This article attempts to analyze the PTA`s influence on exports from ASEAN member countries (Indonesia, Thailand, Cambodia, Laos, Vietnam, Malaysia, Singapore, Brunei Darussalam, Philippines and Myanmar) and four ASEAN partner countries, namely China, South Korea, Japan and India. The influence of the PTA on exports is very important in determining whether the PTA creates trade or trade diversion. The definition of MELANSIR on the official website of the Ministry of Commerce of the Republic of Indonesia Trade Agreement (FTA) is an agreement between two or more countries for the creation of a free trade area. Among the benefits of the free trade agreement is the emergence of the creation and diversion of trade. The creation of businesses is the creation of trade transactions between PTA members that have never taken place before, thanks to incentives arising from the establishment of a free trade agreement. In the meantime, trade diversion is the transition of imports from one country to another. Trade diversion is generally done because, from an economic point of view, the transition is seen as more efficient or cost-effective. For example, the reduction in tariffs led Indonesia, which was increasingly importing sugar from Brazil, to import sugar from Thailand. This delay was made because the costs of importing sugar from Thailand were deemed to be more efficient and Indonesia stopped importing sugar from China. In addition, the existence of EPZs can lead a country`s exporters to benefit from preferential tariffs. This preferential tariff allows exporters and entrepreneurs to reduce production costs in order to increase the competitiveness of the industry.
Among the benefits of the FTA BENEFITS that can be derived from the free trade agreement are the emergence of the creation and diversion of trade. The creation of businesses is the creation of commercial transactions between the members of the ESTV, which have never taken place before, because of the incentives arising from the establishment of a free trade agreement. What is a free trade agreement? A preferential trade zone (including preferential trade agreements, PTA) is a trading bloc that offers preferential access to certain products from participating countries. This requires a reduction in tariffs, but not in their total abolition. A ZEP can be implemented through a trade pact. This is the first step in economic integration. The border between a EPZ and a Free Trade Area (EEA) can be blurred, as almost all ATPs have the main objective of becoming a free trade agreement in accordance with the General Agreement on Tariffs and Trade. The belaïd was released as part of the ratification of the Asean-Hong Kong Free Trade Agreement, in accordance with Presidential Regulation 34/2020.
This agreement also complements the list of free trade agreements owned by the Indonesian government. With the recent proliferation of bilateral TTPs and the emergence of mega-PTAs (broad regional trade agreements such as the Transatlantic Trade and Investment Partnership (TTIP) or the Trans-Pacific Partnership (TPP), a global trading system managed exclusively under the WTO now seems unrealistic and the interactions between trade systems must be taken into account.