Japan Asean Free Trade Agreement

A product manufactured in Indonesia, which contains, for example, Australian parts, could be subject to tariffs elsewhere in the ASEAN Free Trade Area. Reciprocal trade between ASEAN and Japan reached $239 billion in 2015, or 10.5% of total ASEAN trade. Meanwhile, foreign direct investment (FDI) from Japan to ASEAN amounted to $17.4 billion, or 14.5% of total FDI inflows to ASEAN. Japan is ASEAN`s second largest trading partner and a source of foreign direct investment in ASEAN. Traditionally, ASEAN national authorities have also been reluctant to share or cede sovereignty to the authorities of other ASEAN members (although ASEAN trade ministries regularly conduct cross-border visits to carry out on-site inspections as part of anti-dumping investigations). Unlike the EU or NAFTA, joint enforcement and enforcement teams are not widespread. Instead, ASEAN national authorities must rely on the verification and analysis of other ASEAN national authorities to determine whether AFTA measures, such as the rule of origin, are being complied with. Discrepancies may arise between national authorities. Again, the ASEAN secretariat can help resolve a dispute, but does not have the legal authority to resolve it. The AFTA agreement was signed in Singapore on 28 January 1992. When the AFTA agreement was originally signed, ASEAN had six members, namely Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999.

AFTA now includes the ten ASEAN countries. The four latecomers had to sign the AFTA agreement to join ASEAN, but were given longer deadlines to meet AFTA`s tariff reduction obligations. The Japan-ASEAN Free Trade Agreement (officially a Comprehensive Economic Partnership) is a comprehensive free trade agreement comprising trade in goods, services, investment, rules of origin, dispute settlement, sanitary and phytosanitary regulations, technical barriers to trade, economic cooperation and, at Japan`s request, intellectual property rights. For Southeast Asian groups, it is seen as a formalization of ASEAN`s role as a regional hub for Japanese companies. It is now easier and cheaper for Japanese companies to move components (automobiles, electronics, etc.) in a regional assembly line from one ASEAN country to another. For Malaysia, the AJCEP offers additional benefits in the form of immediate and accelerated tariff removal on products with a view to progressive liberalization under the bilateral agreement with Japan, namely the Malaysia-Japan Economic Partnership Agreement (JEPAM). . . .