ASEAN national authorities are also traditionally reluctant to share or cede sovereignty to the authorities of other ASEAN members (although ASEAN trade ministries regularly conduct cross-border visits to conduct on-site checks as part of anti-dumping investigations). Unlike the EU or NAFTA, joint teams to ensure compliance and control of violations have not been widely used. Instead, ASEAN national authorities must rely on the verification and analysis of other ASEAN national authorities to determine whether AFTA`s measures, such as the rule of origin, are being complied with. Differences of opinion may arise between national authorities. Again, the ASEAN secretariat can help resolve a dispute, but it has no right to resolve it. It is a web-based RFX management tool that allows data-controlled sourcing events. If you already have an ERP, you can use stand-alone enhancements, but integration is a common problem, a whole pay-as-you-go suite with advanced features – configurable, easy to use and programmable to host scalable sourcing events for simple and complex categories – is always highly recommended. This maintains quality in all asian productions compared to Europe and other well-developed countries. An intergovernmental agreement signed by ASEAN (Association of South Asian Nations: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) on 28 January 1992 in Singapore. The AFTA intends, under the common preferential tariff regime, to increase the value of the region as a production base for the global market. These two agreements have a collective impact by making ASEAN the strategic hub of global sourcing and manufacturing. With a base of 150 million consumers of the middle class aSEAN, this market, which was then coupled with the 250 million from China and India, represents a middle-class consumer market, with a total free trade of about 650 million people – today.
By 2030, in the face of Asia`s growing prosperity and growing dynamism, about 64% of the world`s middle class will be established in Asia, representing 40% of the total global consumption of the middle class. The manufacturing trend is therefore to continue to develop products for this huge consumer market, but to place the production capacity needed for this purpose on a cheaper site. The ASEAN Free Trade Agreement with China allows regional companies and MNN in Asia to do so. This is a trend that is already underway – as we are seeing with Foxconn, the manufacturer of many components that end up in Apple products, who want to relocate their 1.3 million workers from China and Indonesia, where wages are lower and where there is a large and available workforce. This is a solid strategy that is increasingly being adopted by many manufacturers. For international companies, the possibility of obtaining ASEAN status and the benefits of the free trade agreement that the region has is simple: all that is needed is for the foreign investor to set up a subsidiary in one of the ASEAN countries. It is just a geographical qualification. To this end, and as the region – and the countries of China and India – is immense, Singapore has become an Asian regional hub to reach ASEAN and beyond, and provide subsidiaries throughout the region to management, finance and other support services. Other ASEAN agreements are being negotiated, including with Japan, which already has a number of important economic partnerships, while South Korea already has a free trade agreement.