In total, in 2019, 66.7% of Malaysia`s total trade, or RM 1.22 trillion, was spent on trade with countries covered by regional and bilateral free trade agreements. Exports to free trade countries amounted to $672.1 billion.RM while imports amounted to $551.5 billion.RM. Other ASEAN agreements are being negotiated, including with Japan, which already has a number of important economic partnerships, while South Korea already has a free trade agreement. Both resemble the above – the reduction of more than 90% of all goods traded between ASEAN and these countries. Regarding the signing of the RCEP agreement following eight years of negotiations as a major achievement, he said: “These comprehensive free trade agreements have negative and positive aspects. The abolition of tariffs gives the countries of the agreement the free movement of trade products. ASEAN national authorities are also traditionally reluctant to share or cede sovereignty to the authorities of other ASEAN members (although ASEAN trade ministries regularly conduct cross-border visits to conduct on-site checks as part of anti-dumping investigations). Unlike the EU or NAFTA, joint teams to ensure compliance and control of violations have not been widely used. Instead, ASEAN national authorities must rely on the verification and analysis of other ASEAN national authorities to determine whether AFTA`s measures, such as the rule of origin, are being complied with. Differences of opinion may arise between national authorities. Again, the ASEAN secretariat can help resolve a dispute, but it has no right to resolve it. “It also allows consumers to obtain imported products at a lower cost.
But the agreement allows local producers to expect damages as long as they do not participate in this competition. That is why India withdrew from the RCEP negotiations. The management of THE AFTA is managed by the national customs and trade authorities of each ASEAN member. The ASEAN secretariat is authorized to monitor and ensure compliance with AFTA`s measures, but it does not have the legal authority to enforce them. This has led to inconsistent decisions taken by the ASEAN national authorities. The ASEAN Charter aims to strengthen the capacity of the ASEAN secretariat to ensure consistent implementation of AFTA`s measures. In the first nine months of 2020, trade with ESTV partners amounted to 66.5% and 860.6 billion .RM, respectively. Exports amounted to $483.29 billion.RM while imports amounted to $377.31 billion.RM. 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 entered into 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. For more details on this agreement, click here. Ahmad Fauzi Abdul Hamid, a professor of political science at Sains University in Malaysia, said the RCEP agreement was the result of the gradual decline in U.S. influence in the Asia-Pacific region.