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ASEAN TRADE AGREEMENT

ASEAN TRADE AGREEMENT. BBB4M Mr. Briglio Michell, Catherine, Minh. Background. Michell Nguyen. Foundation. Date: August 8, 1967 Place: Bangkok, Thailand Founding Fathers: 5 countries (Indonesia, Malaysia, Philippines, Singapore, and Thailand) Jan. 7, 1984: Brunei

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ASEAN TRADE AGREEMENT

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  1. ASEAN TRADE AGREEMENT BBB4M Mr. Briglio Michell, Catherine, Minh

  2. Background Michell Nguyen

  3. Foundation • Date: August 8, 1967 • Place: Bangkok, Thailand • Founding Fathers: 5 countries (Indonesia, Malaysia, Philippines, Singapore, and Thailand) • Jan. 7, 1984: Brunei • Jul. 28, 1995: Viet Nam • Jul. 23, 1997: Lao, Myanmar • Apr. 30, 1999: Cambodia

  4. General Information • Headquarters: Indonesia • Motto: "One Vision, One Identity, One Community" • Leader: Le Van Luong (General Secretary) • The Secretary-General of ASEAN is appointed by the ASEAN Summit for a non-renewable term of office of five years,

  5. Jan. 28, 1992 Jan. 1, 2015 Jan. 1, 2015 Jan. 1, 2017

  6. Main Objectives Catherine • Economic Growth foreign investment • Business opportunity Increasing business competitiveness in global market by reducing tariffs • Diversity development improve product • Productivity

  7. Advantages & Disadvantages of AFTA Minh Anh Nguyen

  8. BENEFIT OF AFTA: • To Nations in ASEAN: 1) Increased production and efficiency: Chance to just focus on products that have comparative advantages. Businesses/ factories can import cheaper raw materials from other countries which then help reduce their production costs. 2) Employment and Economic growth: Internationalize national economics. 3) Foreign exchange gain.

  9. 4) Large, single market: Help ASEAN countries' products gain access to a stronger and larger market which incorporates many substantial advantages, e.g. a population of more than 580 million, $1.5 trillion gross domestic product, convenient transport systems etc. =>Encourage higher market competition. 5) Increase exportation and attracts foreign invesment. 6) Minimize war between countries in ASEAN.

  10. To consumers: • Cheaper prices and better qualities of goods. • Multiple choices of goods.

  11. Criticism Catherine • Financial crisis rapid expansion cause financial crisis in Vietnam and Combodia • Human rights made a declaration for elimination of violence of women and children on June 30th,2004, but is criticized of lacks of "reliable statistical data • Lack of commitments for deeper economic integration and broader free trade

  12. DRAWBACKS: 1) National products will be hit by higher competition from trade liberalization. • => strong impact on producers/ businesses which then leads to unemployment. 2) Specialization in specific industries leads to the detriment of other sectors.

  13. Negative effect on some sensitive productssuch as products from Agricultural industry: Rice, palm oil, etc.

  14. Benefits to Canada Catherine • Provides opportunities for Canadian business • Peace (Canada is the first country involved in a role as a peacemaker) • Expand global market and political space to become independent (current depends on us market) • Increase of labours (factories in ASEAN countries) • Knowledge (knowledge diplomacy like scholarships relates to international employments and universities)

  15. Benefit to Canada: • Both import and export. • Increase currency flow. • Opportunities: • 1) Export employees, high skilled workers. • 2) Export products, raw material • 3) Import cheaper products • CANADA COUNTRY A COUNTRY B

  16. Quiz Time! • List three member countries of ASEAN • What is AFTA's main objective? • Two benefits to Canada • What need to be improved for AFTA? • Advantages of the trade agreement

  17. Appendix • International, Astore. 14 Apr. 2014. Web. 22 Oct. 2014. • "Indonesia Dalam ASEAN Economic Community (AEC) 2015." IMAGINATIVE. 25 Apr. 2014. Web. 22 Oct. 2014. • "ASEAN Free Trade Agreement: Overview, Trends and Challenges - Canada-ASEAN Business Council." ASEAN Free Trade Agreement: Overview, Trends and Challenges - Canada-ASEAN Business Council. Web. 22 Oct. 2014. • "Asia Times." Asia Times. Web. 23 Oct. 2014. • "Overview." Overview. Web. 23 Oct. 2014. • "ASEAN Is an Open Door for Canada." Web. 23 Oct. 2014. • Mcgee, Joshua. "10 Advantages of Free Trade." Ehow.com. Web. 21 Oct. 2014. <http://www.ehow.com/about_5381660_advantages-trade.html>com (slide 9,10) • "BENEFITS FROM ASEAN FREE TRADE AREA (AFTA) TARIFF CUTS." Business in Asia. Web. 21 Oct. 2014. <http://www.business-in-asia.com/asia_freetrade.html> (Slide 9,10) • Sekerin, Eliah. "The Disadvantages of Free Trade Areas." EHow. Demand Media, 17 July 2010. Web. 20 Oct. 2014. <http://www.ehow.com/list_6742576_disadvantages-trade-areas.html>. (Slide 11,12)

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