The ATIGA agreement, or the ASEAN Trade in Goods Agreement, is a trade agreement signed by the ten member states of the Association of Southeast Asian Nations (ASEAN). It aims to create a single market and production base by eliminating tariffs and non-tariff barriers among member countries. The ATIGA agreement covers trade in goods, customs procedures, sanitary and phytosanitary measures, and trade remedies.
The ten member states of ASEAN are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. These countries have a combined population of over 640 million people and a GDP of over $2.8 trillion.
The ATIGA agreement was signed in 2009 and came into force in 2010. It replaced the ASEAN Free Trade Area (AFTA) agreement, which had been in place since 1992. The ATIGA agreement is a more comprehensive and ambitious agreement than the AFTA agreement, as it covers many areas beyond just trade in goods.
One of the main objectives of the ATIGA agreement is to increase intra-ASEAN trade. Intra-ASEAN trade has been growing steadily over the years, and the ATIGA agreement aims to accelerate this growth by eliminating tariffs and non-tariff barriers on trade in goods.
Under the ATIGA agreement, member states are required to eliminate tariffs on at least 90% of their goods traded with other member states. The remaining 10% of goods are deemed sensitive and are subject to a longer tariff elimination period.
In addition to eliminating tariffs on trade in goods, the ATIGA agreement also aims to streamline customs procedures among member states. This will help reduce the time and costs associated with importing and exporting goods within the region.
Another important aspect of the ATIGA agreement is the harmonization of sanitary and phytosanitary measures (SPS). SPS measures are regulations aimed at protecting human, animal, or plant health from risks associated with the trade of goods. The ATIGA agreement aims to harmonize these measures among member states, which will help facilitate trade in agricultural products and other goods that are subject to SPS measures.
Overall, the ATIGA agreement represents a significant step forward in the economic integration of ASEAN member states. By eliminating tariffs and non-tariff barriers on trade in goods, streamlining customs procedures, and harmonizing SPS measures, the agreement is helping to create a more seamless and efficient regional market.