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Title: ASEAN-EU Free Trade Agreement
Description: Language: English Pages: 3 Description: This essay discusses the cost-benefit analysis of the ASEAN-EU FTA agreement. I described which state will benefit and why. I wrote this for my Midterms and got an A.

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Fella Opheliani
2014330148

Class A
Exam no
...
The agreement took form in a bilateral treaty with EU approaching each member states
directly for negotiations
...
Soon it followed by Vietnam in 2012 and Thailand in 2013
...
The
agreements proposed by EU covered the following aspects: a) trade in goods, b) trade in
services, c) government procurement, d) competition policy, e) intellectual, industrial and
commercial property rights, f) sustainable development, including labor and environmental
issues, g) cooperation on trade related issues and i) dispute settlement mechanism2
...
Other
developing countries in ASEAN couldn’t claim the same benefit as they embrace a different
policy from the EU
...
Singapore is known
for its strategic location and making it one of the most innovative country in ASEAN
...
One of the key points in the AEUFTA is creating less
barriers for countries to trade and thus, it shared a similar vision with Singapore as it seeks to
find more states for joint trade cooperation for the future
...
The top five ASEAN countries to benefit from this agreement
are: Singapore, Brunei, Philippines, Thailand, and Indonesia
...
The five countries mentioned above will benefit
the most from the agreement due to its capability to keep up and compete with the free market

1

“Association of South East Asian Nations (ASEAN) - Trade - European Commission,” accessed March 15, 2017,
http://ec
...
eu/trade/policy/countries-and-regions/regions/asean/
...
miti
...
my/index
...


Page 1 of 3

proposed by EU
...
The developed states are more
likely to be able to compete with the market once the EU has opened its gates for the ASEAN
members to step in
...
Developed countries will be able to create more
bilateral agreements with the EU until a consensus is reached for an accord beneficial for both
parties
...
Though in the case of Malaysia and Vietnam,
it’s not so much about the case of the country being developed but more about the different
ideologies and beliefs it holds (specially in human rights), making it difficult for them to create
a mutual understanding with EU for joint cooperation
...
The ‘special privilege’ set
up by the WTO for the less developed country has yet been mentioned in the AEUFTA, though
they should’ve in the near future
...
Therefore, the
one who is mostly at a disadvantage is the less developing country as they can’t keep up with
the demands stated by EU and the countries in EU themselves as they can barely scrape enough
profit from the less developed
...
Some states with different policies with EU are also condemned as it’ll be
harder for them to gain the trust and understanding necessary for the agreement
...
An example of this issue is the two states: Vietnam and Malaysia, as stated
in the article, that those two states follow a different policy in regards to human rights
...
In this
case, trading isn’t limited to goods but also services thus it’s important to reach a mutual
understanding in regards to creating a policy for human rights and workers’ rights
...
Incidentally, the less developed countries themselves are less inclined to send
their workforce abroad had the free market is agreed due to the inability to compete with the
quality of the workforce provided in other states
...

This issue is considered downright important as it affects the dynamics between the member
states of ASEAN
...
The rift will
be further emphasized if the agreement took place and EU played favorites with the countries
of ASEAN
...
EU’s influence will affect this dynamic especially as most
developing country will benefit less than the developed states and create a gap between them
...
Without ASEAN member states being in sync
with one another, its proven to be ineffective in conducting its duties and obligations as a
regional organization
...

In conclusion, the AEUFTA is an agreement between EU and ASEAN in the form of bilateral
treaty between EU and each member state of ASEAN
...
This agreement will create a rift in the organization as each country will begin to classify
themselves as a ‘developed’, ‘less developed’ or ‘developing’ country and create alliances
according to the classification
...
Therefore,
the EU needs to create a suitable agreement to solve this dilemma
Title: ASEAN-EU Free Trade Agreement
Description: Language: English Pages: 3 Description: This essay discusses the cost-benefit analysis of the ASEAN-EU FTA agreement. I described which state will benefit and why. I wrote this for my Midterms and got an A.