This thesis tackles the topic of AFTA and its impact on the automotive world for ASEAN and Non-ASEAN member countries. It also emphasizes the importance of the growing economic regionalism in Asia. The first section set the basics by explaining what is ASEAN and the ASEAN free trade area. The second section describes the automotive background of AFTA member countries and their automotive tariff structure, before and after AFTA was implemented. The third section handles free trade agree-ments of ASEAN or bilateral ones with ASEAN members. The fourth and final section draws a picture of the future, in forecasting scenarios based on information in previous chapters. The paper concludes with an outline of ASEAN free trade agreement’s outcomes and future prospects for the automotive industry.
AFTA may just be a steppingstone to wider automotive markets but that is likely to go beyond ASEAN intra-regional trade. This is relevant as it is becoming intertwined with the world’s economy and affecting it in the upcoming years.
Table of Contents
INTRODUCTION
Problem Case
Scope of studies
Course of action
CHAPTER 1 ASEAN FREE TRADE AGREEMENT (AFTA)
1.1 Free Trade Agreement Definition
1.2 ASEAN Free Trade Agreement
1.2.1 Association of Southeast Asian Nations – What is ASEAN?
1.2.2 ASEAN in the WTO
1.2.3 What is AFTA?
CHAPTER 2 AUTOMOTIVE INDUSTRY WITH REGARD TO AFTA
2.1 International Automotive Background - Overview
2.2 Automotive background and market of AFTA members
2.1.1 Malaysia
2.1.2 Thailand
2.1.3 Indonesia
2.1.4 Singapore
2.1.5 The Philippines
2.1.6 Vietnam
2.2.1 Development of automotive import policies and taxes of AFTA members
2.2.1 Malaysia
2.2.2 Thailand
2.2.3 Indonesia
2.2.4 Singapore
2.2.5 The Philippines
2.2.6 Vietnam
2.3 Overview of tax structure before and after AFTA
2.3.1 Malaysia
2.3.2 Thailand
2.3.3 Indonesia
2.3.4 The Philippines
2.3.5 Singapore
2.3.6 Vietnam
2.4 Summary: ASEAN automotive Industry before and after AFTA
CHAPTER 3 “THINK REGIONAL, ACT GLOBAL”
3.1 ASEAN – Free Trade Agreements
3.1.1 ASEAN – China (CAFTA)
3.1.1.1 The Challenge of CAFTA
3.1.1.2 Effects of CAFTA – Especially on Japan and Korea
3.1.1.3 CAFTA as a Threat for Korea
3.1.2 ASEAN Plus Three (ASEAN + China, Australia and New Zealand)
3.1.3 ASEAN – Korea (AKFTA)
3.1.4 ASEAN – Australia / New Zealand
3.1.5 ASEAN – India (AIFTA)
3.1.6 Is an ASEAN – EU FTA coming?
3.1.7 Summary
3.2 Bilateral Free Trade Agreements
3.2.1 Malaysia Free Trade Agreements
3.2.2 Thailand Free Trade Agreements
3.2.3 Indonesia Free Trade Agreements
3.2.4 Philippines Free Trade Agreements
3.2.5 Other bilateral free trade agreements
3.3 Impact and consequences of Free Trade Agreements
3.4 Summary
CHAPTER 4 FORECAST – AUTOMOTIVE FUTURE IN ASIA
4.1 Impacts of specific free trade agreements on the automotive market
4.2 Scenario 1: China – The Future Market
4.2.1 Chinas economic background
4.2.2 Cars getting famous in China
4.2.3 The automotive market in China
4.2.4 China as a threat
4.3 Scenario 2: India – The Other Future Market
4.3.1 India’s background
4.3.2 The automotive market in India
4.3.3 China plus India – The upcoming giants
4.4 Scenario 3: ASEAN10 plus partners
4.5 Summary
CONCLUSION
Objectives and Themes
The primary objective of this thesis is to analyze the impact of the ASEAN Free Trade Area (AFTA) and various other free trade agreements on the international automotive industry. The research aims to evaluate how tariff reductions and economic regionalism affect automotive manufacturers, specifically focusing on the competitive landscape within ASEAN and the emerging market dynamics involving China and India.
- Evolution of tariff structures and automotive policies within ASEAN member states.
- Competitive analysis of automotive manufacturing environments in Malaysia, Thailand, Indonesia, Singapore, the Philippines, and Vietnam.
- Assessment of the regional influence of China and India on future automotive market scenarios.
- Strategic evaluation of bilateral free trade agreements and their implications for the regional automotive sector.
Excerpt from the Book
1.1 Free Trade Agreement Definition
It is all in the definition. Wikipedia.Org defines it as follows: ‘Free Trade between countries means the unhindered flow of goods and services between them, and is a name given to economic policies and parties supporting increases in such trade’ or ‘Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. Free trade is the absence of artificial (government-imposed) barriers to trade among individuals and firms in different nations. International trade is often constricted by different national taxes, other fees imposed on exported and imported goods, as well as non-tariff regulations on imported goods; theoretically, free trade is against all these restrictions’.
Fedex.com defines it as ‘an arrangement, which establishes unimpeded exchange and flow of goods and services between trading partners regardless of national barriers’.
Summary of Chapters
INTRODUCTION: The introduction outlines the problem case regarding AFTA's influence on the automotive industry and defines the scope and course of action for this thesis.
CHAPTER 1 ASEAN FREE TRADE AGREEMENT (AFTA): This chapter provides a theoretical definition of free trade agreements and explains the history and mechanisms of the ASEAN Free Trade Area.
CHAPTER 2 AUTOMOTIVE INDUSTRY WITH REGARD TO AFTA: This chapter analyzes the automotive background, market specifics, and the development of tariff structures in key ASEAN member countries.
CHAPTER 3 “THINK REGIONAL, ACT GLOBAL”: This chapter explores the landscape of ASEAN-led free trade agreements, bilateral agreements, and the broader global impacts on the automotive sector.
CHAPTER 4 FORECAST – AUTOMOTIVE FUTURE IN ASIA: This chapter presents future scenarios for the Asian automotive market, emphasizing the roles of China and India.
Keywords
AFTA, ASEAN, Automotive Industry, Free Trade Agreement, Tariff Reduction, CEPT, Manufacturing, Market Share, Economic Regionalism, CAFTA, Bilateral Agreements, Import Policies, Automotive Parts, Supply Chain, Competitiveness.
Frequently Asked Questions
What is the core focus of this thesis?
This work examines the implementation of the ASEAN Free Trade Agreement (AFTA) and its consequences for the automotive industry across Southeast Asian countries and global partners.
What are the primary thematic areas covered?
The key themes include the evolution of automotive tax and tariff policies, the market strategies of ASEAN members, and the impact of new trade blocs like CAFTA.
What is the primary research goal?
The research intends to clarify the extent of AFTA's impact on automotive manufacturers and provide forecasts for the industry's future in the region.
Which scientific methods are utilized in this work?
The study relies on detailed industry analysis, examination of government tariff data, review of academic publications, and the synthesis of current trade reports to develop future scenarios.
What topics are discussed in the main section?
The main section details the automotive backgrounds of ASEAN countries, the shift in tariff structures before and after AFTA, and the strategic implications of bilateral trade agreements.
Which keywords best describe this research?
Key terms include AFTA, ASEAN, Automotive Industry, Free Trade Agreement, Tariff Reduction, and Manufacturing Competitiveness.
How does the Malaysian automotive market differ from its ASEAN neighbors?
Malaysia is highlighted for its history of protecting national car brands like Proton and Perodua through high tariff barriers, which are now being challenged by AFTA requirements.
Why is the role of China considered a "threat" in this study?
China is identified as a threat because its rapidly growing, cost-efficient manufacturing capabilities and large-scale entry into trade agreements may displace established automotive production in other parts of ASEAN.
- Quote paper
- FH Diplom Wirtschaftssinologin Meriem Cheritel (Author), 2005, ASEAN: AFTA and other Free Trade Agreements - Development and Impact on the International Automotive Industry, Munich, GRIN Verlag, https://www.grin.com/document/51626
