Journals Proceedings

Abstract

This paper selects one of the specific examples of free trade agreement in East Asia. This agreement is the world’s largest FTA in the developing world and is the third largest FTA in the world in terms of nominal GDP of about 6 trillion dollars and the world’s largest one in terms of population of about 1.9 billion people. Due to the country specific disparity among ASEAN members, the trade barrier reductions have been done only between China and six ASEAN old members until the other 4 ASEAN members are ready to join the ACFTA in 2015. In this paper analyze the ACFTA to clarify its trade creation and trade diversion effects on Cambodia, Vietnam, Laos, and Myanmar (CLVM), which is not yet, realized the benefits of barrier reduction from China since 2010 until 2015.