Advantages And Disadvantages Of AFTA

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2.2.2 DISADVANTAGES OF BRUNEI BECOMING PART OF AFTA

Becoming part of AFTA can also give negative impact to Brunei because:
1. The main drawback of AFTA is incredible rates or CEPT. These rates do not apply to all imports. There are fees and tariffs on imported goods, which do not benefit from the customer's viewpoint.
2. With the introduction of AFTA, tariffs on 20% and below will be reduced to 0-5% in 7 years (effective 1 January 2000). This means that all trade barriers will be removed and have negative implications for the future development of the local automotive industry.
3. Small companies are less efficient in operation will fail because it cannot compete with others.
4. In addition, with the rapid technological advances, many traditional industries
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EAGA also offers the diverse land and water based tourist attractions that can parallel the world’s best. As we know among those four countries of BIMP-EAGA, Brunei is one of the less tourist attractions but by joining BIMP-EAGA, Brunei can get benefits from it and slowly can attract more tourist coming into Brunei.
3. The BIMP-EAGA agreed to adopt the strategic direction to establish BIMP-EAGA as a food basket for ASEAN and the rest of Asia and a premier ecotourism destination. By this it gives huge benefits to BIMP-EAGA and BIMP-EAGA can earn more income and have free excess of trade all around ASEAN based on the terms and conditions given.
4. Brunei Darussalam being the only nation with it's territory solely in BIMP-EAGA was chosen as the principle communication and transport focal point. Brunei's national air carrier “Royal Brunei Airlines” is the only national airline with its nation’s capital city in BIMP-EAGA, and therefore, directs connections to and from BIMP-EAGA to the rest of the world. .
5. Brunei can promote their business development throughout the region and this can create jobs, income and an improved quality of life in Brunei. 2.3.2 DISADVANTAGES OF BRUNEI BECOMING PART OF
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