Taiwan Asean Free Trade Agreement
The Taiwan-ASEAN Free Trade Agreement (TAFTA) is a comprehensive trade agreement signed between Taiwan and the Association of Southeast Asian Nations (ASEAN) on July 7, 2010. It is regarded as Taiwan`s most significant trade agreement since joining the World Trade Organization in 2001.
The TAFTA aims to establish a free trade area between Taiwan and the 10 ASEAN member countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) by gradually reducing tariffs and other trade barriers. The agreement covers trade in goods, services, and investment.
One of the main benefits of the TAFTA is the elimination of tariffs on a wide range of goods traded between Taiwan and ASEAN. This has created new opportunities for Taiwanese businesses to expand their market share in ASEAN countries, particularly in industries such as electronics, machinery, and textiles. In return, ASEAN countries have benefited from increased access to Taiwan`s high-tech products and services.
The TAFTA also includes provisions on intellectual property rights protection, e-commerce, and government procurement. It sets out rules and regulations that provide a level playing field for businesses in Taiwan and ASEAN, ensuring fair competition and promoting economic growth.
Furthermore, the agreement has strengthened Taiwan`s economic ties with ASEAN and improved its standing in the international community. By signing the TAFTA, Taiwan has demonstrated its commitment to open and inclusive trade and has shown itself to be a reliable partner in regional economic cooperation.
Since the TAFTA`s implementation in 2013, trade between Taiwan and ASEAN has continued to grow. In 2019, trade volume between Taiwan and the 10 ASEAN member countries reached $108.2 billion, a 70% increase from the pre-TAFTA era. This demonstrates the tangible benefits of the agreement for both sides.
In conclusion, the Taiwan-ASEAN Free Trade Agreement has been instrumental in boosting trade and economic cooperation between Taiwan and ASEAN. The agreement has helped to increase the flow of goods and services between the two regions while promoting fair competition and protecting intellectual property rights. It is a testament to Taiwan`s commitment to open and inclusive trade and its willingness to engage with the international community.