AFTA: The Way Ahead
Pearl Imada · Seiji Naya
Jan 1992 · Institute of Southeast Asian
I-Ebook
142
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The formation of the ASEAN Free Trade Area (AFTA), agreed upon at the Fourth ASEAN Summit in January 1992, reflects both developments within ASEAN and the changing international economic and political environment. Rapid industrialization in all the ASEAN countries has given rise to greater intra-ASEAN trade. Such trade has also become more complementary than competitive. In the international sphere, the emergence of regional trading blocs such as the Single European Market (SEM) and the recently concluded North American Free Trade Agreement (NAFTA) have also had a major impact on ASEAN's perceptions of a global trading system. Fears of trade and investment diversion, coupled with increasing competition for foreign direct investments, have forced ASEAN to forge closer economic ties amongst its members. This timely volume focuses on the issues concerning the practical aspects of implementation of AFTA, and the ways and means of bringing AFTA to fruition within the 15 year frame. In addition, broader global and regional issues are analysed to provide a more comprehensive discussion of the prospects and problems of AFTA.
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• Pearl Imada Iboshi is Chief Economist with the Department of Business, Economic Development, and Tourism, State of Hawaii. She was a Fellow at the East West Center from 1983 to January 1995. She has written numerous articles on ASEAN economic cooperation, APEC, and trade and investment issues in Southeast Asia
• Seiji F. Naya is Distinguished Visiting Senior Fellow at the East-West Center, and Professor Emeritus, University of Hawaii at Manoa
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