ABSTRACT
This chapter analyzes the effectiveness of industrial cooperation among the ASEAN countries in promoting trade within the regional grouping. In short, Malaysia's trade policy reflects the movement towards a liberal trade regime, diversifying export markets into new markets, as well as maintaining traditional markets. The strategy also emphasizes regional economic integration – particularly ASEAN – to absorb exports. A Preferential Trading Arrangement (PTA) was signed by the member countries in 1977. This agreement provides the framework for discriminatory treatment in favour of ASEAN products. The chapter provides a case of industrial cooperation namely cooperation in fertilizer industry among the ASEAN partners. The export share of urea and ammonia by Malaysia to ASEAN countries is high, when compared to the share of total goods export from Malaysia to the ASEAN countries. The high export shares of the ASEAN members in Malaysia's urea and ammonia exports, reflects the importance of cooperation in an industrial project.
