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Nguyễn Hữu Tấn - 1821003888

Trần Ngọc Diệp - 1821001964
Trang Thị Thùy Anh - 1821003526
Lê Quỳnh Như - 1821003769
Đỗ Thị Lê Dung - 1821003555
Lê Nguyễn Tường Vi - 1821003953

ASSOCIATION OF SOUTHEAST ASIAN NATIONS FREE TRADE AREA

The asean free trade area is a trade bloc agreement by the association of southeast asian
nations supporting local trade and manufacturing in all asean countries, and facilitating
economic integration with regional and international allies it stands as one of the largest and
most important free trade areas in the world, and together with its network of dialogue
partners, drove some of the world's largest multilateral forums and blocs, including asia-
pacific economic cooperation, east asia summit and regional comprehensive economic
partnership.
The afta agreement was signed on 28 january 1992 in singapore. When the afta agreement
was originally signed, asean had six members, namely, Brunei, Indonesia, Malaysia,
Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997
and Cambodia in 1999. afta now comprises the ten countries of asean. All the four
latecomers were required to sign the afta agreement to join asean, but were given longer
time frames in which to meet afta's tariff reduction obligations.
The primary goals of afta seek to:
- Increase asean's competitive edge as a production base in the world market through
the elimination, within asean, of tariffs and non-tariff barriers; and
- Attract more foreign direct investment to asean.
The primary mechanism for achieving such goals is the Common Effective Preferential Tariff
scheme, which established a phased schedule in 1992 with the goal to increase the region’s
competitive advantage as a production base geared for the world market.

The Common Effective Preferential Tariff (CEPT) scheme

Unlike the EU, AFTA does not apply a common external tariff on imported goods. Each
ASEAN member may impose tariffs on goods entering from outside ASEAN based on its
national schedules. However, for goods originating within ASEAN, ASEAN members are to
apply a tariff rate of 0-5 %(the more recent members of Cambodia, Laos, Myanmar and
Vietnam, also known as CMLV countries, were given additional time to implement the
reduced tariff rates). This is known as the Common Effective Preferential Tariff (CEPT)
scheme.
ASEAN members have the option of excluding products from the CEPT in three cases:
1.) Temporary exclusions
2.) Sensitive agricultural products
3.) General exceptions.
Temporary exclusions refer to products for which tariffs will ultimately be lowered to 0-5 %,
but which are being protected temporarily by a delay in tariff reductions.
For sensitive agricultural products including commodities such as rice, ASEAN members
have until 2010 to reduce the tariff levels to 0-5 %.
Rule of origin
The CEPT only applies to goods originating within ASEAN. The general rule is that local
ASEAN content must be at least 40% of the FOB value of the good. The local ASEAN
content can be cumulative, that is, the value of inputs from various ASEAN members can be
combined to meet the 40% requirement. The following formula is applied:
( Raw material cost
+ Direct labour cost
+ Direct overhead cost
+ Profit
+ Inland transport cost )
x 100 % FOB value
However, for certain products, special rules apply:
- Change in Chapter Rule for Wheat Flour;
- Change of Tariff Sub-Heading for Wood-Based Products;
- Change in Tariff Classification for Certain Aluminum and Articles thereof.
The exporter must obtain a “Form D” certification from its national government attesting that
the good has met the 40% requirement. The Form D must be presented to the customs
authority of the importing government to qualify for the CEPT rate. Difficulties have
sometimes arisen regarding the evidentiary proof to support the claim, as well as how
ASEAN national customs authorities can verify Form D submissions. These difficulties arise
because each ASEAN national customs authority interprets and implements the Form D
requirements without much coordination.
Administration
Administration of AFTA is handled by the national customs and trade authorities in each
ASEAN member. The ASEAN Secretariat has authority to monitor and ensure compliance
with AFTA measures, but has no legal authority to enforce compliance. This has led to
inconsistent rulings by ASEAN national authorities. The ASEAN Charter is intended to
bolster the ASEAN Secretariat's ability to ensure consistent application of AFTA measures.
ASEAN national authorities have also been traditionally reluctant to share or cede
sovereignty to authorities from other ASEAN members (although ASEAN trade ministries
routinely make cross-border visits to conduct on-site inspections in anti-dumping
investigations). Unlike the EU or NAFTA, joint teams to ensure compliance and investigate
non-compliance have not been widely used. Instead, ASEAN national authorities must rely
on the review and analysis of other ASEAN national authorities to determine if AFTA
measures such as rule of origin are being followed. Disagreements may result between the
national authorities. Again, the ASEAN Secretariat may help mediate a dispute but has no
legal authority to resolve it.
Dispute resolution
Although these ASEAN national customs and trade authorities coordinate among
themselves, disputes can arise. The ASEAN Secretariat has no legal authority to resolve
such disputes, so disputes are resolved bilaterally through informal means or through
dispute resolution.
An ASEAN Protocol on Enhanced Dispute Settlement Mechanism governs formal dispute
resolution in AFTA and other aspects of ASEAN. ASEAN members may seek mediation and
good offices consultations. If these efforts are ineffective, they may ask SEOM (Senior
Economic Officials Meetings) to establish a panel of independent arbitrators to review the
dispute. Panel decisions can be appealed to an appellate body formed by the ASEAN
Economic Community Council.
Further trade facilitation efforts
Efforts to close the development gap and expand trade among members of ASEAN are key
points of policy discussion. According to a 2008 research brief published by the World Bank
as part of its Trade Costs and Facilitation Project ASEAN members have the potential to
reap significant benefits from investments in further trade facilitation reform, due to the
comprehensive tariff reform already realised through the ASEAN Free Trade Agreement.
This new analysis suggests examining two key areas, among others: port facilities and
competitiveness in the Internet services sector. Reform in these areas, the report states,
could expand ASEAN trade by up to 7.5% ($22 billion) and 5.7% ($17 billion), respectively.
By contrast, cutting applied tariffs in all ASEAN members to the regional average in
Southeast Asia would increase intra-regional trade by about 2% ($6.3 billion)

ASIA- PACIFIC ECONOMIC COOPERATION

The Asia-Pacific Economic Cooperation (APEC), is an economic group of 21 members,

formed in 1989, with the primary goal of promoting free trade and sustainable development
in the Pacific Rim economies. The creation of APCE was primarily in response to the
increasing interdependence of Asia-Pacific economies. Also, the proliferation of regional
economic blocs, such as the European Union (EU) and now defunct, North American Free
Trade Area (NAFTA), encouraged its formation.

In the years since its launch, APEC witnessed numerous marquis accomplishments. They
are fundamental in reducing tariffs, improving customs efficiency, and closing the gap
between developing and developed economies. APEC also combated climate change,
dismantled terrorist networks, increased transparency, and stimulated economic integration.
Furthermore, the group raised living standards and education levels, and fostered a greater
sense of community among Asia-Pacific countries, by nurturing shared interests.

Nations Comprising APEC:

The founding members of APEC were Australia, Brunei, Canada, Indonesia, Japan, Korea,
Malaysia, New Zealand, the Philippines, Singapore, Thailand, and the U.S. Since its launch,
China, Hong Kong, Taiwan, Mexico, Papua New Guinea, Chile, Peru, Russia, and Vietnam
have joined its ranks. APEC refers to its members as economies rather than as states due to
the disputed status of Taiwan and Hong Kong.

The benefits:

Trade Agreements: APEC has linked the established economies of countries like Japan
and the United States with mid-level economies like Korea and Chinese Taipei and
developing economies like Vietnam and Papua New Guinea by promoting and facilitating
trade agreements. This opens up new markets for the larger economies and transforms
emerging economies by creating new industries, raising millions of people out of poverty.

Tariff: A tariff is a fee imposed by a nation on imported goods that compete with products
produced domestically. APEC seeks to lower or eliminate tariffs in order to promote the free
exchange of goods between countries.

International Investment: APEC provides an important forum for economic innovation and
creates programs and action plans that catalyze the flow of private capital into member
nations. This results in infrastructure investments and technological development induce
innovation and entrepreneurship, which in turn strengthen markets and integrate economies.

Sharing of Technology: Joint research and development projects between member nations
are developed through APEC. These contribute to deeper partnership relationships, which
stabilize security and provide for continuous economic growth.

Business Development: Small and medium enterprises are critical factors in a healthy
economy. APEC’s focus on boosting the development of SMEs is reflected in the fact that 90
percent of all companies participating in APEC are SMEs. Through APEC partnerships,
economic and technical cooperation has increased among member nations.

TRANS-PACIFIC STRATEGIC ECONOMIC PARTNERSHIP AGREEMENT

The Trans-Pacific Partnership was a free trade agreement between the United States and
11 other countries that border the Pacific Ocean.

The TPP was between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New
Zealand, Peru, Singapore, the United States, and Vietnam. The countries involved produced
40% of the world's total gross domestic product of $107.5 trillion. They supplied 26% of
global trade and 793 million of the world’s consumers.

The negotiations were successfully concluded on October 4, 2015. Officials from each
country signed the agreement on February 4, 2016. Each nation's legislature had to approve
the agreement before it went into effect.

Before that could happen, on January 23, 2017, President Donald Trump signed an
executive order to withdraw the United States from the agreement.

After the US withdrew from the Trans-Pacific Partnership (TPP) in 2017, the remaining 11
countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru,
Singapore, and Vietnam) agreed to maintain the deal and reshape it as the CPTPP.

The CPTPP basically keeps all the core content of the TPP and stands open for US to re-
join.
First, the TPP has been renamed as the CPTPP, which includes “Comprehensive” and
“Progressive.” This new name was highly appreciated by all country members, confirming
the quality and normative direction of the new agreement.

“This is a comprehensive agreement, including various sectors, not only trade, investment or
intellectual property. It is really higher and more progressive than the signature FTAs
before,” said Japanese Economy Minister Toshimitsu Motegi.

Second, the number of member economies is 11. Together, they make up 13.5 per cent of
the global GDP and 15.2 per cent of total global trade turnover, much lower than the TPP’s
scale (due to a significant pull by the US) of 38.2 per cent of global GDP and 26.5 per cent of
trade turnover.

Despite the withdrawal of the US, the CPTPP still covers huge markets like Japan, Australia,
Canada, and Mexico, while the pressure to implement some articles has reduced
significantly. Thereby, Vietnam will benefit from the agreement, which will strengthen
linkages and collaboration in the region.

Signing the CPTPP and movements from China have put pressure on the US to renegotiate
membership. Meanwhile, China is currently playing the leading role in the Asia-Pacific
economic integration process through the Regional Comprehensive Economic Partnership
(RCEP), the ASEAN-China Free Trade Agreement, and the China-Japan-South Korea Free
Trade Agreement.

Third, the effectiveness of the agreement has changed. According to the TPP, the
agreement would take effect if the total GDP of the member countries captured 85 per cent
of total GDP of the 12 signing countries in 2013. With the withdrawal of the US, which made
up 60 per cent of the total GDP of the whole TPP, the eleven remaining countries had to
change this. Therefore, if at least six nations approve the CPTPP, it may easily take effect
60 days after signing. Additionally, the new agreement also adds regulations related to the
process of withdrawal, participation, and flexible reviewing of the CPTPP in the future.

Fourth, around 20 articles of the CPTPP have been temporarily postponed, including the
strong commitments on intellectual property that the US raised before. Specifically, 11 of the
20 articles are on intellectual property. The CPTPP will delay requirements for member
countries to change their laws and practices. The CPTPP also suspends the time term of a
copyright in case of unreasonable delays in licensing. Members of the agreement will not
have to extend protection terms from 50 to 70 years.

The remaining postponed articles are on investment. For the dispute solution mechanism
between governments and investors (ISDS), the CPTPP has narrowed the mechanisms
availability for foreign investors to sue the host member state. Besides, the CPTPP states
that one member of the ISDS Arbitration Panel will be appointed by the government and the
plaintiff each, and one by both.

As a result, through some adjustments of regulations and the efforts of the eleven member
countries, the TPP has been “rescued.” The CPTPP is said to be a comprehensive and
progressive agreement, reaching high standards while remaining open, which is expected to
bring benefits to all country members.
On March 8, 2018, the other 11 TPP countries signed a modified agreement without the
United States.On December 30, 2018, the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) entered into force. The trading bloc represents 495
million consumers and 13.5% of global GDP.

The first six countries to ratify the agreement were Canada, Australia, Japan, Mexico, New
Zealand, and Singapore. On January 14, 2019, the CPTPP entered into force for Vietnam.
The remaining countries (Brunei, Chile, Malaysia, and Peru) have yet to ratify.

The CPTPP removes 99% of tariffs on goods and services, just like the original TPP did. It
also sets reciprocal trade quotas. These measures make it more difficult for U.S.
businesses, especially farmers, to export to CPTPP members. U.S. exports will be more
expensive, thanks to tariffs, than that of signatories like Canada.

The CPTPP covers a broad range of goods and services. These include financial services,
telecommunications, and food safety standards. In this way, it affects foreign policy and even
laws within countries. For example, it suggests that countries set up an agency like the U.S.
Office of Information and Regulatory Affairs. It analyzes the costs and benefits of new
regulations.

All countries agreed to cut down on wildlife trafficking. That helps elephants, rhinoceroses,
and marine species the most. It prevents environmental abuses, such as unsustainable
logging and fishing. Countries that don't comply will face trade penalties.

Pros Cons

The original TPP would have boosted U.S.
exports and economic growth. This would
have created more jobs and prosperity for
the 12 countries involved. It would have
increased exports by $305 billion per year
by 2025.
Most of the gains in income would have
gone to workers making more than $87,000
a year.19 Free trade agreements contribute
to income inequality in high-wage countries.
They promote cheaper goods from low-
wage countries.

U.S. exports would increase by $123.5
billion. It would benefit the machinery, auto,
plastics, and agriculture industries.
It would have increased exports by
removing 18,000 tariffs placed on U.S.
exports to the other countries. The United
States has already withdrawn 80% of these
tariffs on imports. The TPP would have
evened the playing field.
The agreement would have added $223
billion a year to incomes of workers in all
the countries, with $77 billion going to U.S.
workers.
This would have been particularly true for
the TPP because it protected patents and
copyrights.3 Higher-paid owners of
intellectual property would have received
more of the income gains.
The agreement regarding patents would
have reduced the availability of cheap
generics. That could have raised the cost of
many drugs. Competitive business
pressures would have reduced the
incentives in Asia to protect the
environment. Last but not least, the trade
agreement could have superseded financial
regulations.
In 2017, the estimated trade value among
all countries was $1.1 trillion.16 It would
have been smaller than the TTIP. That's the
other large regional trade agreement being
negotiated. It’s between the United States
and the European Union. Talks went into
limbo when Trump took office.

Notably, the TPP excluded China. That was

deliberate. It was meant to balance the
trade dominance of both China and India in
East Asia. The TPP would have given the
United States an excuse to intervene in
trade disputes in the oil-rich South China
Sea. China has been beefing up its military
to back its incursions in that area.

Impact of CPTPP on Vietnam

CTPP officially took effect in Vietnam on January 14 this year.

Vietnam recorded a trade surplus of over 1 billion USD with the 10 other members of the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the
seven months since the deal took effect in the country in January, according to the General
Department of Vietnam Customs.

Exports to the CPTPP countries since the year’s beginning have accounted for 15.4 percent
of the total export revenue. Additionally, six of the 27 markets to which Vietnam’s shipments
surpassed 1 billion USD are CPTPP economies.

These figures show that the agreement has helped Vietnam tip its trade scale in favour of
exports, the general department said.

Businesses and investors of Canada are also paying special attention to Vietnam’s roadmap
for opening its market for several agricultural products like pork, beef, chicken, aquatic
products and fresh fruits, he noted.

Australia is also a potential market for Vietnamese goods. As soon as the CPTPP came into
force, Vietnam began making use of opportunities generated by the deal to boost shipments
to Australia. Notably, it has dominated the tra fish market there as it supplies up to 98
percent of the tra fish amount consumed in the country.
South Asian Association for Regional Cooperation

History: The South Asian Association for Regional Cooperation (SAARC) was established
with the signing of the SAARC Charter in Dhaka on 8 December 1985. SAARC comprises of
eight Member States: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan
and Sri Lanka. The Secretary of the Association was set up in Kathmandu on 17 January
1987.

The objectives of the Association as outlined in the SAARC Charter are: to promote the
welfare of the peoples of South Asia and to improve their quality of life; to accelerate
economic growth, social progress and cultural development in the region and to provide all
individuals the opportunity to live in dignity and to realize their full potentials; to promote and
strengthen collective self-reliance among the countries of South Asia; to contribute to mutual
trust, understanding and appreciation of one another's problems; to promote active
collaboration and mutual assistance in the economic, social, cultural, technical and scientific
fields; to strengthen cooperation with other developing countries; to strengthen cooperation
among themselves in international forums on matters of common interests; and to cooperate
with international and regional organizations with similar aims and purposes.

Structure and Process: Cooperation in SAARC is based on respect for the five principles of
sovereign equality, territorial integrity, political independence, non-interference in internal
affairs of the Member States and mutual benefit. Regional cooperation is seen as a
complement to the bilateral and multilateral relations of SAARC Member States. SAARC
Summits are held annually and the country hosting the Summit holds the Chair of the
Association. Decisions are made on an unanimity basis while bilateral and contentious
issues are excluded from the deliberations of SAARC. In addition to the eight Member
States, nine Observer States join SAARC Summits: China, the US, Myanmar, Iran, Japan,
South Korea, Australia, Mauritius and the European Union.

Decisions at all levels are to be taken on the basis of unanimity; and bilateral and
contentious issues are excluded from the deliberations of the Association.
Debate:

We’ll name some benefits of free trade in garment industry:

Economic growth: Free trade increases prosperity for the citizens of all
participating nations—by allowing consumers to buy more, better-quality products at
lower costs. It drives economic growth, enhanced efficiency, increased innovation,
and greater fairness with a rules-based system. These benefits increase as overall
trade—exports and imports—increases.

More exports mean more wealth: With the EVFTA Agreement, 100% of Vietnam's
textile and apparel products will be reduced to import tax to 0% after a maximum of 7
years after the Agreement comes into effect.The total level of trade—exports and
imports—that most accurately reflects Vietnam prosperity. Prosperity is defined by
the breadth and variety of what Vietnamese are able to consume. More exports
increase wealth only because they allow Vietnamese to buy more imports and give
non-Vietnamese greater incentives to invest in Vietnam, helping Vietnam's economy
grow. Restricting imports leaves Vietnam worse off. Free-trade also helps introduce
Vietnam fashion brands to the world.

Free-trade creates more jobs and improves living standards: it frees up

resources to create jobs, boosting overall wages and improving living standards.
Free trade also creates social benefits. Countries that are more open to international
trade all have higher employment rates, higher incomes and better living standards
than countries with limited trade.

Security is enhanced: Political stability and personal prosperity enhanced by free

trade have also led to enhanced regional security and stability. As nations trade
freely, they become more economically engaged and less likely to go to war.

Better governance: Regional free trade agreements also promote good governance
by combining binding commitments with transparency, valid process and public
accountability.