Free Trade Agreement Between China And Indonesia

The ASEAN-China Free Trade Area (ACFTA) is a free trade area between the ten member states of the Association of South Asian Nations (ASEAN) and the People`s Republic of China. After the first six signatories reached their target by 2010, the CLMV countries (Cambodia, PDR, Myanmar, Vietnam) pursued the same customs policy, with the same goal to be achieved by 2015. [6] In 2010, the ASEAN-China Free Trade Area became the largest free trade area in terms of population and the third largest in nominal GDP. It was also the third volume of trade after the European Economic Area and the North American Free Trade Area. [12] [7] ASEAN members together have a population of more than 650 million. Indonesia accounts for more than 40% of the region`s population and its population has been the most opposed to the agreement. [17] [13] Following growing discontent with the Investor-State Dispute Settlement Mechanism (EIRD), which allows foreign investors to seek redress before an arbitration tribunal when new laws or regulations negatively affect their investment potential, Indonesia decided in 2014 to terminate 67 of its bilateral investment contracts. So far, the government has terminated 20 contracts and developed a new ILO model, which would reflect a more balanced approach between the right to regulate the country and the protection of foreign investors. On 1 January 2010, the average tariff rate on Chinese products sold in ASEAN countries increased from 12.8% to 0.6% until the remaining ASEAN members implemented the free trade area. Meanwhile, the average tariff rate on ASEAN products sold in China increased from 9.8% to 0.1%.

[13] Up to 2015, ASEAN`s total merchandise trade with China reached $346.5 billion (15.2% of ASEAN trade), and ACFTA accelerated growth in Chinese direct investment and trade cooperation. [6] The first step involved the first six signatories who, until 2010, committed to abolishing their tariffs on 90% of their products. [6] Between 2003 and 2008, trade with ASEAN increased from $59.6 billion to $192.5 billion. [7] China`s transformation into a major economic power in the 21st century has led to an increase in foreign investment in the bamboo network, with a network of Overseas Chinese companies operating in Southeast Asian markets and sharing family and cultural ties. [8] [9] In 2008, ASEAN members and the People`s Republic of China had a nominal gross domestic product of about $6 trillion. [10] [11] Protocol amending the Framework Agreement on Comprehensive Economic Cooperation and certain agreements between the People`s Republic of China and the Association of Southeast Asian Nations (ASEAN) (English version – Chinese version) Appendix 1: Rules of origin (version Appendix A Revised Operation Certification Procedures (OCP) for the rules of origin of the China-ASEAN Free Trade Area Attachment B Product Specific Rules (English Version) Indonesia signed a major comprehensive FTA with Japan in 2007.

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