Regionalism as an Engine of Multilateralism: A Case for a Single East Asian FTA

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Regionalism as an Engine of Multilateralism: A Case for a Single East Asian FTA

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Kawai, Masahiro () (Asian Development Bank Institute)
Wignaraja, Ganeshan () (Asian Development Bank)

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Abstract

As East Asia becomes increasingly integrated through market-driven trade and FDI activities, free trade agreements (FTAs) are proliferating. Consolidation of multiple and overlapping FTAs into a single East Asian FTA can help mitigate the harmful noodle bowl effects of different or competing tariffs, standards, and rules. A region-wide FTA will also encourage participation of low-income countries and reduce trade-related business costs, particularly for small and medium enterprises. A computable general equilibrium (CGE) model examines the economic impact of various types of FTAs in East Asia (among ASEAN+1's, ASEAN+3, and ASEAN+6) finding that consolidation at the ASEAN+6 level would yield the largest gains to East Asia among plausible regional trade arrangements.

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Paper provided by Asian Development Bank in its series Working Papers on Regional Economic Integration with number 14.

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Length: 40 pages
Date of creation: 01 Feb 2008
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Handle: RePEc:ris:adbrei:0014

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-09-20 (All new papers)
NEP-CMP-2008-09-20 (Computational Economics)
NEP-INT-2008-09-20 (International Trade)
NEP-SEA-2008-09-20 (South East Asia)

Cited by:
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Park, Innwon & Park, Soonchan, 2008. "Free Trade Agreements versus Customs Unions: An Examination of East Asia," MPRA Paper 11301, University Library of Munich, Germany. [Downloadable!]
Other versions:
- Innwon Park & Soonchan Park, 2009. "Free Trade Agreements versus Customs Unions: An Examination of East Asia," Asian Economic Papers, MIT Press, vol. 8(2), pages 119-139, June. [Downloadable!] (restricted)

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This page was last updated on 2009-11-16.

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