The static economic benefits of Vietnam's accession to the ASEAN Free Trade Area (AFTA) are likely to be relatively small. The gains from increased access to ASEAN markets would be small, and they would be offset by the costs of trade diversion on the import side. But binding commitments on protection rates under the AFTA plan could provide an important stepping stone to more beneficial broader liberalization.
Against the backdrop of significant developments in regional economic cooperation and integration over the past decade, this book presents some of the key challenges facing ASEAN as it embarks on a bold and ambitious project to establish an ASEAN Economic Community by 2015. Organized under the auspices of the ASEAN-Australia Development Cooperation Program's Regional Economic Policy Support Facility, the book brings together authoritative studies written by prominent experts and academics on issues pertaining to ASEAN economic integration.
The Association of Southeast Asian Nations (ASEAN) is strategically significant because of its size, dynamism, and role in the Asian economic and security architectures. This paper examines how ASEAN seeks to strengthen these assets through "centrality" in intraregional and external policy decisions. It recommends a two-speed approach toward centrality in order to maximize regional incomes and benefit all member economies: first, selective engagement by ASEAN members in productive external partnerships and, second, vigorous policies to share gains across the region. This strategy has solid underpinnings in the Kemp-Wan theorem on trade agreements. It would warrant, for example, a Trans-Pacific Partnership (TPP) agreement with incomplete ASEAN membership, complemented with policies to extend gains across the region. The United States could support this framework by pursuing deep relations with some ASEAN members, while broadly assisting the region's development.
Seminar paper from the year 2006 in the subject Politics - International Politics - Topic: International Organisations, grade: 1,3, King s College London, course: The Business Environment in the Asia-Pacific, 15 entries in the bibliography, language: English, abstract: This book analyses and evaluates the question, in how far the creation of the Asian Free Trade Area (AFTA) brought economic benefits to the ASEAN country Vietnam. To evaluate this question the impacts of AFTA on Vietnam's trade and their foreign direct investment (FDI) are evaluated and in a further step the question analysed in how far AFTA can affect the government income revenues of Vietnam. For the analysis of AFTA's impact on Vietnams' trade, the trade structure of Vietnam will be analysed. In general it can be said that for Vietnam the accession to AFTA is a very important step in their transition process to a more market economy. Furthermore it is a major step in Vietnams' integration in the world economy. Especially the access of Vietnamese firms to a huge market such as ASEAN seems to be very advantageous. In the case of foreign direct investments, the question is if AFTA is seen by foreign firms and investors as a positive factor which would lead to investments in Vietnam or if it does not change the situation or if it has even a negative impact on the FDI due to the reason that the industries are not protected anymore by the tariffs and quotas. A further question to analyse is the origin of the FDI, this means if the major part comes from the ASEAN countries or if it has also any effects on other countries. This book primarily targets researchers and readers interested in organisations and the Vietnamese economy.
East Asia is the region of the world that is changing fastest in terms of trade arrangements. Dozens of free-trade agreements are signed every year, turning a complex situation into the East Asian noodle bowl of FTAs. This book addresses the crucial question posed by these new agreements how do they affect business? While many studies have focused on government-to-government issues, this book gets to the heart of the matter, studying what it means for the firms actually doing the trade and investment. I recommend this book to any serious student of trade, particularly those interested in understanding the rapidly evolving landscape in this most dynamic part of the world. Richard Baldwin, Professor of International Economics, Graduate Institute, Geneva, Switzerland The pursuit of more than one hundred Free Trade Agreements in East Asia is quietly producing a fundamental change in the global economic architecture. This path-breaking new volume provides an indispensable guide to the practical effect of such agreements on commercial transactions in the region. It is a must-read for businessmen and policymakers who seek to both understand the impact of FTAs in the real world and expand their contributions to economic growth and development. C. Fred Bergsten, Director, Peterson Institute for International Economics, US [East Asia] needs to think about appropriate measures to overcome the Asian FTA noodle bowl in the future. In this vein, the study suggests several practical measures including encouraging rationalization and flexibility of rules of origin, upgrading origin administration, improving business participation in FTA consultations, and strengthening institutional support systems for SMEs. . . It is hoped that this study will contribute to strengthening regional trade policies in Asia and compatibilities with global trade rules. Haruhiko Kuroda, President, Asian Development Bank This is a valuable contribution in a crowded field. Kawai and Wignaraja have gone beyond familiar arguments about the relative merits of regionalism and multilateralism to ask businesses what it all means to them. Policymakers should take note. Patrick Low, Chief Economist, WTO For policymakers in the region, the debate is no longer between regionalism and multilateralism. The real question is how we should create the model for regionalism that will become the building blocks to a multilateral trading system and avoid raising costs of doing business from the noodle bowl effect. Therefore the comparative and micro-level research found in this book provides valuable insights on the impact of FTAs on businesses. These insights will be relevant input as policymakers forge ahead in implementing regional FTAs, thinking of ways to amend and improve on them and, most importantly, harmonize or consolidate between existing regional FTAs in East Asia. Mari Pangestu, Minister of Trade, Indonesia The spread of Asia s free trade agreements (FTAs) has sparked an important debate on the impact of such agreements on business activity. This pioneering study uses new evidence from surveys of East Asian exporters including Japan, the People s Republic of China, the Republic of Korea and three ASEAN economies of the Philippines, Singapore and Thailand to shed light on the FTA debate. Critics are concerned that FTAs erode the multilateral trading process and foster an alarming noodle bowl of overlapping regulations and rules of origin requirements which may be costly to business. Asia s Free Trade Agreements makes key recommendations for improving business use of FTA preferences, reducing costs of FTAs and creating a region-wide FTA. This well-researched and documented book will appeal to undergraduate and postgraduate students in international business, international economics, economic development, public administration and public policy. Academics, researchers and members of think-tanks around the world will also benefit from this book as will trad
Verico discusses the ASEAN economic integration from dual perspectives of time span (trade, investment and finance) and framework (bilateral, sub-regional, regional and regional plus). The work is a comprehensive study of the integration in the wake of the ASEAN Economic Community (AEC)’s inauguration in late 2015. Examining various economic agreement levels from the ASEAN Free Trade Area (AFTA), Bilateral Free Trade Agreement (BFTA) and the AEC to financial integration in ASEAN, Verico attempts to envisage the future of ASEAN in completing its regional economic integration from trade to investment and finance. Verico argues that, in the absence of a customs union, ASEAN must utilize the open-regionalism frameworks of the ASEAN Plus One, ASEAN Plus Three, Regional Comprehensive Economic Partnership and others in order to shift its economic integration level in this way.
The ASEAN free trade area (AFTA) was created in 1992. This book presents an overview of the mechanisms of AFTA as well as individual country reports of the costs and benefits of membership. The final chapter looks at the potential impact on economic growth.
