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Unlikely Pivotal States in Competitive Free Trade Agreement Diffusion: The Effect of Japan's Trans-Pacific Partnership Participation on Asia-Pacific Regional Integration

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  • Mireya Sol�s
  • Saori N. Katada

Abstract

How can a state with dysfunctional trade politics spur the negotiation of major free trade agreements (FTAs)? Using the case of Japan's participation in the trans-Pacific Partnership (TPP), we develop an analytical framework on FTA diffusion that takes into account multidimensional (economic, legal and political) competitive pressures, and the ability of states to act as pivots in triggering FTA cascades. We disaggregate the makeup of a pivotal state into two main components - capability and credibility - and underscore Japan's significant latent capabilities, but also its serious credibility shortcomings. The TPP's boost to Japan's credibility raised the possibility of significant economic, legal and political externalities for specific countries which responded by accelerating FTA initiatives that had long stalled: the trilateral China-Japan-Korea FTA, a 16-state East Asian FTA and the Japan-European Union trade negotiations. This study extends the theoretical frontier in policy diffusion studies by clarifying the combination of factors that allows some states, but not others, to activate the externalities behind the dissemination of defensive FTAs.

Suggested Citation

  • Mireya Sol�s & Saori N. Katada, 2015. "Unlikely Pivotal States in Competitive Free Trade Agreement Diffusion: The Effect of Japan's Trans-Pacific Partnership Participation on Asia-Pacific Regional Integration," New Political Economy, Taylor & Francis Journals, vol. 20(2), pages 155-177, April.
    • Handle: RePEc:taf:cnpexx:v:20:y:2015:i:2:p:155-177
    DOI: 10.1080/13563467.2013.872612
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    References listed on IDEAS

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    1. Peter A. Petri & Michael Plummer, 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration: Policy Implications," Policy Briefs PB12-16, Peterson Institute for International Economics.
    2. Manger,Mark S., 2009. "Investing in Protection," Cambridge Books, Cambridge University Press, number 9780521765046, October.
    3. Peter A. Petri & Michael G. Plummer & Fan Zhai, 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration: A Quantitative Assessment," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6642, January.
    4. Manger,Mark S., 2009. "Investing in Protection," Cambridge Books, Cambridge University Press, number 9780521748704, October.
    5. Petri, Peter A., 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration," 2012: New Rules of Trade? December 2012, San Diego, California 143184, International Agricultural Trade Research Consortium.
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