Effectiveness, Problems And Countermeasures Of The Establishment Of China-ASEAN Free Trade Area

After EU and NAFTA were founded, China and ASEAN also signed an agreement on building up a free trade area. The past several years have seen a great positive impact of the agreement on China-ASEAN's economies. In order to systematize the China-ASEAN's trade relation, this essay makes a multi-angular analysis on its effect, based on the process of recent development of the process of establishment of CAFTA. Although as many other FTAs, CAFTA has brought a great influence on economies of its member countries, a lot of problems still exist and may block the development of China-ASEAN's trade relation unless solved. Concerning this point, a few suggestions are made in this essay, in hopes of providing some helps to a certain extent. Among these problems, some are easily solvable, while some are tough. However, if the economies of both China and ASEAN could develop into a further degree and their economic relation becomes tighter based on FTA, some non-economic problems will be solved by increasingly syncretic economic interests within the FTA. The main method used in this essay is qualitative analysis. Through the analysis on the effect and problems of CAFTA, we can see a huge developing space exists for both China and ASEAN's economies. As long as the existing problems get properly solved, CAFTA will exert much more potentiality. After all, the effect analysis in this essay is limited. Many other noticeable effects are functioning and expect to be analyzed in the future. By this way, we can get a clearer awareness of China-ASEAN relation.