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Taking ASEAN+1 FTAs towards the RCEP: A Mapping Study

Author

Listed:
  • Yoshifumi Fukunaga

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Ikumo Isono

    (Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

In November 2012, the leaders of the ASEAN+6 countries agreed to launch a new FTA negotiation called the "Regional Comprehensive Economic Partnership" (RCEP). In this paper, we conduct stocktaking studies of ASEAN's own FTA and five existing FTAs with 6 dialogue partner countries, to identify the possible benefits and challenges of RCEP. We find that the five "ASEAN+1 FTAs" provide an insufficient level of liberalization, both in tariffs and services trade. The coexistence of five FTAs with different rules of origin (ROOs) creates a potential "noodle-bowl" situation which impedes the effective use of the FTAs. Also, the China-Japan-Korea FTA and the Trans-Pacific Partnership (TPP) pose challenges to the "ASEAN Centrality". We recommend that RCEP negotiation should address those challenges by (a) concluding a comprehensive and high-level RCEP by 2015; (b) setting the target of 95% percent tariff elimination with a "common concession" approach; (c) introducing the "core non-tariff measures (NTMs)" concept and removing them; (d) allowing co-equal rules in the ROOs, setting a general rule of "RVC(40) or CTH" and developing consolidated operational certification procedures; (e) introducing concrete and tangible trade facilitation programs and addressing FTA utilization issues; and (f) liberalizing trade in services at a high level.

Suggested Citation

  • Yoshifumi Fukunaga & Ikumo Isono, 2013. "Taking ASEAN+1 FTAs towards the RCEP: A Mapping Study," Working Papers DP-2013-02, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2013-02
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    References listed on IDEAS

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    1. Yoshifumi Fukunaga & Arata Kuno, 2012. "Toward a Consolidated Preferential Tariff Structure in East Asia: Going beyond ASEAN+1 FTAs," Working Papers PB-2012-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Itakura, Ken, 2014. "Impact of liberalization and improved connectivity and facilitation in ASEAN," Journal of Asian Economics, Elsevier, vol. 35(C), pages 2-11.
    3. Ando, Mitsuyo & Urata, Shujiro, 2007. "The Impacts of East Asia FTA: A CGE Model Simulation Study," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 11(2), pages 3-73, December.
    4. Hikari Ishido & Yoshifumi Fukunaga, 2012. "Liberalization of Trade in Services: Toward a Harmonized ASEAN++ FTA," Working Papers PB-2012-02, Economic Research Institute for ASEAN and East Asia (ERIA).
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    Citations

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    Cited by:

    1. Shujiro Urata, 2014. "Constructing and multilateralizing the Regional Comprehensive Economic Partnership: an Asian perspective," Chapters,in: A World Trade Organization for the 21st Century, chapter 9, pages 239-268 Edward Elgar Publishing.
    2. Siow Yue Chia, 2015. "Emerging Mega-FTAs: Rationale, Challenges, and Implications," Asian Economic Papers, MIT Press, vol. 14(1), pages 1-27, Winter/Sp.
    3. Sanchita Basu Das, 2015. "The Regional Comprehensive Economic Partnership: new paradigm or old wine in a new bottle?," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(2), pages 68-84, November.
    4. Ken Itakura & Yoshifumi Fukunaga & Ikumo Isono, 2013. "A CGE Study of Economic Impact of Accession of Hong Kong to ASEAN-China Free Trade Agreement," Working Papers DP-2013-06, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Yoshifumi Fukunaga & Ponciano Intal & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Dionisius & OUM Sothea, . "ASEAN Rising: ASEAN and AEC Beyond 2015," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2013-rpr-01 edited by Yoshifumi Fukunaga & Ponciano Intal, Jr. & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Di.
    6. Kawai, Masahiro & Naknoi, Kanda, 2015. "ASEAN Economic Integration through Trade and Foreign Direct Investment: Long-Term Challenges," ADBI Working Papers 545, Asian Development Bank Institute.
    7. repec:wsi:serxxx:v:62:y:2017:i:03:n:s0217590818400040 is not listed on IDEAS
    8. Yoshifumi Fukunaga & John Riandy & Pierre Sauve, . "Introduction and Overview," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. repec:eee:jcecon:v:45:y:2017:i:4:p:847-864 is not listed on IDEAS
    10. Chunding Li & Jing Wang & John Whalley, 2014. "Numerical General Equilibrium Analysis of China's Impacts from Possible Mega Trade Deals," NBER Working Papers 20425, National Bureau of Economic Research, Inc.
    11. Aggarwal, Sakshi & Chakraborty, Debashis, 2017. "Determinants of India’s Bilateral Intra-Industry Trade over 2001-15: Empirical Results," MPRA Paper 78020, University Library of Munich, Germany.
    12. Chunding Li & John Whalley, 2014. "How Close is Asia to Already Being A Trade Bloc?," NBER Working Papers 20424, National Bureau of Economic Research, Inc.
    13. Yoshifumi Fukunaga & Hikari ISHIDO, 2013. "Assessing the Progress of Services Liberalization in the ASEAN-China Free Trade Area (ACFTA)," Working Papers DP-2013-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. Masahito Ambashi, 2017. "ASEAN as an FDI Attractor: How Do Multinationals Look at ASEAN?," Working Papers PB-2016-04, Economic Research Institute for ASEAN and East Asia (ERIA).
    15. Jeffrey J. Schott & Cathleen Cimino, 2014. "Should Korea Join the Trans-Pacific Partnership?," Policy Briefs PB14-22, Peterson Institute for International Economics.
    16. repec:kap:iecepo:v:15:y:2018:i:1:d:10.1007_s10368-016-0366-y is not listed on IDEAS
    17. Ken Itakura, . "Assessing the Economic Effects of the Regional Comprehensive Economic Partnership on ASEAN Member States," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).

    More about this item

    Keywords

    FTA; ASEAN; RCEP;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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