Preferential Trade Agreement Adalah

kenty9x | April 11, 2021 | 0

A preferential trade zone (including preferential trade agreements, PTA) is a trading bloc that offers preferential access to certain products from participating countries. This requires a reduction in tariffs, but not in their total abolition. A ZEP can be implemented through a trade pact. This is the first step in economic integration. The border between a EPZ and a Free Trade Area (EEA) can be blurred, as almost all ATPs have the main objective of becoming a free trade agreement in accordance with the General Agreement on Tariffs and Trade. Finally, the ASEAN-4 PTA demonstrates that free trade agreements can promote more bilateral trade between Member States and enable the creation of trade. The preferential trade agreement (EPA) variable has a positive and significant impact on exports from ASEAN countries and four ASEAN partners. This is because, under the agreement, the PTA can encourage more bilateral trade between Member States and increase the volume of trade between Member States. Each country must enter into an agreement under the EPZ to promote trade and improve market access, so as not to overcome competition with other countries that have primarily carried out EPAs. This article attempts to analyze the PTA`s influence on exports from ASEAN member countries (Indonesia, Thailand, Cambodia, Laos, Vietnam, Malaysia, Singapore, Brunei Darussalam, Philippines and Myanmar) and four ASEAN partner countries, namely China, South Korea, Japan and India. The influence of the PTA on exports is very important in determining whether the PTA creates trade or trade diversion. Among the benefits of the free trade agreement is the emergence of the creation and diversion of trade. The creation of businesses is the creation of trade transactions between PTA members that have never taken place before, thanks to incentives arising from the establishment of a free trade agreement.

In the meantime, trade diversion is the transition of imports from one country to another. Trade diversion is generally done because, from an economic point of view, the transition is seen as more efficient or cost-effective. For example, the reduction in tariffs led Indonesia, which was increasingly importing sugar from Brazil, to import sugar from Thailand. This delay was made because the costs of importing sugar from Thailand were deemed to be more efficient and Indonesia stopped importing sugar from China.