Atiga (Asean Trade in Goods Agreement) Adalah: Understanding the Trade Agreement
The ASEAN Trade in Goods Agreement, also known as ATIGA, is a free trade agreement between member countries of the Association of Southeast Asian Nations. The agreement was signed in 2009 and came into effect in 2010, aimed at creating a single market and production base by reducing or eliminating tariffs and non-tariff barriers on goods traded between member countries.
This agreement is essential to economic integration within the region, allowing for the free flow of goods in the ASEAN region. At present, ten countries are members of ASEAN, including Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
ATIGA establishes a framework for trade facilitation and seeks to promote economic growth and development in the region by reducing business costs, promoting export-oriented production, and improving the competitiveness of ASEAN countries. Furthermore, the agreement helps to promote regional value chains by encouraging the development of regional supply chains that are more efficient and cost-effective.
One of the central features of ATIGA is the gradual elimination of tariffs between ASEAN member countries. Tariff reductions are being phased in over the course of several years, with the final deadline for eliminating tariffs on all goods set for 2018. This will allow businesses in the region to access new markets, source inputs from lower-cost suppliers, and benefit from economies of scale.
Another key aspect of the agreement is the harmonization of customs procedures, which aims to facilitate the movement of goods across borders by standardizing rules and regulations. The goal of this harmonization is to reduce the time and cost of doing business in the region, making it more attractive for foreign companies to invest in ASEAN countries.
In conclusion, ATIGA is an important agreement for promoting economic integration and growth in Southeast Asia. The agreement`s gradual elimination of tariffs and harmonization of customs procedures will streamline trade between member countries and make the region more competitive globally. As ASEAN continues to develop, ATIGA will undoubtedly play an increasingly significant role in supporting the region`s economic growth.