Module Asia's Free Trade Agreements (FTA)
In Asia there are several Trade Agreements (Free Trade Agreements (FTA), Economic Partnership…), both
regional and extra-regional:
- Intra-regional: the ASEAN, the South Asian Association for Regional Cooperation (SAARC), the Bay of Bengal Initiative (BIMSTEC), the South Asian Free Trade Area (SAFTA), the Eurasian Economic Community (EurAsEc), the Economic Cooperation Organisation (ECO)
- Extra-regional: Trans-Pacific Agreement, the APEC, agreements with the European Union (EU)
- Bilateral intra-regional: China-ASEAN, India-Korea
- Bilateral extra-regional: China-Chile, Mexico-Japan
Furthermore, each Asian country can have Free Trade Agreements (FTA) with third countries. For example, Singapore has agreements with Peru, Panama, Australia, China, Korea, the European Free Trade Association (EFTA), the United States, Japan, Jordan, New Zealand, and India, and is a member of the Trans-Pacific Strategic Economic Partnership Agreement
A company wishing to do business in Asia should know all these agreements in force for all target markets in the region.
The Master Doing Business in Asia and the Doctorate includes the following Free Trade Agreements (FTA) and institutions related to the foreign trade in the region.
Source: Economic and Social Commission for Asia.
- Asia-Pacific Trade Agreement
Strategic Economic Partnership Agreement
Free Trade Agreement of India.
- India-Sri Lanka
- Andean Community-India
- India-South Korea
- India-European Union
- India-New Zealand
- India-Southern Africa Customs Union
Proposed/Under consultation and study.
- India-Cooperation Council for the Arab States of the Gulf
- India-European Free Trade Association (EFTA)
Free Trade Agreement (FTA) of China.
- China-New Zealand
- European Union-China
- Andean Community-China
- China-Costa Rica
Agreements (other ASEAN countries):
- ASEAN-Australia-New Zealand
- ASEAN-European Union
- ASEAN-United States
- Singapore-New Zealand
- United States-Singapore
- Singapore-European Free Trade Association (EFTA)
Agreements (other Asian countries):
- Preferential Trade Area
- United States-Korea
- European Union-South Korea
- South Korea-Chile
- Peru-South Korea
- Taiwan-Honduras-El Salvador
- United States-Australia
If the country of the exporter (or importer):
a) Has Agreements in force with some Asian country:
The exporter should take advantages of the agreement (tariff reductions, rules and certificate of origin, technical standards, investment, Intellectual Property Rights (IPR), public
procurement, trade in services…) however, also need to know if other countries may have agreements in force with one of these countries.
b) Has no agreement in force with any Asian country:
One possible scenario is that another country (or region) can have some Agreement in force with the Asian Countries. Then, the exporter has a disadvantage.
All these factors are essential to design and adapt the International Marketing strategy for each target market in Asia.
For example, an Argentinian company wishing to export to Singapore would be at a disadvantage with a Peruvian, Panamanian or Chinese company, as both Peru, Panama, and China have a Trade Agreement in force with Singapore, and the Peruvian, Panamanian or Chinese company have all the advantages inherent to the FTA (although each Agreement may vary in content). The Argentinian company should consider this factor in its export strategy to the region.
Master in Business in Asia:
Organisations, China - India - Southeast Asia - ASEAN - Central Asia