ASEAN ASEAN Economics and Trade 1 — Questions and Answers
Question 1: What is the ASEAN Free Trade Area (AFTA) primarily designed to do?
- Eliminate tariffs among ASEAN member states (Correct answer)
- Create a common currency
- Establish a unified military force
- Regulate immigration between members
Correct answer: Eliminate tariffs among ASEAN member states
AFTA was established in 1992 to eliminate tariffs on goods traded among ASEAN member states and boost regional competitiveness.
Question 2: Which ASEAN initiative replaced AFTA and focuses on a broader integrated market?
- ASEAN Economic Community (AEC) (Correct answer)
- ASEAN Investment Area
- ASEAN Free Zone
- ASEAN Monetary Union
Correct answer: ASEAN Economic Community (AEC)
The ASEAN Economic Community (AEC), launched in 2015, replaced AFTA with a broader vision of a single market and production base.
Question 3: What percentage tariff rate did ASEAN-6 members achieve under the Common Effective Preferential Tariff (CEPT) scheme?
- 0–5% (Correct answer)
- 10–15%
- 20–25%
- 5–10%
Correct answer: 0–5%
The ASEAN-6 (original members plus Brunei) reduced intra-ASEAN tariffs to 0–5% under CEPT, meeting the AFTA goal.
Question 4: Which country is ASEAN's largest economy by GDP?
- Indonesia (Correct answer)
- Thailand
- Philippines
- Malaysia
Correct answer: Indonesia
Indonesia is ASEAN's largest economy, accounting for roughly 35% of the bloc's total GDP.
Question 5: What does the ASEAN Single Window (ASW) facilitate?
- Electronic exchange of trade documents between member states (Correct answer)
- Joint visa processing for tourists
- Unified stock market listings
- Common agricultural standards
Correct answer: Electronic exchange of trade documents between member states
The ASEAN Single Window enables electronic submission and processing of import/export documents, speeding up cross-border trade.
Question 6: Which ASEAN agreement covers trade in services and investment alongside goods?
- ASEAN Framework Agreement on Services (AFAS) (Correct answer)
- ASEAN Trade in Goods Agreement (ATIGA)
- ASEAN Comprehensive Investment Agreement (ACIA)
- Regional Comprehensive Economic Partnership (RCEP)
Correct answer: ASEAN Framework Agreement on Services (AFAS)
AFAS governs the liberalization of trade in services across ASEAN member states, complementing ATIGA which covers goods.
ASEAN ASEAN Economics and Trade 1
What is the ASEAN Free Trade Area (AFTA) primarily designed to do?