ASEAN has a similar free trade agreement with India, which is being phased in and is in the process of reducing tariffs to 90% of all goods traded between ASEAN and India. From 2016, import and export tariffs on more than 4,000 products will be abolished. This will have a similar effect to that of the China Free Trade Agreement, as it opens up the Indian consumer market to ASEAN industrial products. Indeed, India has a considerable middle-class consumer market of around 250 million, although it is not growing as fast in the short term as China. The ASEAN-India Free Trade Agreement will also be extended to services, discussions are already at an advanced stage and a conclusion is expected before the end of the year. For more details on the ASEAN-India Free Trade Agreement, click here. This has a specific impact on the future evolution of production capacities. The focus is on China, which has enjoyed a cheaper and younger “workers` dividend” for twenty years and has thus become the world`s production centre. But China is also aging – and fast, because the same workforce is graying and getting richer.
This means that cheap Chinese labor is a thing of the past, but this is offset by China, which is becoming a huge consumer market. With the 250 million Middle Class Chinese estimated in 2013, this figure will skyrocket to 600 million by 2020. ASEAN has a series of free trade agreements with other Asian countries, which are radically changing the global landscape of government procurement and manufacturing. It has, for example, a contract with China that effectively eliminated tariffs reduced to nearly 8,000 product categories or 90% of goods imported at zero. These favourable conditions have entered into force in China and in ASEAN home members such as Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Introduction to tax treaties across Asia In this issue of Asia Briefing Magazine, we see the different types of trade and tax treaties that exist between Asian nations. These include bilateral investment agreements, double taxation treaties and free trade agreements that have a direct impact on companies operating in Asia. These two agreements have the collective influence of making ASEAN a strategic centre for global sourcing and manufacturing. With the middle class of 150 million ASEAN consumers, this market, then associated with China and India, alone represents a global consumer market of the middle class, with a total free trade of about 650 million people – today. By 2030, given Asia`s growing prosperity and dynamism, about 64% of the global middle class will be based in Asia, representing 40% of the overall consumption of global small and medium-sized enterprises. The ASEAN bloc has largely eliminated all import and export tariffs on intermediate items, with the exception of Cambodia, Laos, Myanmar and Vietnam, which continue to impose nominal tariffs on certain items. But these will also be completely eliminated by 31 December 2015, so that the entire region will be exempt from customs duties from that date.
The EU also funds trade-related regional projects such as: in addition to trade negotiations with individual ASEAN member countries, the EU works closely with the ASEAN region as a whole. Cooperation between the two regions is framed by a semi-annual ASEAN-EU work programme on trade and investment, which takes place in the following activities: ASEAN national authorities have traditionally 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 investigations). anti-dumping). 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 verify whether AFTA measures such as the rule of origin are being complied with. . . .