Free Trade Agreements in East Asia: A Forerunner to Multilateralism?

Establishment of Asian Free Trade Agreement On November 4, 2001, the next year when the Association of Southeast Asian Nations (ASEAN) and China announced its intention to become the world's largest free trade zone, Prime Minister Zhu ji and its ASEAN side said this case Signed. It will be effective from January 1, 2010. This incident showed the paradigm shift in the thinking of the ASEAN countries, whose initial purpose was to pay close attention to Communist objectives, in particular China's objectives in this area during the Cold War.

Free trade agreements between countries are established in multilateral, bilateral or regional. Multilateral agreements are involved in a number of countries and are currently under way by the World Trade Organization (WTO), which allows the implementation of arrangements between bilateral (including two) and regional (including two or more countries within the region) It is promoted. According to the WTO website, as of February 2010, 462 bilateral and regional trade agreements are in force. In this report, we analyze the theory of free trade agreement based on economics, taking into account the practice of North American case in real life. Free Trade Agreement (NAFTA) and the European Union (EU). Furthermore, given the empirical evidence related to a free trade agreement, the patterns of these agreements can be clearly understood.

Many countries are participating in free trade agreements. These agreements are bilateral or multilateral free trade areas such as North American Free Trade Area (NAFTA), ASEAN Free Trade Area (ASEAN Free Trade Area), GAFTA (Great Arab Free Trade Area). Since 1994 Mexico has been a member of the North American Free Trade Agreement. After signing a 20-year free trade agreement between the US and Canada, trade volumes increased sharply. However, Mexico has many problems concerning environmental issues, wages and economic growth. Growth in Mexico's gross domestic product nearly doubled between 1960 and 1980. It is improving the living standard of Mexican people. In the early 1980s, Mexico experienced a crisis and dealt with it in a neoliberal way. In some areas, tensions in fiscal and monetary policy have greatly provided room for deregulation in the areas of international trade and investment. Unfortunately, this policy has inhibited the growth and development of the Mexican economy.