8.6: Regional Economic Integration Elsewhere Flashcards
What is the primary objective of the Association of Southeast Asian Nations (ASEAN)?
The basic objective of ASEAN is to foster freer trade among member countries and to achieve cooperation in their industrial policies.
When was ASEAN formed and which countries are included?
ASEAN was formed in 1967 and includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
What is the combined population and GDP of the ASEAN member countries?
The ASEAN member countries have a combined population of 600 million people and a combined GDP of some $2 trillion.
What has been the progress of ASEAN towards trade integration?
Progress in ASEAN towards trade integration has been limited, with efforts like the ASEAN Free Trade Area (AFTA) aiming to reduce tariffs among member countries.
What was the ASEAN Free Trade Area (AFTA) and when did it come into effect?
The AFTA came into effect in 2003 and aimed to cut tariffs on manufacturing and agricultural products among the six original members of ASEAN to less than 5 percent.
Which country in ASEAN refused to lower tariffs on imported cars until 2005 and why?
Malaysia refused to bring down tariffs on imported cars until 2005 to protect Proton, an inefficient local carmaker, from foreign competition.
What exceptions to tariff reductions under the AFTA have some ASEAN countries maintained?
Apart from Malaysia’s exception on cars, the Philippines has refused to lower tariff rates on petrochemicals and rice, the region’s largest agricultural product, which remain subject to higher tariff rates.
What is the significance of ASEAN’s free trade agreement with China?
The free trade agreement with China, effective from January 2010, removes tariffs on 90 percent of traded goods and has more than tripled trade between China and ASEAN members in the first decade of the twenty-first century, which is expected to spur further growth.
When did Vietnam, Laos, Myanmar, and Cambodia join the AFTA?
Vietnam joined the AFTA in 2006, Laos and Myanmar in 2008, and Cambodia in 2010.
What were the tariff reduction goals set by AFTA for the original and new ASEAN members?
The goal was to reduce import tariffs among the six original members to zero by 2010 and to do so by 2015 for the newer members, although important exceptions (such as tariffs on rice) will persist.
