ASEAN Free Trade Area (AFTA): A Success or Failure?
Mohammed Faiz Shaul Hamid
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ASEAN Free Trade Area (AFTA): A Success or Failure?

Utilization of Preferential Tariffs and Intra-Regional Trade Effects

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ASEAN Free Trade Area (AFTA) was established in 1992 with the main objective of increasing intra-ASEAN trade. Under AFTA, tariff reduction and elimination were introduced through the Common Effective Preferential Tariff (CEPT) and ASEAN Trade in Goods Agreement (ATIGA). As a direct impact of AFTA, the study focuses on the measurement of utilization of preferential tariffs under AFTA and the impact of intra-regional trade from the angle of intra-industry trade and revealed comparative advantage for the three most sensitive industries in ASEAN. A Panel Regression Model is then developed to inves...