Free trade agreement to take effect between China and Southeast Asian nations

A broad trade agreement between China and Southeast Asian nations goes into effect this month. The China-Asean Free Trade Agreement, or CAFTA, cuts import tariffs on about 90 percent of products and opens up a regional market that includes 1.9 billion consumers. Like other multilateral trade agreements, supporters say opening borders will lead to greater development, but smaller and poorer nations are concerned that the agreement could flood local markets with cheap Chinese goods and may in the end harm their economies.

Joining us on the line is Thomas Pepinsky, Executive Director of the International Political Economy Program at Cornell University.