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When Was The Asean Trade In Goods Agreement (Atiga) Signed

The vast majority of trade agreements contain rules of origin to prevent third parties from freeing up the sacrifices these parties have made. These rules determine who can claim the benefits of a particular agreement and under what circumstances those parties can do so. ASEAN national authorities ar...

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The vast majority of trade agreements contain rules of origin to prevent third parties from freeing up the sacrifices these parties have made. These rules determine who can claim the benefits of a particular agreement and under what circumstances those parties can do so. 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. Efforts to close the development gap and expand trade among ASEAN members are essential elements of the political debate. According to a 2008 research mandate published by the World Bank as part of its «Trade Costs and Relief» project,[11] ASEAN members have the potential to reap significant benefits from investment in new trade facilitation reforms, as a result of the important customs reform already implemented by the ASEAN Free Trade Agreement. At the 4th ASEAN Summit in January 1992, ASEAN heads of government agreed to establish an ASEAN Free Trade Area (AFTA) by 2008 to open their economies to globalization. The main mechanism for implementing the AFTA was the Common Preferential Tariff System (CEPT). The CEPT-AFTA agreement was signed in Singapore on 28 January 1992. To the extent that a product is not included in the ATIGA list of 2000 products subject to specific requirements, exporters and producers have the opportunity to apply either the regional value test or the modification of the tariff classification criterion: under ATIGA, products classified as «original products» are qualified to benefit from tariff reductions.

The CEPT only applies to products originating in ASEAN. The general rule is that the local content of ASEAN must be at least 40% of the FOB value of the treat. The local content of ASEAN can be cumulative, i.e. the value of contributions from different ASEAN members can be combined to meet the 40% requirement. The formula used is as follows: according to ATIGA, the products are considered to originate from the Member State in which the goods were manufactured or processed. This is determined by compliance with at least one of the following conditions: although these ASEAN national customs and trade authorities coordinate with each other, disputes may arise.

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