ASEAN-JAPAN

COMPREHENSIVE
ECONOMIC
PARTNERSHIP
AGREEMENT
(AJCEPA)
 BACKGROUND
Signed on 14 April 2008, the AJCEP are fully
realized by ASEAN-6 (Brunei, Indonesia,
Malaysia, the Philippines, Singapore, and
Thailand) and Japan when tariffs on
substantially all products have been eliminated,
except for those on the Sensitive Track
 BACKGROUND
The Agreement covers trade in goods, trade in
services, investment, and economic
cooperation
 SOME MAJOR PROVISIONS
• Elimination of tariff rates on tariff lines
and trade value for goods in the
Normal Track
• Rules of Origin (ROO) which allows
regional cumulation of inputs
• Dispute settlement mechanism
• Trade in services agreement
• Investment agreement
 OBJECTIVES

1. Strengthen ASEAN-Japan economic integration

2. Enhance their mutual competitiveness in the world
market
3. Progressively liberalize and facilitate trade in goods and
services in a transparent and liberal investment regime
 OBJECTIVES

4. Explore new areas and develop appropriate measures for

further cooperation and integration
5. Facilitate the more effective economic integration of
Cambodia, the Lao People’s Republic, Myanmar, and
Vietnam, and bridge the development gap in ASEAN.
SUMMARY OF THE AGREEMENT
To strengthen the economic
partnership between Japan and
the ASEAN Member States, the
AJCEP Agreement liberalizes and
facilitates trade in goods and trade
in services between Japan and the
ASEAN Member States, promotes
cooperation in the economic field.
KEY ELEMENTS
IN THE
AJCEP
AGREEMENT
1. GENERAL RULES
Mentions the objectives, terminology, transparency in
administrative procedures, confidentiality, exceptions,
taxations, etc.

2. TRADE IN GOODS
Tariff elimination or reduction (adoption of a common
concession system in which tariff elimination and
reduction (concessions) between Japan and the ASEAN
Member States are applied equally to each of the
signatory nations), safeguards, customs procedures, etc.
3. RULE OF ORIGIN
Adopting a common rule of origin to be applied equally
among the signatory nations and also regulating the
aggregate of rules of origin in Japan and ASEAN region

4. SANITARY AND PHYTOSANITARY

(SPS) MEASURES
The rights and obligations related to sanitary and
phytosanitary measures based on the agreement on
application of SPS measures concluded between the
signatory countries are reaffirmed, and a subcommittee is
to be established for exchanging information, facilitating
cooperation, etc.
5. VOLUNTARY STANDARDS,
COMPULSORY STANDARDS AND
CONFORMITY ASSESSMENT
PROCEDURE
Discusses about voluntary standards, compulsory
standards and conformity assessment procedures that
should not cause unnecessary barriers in trade between
countries; promoting mutual understanding of the
standards in each Party and strengthening information
exchange and cooperation among the Parties
6. TRADE IN SERVICES
• The Parties shall continue to discuss and negotiate provisions
for trade in services with a view to exploring measures
towards further liberalization and facilitation of trade in service
among ASEAN member states and Japan
• To enhance cooperation in order to improve the efficiency and
competitiveness of service suppliers of the ASEAN member
states and Japan.

7. INVESTMENT
• Each Party shall endeavor to, in accordance with its
laws, regulations and policies, create and maintain
favorable and transparent conditions for investments
of investors of the other Parties
8. ECONOMIC COOPERATION
• The Parties shall, subject to the availability of resources as
well as their respective applicable laws and regulations,
promote cooperation for their mutual benefits in order to
liberalize and facilitate trade and investment among the
Parties.

• The Parties shall promote regional and sub-regional

development through economic cooperation activities
including capacity building, technical assistance, and other
activities mutually agreed upon among the Parties.
9. RESOLUTION OF DISPUTES
• Discusses various dispute settlement procedures including
contact points, consultations, conciliation and mediation,
establishment of arbitral tribunals, implementation of
suspension and termination proceedings, etc.

10. FINAL PROVISIONS

• Discusses review of the provisions, implementation,
enforcement, amendment procedures, and withdrawal
and termination
Importance of the agreement for both
ASEAN and JAPAN
• AJCEPA facilitates greater market access and reduces trade barriers
1. Economic Growth between ASEAN and Japan.
• It promotes economic growth by increasing bilateral trade and
and Trade investment flows.
Expansion • The agreement fosters a conducive environment for businesses,
leading to enhanced productivity and competitiveness.

2. Strategic • It strengthens the strategic partnership between ASEAN and Japan,

enhancing diplomatic ties and regional cooperation.
Partnership • It demonstrates a commitment to deepening economic integration
and collaboration in various areas, including trade, investment, and
technology transfer.
 Importance of the agreement for both
ASEAN and JAPAN

3. Diversification of • For ASEAN countries, AJCEPA offers opportunities to diversify

Markets and export markets beyond their traditional trading partners.
• Japan benefits from access to a diverse range of goods and services
Supply Chains from ASEAN countries, contributing to the diversification of its
supply chains.

• The agreement includes provisions to facilitate investment flows

between ASEAN and Japan, such as investor protection mechanisms
4. Investment Promotion and dispute settlement procedures.
and Business • It creates a more conducive environment for businesses to invest and
operate, leading to the expansion of business opportunities and the
Opportunities creation of jobs
 Importance of the agreement for both
ASEAN and JAPAN

5. Technology and • It promotes collaboration in areas such as research and development,

technology transfer, and innovation.
Knowledge • It facilitates the exchange of knowledge and expertise between
ASEAN and Japan, contributing to the development of human
Transfer capital and the advancement of industries.

6. Regional • It contributes to regional integration efforts by promoting economic

Integration and cooperation and reducing disparities among ASEAN member states.
• It fosters stability and prosperity in the region, which is essential for
Stability sustainable development and peace.
 Benefits for AJCEPA

 Economic Benefits:  Strategic Benefits:  Social Benefits:

• Increased trade volume • Strengthened regional • Consumer welfare

• Boost to GDP integration • Access to better
• Job creation • Enhanced diplomatic ties quality goods and
services
Thank You!