ASEAN, Japan Ink FTA

The Association of Southeast Asian Nations (ASEAN) and Japan April 14 ratified a comprehensive free trade agreement (FTA), aiming to further stimulate trade and investment between Japan and ASEAN and strengthen the region's economic attractiveness, the Vietnam News Agency reported.

 

The Japan-ASEAN FTA will take effect on the first day of the second month after Japan and one member state of ASEAN complete domestic procedures, such as parliamentary endorsement, according to a joint press release by Japan and ASEAN.

 

The agreement provides legal support for the further development of a manufacturing network between Japan and ASEAN, said Japanese Foreign Minister Masahiko Komura.

 

The FTA between Japan and ASEAN will enable Japanese companies to expand their markets in Southeast Asia to reduce trade costs.

 

Under the agreement, Japan will repeal tariffs on 93 percent of imports from ASEAN by value within 10 years of the deal taking effect.

 

Meanwhile, six ASEAN members – Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand – will remove tariffs on 90 percent of imports from Japan such as automobiles.

 

A more gradual tariff elimination table has been set for the remaining four newer ASEAN members – Cambodia, Myanmar, Laos and Vietnam.

 

Currently, Japan is ASEAN’s third largest trade partner, undertaking deals worth nearly US$200 billion.

 

The country of the rising sun is the largest direct investor in the Southeast Asian region with annual investment hitting 10 billion. (www.mofa.gov.vn, VNA, Youth), VNA, Youth)