Global Business Issues

QUESTION 9 : HOW FORMATION OF AFTA WOULD SERVE TO FURTHER STIMULATE AND NEUTRALIZE TRADE IN ASIAN REGION? AFTA’S IMPACT ON MALAYSIAN BUSINESSES.

FORMATION OF AFTA

AFTA was signed to lower trade barriers and increase cross border trade. The AFTA agreement was signed on 28  January, 1992 in Singapore..When the AFTA agreement was originally signer, ASEAN had 10 members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore And Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997, and Cambodia in 1999.AFTA now comprise ten countries ten countries of  ASEAN. All four latecomers were required to sign the AFTA agreement in order to join ASEAN , but were given longer time to meet AFTA’s tariffing reduction obligation. The primary goal of  AFTA seek:

to Increase ASEAN’s competitive in production and service base the world market through the elimination which mean that ASEAN not depend on world Market. It’s not mean that ASEAN is Isolated from another countries

and other Union but it’s mean that ASEAN start to bring themselves an strong economics to their region and start to develop with peace prosperity. ASEAN Free Trade Area will start in 2015 and will expand to all nations in ASEAN community. With one condition that brings to these nations are allowed the small nation-state to specify in one product to export in ASEAN.

2. AFFECT OF THE ASEAN FREE-TRADE AREA

The ASEAN Free Trade Area (AFTA) has a strong affected on the Nation in the Association of Asian Nation. In addition An ASEAN Nation always welcome with the successful economics system, But not a risk Economics. Through the motto of ASEAN-Phnom Penh Agenda is “One Community, One Destiny”. ASEAN need to provide and encourage all Nation to have a good condition and specified in the goods that they want to export. The risk in the future is the problem, so that’s the most attracted agenda in the ASEAN summit. The resolution of those problems is find out the measure and make balance between nation...