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Preferential trade agreements and agricultural trade liberalization in Asia and the Pacific

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  • Mikic, Mia

Abstract

The paper addresses preferential trade agreements in Asia and the Pacific with the objective of identifying their characteristics which can be useful in assessing the effects of their implementation. The paper relies mostly on the Asia-Pacific Trade and Investment Agreements Database (APTIAD) in sourcing data and information for analysis. On 26 February 2007 APTIAD was tracking 125 preferential trade agreements one party of which was a member of ESCAP. Eighty seven of those agreements of various types are in force, 62 of them being bilateral agreements, 11 regional trade agreements (RTAs), and 11 country-bloc agreements (the residual is made up of agreements of different scope, i.e. global and country-plurilateral.). The paper utilizes information on membership and coverage of agreements as well as statistical data on goods trade flows in discussing selected important aspects of preferential trade in Asia and the Pacific: (a) the rapid proliferation of preferential trade and revealed preference for bilateral links; (b) strong tolerance for engagement in multiple trade agreements with the same trading partner; and (c) reluctance to commit to full and quick liberalization in merchandise trade, or expose other than industrial goods trade areas to preferential liberalization. The extent of liberalization of trade in agricultural goods through the PTAs in the region is focus of a separate section which also briefly discusses “new” arguments for agricultural trade protectionism in developing countries. Penultimate section discusses the ways in which PTAs could be harnessed to work as complementary with the multilateral trading regime. Some policy recommendations are offered as well.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2947.

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Date of creation: Mar 2007
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Handle: RePEc:pra:mprapa:2947

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Keywords: preferential trade; multilateral liberalization; bilateral trade agreements; regional trade agreements; agriculture trade; Asia; Pacific; APTIAD;

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  1. Deardorff, Alan V. & Stern, Robert M., 2005. "Globalization's Bystanders: Does Trade Liberalization Hurt Countries that Do Not Participate?," Working Papers RP2005/35, World Institute for Development Economic Research (UNU-WIDER).
  2. Anna Maria Mayda & Chad Steinberg, 2007. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," IMF Working Papers 07/40, International Monetary Fund.
  3. Denis Medvedev, 2010. "Preferential trade agreements and their role in world trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(2), pages 199-222, June.
  4. Richard E. Baldwin, 2006. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade," The World Economy, Wiley Blackwell, vol. 29(11), pages 1451-1518, November.
  5. Dean A. DeRosa, 2007. "The Trade Effects of Preferential Arrangements: New Evidence from the Australia Productivity Commission," Working Paper Series WP07-1, Peterson Institute for International Economics.
  6. Schiff, Maurice & Winters, L. Alan, 1997. "Regional integration as diplomacy," Policy Research Working Paper Series 1801, The World Bank.
  7. Yann Duval, 2006. "An exploration of the need for and cost of selected trade facilitation measures in Asia-Pacific in the context of the WTO negotiations," Working Papers 1406, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
  8. Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier.
  9. Tubagus Feridhanusetyawan, 2005. "Preferential Trade Agreements in the Asia-Pacific Region," IMF Working Papers 05/149, International Monetary Fund.
  10. Nuno Limao, 2006. "Preferential Trade Agreements as Stumbling Blocks for Multilateral Trade Liberalization: Evidence for the United States," American Economic Review, American Economic Association, vol. 96(3), pages 896-914, June.
  11. Gary Clyde Hufbauer & Yee Wong, 2005. "Prospects for Regional Free Trade in Asia," Working Paper Series WP05-12, Peterson Institute for International Economics.
  12. Alberto Trejos, 2005. "Bilateral and Regional Free Trade Agreements, and Their Relationship with the WTO and the Doha Development Agenda," Global Economy Journal, De Gruyter, vol. 5(4), pages 18.
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