The ASEAN Trade in Goods Agreement, or ATIGA, is an economic agreement signed by the Association of Southeast Asian Nations (ASEAN) countries in 2009. This agreement aims to promote trade and investment within the region, and to make ASEAN more competitive in the global marketplace.
While the agreement covers a variety of areas, including customs procedures, rules of origin, and trade facilitation, one of its main focuses is on reducing and eliminating tariffs on goods traded between ASEAN member states. This is intended to make it easier and cheaper for businesses to trade across borders, and to encourage greater intra-regional trade.
One of the key benefits of ATIGA is that it creates a level playing field for businesses operating in ASEAN. Previously, different member states had their own tariff rates for different goods, which could create barriers to trade and give some businesses an unfair advantage. With ATIGA in place, all member states now have the same tariffs for the same goods, making it easier and fairer for businesses to compete.
Another benefit of ATIGA is that it makes ASEAN more attractive to investors. By reducing tariffs and other trade barriers, ATIGA creates a more business-friendly environment within the region. This, in turn, can help to attract more foreign investment, which can lead to increased economic growth and job creation.
Overall, the scope of ATIGA is significant. By promoting trade and investment within the region, it has the potential to boost economic growth, create jobs, and improve living standards across ASEAN. While there are still challenges to be faced, such as non-tariff barriers and infrastructure issues, ATIGA represents an important step forward for ASEAN`s economic integration and competitiveness in the global marketplace.