06 Jul, 2022
Regional Trade Agreements Adalah
Posted by: Hector Danilo Pompa Dominique In: Uncategorized
Regional trade agreements, or RTAs, are arrangements between two or more countries in a particular region to reduce barriers to trade and enhance economic cooperation. They are an important tool for promoting regional integration, facilitating economic growth, and creating jobs.
One such RTA is the ASEAN Free Trade Area (AFTA), which was established in 1992 by the Association of Southeast Asian Nations (ASEAN) countries. Through AFTA, ASEAN member states have eliminated tariffs and non-tariff barriers on goods traded among themselves, leading to increased trade and investment flows.
In addition to AFTA, there are several other RTAs in Asia, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes 11 countries including Japan, Canada, and Australia. This agreement aims to reduce tariffs and promote economic integration among its members.
Another notable RTA in Asia is the Regional Comprehensive Economic Partnership (RCEP), which was signed in November 2020 by ASEAN member states, China, Japan, South Korea, Australia, and New Zealand. The RCEP is one of the largest trade agreements in the world, covering a population of over 2 billion people and accounting for around 30% of global GDP. The agreement aims to reduce tariffs and non-tariff barriers on goods and services among its members, as well as promoting investment and intellectual property rights.
RTAs are not without their challenges, however. Critics argue that RTAs can lead to trade diversion, where countries shift their trade from non-member countries to member countries to take advantage of lower tariffs. Additionally, RTAs can lead to political tensions between member and non-member countries, as well as creating regulatory complexity for businesses.
Despite these challenges, RTAs continue to play an important role in promoting regional integration and economic growth. As global trade becomes increasingly competitive, regional cooperation may become even more important for countries looking to expand their markets and sustain economic growth.
