Free trade agreements (FTAs) are a type of trade agreement that eliminates barriers to trade and investment between two or more countries. The Mak Suhd Free Trade Agreement (FTA) is one such agreement that has been making headlines recently.
The Mak Suhd Free Trade Agreement aims to reduce or eliminate tariffs and other trade barriers between the ten member countries of the Association of Southeast Asian Nations (ASEAN) and five other countries: Australia, China, India, Japan, and South Korea. With a combined population of over 2.2 billion people and a GDP of over $26 trillion, this FTA is poised to create one of the largest free trade zones in the world.
The agreement was signed on November 15, 2020, after eight years of negotiations. It covers trade in goods, services, investment, intellectual property, and e-commerce. The agreement is expected to provide greater market access for businesses, increase competition, and lower consumer prices.
Some of the sectors expected to benefit the most from the agreement are agriculture, manufacturing, and services. The reduction of tariffs on agricultural products will increase exports from countries such as Australia and New Zealand to the ASEAN region. On the other hand, the elimination of tariffs on automotive products will benefit countries such as Japan, which is a major exporter of cars.
The Mak Suhd FTA is also expected to provide opportunities for small and medium-sized enterprises (SMEs) to expand their business globally. The agreement includes provisions to simplify customs procedures, reduce technical barriers to trade, and provide greater protection for intellectual property rights.
However, there are also concerns that the agreement could lead to job losses in certain sectors. The elimination of tariffs on certain products could result in cheaper imports from other countries, which could negatively impact domestic industries. Additionally, there are concerns about the potential negative environmental and social impacts of increased trade.
In conclusion, the Mak Suhd Free Trade Agreement is a significant step towards greater economic integration in the ASEAN region. While there are potential benefits and concerns associated with the agreement, it is clear that it has the potential to bring about both opportunities and challenges for businesses, consumers, and governments alike. As the agreement is implemented in the years ahead, it will be important to monitor its impact on the economy and society as a whole.