ASEAN-Economic And Functional Cooperation

ASEAN-Economic And Functional Cooperation 

When ASEAN was established trade among the member countries was insignificant.  Estimates between 1967 and the early 1970 showed that the share of intra-ASEAN trade from the total trade of the member countries was between 12 and 15 percent.  Thus some of the earliest economic cooperation schemes of ASEAN were aimed at addressing this situation.  One of the these was the preferential trading arrangement of 1977.  Which accorded tariff preferences for trade among ASEAN economic.  Ten years later, an enhanced PTA programmer was adopted at the third ASEAN summit in Manila further increasing intra ASEAN trade.

ASEAN and AFTA 

The framework agreement on enhancing economic cooperation was adopted at the fourth ASEAN summit in Singapore in 1992, which included the launching of a scheme toward an ASEAN free trade area or AFTA.  The strategic objective of AFTA is to increase the ASEAN region competitive advantage a single production unit.  The elimination of tariff and non tariff barriers among the member countries is expected to promote greater economic efficiency, productivity and competitiveness.  The fifth ASEAN summit held in Bangkok in 1995 adopted the agenda for greater economic integration  which included the acceleration of the timetable for the realization of AFTA from the original 15-year time frame to 10 years.