CHINA-ASEAN FREE TRADE AGREEMENT (CAFTA)

-RIO PRAKOSO WIBOWO 2213100166 -AULIA RAHMAN 2213100096

-CHARELL NAUFAL KIRAMINDYO 2213100126

-MUHAMMAD BAIHAQI 2213100186 -AZMI WICAKSONO 2213100036 -BAYU INDRA SETYANTO 2213100046

CONTENT OF SLIDE

History of CAFTA What is CAFTA ? Positive Impact from CAFTA Negative Impact from CAFTA Solution to face CAFTA

HISTORY OF CAFTA
The ASEANChina Free Trade Area (ACFTA), also known as ChinaASEAN Free Trade Area is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China. The initial framework agreement was signed on 4 November 2002 in Phnom Penh, Cambodia, with the intent on establishing a free trade area among the eleven nations by 2010.The free trade area came into effect on 1 January 2010. The ASEANChina Free Trade Area is the largest free trade area in terms of population and third largest in terms of nominal GDP. ASEAN members and the People's Republic of China had a combined nominal gross domestic product of approximately US$6 trillion in 2008.The free trade area had the third largest trade volume after the European Economic Area and the North American Free Trade Area. The free trade agreement reduced tariffs on 7,881 product categories, or 90 percent of imported goods, to zero. This reduction took effect in China and the six original members of ASEAN: Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. The remaining four countries will follow suit in 2015

WHAT IS CAFTA?
ASEAN - China Free Trade Area and the ASEAN - China Free Trade Area ( ACFTA ) lately has become a byword and hot topics in the media. It is said that in the economic centers such as Tanah Abang , clothes - finished products China has captured about 40 % of the market share . Moreover, if the ASEAN - China free trade imposed . Various sources said that in 2009 China recorded total export value of U.S. $ 1.2 trillion . China managed to shift the position of Germany in the same year recorded total export value of U.S. $ 1.1 trillion . Thus , in 2009, China is a country in the world with the largest export value . If the GDP of Indonesia is Rp 5 thousand trillion or U.S. $ 500 billion , meaning the value of China's exports more than double the GDP of Indonesia. It is conceivable , China had been transformed into a dragon that has been running hard while doing various quantum leap . China's economy has indeed become an unstoppable force .

POSITIVE IMPACT FROM CAFTA

products from Indonesia can enter China with tax 0%. domestic entrepreneurs can compete competitively with more creative and innovative in creating a product products made in Indonesia goods and services will be easier to enter China's domestic market Products such as cocoa plantation yield, palm oil and other example would be more acceptable and Chinese consumers and more competitive

NEGATIVE IMPACT FROM CAFTA

products in the country should be able to compete with products coming from China

the number of unemployed will increase

shut down many industries in Indonesia absence of economic activities among the commoners

It also can turn off the small traders and SMEs

The weakening of the national manufacturing industry

SOLUTION TO FACE CAFTA

Enhance the competitiveness of local products Increasing quality of our human resources Legal realization protection for producers and MSMEs in Indonesia Making policy for distributors not to distribute imported goods in excess Socialize love Indonesian products

WHAT SHOULD WE DO AS A COLLEGE STUDENT?

Study harder
Improve our English so we can compete Be creative Increase our softskill Dont forget to pray