AFTA in the Dynamic Perspective of Asian Trade: Towards A Closer Cooperation between ASEAN and Korea, Japan and China

This paper attempts to assess the effect of AFTA in the dynamic context of East Asia. It showed that intra-ASEAN trade has indeed expanded but ASEAN trade with non-partner countries in East Asia such as Korea, China and Japan has expanded at a higher rate. The effects of AFTA on FDI inflows also has not been recognized so far. While AFTA is contributing to the increasing confidence and stability of ASEAN countries, its effects on the development of these countries are not as important as the dynamic interdependence between ASEAN and other East Asian economies. A stronger cooperation of ASEAN+3 is therefore highly desirable.