This has a specific impact on the evolution of production capacities in the future. The focus is on China, which has enjoyed a “workers` dividend” of cheap young workers for twenty years and has thus become the center of production of the world. But China is also getting older – and fast, because the same workers are graying and getting richer. This means that cheap Chinese labor is a thing of the past, but this is offset by China, which is now becoming a huge consumer market. With about 250 million middle-class Chinese in 2013, that number will explode to 600 million by 2020. In addition to the China-India Free Trade Agreement, ASEAN also has a combined free trade agreement with Australia and New Zealand known as AANZFTA. The agreement, which will also be phased in, has eliminated tariffs on 67% of all products traded between regions and will be extended to 96% of all products by 2020. This is the first time asean has begun negotiations on a free trade agreement covering all sectors, including goods, services, investment and intellectual property rights, making it the most comprehensive trade agreement ever negotiated by ASEAN. Details of this agreement can be found here. ASEAN, the Association of Southeast Asian Nations, is gaining importance as a trading bloc and is now the third largest in the world after the European Union and the North American Free Trade Agreement. Composed of the Asian Tigers of Indonesia, Malaysia, philippines, Singapore, Thailand and Vietnam (ASEAN 6) with the smallest players such as Brunei, Cambodia, Laos and Myanmar, it has a combined GDP of US$2.31 trillion (2012) and is home to about 600 million people. 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 all ten ASEAN countries. The four latecomers had to sign the AFTA agreement to join ASEAN, but had longer delays in meeting AFTA`s tariff reduction commitments. Although these national customs and trade authorities coordinate with each other, disputes may arise. The ASEAN Secretariat does not have the legal authority to resolve such disputes, so disputes are resolved bilaterally through informal means or through dispute settlement. Are you ready for ASEAN 2015? The integration of ASEAN in 2015 and the free trade agreements that China signed with ASEAN and its member states will change the nature of production and exports focused on China and Asia. In this important issue of Asia Briefing, we discuss these developments and how they will affect China and the global supply chain. An Introduction to Tax Treaties Across Asia In this issue of Asia Briefing Magazine, we look at the different types of trade and tax treaties that exist between Asian nations. These include bilateral investment treaties, double taxation treaties and free trade agreements, which have a direct impact on companies operating in Asia. The CEPT applies only to goods originating in ASEAN. The general rule is that the local content of ASEAN should be at least 40% of the FOB value of the thing.
ASEAN`s local content can be cumulative, meaning that the value of inputs from different ASEAN members can be combined to meet the 40% requirement. The following formula is used: in addition to trade negotiations with the various ASEAN Member States, the EU works closely with the ASEAN region as a whole. .