Question 50 from UPSC CSE 2018 - Current Affairs

Question

Consider the following countries:
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the 'free-trade partners' of ASEAN?

IASCODEX · Accepted Answer

Correct Option: C. 1, 3, 4, and 5

Strategy: Start by recalling which listed countries have Free Trade Agreements (FTAs) with ASEAN. Canada and USA have no such distinct free trade pacts, so options with these can be excluded. Australia, China, India, and Japan all have well-known FTA arrangements with ASEAN, matching the countries in option C. Thus, option C is correct.

Key Info: The Association of Southeast Asian Nations (ASEAN) is a regional geopolitical and economic organization comprising ten Southeast Asian states. ASEAN has established several Free Trade Agreements (FTAs) to promote economic integration and expand trade. Major external 'free trade partners' (through collective or bilateral FTAs) of ASEAN include:

- Australia: ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), effective since 2010, is a comprehensive FTA covering goods, services, investment, and economic cooperation.
- China: The ASEAN-China Free Trade Area (ACFTA) was established in 2010, creating a zone featuring tariff reductions and trade facilitation measures between ASEAN member states and China.
- India: The ASEAN-India Free Trade Area (AIFTA) came into force in 2010 for goods, with agreements on services and investment coming later. It covers substantial tariff liberalization.
- Japan: The ASEAN-Japan Comprehensive Economic Partnership (AJCEP), effective from 2008, provides for gradual reduction and elimination of tariffs as well as cooperation on intellectual property, investment, and competition.
- South Korea and New Zealand are additional FTA partners, but not listed in this set. 
- Canada and the USA currently do not have fully implemented FTAs with ASEAN, though negotiations have taken place or are ongoing. The US has engaged economically via other regional formats (like APEC) but not through a comprehensive ASEAN FTA.

ASEAN FTAs aim to foster regional economic integration, enhance trade and investment flows, and raise economic competitiveness. The agreements include several frameworks for trade liberalization, services, investment, and economic cooperation.

IASCODEX · Answer

Option A: 1, 2, 4, and 5

IASCODEX · Answer

Option B: 3, 4, 5, and 6

IASCODEX · Answer

Option D: 2, 3, 4, and 6

Consider the following countries: Australia Canada China India Japan USA Which of the above are among the 'free-trade partners' of ASEAN?

Consider the following countries:

Australia

Canada

China

India

Japan

USA
Which of the above are among the 'free-trade partners' of ASEAN?