Indonesia, Singapore, the Philipines, Myanmar, Laos, Malaysia, Cambodia, Thailand, and Vietnam, and Brunei are the members of ASEAN.
Now they are making the free trade agreement with India, the agreement is calls FTA. The trade is making so much benefits for all of countries who join the agreement.
From before Indonesia and India already connected by trades. Indonesia exports palm oil, coal, copper ore, akcohols, phenols, rubber, fruit and nuts to India. And India exports hydrocarbons, animal feed, flat rolled steel products, alloy steel, sugar molasses, cotton, aluminium and telecomunication equipments to India. If the free trade sign by Indonesia and India, people in Indonesia easier to exports their goods to India and India to Indonesia.
According to my opinion, this free trade agreement is really good. This agreement can increase the benefits for a lot of people. But it also can make a disadvantage, it is for developmant country , because development country cannot protect local prodect, because it influence by the product from industrial ountries. Over all, this FTA has advantages and disadvantages for a lot of countries.
From EP
Alfian. "ASEAN, India to ink FTA soon, boost trade by 30%" The Jakarta Post(Business) 27 Jnauary 2009, vol. 26 no. 266.
1 comment:
Hello Ernesto,
I have learned something new by reading your blog.
I didn't know about the FTA agreement with India but I am glad that such agreement has been signed especially if it can open new markets to Indonesian products.
Free market agreements, as you say, can bring advantages but also disadvantages. The countries that benefit most are those that produce competitive products or have natural resources that other countries do not have. Indonesia is rich in natural resources and as I read from your blog it exports palm oil, coal, rubber, and other such resources to India.
I hope that as time goes by, Indonesia will take advantage of this free trade agreement to export manufactured products as well.
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