Academic journal article Researchers World

Asean Economy Community(aec) Indonesian Politic of Trade in Contending with the Simple Market Based Production

Academic journal article Researchers World

Asean Economy Community(aec) Indonesian Politic of Trade in Contending with the Simple Market Based Production

Article excerpt

INTRODUCTION:

The questions are often appeared in explaining about business transaction internations, among otherthing how does a country pay attention to the world trade structure that contends unequivalent substances? What policies should any country produce in order to gain the advantage as maximum as possible from the trade transaction?. According to the writer, the economic experts and practisioners will be setting forth the two versions of answer those are: choosing among "protectionsm, Protectionsm here is an efforts of the country to formulate economic policy in the persuit of protecting domestic economy from domination of the foreign products (Tambunan, 2004:325-328; Hadiwinata, 2006: 57) " or "free trade "Free trade requires being economic policy that opens market in a home country as wide as possible for the foreign products (Hadiwinata, 2006:57; Sinaga, 2010: 5859; Wangke, 2014: Vol VI, No. 10/II/P3DI: 5-8; Stanley, Quinn, Summer, 1994: International Organization 48.3 : 491).

Connecting to free trade, a phenomenon in the last three decades developed rapidly, abreasting with the rapid growing of the world economic globalization that is emerging economic blocks of the regional trade in many parts of the world. In trade literature or international economy, this phenomenon is "bought" by regionalism, that is shaping regional economic integrations one of them is ASEAN by shaping Asean Economy Community (MEA) At the nineth ASEAN Summit Confence in Bali 2003 resulted Bali Concord II, that agreed shaping ASEAN Community to tighten ASEAN integration. Towards three communities those are towards ASEAN Political Security Community, ASEAN Economic Community, and ASEAN Socio-Culture Community (see Wangke,2014:6) and actually, the main purpose of shaping any block or regional economic integration is to raise trade and coorporation in the economic fields (Tambunan, 2004), Such as industry and investation intercountry which is eventually going to improve economic growth and welfare in the area .

Just for the sake of flash back, the eventual purpose of AEC is economic integration like that has been planned in ASEAN Vision 2020 (Wangke, 2014:6) ASEAN Vision 2020, is : "To create a stable, prosperous and highly competitive ASEAN economic goods, services, investment, skill labor economic development and reduced poverty and socio-economic disparities in year 2020" (see Wangke, 2014: 6). The writer tries to quote various refferencies connected to ASEAN Economic Integration by means of AEC Blueprint that involved four main pillars (Wangke, 2014:6) those are; (1) ASEAN is as simple market and based on complete production supported by flowing element of free of goods, service, investation, educated worker, and more free capital flow; (2) ASEAN is as a zone with the huge economic competitiveness, with rule element of competition, consummer protection, right on intelectual wealth, infrastructural expa nsion, tax, and e-commerce, (3) ASEAN is as zone with the equal economic development with element development of lowwer and middle business and ASEAN For countries such as Kamboja, Myanmar, Laos, dan Vietnam ,integration initiative, (4) ASEAN is as zone fully integrated with the global economy with coherent approaches element in economic relation outside zone, and increase engagement in the global production net. By putting into effect of AEC meaned ASEAN Countries agreed the integrated embodiment of zone economy which is implementation based on ASEAN economic Community (AEC) Blueprint, AEC Blueprint is mannual for the member countries of ASEAN in embodying AEC 2015.

HOW ABOUT INDONESIA?

Looking at various coorporation between Indonesia with WTO, (AFTA, CAFTA, Indonesia, Corea, and so forth), and G-20, For instance, the treaty between (1) Indonesia and World Trade Organization (WTO). Generally, the political economic element which is mentioned in WTO implied in decision of the trade trouble reduction ( Barriers Tariff ) even tariff cutting up to nol percent (Non Tariff Barriers). …

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