realizing the afta strategies and plans among the asean countries
DESCRIPTION
In Singapore, January 1992, the ASEAN Leaders agreed to establish the ASEAN Free Trade Area (AFTA) within 15 years.TRANSCRIPT
Group 7
1. Khansa Chetisa P. (14080694030)2. Ferry Abdillah H.(14080694074)3. Dwi Puspita A. (14080694086)4. Hendra Singgih P. (14080694102)
Realizing the AFTA Strategies and Plans among
the ASEAN Countries: Impact on Procurement in
the Region
In Singapore, January 1992, the ASEAN Leaders agreed to establish the ASEAN Free Trade Area (AFTA) within 15 years
The factors led to the decision to create AFTA :
1. The emergence of new competitors for foreign direct investments like China, India, and Vietnam.
2. The Uruguay Round of Multilateral Trade Negotiations that seemed to be on the verge of collapsing at that time.
3. The rising trend towards regionalization which threatened to fragment the global economy.
AFTA’s Main Purpose :
1. Increase ASEAN’s competitive edge as a production base geared for the world market.
2. To be the vehicle to further enhance the competitiveness of ASEAN Member Countries.
3. Facilitate their integration into the global market for trade and investment.
AFTA’s Opportunities :• For consumers : 1. consumers are offered more choices, broader
range of better quality products are made available in the market.
2. purchasing power increases.3. the cost of living is substantially reduced.
AFTA’s Opportunities :AFTA is also spurs economic growth bya. increasing tradeb. creating jobsc. increasing income.
Contribution of AFTA
AFTA has also contributed in the expansion of ASEAN’s trade, both within and outside the region.Statistics show that, over the last ten years, total ASEAN trade increased by64.3%, from US$ 429.9 billion in 1993 to US$ 706.7 billion in 2002 Intra-ASEAN trade grew even faster by 93.6%, from US$ 82.4 billion to US$ 159.5 billion, during the same period.
The Conclusion
ASEAN, despite the diversity among its members, had withstood and continue to withstand the challenges – both global and regional – because they share one common vision and cohesively they move towards this vision.Soon it would not just be AFTA, the ASEAN-China FTA and possible FTAs with Japan and India are all waiting.We have to use AFTA as our springboard to penetrate even bigger markets, like China, Japan and India.