ASEAN FREE TRADE AREA (AFTA)
WEEK 4: ASEAN Free Trade Area (AFTA) INTRODUCTION OF AFTA After 25 years of the establishment of ASEAN, the formation of ASEAN Free Trade Area (AFTA) was formed in Singapore through ASEAN Summit 1992. Formation of AFTA as a reaction to other emerging regional groupings, which is North American Free Trade Area (NAFTA) and the development of the European Union (EU). The goal of AFTA is to create a single market and an international manufacturing base, as well as to attract foreign direct investment and promote intra-ASEAN trade and investment. ASEAN Free Trade Area is one of the drastic decisions made by ASEAN countries to develop theirs economic because at that time there is no movement of shifting positively in term of their economic development. Through the Agreement on the Common Preferential Tariff (CEPT), the aims of ASEAN Free Trade Area (AFTA) which is eliminate the tariff barriers can be achieved. The ASEAN members that involve in AFTA only impose maximum 5% tax and tariff...