A lot of worries are emerging regarding to the negative impact of China ASEAN
Free Trade Agreement (CAFTA) to domestic electronic industry. Yet, this kind of study
using Trade Specialization Index, Bilateral Revealed Comparative Advantage and
GTAP found that the trade deficit has occurred long before the implementation of
CAFTA.
Therefore, in order to encourage domestic electronic industry to improving its
ability to take advantage of CAFTA implementation, government and private sector has
to find win-win solution for producing some policies. These policies include cost
production reducing, human source productivity increasing through some useful training
and new technology application in producing high value added electronic products.
Buletin Ilmiah Perdagangan, Vol. 4 No. 2, Nopember 2010