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‘Best Practices’ in Regional Trading Agreements: An Application to Asia

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  • Michael G. Plummer

Abstract

Regionalism in Asia, particularly in the form of free‐trade areas (FTAs), is a recent trend that is becoming increasingly important. This has been disturbing to many, given the significance of trade and investment in Asian economic growth and development and the region's key role in global commerce. In light of this trend, the goal of this paper is to develop a blueprint, or a set of 10 ‘best practices’, that can be used as a guide to FTAs in order to ensure that they approximate first‐best outcomes to the greatest extent possible. Next, the paper applies this framework to the existing FTAs between Asian countries and their regional and extra‐regional partners. The results suggest that the more advanced regional accords generally receive high grades, with the notable exception of rules of origin, which tend to be even more problematic in the context of accords in which an OECD country is a party.

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  • Michael G. Plummer, 2007. "‘Best Practices’ in Regional Trading Agreements: An Application to Asia," The World Economy, Wiley Blackwell, vol. 30(12), pages 1771-1796, December.
    • Handle: RePEc:bla:worlde:v:30:y:2007:i:12:p:1771-1796
    DOI: 10.1111/j.1467-9701.2007.01061.x
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    References listed on IDEAS

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    1. Mordechai E. Kreinin & Michael G. Plummer, 2002. "Economic Integration and Development," Books, Edward Elgar Publishing, number 2426.
    2. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    3. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    4. Jeffrey A. Frankel, 1997. "Regional Trading Blocs in the World Economic System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 72, October.
    5. World Bank, 2005. "Global Economic Prospects 2005 : Trade, Regionalism and Development," World Bank Publications - Books, The World Bank Group, number 14783, December.
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    Cited by:

    1. Philippa Dee & Anne McNaughton, 2013. "Promoting Domestic Reforms through Regionalism," World Scientific Book Chapters, in: Services Trade Reform Making Sense of It, chapter 14, pages 381-427, World Scientific Publishing Co. Pte. Ltd..
    2. Kim , Sangkyom & Park , Innwon & Park , Soonchan, 2013. "A Free Trade Area of Asia Pacific (FTAAP): Is It Desirable?," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 17(1), pages 3-25, March.
    3. Rachel McCulloch, 2010. "The International Trading System and Its Future," Working Papers 08, Brandeis University, Department of Economics and International Business School.
    4. Michael G. Plummer, 2010. "EU-Asia Free Trade Areas? Economic and Policy Considerations," Governance Working Papers 23282, East Asian Bureau of Economic Research.
    5. Ohnsorge, Franziska & Kose, M. Ayhan, 2023. "Slowing Growth: More Than a Rough Patch," CEPR Discussion Papers 18226, C.E.P.R. Discussion Papers.
    6. Muhammad Ullah & Kazuo Inaba, 2012. "Impact of RTA and PTA on Bangladesh’s Export: Application of a Gravity Model," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 445-460, December.
    7. Andrew G. Brown & Robert M. Stern, 2011. "Free Trade Agreements and Governance of the Global Trading System," The World Economy, Wiley Blackwell, vol. 34(3), pages 331-354, March.
    8. Kawai, Masahiro & Wignaraja, Ganeshan, 2014. "Trade Policy and Growth in Asia," ADBI Working Papers 495, Asian Development Bank Institute.
    9. Lee, Hiro & Owen, Robert F. & van der Mensbrugghe, Dominique, 2009. "Regional integration in Asia and its effects on the EU and North America," Journal of Asian Economics, Elsevier, vol. 20(3), pages 240-254, May.
    10. Kawai, Masahiro & Wignaraja, Ganeshan, 2011. "Asian FTAs: Trends, prospects and challenges," Journal of Asian Economics, Elsevier, vol. 22(1), pages 1-22, February.
    11. A. A. Alikhanov & V. Yu. Skryabina & E. V. Tarasyuk, 0. "Liberalization Trade Relationship Between The Countries: Assessment And Consequences," International Trade and Trade Policy, ФГБОУ ВО "Ð Ð¾Ñ Ñ Ð¸Ð¹Ñ ÐºÐ¸Ð¹ Ñ ÐºÐ¾Ð½Ð¾Ð¼Ð¸Ñ‡ÐµÑ ÐºÐ¸Ð¹ ÑƒÐ½Ð¸Ð²ÐµÑ€Ñ Ð¸Ñ‚ÐµÑ‚ им. Г.Ð’. Плеханова", issue 3.
    12. Innwon Park & Soonchan Park, 2011. "Best practices for regional trade agreements," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 249-268, June.
    13. Park, Innwon & Park, Soonchan, 2009. "Consolidation and Harmonization of Regional Trade Agreements (RTAs): A Path Toward Global Free Trade," MPRA Paper 14217, University Library of Munich, Germany, revised 23 Mar 2009.
    14. Siebert, Horst, 2007. "How global rules are established and stabilized," Kiel Working Papers 1388, Kiel Institute for the World Economy (IfW Kiel).
    15. Masahiro Kawai, 2009. "The Asian “Noodle Bowl”:Is It Serious for Business?," Working Papers id:1936, eSocialSciences.
    16. Michael G. Plummer, 2014. "The emerging “post-Doha” agenda and the new regionalism," Chapters, in: Masahiro Kawai & Peter J. Morgan & Pradumna B. Rana (ed.), New Global Economic Architecture, chapter 8, pages 172-196, Edward Elgar Publishing.
    17. Richard Baldwin & Masahiro Kawai, 2013. "Multilateralizing Asian Regionalism," Trade Working Papers 23553, East Asian Bureau of Economic Research.
    18. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.
    19. Matthew Smith & Yasaman Sarabi, 2021. "UK trading patterns within and between regions in the automotive sector—A network analysis," The World Economy, Wiley Blackwell, vol. 44(2), pages 510-529, February.
    20. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596.
    21. Ariyasajjakorn, Danupon & Gander, James P. & Ratanakomut, Somchai & Reynolds, Stephen E., 2009. "ASEAN FTA, distribution of income, and globalization," Journal of Asian Economics, Elsevier, vol. 20(3), pages 327-335, May.
    22. Plummer, Michael G., 2012. "The Emerging “Post-Doha” Agenda and the New Regionalism in the Asia-Pacific," ADBI Working Papers 384, Asian Development Bank Institute.
    23. Low, Patrick, 2014. "Preferentialism in Trade Relations: Challenges for the World Trade Organization," ADBI Working Papers 478, Asian Development Bank Institute.

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