What is AFTA ?

The Asean Free Trade Area (AFTA) was established in 1992. AFTA is a collective effort by ASEAN member countries to reduce/eliminate tariffs on intra-ASEAN trade. The purpose was to develop greater trade and industrial linkages among ASEAN member countries. With a combined population of 513 million people, the establishment of the Free Trade Area among ASEAN, offers vast potential for greater economic collaboration.

AFTA has been realised through the Common Effective Preferential Tariff (CEPT) Scheme. Under the CEPT:

• import duties among member countries will be reduced to between 0-5% by the full implementation of AFTA in 2010
  
• elimination of quantitative restrictions (import permit, quota) & other non-tariff barriers (NTBs) among ASEAN Member countries
  
• progressive transfer of products into the CEPT Scheme based on each ASEAN member's capacity and capability.