We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
from III - Regional Economic Integration: A Multi-stage Approach
Published online by Cambridge University Press: 05 July 2016
INTRODUCTION
The Asia-Pacific region is seeing growing economic integration through market-driven production networks, and through plurilateral and bilateral Free Trade Agreements (FTAs) and the emerging mega-trade blocs of the Regional Comprehensive Economic Partnership (RCEP) and Trans-Pacific Partnership (TPP). Both economic and political factors are driving the proliferation of FTAs in East Asia. The former is the push for economic growth and employment through improved economic competitiveness, access to markets and investments, and the strengthening of regional production networks and supply chains. The latter is to promote regional resilience and traditional and non-traditional security through closer cooperation.
Bilateral FTAs are proliferating among East Asian and non-East Asian countries. Plurilateral FTAs have also mushroomed, such as the ASEAN+1 FTAs. This proliferation is driven by the following developments: the stalled World Trade Organization (WTO) Doha Round and need for alternative paths to trade and investment liberalization; the shock of the Asian Financial Crisis (AFC) in the late 1990s impelling countries in the region to work more closely together; the desire to partially imitate North American and European regional economic integration; the fear of being left out of preferential deals and its resulting domino effect; and the desire to have a stronger East Asian voice and presence in the international fora. Questions that arise from such proliferation include: Will they be effective in liberalizing trade and investment flows? Will they undermine the WTO and the multilateral trading system? Will the various stakeholders, particularly the business community, find them useful and helpful? Will they create a “noodle bowl” phenomenon that actually fragments markets and add to business costs?
ASEAN has been playing a central role in FTA formation in the region. The ASEAN Free Trade Area (AFTA) entered into force in 1993, ASEAN Framework Agreement of Services (AFAS) in 1995, and ASEAN Investment Area (AIA) in 1997 and was succeeded by the ASEAN Economic Community (AEC) in 2007, ASEAN Trade in Goods Agreement (ATIGA) in 2010, and ASEAN Comprehensive Investment Agreement (ACIA) in 2012. The development of FTA networks with ASEAN';s Dialogue Partners has been an integral part of the AEC.
To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.
