In spite of forming an economic bloc, the 10 ASEAN nations have many problems that need to be solved. List any two problems?
What will be an ideal response?
The ten ASEAN nations are slated to launch an economic bloc called the ASEAN Economic Community (AEC). Although tariffs have been cut in the region, nontariff barriers, including cumbersome labor laws, lack of harmonization in product standards, and bureaucracy, are some of the issues that have yet to be resolved. Also, ASEAN is not a customs union, so import/export activities are conducted with different procedures. As a result, goods can languish in ports for weeks while documents are reviewed and approved. Much work remains to be done before the AEC evolves into a customs union or common market.
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