Question

Discuss the essential of the Asian trade in Goods Agreement ATIGA and analyze the economic and social impact of the agreement for Malaysian

Answer 1

Asian countries are very different from each other in terms of culture that's why trade between these countries is very difficult to raise. An agreement called Atiga creates the path for free flow of trade between these countries. It was signed in February 2009 by 10 countries and entered into force on 17 may 2010. It was signed by Brunei darussalam, Cambodia, Vietnam, Lao PDR, Malaysia, Myanmar, The Philippines, Singapore, Thailand and Indonesia.

It aims to achieve free flow of goods from less trade barriers. Economic linkage between members was the another aim of this agreement. Brunei, Indonesia, Malaysia, Singapore, Philippines and Thailand eliminated their import taxes to 99.65 percent for member countries. Lower business cost, increased trade are some positive results of this agreement those are essential for member countries growth rates. Tarrif liberation, removal of nan tarrif barriers, trade facilitation are the key elements of agreement. The tarrif schedule annex 2 provides full tarrif reduction schedule (TRS) for members.

There are many positive economical impact of Atiga in Malaysia. Due to this agreement Malaysian GDP reached on 25th rank in world. Malaysian knowledge based industries are growing and exporting semiconductors and electronic products, natural gase, chemicals and machineries. Worth of Malaysian exported products is 263 billon dollars in 2017.

Economical achievements led many social impacts in Malaysia. Malaysian labour productivity is significantly higher. But before Atiga agreement most of people were jobless. Because of agreement labour's and common people are in benefit. Now their standard of living closer to the Western Europe. This becomes possible by export oriented economy. Their local food, single payer health care system and transport fuel is highly affordable. The gap between rich and poor is reducing day by day. This all becomes possible due to export business that becomes possible by Atiga.