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ASEAN
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2000-07-11 06:11:00-04
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Aussies think AFTA-CER Merger would reap Big Economic Gains
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Merger of two free trade zones, AFTA and CER, would bring major gains to Asia-Pacific region according to Australian study
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On one end of the Pacific lies the free trade pact between Australia and New Zealand, Closer Economic Relations, while on the other side of the big pond lies the Association of Southeast Asian Nations and their free trade zone, AFTA. In February the two groups formed a task force headed by former Philippine Prime Minister Cesar Virata to determine whether an AFTA-CER free trade agreement could be implemented by 2010. As part of the study Australia overhauled a 1997 study on the same subject. The updated Australian report was released today (Tuesday) and indicates that the AFTA-CER free trade area would generate total gains of US$48.1 billion over the period 2000 to 2020. Economic gains to Australia are projected to total US$19.1 billion, New Zealand would reap US$3.4 billion and Asean nations US$25.6 billion according to the report prepared by the Canberra-based Center for International Economics. The Australian report will make an important contribution to the task force, which is working on the full report. A third and final meeting of the task force will be held in early August, with the final report dispatched to the various governments in October. An AFTA-CER merger would complement efforts by the Asia Pacific Economic Cooperation forum and the World Trade Organization. A free trade zone would raise productivity and increase returns on capital and increase investment. Member nations of Asean are Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
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