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The ASEAN-China free trade zone : challenges and opportunities for ASEAN

Author

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  • Tulus Tambunan

    (Faculty of Economics, University of Trisakti, Jakarta, Indonesia)

Abstract

This paper assesses the implication of “ASEAN plus China” on ASEAN inter- and intra-trade. Based on secondary data analysis and survey of key literature, it shows a number of interesting findings. First, despite the establishment of the ASEAN Free Trade Area, regions outside ASEAN are still the most important markets for individual member countries, for both export and import. Second, recent data show that after the United States, the European Union, and Japan, China tends to become ASEAN’s largest trading partner; trade between China and ASEAN continues to increase, and its rate tends to accelerate. Third, based on various analytical approaches, the implementation of ASEAN plus China will most likely lead to trade diversion (TD), at least to some member countries. The paper concludes, therefore, that the ASEAN-China free trade zone will most likely generate higher trade volume between China and ASEAN at the cost of ASEAN intra-trade.

Suggested Citation

  • Tulus Tambunan, 2006. "The ASEAN-China free trade zone : challenges and opportunities for ASEAN," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 43(1), pages 1-30, June.
    • Handle: RePEc:phs:prejrn:v:43:y:2006:i:1:p:1-30
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/234/623
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    Cited by:

    1. Wen-Xi Ruan & Xin Yu & Sheng-Yuan Wang & Tian-Cheng Zhao & Ya-Zhen Liu, 2022. "Exploration of China–ASEAN Trade Relations in the Context of Sustainable Economic Development—Based on the Lotka–Volterra Model," Sustainability, MDPI, vol. 15(1), pages 1-22, December.

    More about this item

    Keywords

    ASEAN; ASEAN-China free trade; ASEAN intra-trade; ASEAN inter-trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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