Additional case study: The growth of free trade in Asia
At the start of 2010 a new free trade area was established incorporating China and the six
founding members of the Association of South East Asian Nations (ASEAN). These
countries are Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand. The aim
is to eliminate 90% of imported goods. This deal created the largest trade area in the
world, with nearly 1.9bn people. Although there are undoubted gains there have also been
warnings from South East Asia that some industries are not ready to compete with China
and that jobs will be lost.
Questions
1.
What is a free trade area?
2.
Outline the potential advantages and disadvantages of joining this area for the
member countries.
3.
What factors determine the extent to which industries within a country gain or lose?
Answers
Answer:
ASEAN Free Trade Area
Language
Download PDF
Watch
Edit
Learn more
This article needs additional citations for verification.
The ASEAN Free Trade Area (AFTA)[1] is a trade bloc agreement by the Association of Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and facilitating economic integration with regional and international allies.[2][3][4] It stands as one of the largest and most important free trade areas (FTA) in the world, and together with its network of dialogue partners, drove some of the world's largest multilateral forums and blocs, including Asia-Pacific Economic Cooperation, East Asia Summit and Regional Comprehensive Economic Partnership.[5][6][7][8][9][10]
The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises the ten countries of ASEAN. All the four latecomers were required to sign the AFTA agreement to join ASEAN, but were given longer time frames in which to meet AFTA's tariff reduction obligations.
Answer:
yes upper answer is right