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Managing Conflict through Regional Trading Arrangements: The ASEAN Perspective

Explore how ASEAN's trading agreements aim to mitigate Southeast Asia conflicts, focusing on inter-state disputes, intra-state tensions, and the impact of AFTA.

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Managing Conflict through Regional Trading Arrangements: The ASEAN Perspective

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  1. Regional Trading Arrangements (RTAs)& ConflictTHE CASE OF SOUTHEAST ASIA 1. Introduction 2. ASEAN 3. ASEAN Free Trade Area (AFTA) 4. Conclusion ASEAN countries

  2. Regional Trading Arrangements (RTAs) & ConflictTHE CASE OF SOUTHEAST ASIA 1. Introduction * Conventional security threats * Non-traditional security threats * Interstate conflict Military coup in Thailand SARS outbreak

  3. Regional Trading Arrangements (RTAs)& ConflictTHE CASE OF SOUTHEAST ASIA 1.1 Inter-state conflicts * Sovereignty issues * Energy security threats * Refugees influx threat Tsunami victims Illegal Indonesian workers

  4. Regional Trading Arrangements (RTAs)& ConflictTHE CASE OF SOUTHEAST ASIA 1.2 Intra-state conflicts * Separatist movements fueled by income, regional disparity, and religious issues West Papuans riot against Indonesian police - Abu Bakar Bashir – radical Islamic cleric Men from the Jemaah Islamiah Muslim militant group

  5. Regional Trading Arrangements (RTAs) & ConflictTHE CASE OF SOUTHEAST ASIA 1.3 Problem Statement * Southeast Asia’s representative grouping dampens the threat of intra-state conflicts * ASEAN managing conflicts leads to RTAs and more economic cooperation

  6. Regional Trading Arrangements (RTAs)& ConflictTHE CASE OF SOUTHEAST ASIA 2. ASEAN (The Association of Southeast Asian Nations) * Regional grouping in Southeast Asia borne out of political agenda to mitigate potential inter-state conflict * Different and unique from EU and NAFTA ASEAN

  7. Regional Trading Arrangements (RTAs) & ConflictTHE CASE OF SOUTHEAST ASIA * Milestones for ASEAN • 1967 – founded • 1970s to 1980s – economic development achieved by ASEAN member countries through sound macroeconomic policies and market-driven elements, rather than trade and investment cooperation • 1992 – AFTA (ASEAN Free Trade Area) • 2003 – AFTA fully operational, but measured impact was minimal due to ASEAN main trading partners located outside the region and the small margin of preference (MOP)

  8. Regional Trading Arrangements (RTAs)& ConflictTHE CASE OF SOUTHEAST ASIA 3. AFTA (ASEAN Free Trade Area) * First RTA established in 1992 by ASEAN * CEPT (Common Effective Preferential Tariff) to achieve AFTA objectives * CEPT tariff structure is divided into 4 categories: 1. Inclusion List (IL) 2. Temporary Exclusion Lists (TEL) 3. General Exception Lists (GEL) 4. Sensitive Lists (SL)

  9. Regional Trading Arrangements (RTAs) & ConflictTHE CASE OF SOUTHEAST ASIA 3.1 AFTA’s impact on intra-ASEAN trade * Minimal impact due to: 1) ASEAN main trading partners outside the region 2) margin of preference (MOP) is smallbetween AFTA and non-AFTA members 3) offsetting impact of non-tariff barriers by ASEAN members

  10. Regional Trading Arrangements (RTAs) & ConflictTHE CASE OF SOUTHEAST ASIA 3.2 AFTA’s impact on regional peace and security * AFTA structure is designed to allow exceptions without penalty * CEPT (Common Effective Preferential Tariff) is based on lowest common denominator to harmonize common effective tariff and avoid internal strife

  11. Regional Trading Arrangements (RTAs) & ConflictTHE CASE OF SOUTHEAST ASIA 4. Conclusion * AFTA is extended to achieve ASEAN’s 2020 vision through: 1. ASEAN economic community 2. ASEAN security community 3. ASEAN socio-cultural Community * AFTA has contributed indirectly to reducing inter-state conflicts, which is more of resource-pooling, rather than market-pooling Bali Concord II Agreement

  12. Regional Trading Arrangements (RTAs) & ConflictTHE CASE OF SOUTHEAST ASIA 4. Conclusion * Intra-state or domestic conflicts have been much more affected through non-inclusive growth, regional and income disparity, and ethnic and religious issues

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