The ASEAN Trade in Goods Agreement (ATIGA) is a regional trade agreement between the ten member countries of the Association of Southeast Asian Nations (ASEAN). The agreement aims to promote free trade and increase the competitiveness of ASEAN member countries in the global market.
ATIGA was signed in 2009 and came into effect in 2010. The agreement is a comprehensive trade agreement covering the trade of goods amongst the member countries of ASEAN. The agreement aims to reduce and eventually eliminate trade barriers between the member countries, including tariffs, non-tariff barriers, and technical barriers to trade.
One of the key features of ATIGA is the implementation of the ASEAN Free Trade Area (AFTA). AFTA is a regional free trade area that covers all ten ASEAN member countries. Under AFTA, member countries are required to reduce or eliminate tariffs on goods traded within the region. The ultimate goal of AFTA is to create a single market and production base within ASEAN, which will increase the competitiveness of member countries in the global market.
ATIGA has also established rules of origin to determine the country of origin of goods traded within the region. This is important for ensuring that goods receive preferential treatment under AFTA. To qualify for preferential treatment, goods must meet the rules of origin criteria, which require that a certain percentage of the value of the final product originates from within the region.
Under ATIGA, member countries are also required to establish a mechanism for the liberalization of trade in sensitive products. This is important for managing the impact of liberalization on sensitive sectors, such as agriculture and textiles. Member countries are allowed to exclude certain products from liberalization or apply safeguard measures to protect domestic industries.
ATIGA is an important agreement for promoting free trade and increasing the competitiveness of ASEAN member countries in the global market. By reducing trade barriers and establishing a single market and production base within ASEAN, the agreement is expected to increase trade and investment flows within the region. As ASEAN continues to grow and develop, ATIGA will play a critical role in shaping the region`s economic future.