ASEAN Free Trade Area (AFTA): A Success or Failure: Utilization of Preferential Tariffs and Intra-Regional Trade Effects

Faiz Shaul Hamid, Mohammed

ISBN 10: 6202004509 / ISBN 13: 9786202004503

Published by LAP LAMBERT Academic Publishing, 2017

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Bibliographic Details

• Title: ASEAN Free Trade Area (AFTA): A Success or Failure: Utilization of Preferential Tariffs and Intra-Regional Trade Effects
• Publisher: LAP LAMBERT Academic Publishing
• Publication Date: 2017
• Language: English
• ISBN 10: 6202004509
• ISBN 13: 9786202004503
• Binding: paperback
• Condition: New
• Book Type: book

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Synopsis

ASEAN Free Trade Area (AFTA) was established in 1992 with the main objective of increasing intra-ASEAN trade. Under AFTA, tariff reduction and elimination were introduced through the Common Effective Preferential Tariff (CEPT) and ASEAN Trade in Goods Agreement (ATIGA). As a direct impact of AFTA, the study focuses on the measurement of utilization of preferential tariffs under AFTA and the impact of intra-regional trade from the angle of intra-industry trade and revealed comparative advantage for the three most sensitive industries in ASEAN. A Panel Regression Model is then developed to investigate the determinants of preferential tariff utilization, intra-industry trade and revealed comparative advantage for the three industries. The UR showed that in general, AFTA only benefitted Malaysia’s export to a very low degree and it also implies that AFTA has not directly benefitted Malaysia’s export to ASEAN in total. This is coupled with the nature of competitiveness of ASEAN countries among each other in the same industries that would curb any further positive impact of integration in ASEAN.

About the Author

The author earned his Doctoral Degree studying ASEAN Free Trade Area (AFTA) and its effect to intra-regional trade. His focus of work and experience is in the spheres of international trade and economics, international affairs and economic policies. He has worked at the Ministry of Foreign Affairs, Malaysia, PETRONAS and Bank Negara Malaysia (BNM).