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0 reviewsThis paper attempts to evaluate whether the PTA scheme has been successful in liberalizing intra-ASEAN trade through the new tariff reductions. More specfically, it stimulates the maximum potential trade creation effects within ASEAN of the 20% across-the-board tariff reduction on all items with import value of less than US$50,000 each in 1978 trade statstics. In addition, the implications of the latest proposal by the ASEAN Economic Ministers (AEM) to consider raising the cut-off ceiling to US$500,000 are also analysed.
