Should AFTA and CER Link?

Abstract

This article examines the logic of the link between the ASEAN Free Trade Area (AFTA) and the Closer Economic Relations (CER) regional trading arrangements which was mooted by the Thai Prime Minister in 1993. AFTA and CER are the only two regional trading arrangements in the East Asia/West Pacific region and both are advancing to a high degree of regional integration. This article argues that there are undoubted gains to be had from an AFTA‐CER link by itself which includes reciprocal trade liberalisation as well as trade facilitation. Both groups of countries would benefit from freer trade between them and both have a lot to learn from the experiences of the other regional trading arrangemen..