The ASEAN Free Trade Area ( AFTA) comment in January 1993. AFTA was created through a resolution of the Association of South- East Asian Nations ( ASEAN). ASEAN was established in August 1967 with 6 foundation members: Brunei, Indonesia, Malaysia, Philipines, Singapore and Thailand. Vietnam was admitted in 1995 and Myanmar in 1997. The group was established with the extension of promoting regional political economic cooperation. These countries are by no means homogeneous; oil- rich Brunei had a 1996 per- capita income of over $16,000 while Indonesia's was only $1,115. Nevertheless, the ASEAN economy has been developing rapidly because its poorer members: Indonesia, Malaysia, Thailand, Vietnam provide lager pools of low- cost harbor, receive preferential tariff rates under GATT and have attracted significant Japanese, European and US investments. It has been suggested that AFTA has 3 principle economic objectives: - To liberalize trade in ASEAN by progressively removing- regional tariff and non- tariff barriers. - To attract foreign investors.- To adapt ASEAN to changing international economic conditions, in particular, the rise of regional trading groups in the developed world.
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