Benefits of AKFTA
- The ASEAN-Korea FTA is expected to vitalize trade and multiply exchanges in goods, services and investments by significantly cutting tariff barriers among the Parties.
- As the two parties adopt a more advanced free market system through the elimination of tariffs and non-tariff barriers, businesses will be able to expand inter-regional exports and enjoy economies of scale.
- The creation of a huge free market covering 11 countries will bring dynamic benefits to the region since it will attract more foreign direct investments, which will subsequently create more jobs and facilitate the transfer of advanced technology.
- Common standards for production technology, product regulations, distribution, and after- sales service could spread across countries in the region.
- By lowering trade barriers, ASEAN and Korea predict that intra-trade and investment between them will rise to an equivalent of $150 billion by 2015.