“The conclusion of the RCEP negotiations, the world`s largest free trade agreement, will send a strong message that will confirm ASEAN`s leading role in supporting the multilateral trading system, creating a new trade structure in the region, facilitating sustainable trade, reviving supply chains disrupted by COVID-19 and supporting post-pandemic recovery” Mr. Phuc said. In the longer term, Li called the agreement a “victory for multilateralism and free trade.” The CEPT only applies to products originating in ASEAN. The general rule is that the local content of ASEAN must be at least 40% of the FOB value of the treat. The local content of ASEAN can be cumulative, i.e. the value of contributions from different ASEAN members can be combined to meet the 40% requirement. The formula is as follows: in addition to trade negotiations with the various ASEAN Member States, the EU works closely with the entire ASEAN region. Cooperation between the two regions is framed by a semi-annual ASEAN-EU trade and investment programme, which relates to the following activities: ASEAN, the Association of Southeast Asian Nations, is gaining importance as a trading bloc and has become the third largest in the world after the European Union and the North American Free Trade Agreement. It includes the Asian Tigers of Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam (ASEAN 6) with smaller players such as Brunei, Cambodia, Laos and Myanmar, with a total GDP of $2.31 trillion (2012) and hosts about 600 million people. 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.
An international agreement entitled: Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), signed on 27 February 2009 in Cha-am, Phetchaburi, Thailand, has created a free trade area between ASEAN countries, Australia and New Zealand.  Read more APEC Summit: Free Trade in Asia in the Age of Protectionism ASEAN leaders have said they still intend to expand trade with India and that the door remains open in New Delhi to join the bloc. ASEAN has concluded a number of free trade agreements with other Asian countries that are radically changing the global public procurement and production landscape.