The agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) entered into force in January 2010. The Free Trade Agreement is the most comprehensive agreement covering a wide range of issues, including trade in goods and services, investment, intellectual property, competition and economic cooperation. Since its inception, AANZFTA has promoted trade in goods and services by removing barriers and reducing transaction costs for companies wishing to do business in Member States. The agreement provides that 99% of goods trade between Australia and New Zealand with Indonesia, Malaysia, the Philippines and Vietnam will be duty-free by 2020. After full implementation in 2025, almost all trade between member countries will be duty-free, helping businesses save millions of dollars in tariffs each year. Over the past decade, trade and investment between ASEAN member states and China within the framework of the ASEAN China Free Trade Area (ACFTA) has increased significantly. The Agreement on Trade in Goods was signed in 2004 and implemented by all Member States in July 2005. Under the agreement, the original six ASEAN members and China decided to eliminate tariffs on 90% of their products by 2010, while Cambodia, the Democratic Republic of China, Myanmar and Vietnam – commonly known as clMV countries – had until 2015 to do so. Since the signing of the agreement, China has firmly maintained its position as ASEAN`s largest trading partner. In 2015, ASEAN`s total merchandise trade with China reached $346.5 billion, or 15.2% of ASEAN`s total trade. In addition, ASEAN received $8.2 billion in foreign direct investment (FDI) from China in 2015, making China the fourth largest source of ASEAN foreign direct investment (FDI). By 2020, ASEAN and China have committed to a common goal of $1 trillion in trade and $150 billion in investment through ACFTA. If, in less than a year, Vietnam fully comes into play with the ASEAN Treaty, this evolution of production capacity that serves the Chinese market will increase, especially for this country.

Vietnam has also deliberately positioned itself to use the deal with China by lowering its corporate tax rate to 22 percent, 3 percent lower than in China. The ASEAN-India Trade in Goods Agreement entered into force on 1 January 2010. The signing of the agreement paved the way for the creation of one of the world`s largest free trade markets and created opportunities for more than 1.9 billion people in ASEAN and India, with a combined GDP of $4.8 trillion. AIFTA creates a more liberal and easier access and investment regime between Member States. The agreement set the liberalization of customs duties on more than 90% of the products traded between the two dynamic regions. It was therefore agreed to eliminate tariffs on more than 4,000 product lines by 2016 at the earliest. The CEPT applies only to products originating in ASEAN. The general rule is that ASEAN local content must represent at least 40% of the FOB value of the case. The local content of ASEAN can be cumulative, i.e. the value of the contributions of the different ASEAN members can be combined to meet the 40% requirement. The following formula is used: the production trend is therefore to continue to develop products for this huge consumer market, but to place the necessary production capacities for this purpose in a more favorable place. The ASEAN Free Trade Agreement with China allows regional companies and NCMs operating in Asia to do so.

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