ASEAN Free Trade Area (AFTA) Quiz

AFTA Mechanisms and Goals

• Increased trade within the ASEAN Free Trade Area (AFTA) is primarily achieved through tariff reductions and the elimination of non-tariff barriers.
• The initial tariff reduction target is to eliminate tariffs on goods originating in ASEAN countries within five years.

NAFTA Overview

• The North American Free Trade Agreement (NAFTA) was officially ratified and became effective on January 1, 1994.

European Community Single Market

• The primary goal of the Single Market within the European Community is to ensure the free movement of goods, services, capital, and people among member states.

Regional Integration

• The European Union (EU) has progressed beyond the Common Market to achieve deep integration of both market and non-market systems, enabling cooperation in areas like policy and governance.

Risks of Regional Blocs

• A potential danger associated with regional trade blocs is the creation of trade diversion, which can distort global trade patterns and undermine multilateral trade agreements.

Emergence of Regional Blocs

• The emergence of regional blocs in the international economy has been driven by globalization, economic interdependence, and the desire for enhanced trade competitiveness among member nations.

AFTA Framework Additional Goals

• In addition to reducing tariffs, the AFTA framework agreement outlines goals such as improving investment flows, enhancing cooperation in economic policies, and facilitating trade in services and other sectors.