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?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2018, Q94

Contents13
UPSC Prelims GS2018World Affairs (International Relations)
  1. A1, 2, 4 and 5
  2. B3, 4, 5 and 6
  3. C1, 3, 4 and 5
  4. D2, 3, 4 and 6
Show answer

Answer: (C) 1, 3, 4 and 5

The Association of Southeast Asian Nations (ASEAN) was established in August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration).

Currently, it has 10 member nations which are:

  • Brunei
  • Cambodia
  • Indonesia
  • Laos
  • Malaysia
  • Myanmar
  • the Philippines
  • Singapore
  • Thailand
  • Vietnam.

Option (c) is correct: ASEAN has a total of 6 free trade partners namely:

  • Australia
  • New Zealand
  • South Korea
  • Japan
  • India
  • China.

ASEAN and its 5 free trade partners (excluding India) have entered into a regional trading agreement called the Regional Comprehensive Economic Partnership (RCEP).

The purpose of RCEP was to make it easier for products and services of each of these countries to be available across this region.

India has however chosen to stay out of RCEP.

Why this was asked

ASEAN has formal free trade agreements with only six countries: Australia, New Zealand, China, India, Japan, and South Korea.

Despite being major economies, the USA and Canada do not have free trade agreements with ASEAN, which is the key trap in this question.

The question tests knowledge of specific bilateral economic partnerships rather than general trade relationships or dialogue partnerships.

ASEAN Free Trade Agreements

World Affairs (International Relations) free-trade partners ASEAN Australia China India Japan

ASEAN Free Trade Agreements: Partners & Key Details

Must know

ASEAN has FTAs with 6 major economies: Australia, New Zealand, China, India, Japan, South Korea

USA and Canada do NOT have FTAs with ASEAN

Good to know

AANZFTA covers Australia-New Zealand together with ASEAN

These FTAs form the building blocks for RCEP (Regional Comprehensive Economic Partnership)

ASEAN (Association of Southeast Asian Nations) has built a network of free trade agreements with major Asia-Pacific economies, creating one of the world's largest trading blocs. These agreements eliminate or reduce tariffs and trade barriers between ASEAN's 10 member states and their partner countries.

ASEAN's FTA Partners

Country/Region

Agreement Name

Status

Key Feature

Australia & New Zealand

AANZFTA

✓ Active FTA

Covers goods, services, investment

China

ACFTA

✓ Active FTA

World's largest FTA by population

India

ASEAN-India FTA

✓ Active FTA

Covers goods trade primarily

Japan

AJCEP

✓ Active FTA

Comprehensive Economic Partnership

South Korea

AKFTA

✓ Active FTA

Includes services and investment

USA

No FTA

✗ No Agreement

Only strategic partnership

Canada

No FTA

✗ No Agreement

Limited trade cooperation

The 2018 PYQ tested this exact knowledge — which countries from the given list are ASEAN's FTA partners. The trap was including USA and Canada, which have strategic partnerships but no formal FTAs with ASEAN.

Strategic Context

ASEAN+3 refers to ASEAN plus China, Japan, South Korea

ASEAN+6 includes the above plus Australia, New Zealand, India

These FTAs became the foundation for RCEP negotiations (signed in 2020)

USA's absence from ASEAN FTAs reflects its preference for bilateral deals over multilateral trade agreements

Exam traps

Trap: USA and Canada are major economies but have NO FTAs with ASEAN

Trap: Don't confuse strategic partnerships with free trade agreements

Trap: Australia comes with New Zealand together in AANZFTA, not separately

Confusion: ASEAN+3 vs ASEAN+6 — know which countries belong to each grouping

ASEAN Organization & Members

World Affairs (International Relations) ASEAN

ASEAN: Organization Structure & Economic Integration

Must know

ASEAN has 10 member countries in Southeast Asia

ASEAN Economic Community (AEC) launched in 2015 for deeper integration

Good to know

Founded in 1967 with Bangkok Declaration by 5 founding members

Operates on consensus-based decision making called the 'ASEAN Way'

ASEAN Member Countries

Country

Joined

Capital

Economic Status

Thailand

1967 (Founding)

Bangkok

Upper middle income

Malaysia

1967 (Founding)

Kuala Lumpur

Upper middle income

Singapore

1967 (Founding)

Singapore

High income

Indonesia

1967 (Founding)

Jakarta

Upper middle income

Philippines

1967 (Founding)

Manila

Lower middle income

Brunei

1984

Bandar Seri Begawan

High income

Vietnam

1995

Hanoi

Lower middle income

Laos

1997

Vientiane

Lower middle income

Myanmar

1997

Naypyidaw

Lower middle income

Cambodia

1999

Phnom Penh

Lower middle income

ASEAN's Three Pillars

# ASEAN Community
## Political-Security
- Democratic governance
- Conflict prevention
- Counter-terrorism
- Maritime security
## Economic Community
- Free trade area
- Single market
- Production base
- Investment hub
## Socio-Cultural
- Human development
- Social welfare
- Environmental protection
- Cultural identity
ASEAN's 10 members span mainland and maritime Southeast Asia, creating a market of 650+ million people
ASEAN's 10 members span mainland and maritime Southeast Asia, creating a market of 650+ million people

Source: Nations Online — Map of South-East Asia - Nations Online Project · www.nationsonline.org

India-ASEAN Strategic Partnership

World Affairs (International Relations) India

India-ASEAN Relations: From Look East to Act East

Must know

India became ASEAN's dialogue partner in 1996 under Look East Policy

India-ASEAN FTA in goods came into force in 2010

Act East Policy (2014) upgraded engagement from economic to strategic

Good to know

India opted out of RCEP in 2019 citing trade deficit concerns

Evolution of India-ASEAN Ties

%%{init: {"flowchart": {"wrappingWidth": 460}}}%%
flowchart TD
  s1["`**1996: Dialogue Partner**
India joins ASEAN Regional Forum, begins **Look East Policy**`"]
  s2["`**2002: Summit-Level Partnership**
Annual India-ASEAN summits begin, **Comprehensive Partnership** established`"]
  s3["`**2010: FTA in Goods**
**India-ASEAN Trade in Goods Agreement** implemented`"]
  s4["`**2014: Strategic Partnership**
**Act East Policy** launched, deeper defense and connectivity focus`"]
  s5["`**2019: RCEP Exit**
India withdraws from RCEP negotiations over trade concerns`"]
  s1 --> s2
  s2 --> s3
  s3 --> s4
  s4 --> s5

Key India-ASEAN Agreements

Agreement

Year

Scope

Status

Trade in Goods Agreement

2010

Tariff reduction on 80% goods

Operational

Services & Investment Agreement

2015

Market access in services

Operational

Connectivity Action Plan

2016

Physical & digital connectivity

Under implementation

Maritime Transport Agreement

2018

Shipping and port cooperation

Operational

Strategic Significance

Trade Volume: India-ASEAN trade reached $87 billion in 2021-22

Connectivity: India building trilateral highway through Myanmar to ASEAN

Defense: Joint naval exercises like SIMBEX (Singapore) and cooperation on maritime security

Counter-China: ASEAN partnership crucial for India's Indo-Pacific strategy and Quad alignment

RCEP & Asia-Pacific Trade Blocs

World Affairs (International Relations)

RCEP vs Other Asia-Pacific Trade Agreements

Must know

RCEP signed in 2020, world's largest trade bloc by GDP

Includes ASEAN + 5 partners (China, Japan, South Korea, Australia, New Zealand)

India opted out of RCEP in 2019, USA not part of any mega-regional FTA in Asia

Good to know

CPTPP is the alternative bloc led by Japan after US withdrew from TPP

Major Asia-Pacific Trade Agreements

Agreement

Members

Key Players

India's Status

US Status

RCEP

15 countries

China, Japan, ASEAN

Opted out (2019)

Not member

CPTPP

11 countries

Japan, Australia, Canada

Not member

Withdrew (2017)

ASEAN+1 FTAs

Various bilateral

ASEAN + individual partners

Member (with ASEAN)

Not member

APEC

21 economies

US, China, Japan

Member

Founding member

Asia-Pacific Trade Architecture

# Asia-Pacific Trade
## RCEP Bloc
- ASEAN 10
- China
- Japan
- South Korea
- Australia
- New Zealand
## CPTPP Bloc
- Japan
- Australia
- Canada
- Vietnam
- Singapore
- Malaysia
## Outside Mega-FTAs
- India
- USA
- Thailand
- Indonesia
## Bilateral FTAs
- US-Korea
- India-ASEAN
- Japan-India
- Australia-India
Exam traps

Trap: India is NOT in RCEP despite being part of ASEAN+6 framework originally

Trap: USA has NO mega-regional FTA in Asia-Pacific after withdrawing from TPP

Confusion: RCEP vs CPTPP — different membership, China in RCEP but not CPTPP

Date confusion: RCEP signed 2020, came into force 2022 — don't mix up the years