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Regionalism in Services: A Study of ASEAN

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  • Batshur Gootiiz
  • Aaditya Mattoo

Abstract

Can regionalism do what multilateralism has so far failed to do?promote greater openness of services markets? Although previous research has pointed to the wider and deeper legal commitments under regional agreements as proof that it can, no previous study has assessed the impact of such agreements on applied policies. This paper focuses on the Association of Southeast Asian Nations (ASEAN), where regional integration of services markets has been linked to thriving regional supply chains. Drawing on surveys conducted in 2008 and 2012 of applied policies in the key services sectors of ASEAN countries, the paper assesses the impact of the ASEAN Framework Agreement on Services (AFAS) and the ambitious ASEAN Economic Community Blueprint, which envisaged integrated services markets by 2015. The analysis finds that over this period, ASEAN did not integrate faster internally than vis-à-vis the rest of the world: policies applied to trade with other ASEAN countries were virtually the same as those applied to trade with rest of the world. Moreover, the recent commitments scheduled under AFAS did not produce significant liberalization and, in a few instances, services trade policy actually became more restrictive. The two exceptions are in areas that are not on the multilateral negotiating agenda: steps have been taken toward creating regional open skies in air transport, and a few mutual recognition agreements have been negotiated in professional services. These findings suggest that regional negotiations add the most value when they are focused on areas that are not being addressed multilaterally.
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Suggested Citation

  • Batshur Gootiiz & Aaditya Mattoo, 2017. "Regionalism in Services: A Study of ASEAN," The World Economy, Wiley Blackwell, vol. 40(3), pages 574-597, March.
    • Handle: RePEc:bla:worlde:v:40:y:2017:i:3:p:574-597
    DOI: 10.1111/twec.12328
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    References listed on IDEAS

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    1. Mattoo, Aaditya & Fink, Carsten, 2004. "Regional Agreements and Trade in Services: Policy Issues," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 742-779.
    2. Martin,Will & Winters,L. Alan (ed.), 1996. "The Uruguay Round and the Developing Countries," Cambridge Books, Cambridge University Press, number 9780521586016, September.
    3. Richard Baldwin, 2011. "Trade And Industrialisation After Globalisation's 2nd Unbundling: How Building And Joining A Supply Chain Are Different And Why It Matters," NBER Working Papers 17716, National Bureau of Economic Research, Inc.
    4. Carsten Fink & Martín Molinuevo, 2008. "East Asian Free Trade Agreements in Services: Key Architectural Elements," Journal of International Economic Law, Oxford University Press, vol. 11(2), pages 263-311, June.
    5. Borchert, Ingo & Gootiiz, Batshur & Mattoo, Aaditya, 2012. "Guide to the services trade restrictions database," Policy Research Working Paper Series 6108, The World Bank.
    6. Aldaba, Rafaelita M., 2013. "ASEAN Economic Community 2015: Labor Mobility and Mutual Recognition Arrangements on Professional Services," Discussion Papers DP 2013-04, Philippine Institute for Development Studies.
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    Cited by:

    1. Sineenat Sermcheep, 2019. "Services Export and Economic Growth in ASEAN Countries," Journal of Asian Economic Integration, , vol. 1(2), pages 163-182, September.
    2. Leonardo Baccini & Iain Osgood & Stephen Weymouth, 2019. "The service economy: U.S. trade coalitions in an era of deindustrialization," The Review of International Organizations, Springer, vol. 14(2), pages 261-296, June.

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