ASEAN Free Trade Area (AFTA) Exploring the Limits

Abstract

This paper examines the recently created ASEAN Free Trade Area (AFTA) to determine its effectiveness as a means of promoting greater economic cooperation within ASEAN and protecting the ASEAN states' trade interests. Reasons given for the formation of AFTA, previous attempts at regional cooperation and the terms of AFTA itself will be examined. The problems faced in implementing the agreement will be considered and the question of the utility of the agreement as a means of promoting the trade interests of the ASEAN states will be addressed. The paper will argue that whilst AFTA serves some useful purposes the overall utility of the agreement is limited as it does not reflect the true boundaries of the economic region in which the ASEAN states operate.