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

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

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

4. - Abu Bakar Bashir – radical Islamic cleric
Regional Trading Arrangements (RTAs) & Conflict THE 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) & Conflict THE 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) & Conflict THE 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) & Conflict THE 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) & Conflict THE 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. 3.1 AFTA’s impact on intra-ASEAN trade * Minimal impact due to:
Regional Trading Arrangements (RTAs) & Conflict THE 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 small between AFTA and non-AFTA members
3) offsetting impact of non-tariff barriers by ASEAN members

10. 3.2 AFTA’s impact on regional peace and security
Regional Trading Arrangements (RTAs) & Conflict THE 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. Bali Concord II Agreement
Regional Trading Arrangements (RTAs) & Conflict THE 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) & Conflict THE 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