets, the technology allows vehicles and machines to operate at double the speed for the same ton-horsepower using 1/3 the fuel and producing 33% less CO2 emissions. Tables show sample vehicle and machine designs using the Andy technology that achieve 6 times the fuel efficiency and double the return on investment compared to traditional designs.
Low carbon technology flower ship, missile, g traingoogle
Low carbon transport technologies can achieve significant reductions in fuel consumption and carbon emissions across various modes of transport including automotive, rail, ship, and aircraft. Andy Technology's rotary engine and bearing designs can double speeds while reducing fuel usage by one-third for the same power output. Initial analysis shows technologies can achieve fuel efficiency improvements of up to 6 times for automotive and reductions in carbon emissions of 16.7% for transport and 33% for power plants on average. Widespread adoption could yield very high returns on investment of 50% to over 2400% depending on the application.
This document discusses new engine and bearing designs from Andy Shipping that can significantly reduce fuel consumption and increase the speed and efficiency of large vessels like ships, ferries, and oil tankers. The key points are:
1) Andy Shipping's new engine design can achieve the same horsepower as traditional engines while using only one-third of the fuel, reducing fuel costs and carbon emissions substantially.
2) New bearing and jet designs reduce drag and increase top speeds, allowing vessels to travel at triple their normal speed while using the same horsepower.
3) Financial analysis shows the return on investment for ships using Andy Shipping's designs could be 2400% for ships and 3200% for ferries, as fuel
Three sentences summarizing the key details:
The document describes Andy Rail, a new transportation system designed by M.A. Appan that can operate on both rail and land at speeds up to 600 kmph on rail and 820 kmph on land using the same horsepower, with tracks ranging from 2.5 to 50 meters long. It provides comparisons showing Andy Rail uses 1/3 the fuel and has 9 times greater fuel efficiency than current systems for the same tonnage and horsepower while carrying more weight and traveling at triple the speed. The increased efficiency is achieved through reductions in rolling friction at wheels, drag, and pressure at the nose.
Andy Design Transport provides innovative transport solutions across land, sea, and sky. Their technologies can achieve double the speed for the same horsepower or use 1/3 the fuel for the same power output. Their engines and systems produce 6 times the fuel efficiency (kmpl) and 16.67% less carbon emissions (CO2e) compared to conventional options. Royalty fees are paid to Andy Design Transport based on a percentage of the annual profit for each factory implementing their technologies.
The document discusses Andy's new designs for automotive bikes, cars, trucks, and a new sea car/bus. Some key points:
- Andy's designs claim to use 1/3 the fuel for the same horsepower as normal designs, double the speed through low friction, and produce 1/6 the CO2 emissions.
- Specifications are provided for a sample bike, car, and truck comparing the parameters of Andy's design to normal designs, showing improvements such as higher fuel efficiency, lower emissions, and higher speeds for Andy's designs.
- Details are given for Andy's new rotary engine design claiming to run on all fuels and produce horsepower through a compact internal/external combustion system
Andy Design Transport provides innovative transport solutions across land, sea, and sky. Their technologies can achieve double the speed or hauling capacity for the same horsepower compared to traditional options, while emitting only 1/6th the carbon dioxide. The company, led by expert Muthukal Andy Appan, has applications for automotive, rail, shipping, and aerospace vehicles including jets, missiles, and rockets. Andy Design Transport's systems are licensed through royalty agreements based on factory profits and can deliver significant cost savings as well as emissions reductions.
2. ASEAN-China Free Trade Area (ACFTA)
A Framework Agreement on Comprehensive Economic
Cooperation between ASEAN and China was signed by
all the ASEAN Member States and the People’s Republic
of China on 4 November 2002 in Phnom Penh. This
Agreement provided the legal basis for ASEAN and China
to negotiate enabling agreements that have led to the
creation of the ASEAN-China Free Trade Area (ACFTA)
on 1 January 2010. China is currently the third largest
trading partner of ASEAN after Japan and EU, with a
trade value of US$192 billion in 2008. This makes up for
11% of ASEAN’s total trade with external parties. The
ACFTA is a market of 1.91 billion consumers that have a
combined GDP of about US$5.83 trillion (2008). In terms
of consumer market size, the ACFTA is the biggest FTA
in the world.
ASEAN-China Trade in Goods Agreement
The Agreement on Trade in Goods, signed on
29 November 2004 in Vientiane, Lao PDR, is one of
the enabling Agreements under the 2002 Framework
Agreement. It laid down the modality for tariff reduction
and elimination for tariff lines categorised in either the
Normal Track or the Sensitive Track:
Normal Track: Tariffs on almost all tariff lines in this
category have been eliminated by ASEAN-6 (Brunei
Darussalam, Indonesia, Malaysia, the Philippines,
Singapore and Thailand) and China as of 1 January
2010. The remaining few products in this category
(i.e. not exceeding 150 tariff lines) will have tariffs
eliminated not later than 1 January 2012, as part of the
flexibility provided in the modality. For Cambodia, Laos,
Myanmar and Viet Nam, tariff elimination will have to be
completed by 1 January 2015, with flexibility to eliminate
tariffs on products not exceeding 250 tariff lines by
1 January 2018.
Sensitive Track: Products in this Track were further
categorised into the Sensitive (SL) and Highly Sensitive
Lists and would be subject to tariff reduction within the
timeframesspecifiedintheAgreement.Tariffsofproducts
in the SL will have to be reduced first to 20% followed
by a subsequent reduction to the 0-5% tariff band. For
those in the HSL, tariffs will have to be reduced to not
more than 50%. The ACFTA does not allow exclusion of
products. The Rules of Origin for the ASEAN-China Free
Trade Area follows a general rule of 40% regional value
content, with a limited number of products subject to
some product specific rules.
ASEAN-China Trade in Services Agreement
The Agreement on Trade in Services between ASEAN
MemberStatesandChina,signedinCebu,thePhilippines
on 14 January 2007, is the second enabling Agreement
under the 2002 Framework Agreement. It aims to
liberalise and substantially eliminate discriminatory
measures with respect to trade in services among the
Parties in various services sectors. By applying the GATS
Plus principle, the level of liberalisation commitments
under this Agreement would be considerably higher
than the commitments made by participating countries
under the General Agreement on Trade in Services
(GATS) in the WTO. ASEAN and China embarked on
a second round of negotiations in 2008 with the aim
of substantially improving the first package of specific
commitments. This is targeted to be concluded within
the first half of 2010.
ASEAN-China Investment Agreement
To promote and facilitate investment flows, ASEAN
and China also signed an Investment Agreement on 15
August 2009 in Bangkok, Thailand. The Agreement aims
to create a favourable environment for the investors and
their investments from ASEAN and China, and therefore
stipulates key protection elements that will provide fair
and equitable treatment to investors, non-discriminatory
treatment on nationalisation or expropriation and
compensation for losses. It has provisions that allow
transfers and repatriation of profits to be made freely
and in freely usable currency as well as a provision on
investor-state dispute settlement that provides investors
recourse to arbitration.
For more information:
External Economic Relations Division
Anna M. Robeniol (anna@asean.org)
3. ASEAN-Japan Comprehensive Economic
Partnership (AJCEP)
TheASEAN-JapanComprehensiveEconomicPartnership
(AJCEP) Agreement signed in April 2008 and entered
into force in December 2008 is comprehensive in scope,
covering such fields as trade in goods, trade in services,
investment, and economic cooperation. The AJCEP will
help continue the momentum for further invigoration of
trade and investment in the region.
ASEAN and Japan have a combined gross domestic
product of US$6.4 trillion in 2008. The total bilateral trade
between ASEAN and Japan has reached US$211.7
billion, making Japan as ASEAN’s top trading partner
in 2008.
The implementation of the AJCEP will allow more goods
and services to reach ASEAN and Japanese consumers
at lower prices through reduced or zero tariffs, which
contributes to their improved standard of living
Tariff Reduction and Elimination
Under the trade in goods, Japan has to eliminate 92%
of its tariff rates based on tariff lines and trade value
for goods in the Normal Track within ten (10) years of
entry into force (EIF) of the Agreement. Meanwhile, the
ASEAN 6 (Brunei, Indonesia, Malaysia, the Philippines,
Singapore and Thailand) have to eliminate 90% of its tariff
rates based on the tariff lines and trade value for goods
in the Normal Track within ten (10) years of EIF of the
Agreement. For Viet Nam, it has to eliminate 90% of its
tariff rates based on tariff lines and certain percentage on
trade value for goods in the Normal Track within ten (10)
years of EIF. For Cambodia, Laos and Myanmar, certain
flexibility was provided. Each has to eliminate 90% of its
tariff rates based on either tariff line or trade value for
goods in the Normal Track within 13 years of EIF.
For goods under the Highly Sensitive List, Sensitive List
and Exclusion List, the modality varies and the tariff cuts
were negotiated bilaterally between ASEAN Member
States and Japan, taking into account the sensitivities of
the parties.
Rules of Origin
Trade facilitating rules of origin (ROO) have been
established under the AJCEP that would help encourage
regional cumulation of inputs not only benefitting ASEAN
industries but also Japanese companies operating in
ASEAN such as Mitsubishi, Toyota and other electronic
companieswhoareoperatingandhavehugeinvestments
in ASEAN countries. The AJCEP’s ROO has a “general
rule” of RVC (Regional Value Content) 40% or CTH
(Change in Tariff Heading), thereby providing flexibility
for exporters/manufacturers in choosing the rule to apply
and increasing their chances of complying with the ROO
to avail of the preferential tariff treatment.
Services and Investment
As part of the built-in agenda of the AJCEP Agreement,
negotiations for services and investment are to
commence one year from the entry into force of the
Agreement. Following the mandate from the Ministers
to bring trade in services and investment into the AJCEP,
the Sub-Committee on Services and the Sub-Committee
on Investment were established to undertake the
negotiations.
Dispute Settlement Mechanism
A Dispute Settlement Chapter has been provided
under the AJCEP to address disputes that may arise
from the interpretation of the implementation of the
TIG Agreement.
Overall Benefits
As more investors come to ASEAN through the AJCEP, it
is expected that this will help narrow the economic divide
among the estimated 711 million peoples of ASEAN and
Japan. From 2002 to 2008, the total FDI from Japan in
ASEAN reached US$45 billion and this is expected to
grow as the implementation of the AJCEP continues.
For more information:
External Economic Relations Division
Anna M. Robeniol (anna@asean.org)
4. ASEAN-Korea Free Trade Area (AKFTA)
The Republic of Korea (Korea) is the second dialogue
partner with whom ASEAN has forged a free trade
agreement. In 2005, ASEAN and Korea signed the
Framework Agreement on Comprehensive Economic
Cooperation (Framework Agreement), and subsequently,
signed four (4) more agreements that form the legal
instruments for establishing the ASEAN-Korea Free
Trade Area (AKFTA).
The ASEAN-Korea Agreement on Trade in Goods (AK-
TIG), signed on 24 August 2006, sets out the preferential
arrangement trade in goods between the ten (10)
ASEAN Member States and Korea, which principally,
involves tariff reduction and elimination for all tariff lines
over a transition period. Under this Agreement, ASEAN
exports would enjoy greater market access to Korea
starting from 2006 and have free market access (subject
to meeting the ASEAN-Korea rules of origin) in 2010
as Korea eliminates tariffs for all tariff lines under the
Normal Track. On a reciprocal note, the ASEAN 5 (Brunei
Darussalam, Indonesia, Malaysia, the Philippines and
Singapore) imports from Korea will be enjoying zero tariff
rates as well for all tariff lines in the Normal Tack subject
to limited flexibility. By 2012, tariffs imposed by ASEAN
for all Korean products under the Normal Track would be
eliminated. For the newer members of ASEAN, namely,
Viet Nam, Cambodia, Lao PDR and Myanmar, a longer
transition period for tariff reduction and elimination had
been agreed in recognition of their development status.
Under this scheme at least 50% of tariff lines under the
Normal Track will enjoy a 0-5% tariff rate not later than
1 January 2013 for Viet Nam, and not later than 1 January
2015 for Cambodia, Lao PDR and Myanmar (CLM).
Tariff lines enjoying the reduced tariffs rates of 0-5% will
reach 90% coverage by 2016 for Viet Nam and 2018 for
CLM. By 2017 and 2020 products under the Viet Nam
and CLM’s Normal Track, respectively would have full
market access that is zero tariff. Thailand, which acceded
to the AK-TIG in 2007, has a different schedule. Tariffs
for products in the Normal Track would be reduced over
a transition period and will be eliminated by either 2016
or 2017.
The ASEAN-Korea Agreement on Trade in Services
(AK-TIS), signed on 21 November 2007, provides the
platform for further opening up or greater market
access for ASEAN and Korean service providers.
Building on their existing commitments in the WTO
under General Agreement on Trade in Services (GATS),
ASEAN and Korea both improved their levels and depth
of commitments through the addition of new sectors/
subsectors in the list of commitments and easing up
of restrictions on entry and treatment on a wide range
of service sectors including business, construction,
education, communication services, environmental,
tourism services, and transport services.
The ASEAN-Korea Agreement on Investment (AK-AI),
signed on 2 June 2009, aims to provide for a transparent,
facilitative and a more secure environment for ASEAN
and Korean investors and their investments. Major
components of the AK-AI are the protection elements
which include provisions on fair and equitable treatment
and full protection and security of covered investments;
transfers of funds relating to covered investments;
and compensation in the event of nationalisation or
expropriation of covered investments. However, work
on the AK-AI continues as ASEAN and Korea pursue
the completion of built-in-agenda items which include
the development of market access commitments
or schedules of reservations. ASEAN and Korea will
commence and conclude discussions on these agenda
item within five years from entry into force of the
Agreement.
The ASEAN-Korea Agreement on Dispute Settlement
Mechanism (AK-DSM), signed on 13 December 2005,
provides the mechanism for any disputes that may arise
between Parties from the interpretation, implementation
or application of all the above cited Agreements including
the Framework Agreement.
For more information:
External Economic Relations Division
Anna M. Robeniol (anna@asean.org)
5. ASEAN-India Free Trade Area
The entry into force of the ASEAN-India Trade in Goods
Agreement (TIG) on 1 January 2010 is one of the key
elements that will help facilitate the creation of an
open market in a region comprising of about 1.7 billion
people and with a combined gross domestic product of
approximately US$2.71 trillion as of 2008. The AIFTA TIG
could serve as the vehicle to help sustain the growth
for the peoples of ASEAN and India, as well as the East
Asian region.
Trade in Goods
The TIG provides for a progressive tariff reduction and/
or elimination of originating goods (subject to compliance
with the rules of origin) traded for the ten ASEAN
Member States and India. Under the Normal Track, tariffs
imposed by Brunei Darussalam, Indonesia, Malaysia,
Singapore and Thailand and India on originating goods
from these parties will be eliminated by 2016. Tariffs
imposed between the Philippines and India under the
Normal Track will only be eliminated by 2019. Meanwhile,
a longer time frame is given for Cambodia, Lao PDR,
Myanmar and Viet Nam (CLMV) to eliminate their tariffs
of goods under the Normal Track.
Under the Sensitive Track, goods with applied MFN
rates of above 5% should be reduced to 5% by 2016 for
Brunei Darussalam, Indonesia, Malaysia, Singapore and
Thailand and India; 2019 for the Philippines and India; and
2021 for CLMV. For goods with applied MFN rates of 5%
and below, tariff reduction would have to be undertaken
in accordance with the modality, except for a limited
number of goods whose tariffs could be maintained
(“standstill”).
The TIG also provides for different tariff rates for special
products, i.e. crude and refined palm oil, coffee, black
tea and pepper, covered under this Agreement. There
are also goods placed under the highly sensitive lists
which are subject to a different reduction schedule. An
exclusion list is also provided although these are subject
to an annual review with a view towards improving
market access.
Rules of Origin
To facilitate the movement of goods among the parties,
the rules of origin and its Operational Certification
Procedures (OCP) are provided under the TIG. A “general
rule” of RVC (Regional Value Content) 35% + CTSH
(Change in Tariff Sub-Heading) is applied as the criterion
for goods to be considered as originating and eligible
for preferential tariff treatment. In addition, ASEAN and
India have agreed to start discussions to come up with
product specific rules (PSRs) which could serve as an
alternative rule to the general rule. This alternative rule
would provide more flexibility for the manufacturers/
exporters to comply with the rules of origin and to avail of
the preferential tariff treatment.
Dispute Settlement Mechanism
An Agreement on Dispute Settlement was also
implemented together with the TIG Agreement to
address disputes that may arise from the interpretation
of the implementation of the TIG Agreement.
Services and Investment
ASEAN and India agreed to commence the negotiations
on services and investment in 2008 and separate working
groups for services and investment were established to
undertake these tasks. The services and investment
negotiations are targeted for completion by 2010.
For more information:
External Economic Relations Division
Anna M. Robeniol (anna@asean.org)
6. ASEAN-Australia-New Zealand Free Trade Area
(AANZFTA)
The Agreement Establishing the ASEAN-Australia-
New Zealand Free Trade Area (AANZFTA) that aims to
integrate twelve (12) markets into a market of more than
600 million people with a combined GDP of US$2.65
trillion (based on 2008 figures) was signed in Thailand on
27 February 2009. The Agreement entered into force on
1 January 2010.
AANZFTA Agreement: The “Firsts”
The AANZFTA Agreement is the “first”:
(i) plurilateral agreement for both ASEAN and
Australia(NewZealandhasaplurilateralagreement
with Brunei, Singapore and Chile, i.e. the P4 or the
Trans-Pacific Strategic Economic Partnership);
(ii) comprehensive single undertaking agreement
negotiated and signed by ASEAN with a
Dialogue Partner - it covers trade in goods and
services, electronic commerce, movement of
natural persons (MNP), investment, economic
cooperation, dispute settlement mechanism
and specific provisions on customs procedures,
sanitary and phytosanitary (SPS) measures,
standards and technical regulations, intellectual
property rights and competition;
(iii) region-to-region engagement for ASEAN; and
(iv) Agreement that Australia and New Zealand have
jointly negotiated.
The “Core” Obligations
ASEAN Member States, Australia and New Zealand are
bound by the AANZFTA Agreement to, among others:
(i) progressively liberalise tariffs from the entry into
force of the Agreement and eliminate tariffs on
at least 90 per cent of all their tariff lines within
specific timeframes;
(ii) progressively liberalise barriers to trade in services
and allow for greater market access for the other
Parties’ services suppliers;
(iii) facilitate the movement of natural persons for
those engaged in trade and investment activities
in the region;
(iv) accord protection to covered investments, in
terms of treatment of investment, compensation
for losses, transfers relating to profit and capital,
and transfer of rights or claims to investment;
and
(v) facilitate the movement of goods by implementing
specific provisions on rules of origin; customs
procedures; SPS measures; and standards,
technical regulations and conformity assessment
procedures.
Schedules of specific commitments in relation to
trade in goods (tariffs), trade in services (including
financial services and telecommunication services)
and movement of natural persons are annexed to the
AANZFTA Agreement.
Benefits
The AANZFTA Agreement opens up opportunities for
stakeholders in ASEAN, Australia and New Zealand.
These include: greater market access for exporters/
manufacturers in the region; promotion of economies
of scale in production; opportunities for networking and
complementation; and enhanced collaboration among
economic operators in the region. With the AANZFTA
creating a business environment that promotes certainty,
predictability and transparency, economic operators are
assured that commercial activities are not unnecessarily
interrupted or disrupted.
For more information:
External Economic Relations Division
Anna M. Robeniol (anna@asean.org)