Previous Year Question

At the time of the examination, ASEAN had effective or signed Free Trade Agreements with Australia, China, India and Japan. It did not have an ASEAN-wide FTA with Canada or the United States.

1. Australia — Correct

ASEAN, Australia and New Zealand signed the ASEAN-Australia-New Zealand Free Trade Area Agreement in February 2009, and it entered into force in 2010.

It was ASEAN’s first comprehensive region-to-region agreement covering areas such as goods, services, investment and intellectual property.

2. Canada — Incorrect

In 2018, there was no ASEAN-wide Free Trade Agreement between ASEAN and Canada. They had dialogue and economic-cooperation arrangements, but these did not constitute an FTA.

3. China — Correct

The initial Framework Agreement for the ASEAN-China Free Trade Area was signed in 2002. The agreement on goods became effective in 2005, followed by the services agreement in 2007. It provided for tariff reductions and expanded trade in goods and services.

4. India — Correct

The ASEAN-India Framework Agreement on Comprehensive Economic Cooperation was signed in 2003. Under this framework:

• the ASEAN-India Trade in Goods Agreement was signed in August 2009;

• it entered into force on 1 January 2010; and

• the agreements on services and investment became effective in July 2015.

India was therefore a free-trade partner of ASEAN.

5. Japan — Correct

The ASEAN-Japan Comprehensive Economic Partnership Agreement was signed in 2008. Its framework included trade in goods as well as services, investment and economic cooperation.

6. United States — Incorrect

The United States is a dialogue and strategic partner of ASEAN, but there was no ASEAN-wide FTA with the United States in 2018. Separate trade arrangements between the US and individual ASEAN countries do not constitute an ASEAN-US Free Trade Agreement.

Current position (2026)

ASEAN’s principal effective external trade agreements in 2026 include:

• ASEAN-China FTA

• ASEAN-Korea FTA

• ASEAN-Japan Comprehensive Economic Partnership

• ASEAN-India FTA

• ASEAN-Australia-New Zealand FTA

• ASEAN-Hong Kong, China FTA

• Regional Comprehensive Economic Partnership

RCEP includes ASEAN together with Australia, China, Japan, South Korea and New Zealand. India is not a member of RCEP, but it remains ASEAN’s separate free-trade partner under the ASEAN-India FTA.

ASEAN and Canada launched FTA negotiations in November 2021. As of Canada’s official position in July 2026, the arrangement remained a proposed FTA under negotiation, rather than an FTA in force. ASEAN also has no ASEAN-wide FTA with the United States.

Following Timor-Leste’s admission on 26 October 2025, ASEAN currently has 11 member states.