Trade Agreements with ASEAN Countries

2018 ◽  
pp. 97-122
Author(s):  
Arlo Poletti ◽  
Daniela Sicurelli
Keyword(s):  
Trade Agreements ◽  
Asean Countries

Was India Right in Not Joining RCEP? A Cost–Benefit Analysis

2021 ◽  
pp. 097492842110477
Author(s):  
Monika Jain
Keyword(s):  
New Zealand ◽  
South Korea ◽  
Free Trade ◽  
Trade Diversion ◽  
Trade Agreements ◽  
Asia Pacific ◽  
Trade Creation ◽  
Asean Countries ◽  
The Cost ◽  
The Impact

India dropped out of the Regional Comprehensive Economic Partnership (RCEP), which included the Association of Southeast Asian Nations (ASEAN) countries, China, South Korea, New Zealand, Japan and Australia, after negotiating for almost seven years in November 2018 on the grounds of national interest and also that free trade agreements (FTAs) did not amount to free trade and led to more trade diversion than trade creation. The cost and benefit of a regional agreement depend on the amount of trade creation with respect to trade diversion (Panagriya, 2000). This study tries to examine India’s concerns and at the same time, highlights the cost of not joining RCEP. India’s trade deficit with 11 out of the 15 RCEP nations has been a major cause of concern. Unfavourable trade balance, concerns about the impact on dairy sector, economic slowdown, past experience with FTA’s, China factor, data localisation, rules of origin, the experience of ASEAN countries with Sino-FTA have been some of the reasons behind India’s decision to opt-out of this mega multilateral agreement. Also, bilateral trade agreements with some RCEP countries such as Japan, Malaysia, Singapore, Thailand and South Korea were operational. A multilateral trade agreement with ASEAN countries was very much in place. So, trade between India and 12 of the RCEP member countries would not have changed much after India’s inclusion in RCEP. The impact of lower tariffs would have been evident for the remaining three countries: China, Australia and New Zealand. Furthermore, there was fear of a massive surge in imports of manufactures from China, dairy imports from Australia and New Zealand. This study also examines the long term impact of this decision and if India has missed out on becoming a part of the global value chain and gaining greater market access in the Asia Pacific region. India’s policy of import substitution and protectionism did not capitulate desired results in the past. Hence, a critical evaluation of India’s decision and some validation on her concerns and fears have been done.

Political Leadership, Informality, and Regional Integration in East Asia: The Evolution of Asean Plus Three

2005 ◽  
Vol 4 (2) ◽  
pp. 205-232 ◽  
Author(s):  
Yoshimatsu Hidetaka
Keyword(s):  
East Asia ◽  
Regional Integration ◽  
Regional Cooperation ◽  
Political Leadership ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Regional Public Goods ◽  
Catalytic Role ◽  
Asean Countries ◽  
Shared Norms

AbstractSince the late 1990s, moves towards regional integration and cooperation have gained momentum in East Asia. The regional countries have expanded and deepened integration initiatives under the ASEAN Plus Three (APT) framework that consists of ASEAN countries, China, Japan and South Korea. What factors have promoted the development of regional integration and economic cooperation in the region? This article addresses this question in terms of collectively shared norms and political leadership. Informality, a representative common norm, played a catalytic role in first nurturing communication for regional cooperation and inducing a reluctant state to join the cooperative framework. Importantly, the development of regional cooperation under the APT framework was accompanied by a shift in emphasis from informal to formal settings. Moreover, leadership shown by China and Japan has played a crucial role in promoting the regional integration initiatives. While China has taken the initiative in propelling regional free trade agreements and economic development and integration in the Indochina countries, Japan has taken the lead in developing financial and monetary architectures and other cooperative mechanisms. Rivalry for political leadership has induced the two countries to provide regional public goods in a positive-sum game manner.

SINGAPORE AND ASEAN IN THE GLOBAL ECONOMY: The Case of Free Trade Agreements

Asian Survey ◽  
2003 ◽  
Vol 43 (6) ◽  
pp. 908-928 ◽  
Author(s):  
Teofilo C. Daquila ◽  
Le Huu Huy
Keyword(s):  
Trade Liberalization ◽  
Free Trade ◽  
Global Economy ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Economic Community ◽  
Regional Trade ◽  
Slow Pace ◽  
Asean Countries ◽  
Asian Economic Community

Abstract Given the slow pace of global and regional trade liberalization initiatives, Singapore has forged free trade agreements for economic and strategic reasons. Other ASEAN countries and ASEAN itself have also become interested in establishing FTAs with countries outside the grouping. In the future, ASEAN could form an ASEAN or an East Asian Economic Community.

scholarly journals PERDAGANGAN BEBAS REGIONAL DAN DAYA SAING EKSPOR: KASUS INDONESIA

2010 ◽  
Vol 13 (1) ◽  
pp. 5-22
Author(s):  
Amalia Adininggar Widyasanti
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Policy Recommendations ◽  
Intensity Index ◽  
Market Inefficiency ◽  
Export Competitiveness ◽  
Asean Countries ◽  
Export Product

Indonesia has involved in quite many regional trade agreements, since more than a decade ago. Theoritically, Free Trade Agreements (FTAs) are very beneficial to the countries, as resources are more efficiently allocated due to production specialization. However, presence of asymmetric information, market inefficiency, and economic distortion in the real world have led to a deviation of FTAs benefits from its theoritical framework. This paper studies whether Indonesian export competitiveness is improving after Indonesia involves in ASEAN Free Trade Agreement (AFTA) and ASEAN-Cina Free Trade Agreement (ACFTA). Export competitiveness are measured by some trade indicators, such as: trade intensity index, market share, export product dynamics, and RCA, for some Indonesian main export products. The indices are compared across ASEAN countries and Cina to reveal: (i) which products are gaining or losingcompetitiveness in ASEAN and Cina markets; and (ii) which countries are  becoming Indonesian main competitors in ASEAN and Cina markets. Additionally, this paper ends up with some policy recommendations that Indonesia should undertake to improve competitiveness of its products in ASEAN and Cina markets.JEL Classification: R11, F16Keywords: FTA, export competitiveness, Indonesia

scholarly journals DAMPAK PELAKSANAAN ACFTA TERHADAP PERDAGANGAN INTERNASIONAL INDONESIA

2010 ◽  
Vol 13 (1) ◽  
Author(s):  
Ibrahim Ibrahim ◽  
Meily Ika Permata ◽  
Wahyu Ari Wibowo
Keyword(s):  
Comparative Advantage ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Export Performance ◽  
Production Capacity ◽  
Trade Agreements ◽  
Computable General Equilibrium Model ◽  
Trade Creation ◽  
Asean Countries ◽  
The Impact

This study analyze the impact of the implementation of trade agreements within the framework of ACFTA on Indonesia»s export by using the GTAP model; a Multi Regional Computable General Equilibrium Model. Results shows that ACFTA provide opportunities for increased export from Indonesia; Indonesia obtained a net trade creation of international trade amounted to 2% and total exports growth increased by 1.8. However, the export performance of Indonesia in the period showed a decrease of competitiveness, as shown by the decline in share of Indonesian export commodities which are highly competitive and high intra-industry linkage. This paper also find that because the commodity structure of China and the non compeeting behavior of ASEAN countries including Indonesia (tends to complement), China is relatively easier to penetrate export to the ASEAN market. The entering products from China should provide opportunities for domestic producers to increase production capacity in ASEAN, due to wider choice of relatively cheap capital goods imports.JEL Classification: C67, F14, R12Keywords: ACFTA, trade, export, GTAP, Revealed Comparative Advantage, CGE.

scholarly journals Free Trade Agreements: WTO and ASEAN Implications

2004 ◽  
Vol 20 ◽  
pp. 95-111
Author(s):  
Jose L. Tongzon
Keyword(s):  
Developing Countries ◽  
World Trade Organization ◽  
Free Trade ◽  
World Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Negotiations ◽  
Multilateral Trade ◽  
The World ◽  
Asean Countries

The World Trade Organization (WTO) (formerly GATT) was established primarily to achieve free trade across the globe based on the principle of non-discrimination and the process of multilateral trade negotiations. The fact that most countries are members of WTO reflects the worldwide belief in the benefits of a global free trade. Despite its achievements since the first round of multilateral trade negotiations was held, the effectiveness of the process has been called into question. Most WTO members are now proposing new regional trading arrangements (RTAs), such as free trade agreements (FTAs). What implication does these RTAs have for the WTO and ASEAN countries? Should ASEAN countries give regionalism priority over the WTO-based multilateral approach? To answer this questions, this paper will first summarize the motivations behind the formation of RTAs before presenting the merits and demerits of RTAs as an approach to achieve universal free trade and maximize developing countries' welfare. It is argued that despite its inherent limitations it is important for ASEAN countries to remain primarily committed to the principles of WTO and the process of multilateral trade negotiations.

East Asian Regionalism: A New Momentum for Multilateralism?

2019 ◽  
Vol 11 (03) ◽  
pp. 5-13
Author(s):  
Don MOON
Keyword(s):  
East Asian ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
The United States ◽  
Asian Financial Crisis ◽  
Institution Building ◽  
Asian Countries ◽  
Economic Relationships ◽  
Asian Regionalism ◽  
Asean Countries

East Asian countries continue to sign mega-Free Trade Agreements, indicating certain momentum for promoting cooperative economic relationships, despite protectionism fears. This paper examines East Asian regionalism after the Asian Financial Crisis in 1997 and discusses the dynamics of institution building among the United States, China and Japan. It also explores what ASEAN countries, South Korea and Australia should do to mitigate the tension in the region and facilitate progress in the open economic order.

scholarly journals Asean is in the Movement of Combating Corruption: Should New - Generation Ftas Be a Promising Forum for Anti-Corruption Enforcement of Asean in International Business?

2020 ◽  
Vol 3 (2) ◽  
pp. 98-114
Author(s):  
Hieu Le Ho Trung ◽  
Jennifer B. Verances ◽  
Hung Tran Van
Keyword(s):  
Free Trade ◽  
International Business ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Legal Framework ◽  
Government Procurement ◽  
Member States ◽  
Asean Member ◽  
Asean Countries ◽  
New Generation

Abstract For a long time, corruption has been a shrilling concern for ASEAN member states for the reason of being one of the primary causes restricting the integration of these nations into international trade and efforts at globalization. In fact, over the last few years, ASEAN has undertaken a myriad of policies and improved the regional legal framework to combat corruption such as the signing of UNCAC and new free trade agreements and the establishment of the ASEAN Economic Community. Notwithstanding this, according to the statistics of global organizations, the levels of anti-corruption in ASEAN countries, except Singapore and Brunei, are relatively low. This mainly derives from the fact that the national legal framework in each of the member states has not satisfied fully when the political regime lacks democracy, governmental authority is insufficiently impartial and the awareness of citizens about corruption is still moderate. Simultaneously, the international agreements to which ASEAN member states signed are only the model for domestic enforcement mechanisms, and seem to be silent on international enforcement of anti-corruption. To date, the WTO is known as a global agency for international business, to which all ASEAN countries have acceded. Under the WTO, there is no official mechanism for enforcement of anti-corruption; nevertheless, this organization acknowledges, encourages and states indirectly this issue via transparency, accountability or governance in their agreements (Government Procurement Agreement and Trade Facilitation Agreement). Under the Doha negotiation round, WTO member states failed to gain consensus to dismantle tariffs, resulting in the emergence of a myriad of bilateral and regional trade agreements out of the scope of the WTO. These have gradually developed to be so-called new-generation free trade agreements in the hope of mitigating the traditional trade barriers as well as lessening non-tariff ones, such as governance and transparency. The recent development of new-generation FTAs between ASEAN and/or ASEAN member(s) and the external trading partners that pay high attention to anti-corruption issues, i.e., EU, Australia, Canada, Japan, US, may create a promising forum for anti-corruption enforcement of ASEAN in international business in the future. This article will elaborate on all aforementioned issues before a reasonable conclusion is delivered.

scholarly journals DO REGIONAL TRADE AREAS IMPROVE EXPORT COMPETITIVENESS? - A CASE OF INDONESIA

2010 ◽  
Vol 13 (1) ◽  
pp. 5-22
Author(s):  
Amalia Adininggar Widyasanti
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Policy Recommendations ◽  
Regional Trade ◽  
Intensity Index ◽  
Market Inefficiency ◽  
Export Competitiveness ◽  
Asean Countries

Indonesia has involved in quite many regional trade agreements, since more than a decade ago. Theoritically, Free Trade Agreements (FTAs) are very beneficial to the countries, as resources are more efficiently allocated due to production specialization. However, presence of asymmetric information, market inefficiency, and economic distortion in the real world have led to a deviation of FTAs benefits from its theoritical framework. This paper studies whether Indonesian export competitiveness is improving after Indonesia involves in ASEAN Free Trade Agreement (AFTA) and ASEAN-Cina Free Trade Agreement (ACFTA). Export competitiveness are measured by some trade indicators, such as: trade intensity index, market share, export product dynamics, and RCA, for some Indonesian main export products. The indices are compared across ASEAN countries and Cina to reveal: (i) which products are gaining or losingcompetitiveness in ASEAN and Cina markets; and (ii) which countries are  becoming Indonesian main competitors in ASEAN and Cina markets. Additionally, this paper ends up with some policy recommendations that Indonesia should undertake to improve competitiveness of its products in ASEAN and Cina markets.JEL Classification: R11, F16Keywords: FTA, export competitiveness, Indonesia

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