The theory of free trade areas: The case for an African continental free trade area

Since the reform and opening up, the economy of China has rapidly developed. The system, structure, mode, and pattern of the foreign trade in China must be adjusted accordingly to adapt to new economic normality. In this study, the main types of free trade areas worldwide were analyzed, and the necessary conditions for their successful development were examined on the basis of an ecological economic perspective. The Shanghai free trade area is a typical representative of a new type of Trade Zone in China. It introduces the principles of sustainable development, people oriented, green, low-carbon and other eco free trade zones. The planning characteristics of Shanghai free trade zone were studied from the point of view of planning economy and land use. Taking Shanghai Yangshan land free trade zone as an example, the planning research was carried out in terms of functional zoning, environment, transportation and facilities. In summary, this study provided theoretical and technical references for the construction of free trade areas and for the formulation of significant policies.

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Cross-Cumulation Arrangement as FTA Under GATT Article XXIV

Journal of International Economic Law ◽

10.1093/jiel/jgz027 ◽

2019 ◽

Vol 23 (1) ◽

pp. 165-185

Author(s):

Jong Bum Kim

Keyword(s):

World Trade Organization ◽

Free Trade ◽

Value Chain ◽

World Trade ◽

Free Trade Area ◽

Rules Of Origin ◽

Free Trade Areas ◽

Intermediate Products ◽

Trade Area ◽

The World

ABSTRACT A cross-cumulation arrangement helps manufacturers meet the demands of the global value chain economy by facilitating the sourcing of intermediate products within the territories of participants in the arrangement. It is a de facto free-trade area formed by a network of bilateral free-trade areas underpinning the arrangement. However, a cross-cumulation clause provided in a bilateral free-trade area that underpins a cross-cumulation arrangement is inconsistent with General Agreement on Tariffs and Trade (GATT) Articles I and III because the intermediate products from the participants in the arrangement are more favorably treated than products from non-participants in the arrangement. The GATT inconsistencies of a cross-cumulation clause cannot be justified by the GATT Article XXIV exception, because a cross-cumulation clause of a bilateral free-trade area derogates from the free-trade area’s aim by facilitating trade in intermediate products between the free-trade area parties and non-parties to the free-trade area that are participants in the arrangement. In contrast, a cumulation clause provided in a free-trade area contributes to the free-trade area’s aim by facilitating trade in intermediate products between the parties to the free-trade area. To bring a cross-cumulation arrangement such as the Regional Convention on Pan-Euro-Med Preferential Rules of Origin into conformity with World Trade Organization law, the arrangement and its underlying free-trade areas should be recognized as a de jure free-trade area under GATT Article XXIV and notified to the World Trade Organization as such. A large cross-cumulation arrangement as a mega-free-trade area is likely to contribute to the world trading system by harmonizing divergent free-trade area rules of origin and providing an efficient mechanism for the formation of a mega-free-trade area.

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FREE TRADE AREAS AND INTRA-REGIONAL TRADE: THE CASE OF ASEAN

The Singapore Economic Review ◽

10.1142/s0217590809003367 ◽

2009 ◽

Vol 54 (03) ◽

pp. 319-334 ◽

Cited By ~ 3

Author(s):

MAURICE J. G. BUN ◽

FRANC J. G. M. KLAASSEN ◽

G. K. RANDOLPH TAN

Keyword(s):

Free Trade ◽

Bilateral Trade ◽

Unobserved Heterogeneity ◽

Empirical Finding ◽

Free Trade Area ◽

Empirical Literature ◽

Free Trade Areas ◽

Trade Area ◽

Bilateral Trade Flows ◽

Positive Effect

We study the effects of free trade areas on bilateral trade flows. We review and extend the previous empirical literature by embarking on the modelling of unobserved heterogeneity. We apply our preferred model to the case of the Asean Free Trade Area (AFTA). The estimation results suggest that there has been a positive effect of AFTA. This empirical finding is contrary to earlier estimation results, which are typically not so positive about AFTA. It is our impression that these earlier estimates on AFTA are confounded with the effects of unobserved determinants of trade.

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