Potential of a Proposed JACIK Community in relation to
NAFTA and EU

The Asian economic community in its initial phase, it is argued, be built of five strong blocs of Asia that might form a core group, viz. Japan, ASEAN, China, India and Korea (JACIK). Once the process of integration is consolidated and some gains of integration are visible, AEC could be thrown open to other economies of the region.

JACIK countries currently combine between them fourteen of the largest and fastest growing economies with vast complementarities. For instance, they combine between them a population of 3 billion or a half of the world population and a GNP of over $ 7.2 trillion comparable to that of EU in 2000. In terms of purchasing power parity, the JACIK will have a gross national income of $ 13 trillion, much larger than either NAFTA or EU. JACIK’s exports will add up to $1.37 trillion compared to $ 1.2 trillion of NAFTA. The combined official reserves of the JACIK economies at $ 1.3 trillion in 2002 are much larger than those of the US and the EU put together. Therefore, the region would have a sufficiently large market and financial resources to support and sustain expedited development of the region’s economies.