21.7.1.3. Read the text “Association of South East Asian Nations.” Answer the question: What

countries are members of ASEAN?

Association of South East Asian Nations (ASEAN) is an association set up in 1967 by five countries

In South-East Asia: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. In 1976,

the Association agreed to a list of industrial projects covering petrochemicals, fertilizers, steel, soda

ash, newsprint, and rubber, on which the group would cooperate in the construction of major

plants. The Association also agreed to set up a permanent secretariat. Brunei joined the Association

In 1984, Vietnam in 1995 and Burma and Laos in 1997. Import tariffs on intra-asean trade

were be reduced to a maximum of 5 per cent by 2003, subject to the right to exclude some sensitive

traded goods or services.

21.7.1.4. Read the text “Asia-Pacific Economic Cooperation” and answer the question: How

many countries are there in APEC?

Asia-Pacific Economic Cooperation (APEC) was a forum of, originally, fifteen Pacific Rim countries,

formed in 1989 on the initiative of Australia. In 1992, a secretariat was opened in Singapore,

and in 1994 an agreement was reached for the establishment of a free-trade area. The advanced

countries in the group should achieve the objective by 2010, and the developing countries by 2020.

At a meeting in Osaka in 1995 the member countries agreed to reduce import tariffs and liberalize

services, public procurement contracts and foreign investment. It was accepted that flexibility should

be allowed in the implementation of measures by the developing countries in the group and in

relation to particularly sensitive areas, such as agriculture. The APEC countries agreed that the

liberalization measures undertaken would not discriminate against third countries. The 1995 meeting

also agreed that each member should present its five-year plan for liberalization at the meeting in

1996. In 1996 there were eighteen members, viz. Australia, Brunei, Canada, Chile, China, Hong

Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines,

Singapore, South Korea, Taiwan, Thailand, and USA. Applications to join have been received

from India, Russia, and Vietnam.

Commentary and Notes to Text 21.7.1.4

1. fifteen Pacific Rim countries — пятнадцать стран Тихоокеанского региона

2. public procurement contracts — контракты на закупку (государственные)

Latin American Integration Association

Association o f South East Asian Nations

Asia-Pacific Economic Cooperation

314

21.7.1.5. Read the text “Free Trade and Freeports” and answer the question: What is the benefit

of setting up freeports?

Free Trade and Freeports

The compelling logic of the case for free trade is hardly new.

A side benefit of free trade is that it promotes competition and deters monopoly. The increased

competition afforded by foreign firms forces domestic firms to adopt the lowest-cost production

and trade techniques.

One of the organizational forms of free trade is a freeport.

A freeport is a seaport or airport which is able to accept cargo without the imposition of any

import tariff or some specified taxes. In addition, freeports may be granted special dispensation

regarding legislation affecting businesses in the domestic market outside the port, such as employment

conditions, health and safety regulations and development planning. There are several hundred

such ports throughout the world. In 1984 the UK government gave approval for the setting up

of freeports, in which imports were free of customs tariffs, excise duties and value-added tax. Goods

become liable to these taxes only when they pass from the freeport zone into the domestic market.

In 1990, the government extended the scheme for a further ten years.

Commentary and Notes to Text 21.7.1.5

1. the compelling logic of the case for free trade — убедительные аргументы в пользу свободной

торговли

2. a side benefit of free trade — побочные выгоды от свободной торговли

3. to deter monopoly — ограничивать, сдерживать монополию

4. cargo — груз

5. excise duties — акцизные пошлины

21.7.2. Match the following terms with the correct definition

Work with a partner.

1. enterprise zones 2. fre-trade area (zone)3 terop .f6 seilcea fo .cer5aodnm tsevi foermtcen i troxpte4

a) Preferential treatment for firms that sel their products abroad, compared with firms that sel to the home market. They may take the form of direct subsidies, speciba)l credit facilities, grants, concesions in the field of directaxation, benefits arising

from the administration of indirectaxation, and export credit insurance on exceptionaly favourable terms.Factors which cause the average cost of producing a commodity

to fal as output of the comodity rises. For instance, a firm or industry which would les than double its costs, if it doubled its output, enjoys economies of scale.

c) A seaport or airport whi1iserp .tene sezonch is able to accept cargo without the