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Should AFTA and CER Link?

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  • P. J. Lloyd

Abstract

This article examines the logic of the link between the ASEAN Free Trade Area (AFTA) and the Closer Economic Relations (CER) regional trading arrangements which was mooted by the Thai Prime Minister in 1993. AFTA and CER are the only two regional trading arrangements in the East Asia/West Pacific region and both are advancing to a high degree of regional integration. This article argues that there are undoubted gains to be had from an AFTA‐CER link by itself which includes reciprocal trade liberalisation as well as trade facilitation. Both groups of countries would benefit from freer trade between them and both have a lot to learn from the experiences of the other regional trading arrangement. However, this link will be redundant if the Bogor Declaration of the APEC is implemented after the Osaka meeting of APEC Leaders in November 1995. If, instead, multilateral trade liberalisation through the World Trade Organisation and APEC falters, an AFTA‐CER link becomes an important possibility.

Suggested Citation

  • P. J. Lloyd, 1995. "Should AFTA and CER Link?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(3), pages 5-15, July.
    • Handle: RePEc:bla:ausecr:v:28:y:1995:i:3:p:5-15
    DOI: 10.1111/j.1467-8462.1995.tb00989.x
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    Cited by:

    1. Daina McDonald, 2006. "150 Issues of The Australian Economic Review: The Changing Face of a Journal over Time," Melbourne Institute Working Paper Series wp2006n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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