But Why History Behind the Headlines: But the economic advantages of adding China to ASEAN are less clear than some of the political imperatives that may be driving the alliance. In this forum, as in others, China's potential position as a superpower in the near future is being watched with concern and interest. So far, it appears that Japan either cannot, or, more likely, does not, choose to respond to China's challenge. Southeast Asian countries believe that China will be the new engine of growth for the region, displacing Japan after thirty years of dominance. They may wish to link up with the next superpower for security, as well as economic, reasons.
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On January 1, , the Free Trade Area officially initiated. As a result, a unified market consists of 11 countries is gradually taking shape. And in , the tariff on these products will be totally exemplified. And these products are:
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A Free Trade Agreement is an agreement between countries to reduce or eliminate barriers to trade. A Free Trade Agreement or FTA is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics. The successive governments rigorously implemented the policy. Culturally, Southeast Asia has borrowed heavily from India and there were even Indian kings who went to Southeast Asian lands and established new dynasties there. There was increasing contact between people and this led to a rise in exchanges and even economically.
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