ASEAN-Canada Free Trade Agreement Boosts GDP and Trade Balance for Members
The ASEAN-Canada Free Trade Agreement aims to boost economic ties by removing trade barriers between ASEAN countries and Canada. Using a Computable General Equilibrium model, researchers found that full tariff reduction or a 50% reduction benefits most ASEAN countries, except Laos and the Philippines. This agreement can increase real GDP and trade balance for several countries, but may lead to inflation and reduced investment in others.