The ASEAN free trade agreement

by Stephen G. Brooks

This paper examines (1) the transformations in the international economy that led to the ASEAN (Association of Southeast Asian Nations) Free Trade Agreement and (2) the factors working in favor and against the agreement's implementation. The underlying motivation for AFTA is examined in terms of being a reaction to the rise of the European Community and the North American Free Trade Agreement, which led to fears of reduced foreign investment, trade diversion, diminished bargaining power in negotiations, and lower international competitiveness. The...