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The Prospects of the ASEAN–China Free Trade Area (ACFTA): A Qualitative Overview

Donghyun Park ()

Journal of the Asia Pacific Economy, 2007, vol. 12, issue 4, 485-503

Abstract: ASEAN and China are economic partners as well as economic competitors. A widely proposed means of strengthening the economic partnership is to form a free trade area between the two. Our primary objective is to use insights from customs union theory to examine whether an ASEAN–China Free Trade Area (ACTFA) would be potentially beneficial for both sides. Our analysis of relevant static factors such as the level of pre-integration trade and initial tariff structures provides some grounds for optimism about the ACFTA's prospects. In addition, various dynamic factors and non-economic factors further reinforce such optimism.

Date: 2007
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Handle: RePEc:taf:rjapxx:v:12:y:2007:i:4:p:485-503