ASEAN-Japan Comprehensive Economic Partnership

A comprehensive free trade agreement (FTA) between Japan and the 10-member ASEAN will enter into force on December 1, Japan's Foreign Ministry said Tuesday.

Japan will notify the Association of Southeast Asian Nations (ASEAN) of the completion of its ratification of the ASEAN-Japan Comprehensive Economic Partnership Agreement, Japan's first FTA with a regional bloc, Kyodo news reported.

The accord between Japan and ASEAN is not only an FTA for goods but also covers services and investment.

It will enable Japanese companies that are expanding their markets in Southeast Asia to reduce trade costs, particularly the electronics and automobile manufacturers will benefit as parts from various countries in the region can be assembled without tariffs being levied.

Japan will repeal tariffs on 93 percent of imports from ASEAN by value within 10 years of the deal taking effect.

Meanwhile, six ASEAN members including Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand will eliminate tariffs on 90 percent of imports from Japan such as automobiles within 10 years.

A more gradual tariff elimination table has been set for the remaining four ASEAN members of Cambodia, Myanmar, Laos and Vietnam.

The deal with ASEAN, signed in April, is Japan's eighth FTA following the bilateral agreements with Singapore, Mexico, Malaysia, Chile, Thailand, Indonesia and Brunei.