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Evolutionary paths toward a region-wide economic agreement in Asia

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  • Hamanaka, Shintaro

Abstract

The creation of a region-wide economic agreement in Asia has become a hot topic among trade policymakers in the region. The Asia-Pacific Economic Cooperation (APEC) 2010 Summit Statement clearly states that members should pursue a Free Trade Area of the Asia-Pacific (FTAAP) by building on various ongoing regional cooperation frameworks including the Association of Southeast Asian Nations (ASEAN)+3, ASEAN+6, and the Trans-Pacific Partnership (TPP). This paper attempts to streamline the policy arguments over sequencing issues by clarifying the pros and cons of various paths toward a future region-wide agreement in Asia. The paper presents two possible approaches: consolidation versus expansion. It then identifies how the two approaches differ in terms of evolutionary parameters including the timing of negotiations, scope of agreement, and development of membership. The driving forces behind the evolution of regional agreements in each approach are also clarified. The second half of the paper analyzes three possible paths toward a region-wide agreement—ASEAN+α free trade agreements, TPP, and the Asia-Pacific Trade Agreement (APTA)—in terms of both evolutionary parameters and driving forces.

Suggested Citation

  • Hamanaka, Shintaro, 2012. "Evolutionary paths toward a region-wide economic agreement in Asia," Journal of Asian Economics, Elsevier, vol. 23(4), pages 383-394.
    • Handle: RePEc:eee:asieco:v:23:y:2012:i:4:p:383-394
    DOI: 10.1016/j.asieco.2012.01.001
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    Cited by:

    1. Asian Development Bank (ADB), 2013. "Asian Economic Integration Monitor March 2013," ADB Reports RPS135470-3, Asian Development Bank (ADB), revised 05 Nov 2013.
    2. Chaisse, Julien & Hamanaka, Shintaro, 2014. "The Investment Version of the Asian Noodle Bowl: The Proliferation of International Investment Agreements," Working Papers on Regional Economic Integration 128, Asian Development Bank.
    3. Rahul Sen & Sadhana Srivastava & Don J Webber, 2015. "Effects of preferential trade agreements in the presence of zero trade flows: the cases of China and India," Working Papers 20151507, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.

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    More about this item

    Keywords

    Trans-Pacific Partnership Agreement (TPP); Free Trade Area of the Asia-Pacific (FTAAP); ASEAN+3 FTA; ASEAN+6 FTA; Consolidation approach; Expansion approach;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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