Asia Pacific Trade Agreement Tariff

Critics of free trade agreements say they tend to encourage companies to relocate manufacturing jobs abroad. After winning disgruntled rust belt voters in the November 3 elections in Michigan and western Pennsylvania, Biden “will not waste it by returning to tPP,” Michael Jonathan Green of the Center for Strategic and International Studies said at a web-based seminar. In the longer term, Li called the agreement a “victory for multilateralism and free trade.” In particular, the RCEP does not offer significant new opportunities for products in terms of tariff reduction and elimination, as most RCEP parties have already concluded existing free trade agreements, which are in effect through a combination of bilateral and multilateral agreements, including the ASEAN-1 and CPTPP free trade agreements. Only China and Japan, Korea and Japan, as well as Japan and New Zealand, have not implemented free trade agreements. Nevertheless, many of the RCEP`s tariff results are improvements from the status quo under existing free trade agreements. Analysts are skeptical that Biden will insist that he be able to re-join the Trans-Pacific trade pact or withdraw many of the Trump administration`s U.S. trade sanctions on China, given that the frustrated transfer of Beijing`s trade and human rights balances and accusations of espionage and technology theft are widespread. Companies with global supply chains may even face tariffs under a free trade agreement because their products contain components manufactured elsewhere. The Asia-Pacific Trade Agreement (APTA), formerly known as the Bangkok Agreement[1] and renamed on November 2, 2005,[2] was signed in 1975. It is the oldest preferential trade agreement between countries in the Asia-Pacific region. Seven participating states – Bangladesh, China, India, Lao PDR, Mongolia, Republic of Korea and Sri Lanka – are parties to APTA. The APTA pact occupies the market for 2921.2 million people [2] and the size of this large market represents $14615.86 billion in gross domestic product (GDP) in the 2015-16 fiscal year.

[3] APTA`s main objective is to accelerate economic development among the seven participating states that opt for trade and investment liberalization measures that, through the coverage of goods and services, synchronized investment and the free transfer of technology, will contribute to the coverage of intra-regional trade and economic strengthening. Its aim is to promote economic development and cooperation through trade liberalization measures. The AptA is open to all members of the United Nations Economic and Social Commission for Asia and the Pacific, which serves as the secretariat of APTA. APTA members are currently participating in the fourth round of tariff concessions, which is expected to end in October 2009. [4] Originally, 16 RCEP member countries, including India, launched the first round of RCEP negotiations in November 2012 and announced the substantial conclusion of the negotiations in November 2019, after 31 rounds of negotiations. In the last round of negotiations, India announced that it would abandon the RCEP until its outstanding fears were lifted. One of the main issues was India`s lack of willingness to accept the same level of market access obligations, as it was concerned that India`s vulnerable sectors would suffer and would not be able to compete with more advanced and efficient producers in other RCEP countries, such as China, Australia and New Zealand. India also expressed concern about the threat of circumvention of rules of origin due to tariff differences between the RCEP parties and said this could lead to a large influx of agricultural and industrial imports and exacerbate India`s large and growing trade deficit with China. The fourth round of negotiations will focus on areas that go beyond traditional tariff concessions in order to deepen cooperation and integration in policy

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