The foundation of the AEC is the ASEAN Free Trade Area (AFTA),
Is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries The primary goals of AFTA seek to:
Increase ASEAN's competitive edge as a production base in the world market through the elimination, within ASEAN, of tariffs and non-tariff barriers; and *
Attract more foreign direct investment to ASEAN.
AEC is one of the three pillars of the ASEAN Community. The other two pillars are the ASEAN Political- Security Community and the ASEAN Socio-Cultural Community. These components will one day help realize the grand vision of an integrated and united ASEAN Community, like the European Union
The objective of the ASEAN Economic Community (AEC) is to transform ASEAN into a region with free movement of goods, services, investment, skilled labour, and freer flow of capital. The AEC envisages a single market and production base making ASEAN more dynamic and competitive with new mechanisms and measures to strengthen the implementation of its existing economic initiatives; accelerating regional integration in the priority sectors; facilitating movement of business persons, skilled labour and talents; and strengthening the institutional mechanisms of ASEAN.
four important aspects of the AEC which
(1) becoming a single market and production base,
(2) enhancing regional economic competitiveness,
(3) building equitable economic development, and
(4) integration into the global economy.
The success of the integration process will be assessed by its outputs and outcomes, for instance, whether trade liberalization and tariﬀ reduction have helped bridge price gaps...
Please join StudyMode to read the full document