Asean and Trading Partners to Form Strong Economic Alliance
17 August 2009
At the end of the Asean Economic Ministers (AEM) meeting held in Bangkok, Asean and trading partners from six countries declared their plans to establish the largest economic alliance in the world within 15 years through free trade agreements.
Asean’s 10 member country and trading partners comprised of China, Japan, South Korea, India, Australia, and New Zealand will establish the alliance through the East Asia Free Trade Agreement and Comprehensive Economic Partnership in East Asia.
The economic alliance would create independent economic zones, solidify the relationship of the alliance partners and make the partners depend on one another more for imports.
The alliance of Asean and trading partners is expected to increase GDP by 2.11 percent for all parties involved, 3.83 percent for Asean GDP, 1.3 percent for trading partners, and 4.78 percent for Thailand based on media sources.
Asean has formed bilateral agreements with individual countries such as Japan, China, South Korea, Australian-New Zealand, and India. Asean’s objective is to form an Asean economic community by 2015. Further, Asean aims to form close relationships with China, Japan, and South Korea prior to establishing the largest free trade area in the world.
The alliance partners’ countries cover 3 billion people or almost half (49.6 percent) of the world’s population, and 26 percent of the world’s GDP. |