Asian FTAs: Trends, prospects and challenges
Although a latecomer, economically important Asia has emerged at the forefront of global free trade agreement (FTA) activity. This has sparked concerns about the negative effects of Asian FTAs, including the "noodle bowl" problem. Amid slow progress in the World Trade Organization's (WTO) Doha negotiations and the global financial crisis, however, Asian regionalism seems to be here to stay. The focus for policymakers should then be how best to minimize the costs of FTAs while maximizing their benefits. Adopting a pragmatic perspective, this paper examines key trends and challenges in Asian FTAs. It provides new evidence from firm surveys, analysis of specific agreements, and computable general equilibrium estimates. It provides the following set of recommendations: strengthen the support system for using FTAs; rationalize rules of origin and upgrade their administration; ensure better coverage of agricultural trade; forge comprehensive "WTO-plus" agreements; and encourage a region-wide FTA. Political economy considerations suggest that a likely scenario is for FTA consolidation in Asia--by creating a People's Republic of China-Japan-Korea FTA, combining it with ASEANÂ +Â 1 FTAs, and then involving Australia, India, and New Zealand--to be followed by connections with North America and Europe. In conclusion, the analysis suggests a bottom-up approach to a Doha Round Agreement should be adopted.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344.
- Joseph Francis Francois & Ganeshan Wignaraja, 2008.
"Economic Implications of Deeper Asian Integration,"
Economics working papers
2008-13, Department of Economics, Johannes Kepler University Linz, Austria.
- TAKAHASHI Katsuhide & URATA Shujiro, 2008. "On the Use of FTAs by Japanese Firms," Discussion papers 08002, Research Institute of Economy, Trade and Industry (RIETI).
- Mohamed Hedi Bchir & Michel Fouquin, 2006. "Economic Integration in Asia: Bilateral Free Trade Agreements Versus Asian Single Market," Working Papers 2006-15, CEPII research center.
- Bhagwati, Jagdish, 2008. "Termites in the Trading System: How Preferential Agreements Undermine Free Trade," OUP Catalogue, Oxford University Press, number 9780195331653, December.
- Hoekman, Bernard & Martin, Will & Mattoo, Aaditya, 2009.
"Conclude Doha : it matters !,"
Policy Research Working Paper Series
5135, The World Bank.
- Baldwin, Richard, 2006.
"Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade,"
CEPR Discussion Papers
5775, C.E.P.R. Discussion Papers.
- Richard E. Baldwin, 2011. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocks on the Path to Global Free Trade," Chapters, in: International Handbook on the Economics of Integration, Volume I, chapter 2 Edward Elgar Publishing.
- 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.
- Richard Baldwin, 2006. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade," NBER Working Papers 12545, National Bureau of Economic Research, Inc.
- Richard Baldwin, 2007. "Multilateralising Regionalism: Sphagetti Bowls as building Blocs on the Path to Global Free Trade," Working Papers id:1231, eSocialSciences.
- 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.
- Michael G. Plummer & Ganeshan Wignaraja, 2007.
"The Post-Crisis Sequencing of Economic Integration in Asia: Trade as a Complement to a Monetary Future,"
Working Paper Series
12_07, The Rimini Centre for Economic Analysis.
- Michael G. Plummer & Ganeshan Wignaraja, 2006. "The Post-Crisis Sequencing of Economic Integration in Asia: Trade as a Complement to a Monetary Future," Economie Internationale, CEPII research center, issue 107, pages 59-85.
- Plummer, Michael G. & Wignaraja, Ganeshan, 2007. "The Post-Crisis Sequencing of Economic Integration in Asia: Trade as a Complement to a Monetary Future," Working Papers on Regional Economic Integration 9, Asian Development Bank.
- Caroline Freund & Emanuel Ornelas, 2010.
"Regional Trade Agreements,"
Annual Review of Economics,
Annual Reviews, vol. 2(1), pages 139-166, 09.
- Caroline Freund & Emanuel Ornelas, 2009. "Regional Trade Agreements," CEP Discussion Papers dp0961, Centre for Economic Performance, LSE.
- Freund, Caroline & Ornelas, Emanuel, 2010. "Regional trade agreements," Policy Research Working Paper Series 5314, The World Bank.
- Caroline Freund & Emanuel Ornelas, 2009. "Regional trade agreements," LSE Research Online Documents on Economics 28697, London School of Economics and Political Science, LSE Library.
- Kawai, Masahiro, 2005. "East Asian economic regionalism: progress and challenges," Journal of Asian Economics, Elsevier, vol. 16(1), pages 29-55, February.
- Caroline Freund & Emanuel Ornelas, 2010. "Regional trade agreements: blessing or burden?," CentrePiece - The Magazine for Economic Performance 313, Centre for Economic Performance, LSE.
- World Bank, 2007. "Trade Issues in East Asia : Preferential Rules of Origin," World Bank Other Operational Studies 19238, The World Bank.
- Shujiro Urata, 2004. "The Emergence and Proliferation of Free Trade Agreements in East Asia," Japanese Economy, M.E. Sharpe, Inc., vol. 32(2), pages 5-52, July.
- Wignaraja, Ganeshan, 2008. "FDI and Innovation as Drivers of Export Behaviour: Firm-level Evidence from East Asia," MERIT Working Papers 061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Manchin, Miriam & Pelkmans-Balaoing, Annette O., 2007. "Rules of origin and the web of East Asian free trade agreements," Policy Research Working Paper Series 4273, The World Bank.
- C. Fred Bergsten, 2007. "Toward a Free Trade Area of the Asia Pacific," Policy Briefs PB07-2, Peterson Institute for International Economics.
- Caroline Freund, 2010. "Third‐country Effects of Regional Trade Agreements," The World Economy, Wiley Blackwell, vol. 33(11), pages 1589-1605, November.
- Siow Yue Chia, 2010. "Regional Trade Policy Cooperation and Architecture in East Asia," Trade Working Papers 22029, East Asian Bureau of Economic Research.
- Francois Joseph F & Wignaraja Ganeshan, 2008. "Economic Implications of Asian Integration," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-48, September.
- Chia, Siow Yue, 2010. "Regional Trade Policy Cooperation and Architecture in East Asia," ADBI Working Papers 191, Asian Development Bank Institute.
- 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.
When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:22:y:2011:i:1:p:1-22. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.