Although it was not ASEAN’s initial focus, economic cooperation has been progressing gradually since
the 1970s. The first substantial step toward integrating the ASEAN market came in 1992 when ASEAN
agreed to establish the ASEAN Free Trade Area (AFTA), which provided for the reduction or elimination
of tariffs under a Common Effective Preferential Tariff scheme and the removal of quantitative
restrictions and other non-tariff measures. It also addressed other cross-border measures, such as trade
facilitation and standards harmonisation. ASEAN leaders signed agreements to liberalise services trade
in 1995. In the past decade ASEAN broadened cooperation on macroeconomic and financial issues,
many of these together with its Northeast Asian neighbours, with which it has put in place the "ASEAN
Plus 3" arrangement: China, Japan, and South Korea. However, preferential trade arrangements are
usually multilateralised, in a clear example of "open regionalism.
Although it was not ASEAN’s initial focus, economic cooperation has been progressing gradually sincethe 1970s. The first substantial step toward integrating the ASEAN market came in 1992 when ASEANagreed to establish the ASEAN Free Trade Area (AFTA), which provided for the reduction or eliminationof tariffs under a Common Effective Preferential Tariff scheme and the removal of quantitativerestrictions and other non-tariff measures. It also addressed other cross-border measures, such as tradefacilitation and standards harmonisation. ASEAN leaders signed agreements to liberalise services tradein 1995. In the past decade ASEAN broadened cooperation on macroeconomic and financial issues,many of these together with its Northeast Asian neighbours, with which it has put in place the "ASEANPlus 3" arrangement: China, Japan, and South Korea. However, preferential trade arrangements areusually multilateralised, in a clear example of "open regionalism.
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