ASEAN-China economic relationship will strengthen

2020 ◽  
Keyword(s):  
Free Trade Area ◽  
Production Costs ◽  
Global Trade ◽  
Content Type ◽  
Chinese Investment ◽  
Trade Area ◽  
Industrial Sectors ◽  
Manufacturing Sectors ◽  
Asean Countries ◽  
The Eu

Subject ASEAN-China economic cooperation. Significance Trade between China and the ASEAN states has grown fast over the last few years, even amid sluggish growth of global trade overall. Investment in ASEAN countries is already a key part of the globalisation strategies of many Chinese companies. The ASEAN-China Free Trade Area will probably increase its share of global trade as trade within it outpaces that within other major economic blocs, such as the EU and North America. Impacts Investment in ASEAN countries will help Chinese firms reduce production costs, tap local markets and avoid US tariffs. Chinese investment will help upgrade the infrastructure and domestic industrial sectors of ASEAN’s poorer economies. Competition between China and ASEAN countries will increase as the latter’s own manufacturing sectors develop.

AIIB may not close ASEAN infrastucture gap

2015 ◽  
Keyword(s):  
Free Trade Area ◽  
The Philippines ◽  
Rapid Expansion ◽  
Infrastructure Investment ◽  
Infrastructure Development ◽  
Investment Bank ◽  
Content Type ◽  
Asian Infrastructure Investment Bank ◽  
Trade Area ◽  
Asean Countries

Subject ASEAN core countries and the Asian Infrastructure Investment Bank. Significance The Asian Infrastructure Investment Bank (AIIB) plans to begin lending in early 2016. Three ASEAN countries -- Malaysia, Thailand and the Philippines -- have not signed the bank's articles of agreement, despite their infrastructure development needs. These needs will grow as ASEAN integrates, for instance via the ASEAN Economic Community (AEC) free trade area from end-2015. Impacts Should Manila reject the AIIB, this will create an opening for further Japanese support of Philippines infrastructure. Early credibility among lenders could lead to the AIIB's rapid expansion in Asia. Until then, established development lenders will dominate -- the AIIB is untested.

EU-Africa trade framework could scupper migration aims

2019 ◽  
Keyword(s):  
Free Trade Area ◽  
Right Wing ◽  
Negative Effects ◽  
Content Type ◽  
Trade Area ◽  
African Caribbean ◽  
Partnership Agreement ◽  
Border Surveillance ◽  
Stem Migration ◽  
The Eu

Subject EU-Africa trade talks. Significance The EU is negotiating three regional protocols as part of its trade and aid negotiations with African, Caribbean and Pacific (ACP) states to conclude a successor to the existing ACP-EU Cotonou Partnership Agreement due to expire in 2020. However, the Africa Regional Protocol, with its likely commitment to an Africa-Europe free trade area, is set to undermine the EU's ongoing efforts to curb African migration. Impacts The new partnership will come under increasing pressure from right-wing European populists seeking to further politicise migration flows. Any liberalisation gains for African farmers will likely prove short-lived and insufficient to offset negative effects from import flooding. The EU may increasingly condition aid on stricter border surveillance measures and repatriation schemes from ACP states to stem migration.

Does the formation of RTA support the neoclassical growth theory and convergence hypothesis?

2014 ◽  
Vol 41 (1) ◽  
pp. 51-70 ◽  
Author(s):  
A.K.M. Nurul Hossain ◽  
Mohammad Abdul Munim Joarder
Keyword(s):  
Economic Growth ◽  
Free Trade ◽  
Free Trade Area ◽  
Unconditional Convergence ◽  
Reduced Form ◽  
Per Capita Gdp ◽  
Content Type ◽  
Trade Area ◽  
Per Capita ◽  
The Eu

Purpose – The authors considered three regional trading agreements (RTAs): European Union (EU-25), ASEAN Free Trade Area (AFTA), and South Asian Free Trade Area (SAFTA) to test the hypothesis that poor members within a RTA catch rich members and thereby follow the path of income convergence. Of particular interest is to test whether partial openness (i.e. formation of RTAs) or openness or political conditions are conducive to economic growth among the member countries of RTAs. The paper aims to discuss these issues. Design/methodology/approach – The authors used pooled datasets from three different RTAs, namely the EU-25, the AFTA, and the SAFTA. Taking five years average for all variables, starting from 1961 to 1965 and extending to 2001-2005, the authors tested the hypothesis that the growth rate of per capita GDP is negatively related to the initial level of per capita GDP. Constructing a dynamic behavioral equation and forming the reduced form equation, the authors calculated the s-convergence, and both conditional and unconditional convergence. Findings – The authors found that both the EU-25 and the AFTA exhibit s-convergence, and both conditional and unconditional convergence, while the reverse evidence was observed in the case of the SAFTA. However, the speed of convergence of the AFTA was found to be much higher than that of the EU-25. Originality/value – Formation of RTA by countries should be considered as an essential condition to achieve sustained economic growth. In addition, political rights, trade openness, and more importantly benevolence of the member countries within the RTA must be shown to sustain economic growth and convergence; otherwise with the passage of time, divergence among the RTA members will be evident.

ASEAN auto sector disunity implies competition danger

2015 ◽  
Keyword(s):  
Automobile Industry ◽  
Production Efficiency ◽  
Free Trade Area ◽  
Production Costs ◽  
Automotive Sector ◽  
Economic Community ◽  
Content Type ◽  
Trade Area ◽  
Partnership Model ◽  
Asean Economic Community

Subject Outlook for ASEAN's automobile industry under the ASEAN Economic Community. Significance Though officially espoused as a partnership model for the ASEAN Economic Community (AEC) free trade area, and a priority sector for cooperation, South-east Asia's automotive sector is still fragmented and nationally focused, even though the AEC's arrival is imminent at end-2015. Impacts ASEAN-based automakers will need to prioritise production efficiency to stay competitive. Standardisation may be needed to reduce production costs. Export opportunities will be constrained absent further progress on regulatory harmonisation.

Ukraine-Russia ties will weaken with EU deal

2015 ◽  
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Free Trade Zone ◽  
Content Type ◽  
Trade Area ◽  
Russian President ◽  
Food Imports ◽  
Vladimir Putin ◽  
The Eu

Subject The EU-Ukraine trade agreement. Significance The delayed EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA) will start in January. The accord is set to strengthen ties between the EU and Kyiv. Russian President Vladimir Putin has ordered the ending of a free-trade zone with Ukraine, arguing that the new Kyiv-EU deal will harm Russia's economy. Also, in retaliation for Kyiv's participation in sanctions against Russia, the Kremlin has ordered an embargo against Ukraine food imports into Russia, which could cost Kyiv 300-600 million dollars per year. Impacts Ukraine will continue to reorient itself and sell food and products to other markets, such as Turkey and Israel. An influx of imports from the EU could prove a serious challenge to many local producers and thus should stimulate reforms. Termination of Ukraine trade with annexed Crimea from mid-January will weaken Kyiv-Moscow ties further.

UK-EU trade negotiations to be contentious

2016 ◽  
Keyword(s):  
United Kingdom ◽  
Free Trade Area ◽  
Content Type ◽  
Trade Area ◽  
The United Kingdom ◽  
Beneficial Impact ◽  
The Uk ◽  
Trade Deals ◽  
The Impact ◽  
The Eu

Subject Outlook for UK-EU trade deals. Significance Following the 'Brexit' referendum, a statement from EU Trade Commissioner Cecilia Malmstrom that the United Kingdom must negotiate its EU exit before concluding a trade deal alters assessments of future trading conditions across the English Channel. Even if the United Kingdom were to retain access to the single market or negotiate a free trade area with the EU, UK-EU trade is likely to be governed solely by WTO rules for many years. Impacts Given the UK government's lack of trade negotiators, the private sector could shape the country's negotiating positions. For UK exporters with domestic suppliers, the impact of tariffs on EU shipments will be mitigated by the pound's depreciation. However, the beneficial impact of the latter is reduced for UK exporters that source from abroad.

Protectionist drive may complicate African free trade

2020 ◽  
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
West African ◽  
Secretary General ◽  
African Union ◽  
Content Type ◽  
Goods And Services ◽  
Trade Area ◽  
External Threats ◽  
The Eu

Subject West African protectionism. Significance The African Continental Free Trade Area (AfCFTA), an African Union (AU) initiative to create a single market for goods and services throughout the continent, will start trading on July 1. In anticipation, the EU has declared its intention to establish a bicontinental ‘Eurafrican’ free trade area, building upon the AfCFTA. However, the nascent framework faces distinct internal and external threats. Impacts The secretary-general post is a considerable boost for South Africa given the postholder’s role in implementing AfCFTA’s liberalisation. Ghana’s main parties will try to outbid each other for farming support, with resulting protectionist promises, before this year's polls. Intra-African tensions will be heightened by perceived AfCFTA breaches, such as Nigeria’s border closure.

EU-Japan trade deal gives free trade a timely boost

2017 ◽  
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Framework Agreement ◽  
Content Type ◽  
Trade Area ◽  
Economic Partnership Agreement ◽  
Economic Partnership ◽  
Partnership Agreement ◽  
High Standards ◽  
The Eu

Subject The EU-Japan economic partnership agreement Significance The EU and Japan, which together account for 30% of global GDP, have reached a framework agreement on an economic partnership agreement (EPA), paving the way for the creation of the world's largest free trade area. The EPA involves high standards of trade liberalisation, comparable to the Trans-Pacific Partnership. Impacts Japan will expand its traditional exports (autos and electronics), but also new 'star' products such as sake and green tea. The EU will benefit most from opportunities to export more agricultural goods, processed food and beverages. European auto and electronics makers and Japanese producers of food and agricultural products will face greater competitive pressure. The EPA will boost household consumption in both economies. EU-Japan cooperation on standard-setting may create challenges for developing countries in particular.

African free trade area faces challenges from within

2019 ◽  
Keyword(s):  
Free Trade ◽  
Bargaining Power ◽  
Regional Distribution ◽  
Free Trade Area ◽  
Content Type ◽  
Implementation Challenges ◽  
Trade Area ◽  
The Eu

Significance However, coordination and implementation challenges still weigh on its prospects. Impacts The AfCFTA is projected to increase continental GDP by 0.97%. Employment should increase by 1.17%, but regional distribution will be sufficiently uneven that some countries will face downturns. The AfCFTA could increase Africa’s bargaining power with the EU in post-Cotonou negotiations.

China-United Kingdom free trade area

2017 ◽  
Vol 10 (1) ◽  
pp. 111-126
Author(s):  
Shumei Chen ◽  
Dandan Li
Keyword(s):  
United Kingdom ◽  
Free Trade ◽  
Free Trade Area ◽  
Economic Effects ◽  
The European Union ◽  
Content Type ◽  
Trade Area ◽  
Simulation Results ◽  
The Uk ◽  
Trade Analysis

Purpose The purpose of this paper is to predict the likely economic effects of a free trade area (FTA) on both China and the United Kingdom (hereafter the UK). Design/methodology/approach Following literature review and trade relationship briefing, this paper uses the Global Trade Analysis Project simulation to predict the economic effects of such a FTA on both China and the UK. Findings The simulation results indicate that a China-UK free trade area (hereafter CUFTA) will bring more benefits than harm to both China and the UK, and achieving zero tariff or reducing technological barriers to trade (TBT) is mutually beneficial for both China and the UK, with the growth in GDP, economic welfare as well as import and export. Combining zero tariff and the reduction of TBT in exceptional departments is the most favorable way to improve the macroeconomic effects without bringing damaging effects on the comparative disadvantage industries such as transport equipment, chemicals industries for China and textiles and apparel industry for the UK. Originality/value After the UK voted to leave the European Union, CUFTA is put on the agenda by both the governments, yet there are fewer studies on CUFTA, with this paper being one of the early trials. Besides, based on the simulation results, some policy suggestions will be put forward for future negotiations and industrial policies’ adjustment.

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