SDG 8: Decent Work and Economic Growth | SDG 16: Peace, Justice and Strong Institutions
Institutions: Ministry of Finance | Reserve Bank of India
ASEAN has signed the ASEAN Framework Agreement on Competition (AFAC), a landmark pact to harmonise competition law and enforcement among its member states. The agreement is designed to prevent monopolistic practices, curb cartels, and foster cross-border cooperation among competition authorities. It also includes capacity-building measures for countries with weaker regulatory systems. For businesses, AFAC creates more predictable rules across Southeast Asia, while for consumers it promises fairer prices, more choices, and greater innovation. By embedding competition policy into regional integration, ASEAN aims to strengthen transparency, reduce market distortions, and attract investment.
The agreement underscores the role of strong competition rules in ensuring growth benefits smaller firms and consumers, not just dominant players. For India, AFAC is significant as it sets a regional benchmark in market regulation. Since India has close trade and investment ties with ASEAN, the new framework could influence Indiaβs competitiveness and trade policy engagement with the region.
Relevant Question for Policy Stakeholders:
How should India adapt its competition and trade policies to ensure Indian firms remain competitive as ASEAN economies strengthen their regulatory frameworks under AFAC?
Follow the full report here: A Historic Step Towards Fairer Markets Across ASEAN