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Asian Economic Integration Led by Trade Liberalization: A Lesson for Other Regions

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  • Otaviano Canuto
  • Hung Q. Tran

Abstract

Developing countries have few options to deal with the ongoing tariff war amid unpredictable shifts in global supply chains. However, regional economic integration offers a strategic path of development in these uncertain and challenging times. Helped by geographical proximity and cultural familiarity, countries in a region can benefit greatly from promoting trade with one another, reaping the benefits of comparative advantages and economies of scale—if they are able to establish a large enough single market. Asia has successfully used regional cooperation and integration as stepping stones in its interactions with the rest of the world during the course of its economic development. Asia can thus offer lessons that other regions, especially Africa and Latin America, can benefit from.

Suggested Citation

  • Otaviano Canuto & Hung Q. Tran, 2025. "Asian Economic Integration Led by Trade Liberalization: A Lesson for Other Regions," Policy briefs on Economic Trends and Policies 2449, Policy Center for the New South.
    • Handle: RePEc:ocp:pbecon:pb36_25
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    References listed on IDEAS

    as
    1. Canuto, Otaviano & Sharma, Manu, 2011. "Asia and South America: A Quasi-Common Economy Approach," World Bank - Economic Premise, The World Bank, issue 65, pages 1-7, September.
    2. Canuto Dos Santos Filho,Otaviano & Fleischhaker,Cornelius & Schellekens,Philip, 2015. "The curious case of Brazil's closedness to trade," Policy Research Working Paper Series 7228, The World Bank.
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