The drawbacks of preferential trade agreements in Asia
Preferential trade agreements are mushrooming in Asia. However, they have not been facilitating intra-regional trade as much as the supporters of these exclusive arrangements have suggested. The complexities of rules of origin - part and parcel of all preferential agreements - have resulted in low utilization rates in Asia. The key driver of trade integration in Asia has been the rise of China, and not preferential trade agreements. In the last two decades, Chinas has managed to establish itself as the indispensable trading partner in the region. In 2011, China accepted a trade deficit with its neighbouring countries whilst producing surpluses with the USA and the EU. At the same time, deeper trade integration in Asia, e.g. an Asian wide customs union, appears to be unrealistic. At this juncture, the political obstacles that hinder a deepening of co-operation are formidable. Other Asian countries like to co-operate with China, but demonstrate an even rising reluctance to enter far-reaching integration projects with Bejing.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/Email:
More information through EDIRC
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.:
- Donghyun Park & Innwon Park & Gemma Esther B. Estrada, 2009. "Prospects for ASEAN-China Free Trade Area: A Qualitative and Quantitative Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(4), pages 104-120.
- Ross Garnaut & David Vines, 2007. "Regional free-trade areas: sorting out the tangled spaghetti," Oxford Review of Economic Policy, Oxford University Press, vol. 23(3), pages 508-527, Autumn.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifwedp:201268. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.