AFTA

AFTA, or ASEAN Free Trade Area, is a regional trade agreement among the ten member states of the Association of Southeast Asian Nations (ASEAN) designed to increase intra-regional trade and investment by reducing tariffs and other trade barriers. Negotiated in 1992 and taking effect in 1993, AFTA operates mainly through the ASEAN Trade in Goods Agreement and its Common Effective Preferential Tariff (CEPT) scheme.

The CEPT aims to lower intra-ASEAN tariffs to 0–5 percent for most goods through staged reductions. Some sensitive items and products from less-developed members may face longer phase-out periods or retain higher rates. To qualify for tariff concessions, goods must originate in ASEAN according to rules of origin, typically involving regional value content or change in tariff classification.

The regime covers a wide range of manufactured and agricultural products and is periodically updated with new tariff lines and adjustments. AFTA is part of the broader ASEAN Economic Community framework, which seeks to create a single market and production base and deepen regional integration across goods, services, and investment.

Impact varies by country and sector and is influenced by non-tariff barriers, infrastructure, and productivity differences. Members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, and the agreement has evolved alongside other regional initiatives to harmonize standards and rules.