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Welfare and Structural Adjustment Implications of Asian Track and Trans-Pacific Track Sequencings of FTAs

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  • Itakura, Ken
  • Lee, Hiro

Abstract

In this paper we compare welfare effects and the extent of sectoral adjustments of the member countries under alternative free trade agreement (FTA) sequencings in the AsiaPacific region using a dynamic computable general equilibrium (CGE) model. If a TransPacific Partnership (TPP) agreement under one sequencing and an East Asian FTA (EAFTA) under another sequencing will enter into force at the same time, followed by more enlarged FTAs, then a larger number of countries are expected to realize greater welfare gains under the Asian-track sequencing. However, given the uncertainty about the establishment of an Asia-wide FTA in the near future, the TPP-track sequencing appears to be an attractive option for most countries in the Asia-Pacific region. With respect to sectoral adjustments, there seem to be no significant differences among the alternative sequencings considered in this study.

Suggested Citation

  • Itakura, Ken & Lee, Hiro, 2012. "Welfare and Structural Adjustment Implications of Asian Track and Trans-Pacific Track Sequencings of FTAs," Conference papers 332175, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332175
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    References listed on IDEAS

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    1. Hiro Lee & Dominique van der Mensbrugghe, 2007. "Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia," OSIPP Discussion Paper 07E008, Osaka School of International Public Policy, Osaka University.
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