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Article

27 Jan 2010

Author:
Richard Welford, CSR Asia

Asia’s new Free Trade Area: Risks and opportunities for CSR

The abuse of human rights, environmental degradation, pressure on wages, unsafe working practices and pressure on workers to work longer hours are all made more possible by the increased competition as a result of the new Free Trade Area (FTA) in Asia. Yet, the opportunities that come from the FTA also point towards a new mandate for CSR in many countries. At the beginning of 2010, China and the ten South East Asian nations launched the world’s third-largest free-trade area… Manufacturers in South East Asia are concerned that cheap Chinese goods may flood their markets, once import taxes are removed…Textile related businesses are particularly nervous about…competition with Chinese manufacturers… Pressure to produce more at lower prices could create downward pressure on the payment of wages,…working hours and,… health and safety and environmental protection measures …Commentators expect China to import more agricultural goods…That could hurt Chinese farmers who are already amongst the poorest groups in China.