15 April 2016. Issue 2016/17
The US-ASEAN Connect can invigorate US-ASEAN economic relations in three specific ways.
a) Economic restructuring in China has affected foreign investors, including those from the US, through costs and labour issues. China’s shift up the global value chains and its present economic deceleration are affecting its trade with ASEAN. US investors can diversify their risks through a China Plus One Strategy, with locational advantages provided by ASEAN’s diversity, while allowing ASEAN to tap on US’s economic recovery.
b) It prepares other ASEAN member countries to join the TPPA through capacity building by raising the agreement’s credibility and by promoting inclusiveness within ASEAN.
c) It will deepen economic integration within ASEAN, thereby providing for a seamless movement of goods, services and people.
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