Trade Creation or Trade Diversion in ASEAN and ASEAN+6 FTAs: Trade Indicators Approach

2015 ◽  
pp. 25-41
Author(s):  
Anh Tu Thuy ◽  
Ngoc Le Minh
Keyword(s):  
Comparative Advantage ◽  
Wheat Gluten ◽  
Free Trade Area ◽  
Private Investment ◽  
Trade Diversion ◽  
Trade Creation ◽  
Public And Private ◽  
Trade Area ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership

This paper makes use of two trade indicators, Revealed Comparative Advantage (RCA) and Regional Orientation (RO), to evaluate the economic impacts of the ASEAN Free Trade Area (The) and the Regional Comprehensive Economic Partnership (RCEP) on Vietnamese commodities at the Harmonized System (HS) 2-digit level. Several sectors in which Vietnam has revealed a comparative advantage, has benefited from the AFTA, and would continue to enjoy trade creation from the RCEP, are: Cereals (10), Salt, sulphur, earth, stone, plaster, lime and cement (25), Rubber (40), Knitted or crocheted fabric (60), etc. More importantly, the result provides a list of commodities in which Vietnam has a comparative advantage and only experiences trade creation when participating in the RCEP. These are: Milling products, malt, starches, inulin, wheat gluten (11), Vegetable plaiting materials, vegetable products not elsewhere specified (14), Wood and articles of wood, wood charcoal (44), etc. Findings also show commodities in which Vietnam has a comparative advantage; but are not well positioned in the RCEP market yet, e.g. Cereal, flour, starch, milk preparations and products (19) and Manmade staple fibres (55). If sufficient investment decisions and marketing strategies are applied to these commodities, they will well penetrate the RCEP market and bring trade creation and welfare improvement to Vietnam. Public and private investment should consider the above-mentioned commodities as targets to leapfrog the benefits of RCEP.

scholarly journals Dampak ACFTA (ASEAN-China Free Trade Area) Terhadap Trade Creation Dan Trade Diversion Indonesia Di Kawasan ACFTA+3

2020 ◽  
Vol 8 (1) ◽  
pp. 84-100
Author(s):  
Siti khamila Dewi ◽  
Sahara ◽  
Sri Mulatsih
Keyword(s):  
Panel Data ◽  
Free Trade ◽  
World Bank ◽  
Free Trade Area ◽  
Trade Diversion ◽  
Trade Creation ◽  
Trade Area

Indonesia terlibat aktif dalam jejaring kerjasama Free Trade Area (FTA), salah satunya dengan menjadi anggota pada ASEAN-China FTA atau dikenal juga dengan ACFTA. Studi ini bertujuan untuk menganalisis faktor yang memengaruhi nilai impor Indonesia dan mengetahui dampak ACFTA terhadap trade creation dan trade diversion Indonesia. Penelitian menggunakan pendekatan model panel data dengan data sekunder selama periode tahun 2000 hingga 2018 yang dikumpulkan dari WITS, WORLD BANK, UNCTAD, dan CEPII. Hasil empiris menunjukkan bahwa setelah ACFTA diberlakukan, nilai impor Indonesia dari negara-negara anggota ACFTA mengalami kenaikan. Nilai impor Indonesia secara signifikan dipengaruhi secara positif oleh GDP per kapita Indonesia, GDP per kapita mitra dagang (negara ACFTA+3), dan jarak ekonomi antar negara. Sementara nilai tukar riil antar negara berpengaruh negatif terhadap nilai impor Indonesia. Secara keseluruhan Indonesia diduga mengalami kerugian dari adanya ACFTA akibat terjadinya trade diversion dari negara non-anggota ke negara-negara anggota di wilayah ACFTA +3.

scholarly journals Does AFTA Create or Divert Trade?

2007 ◽  
Vol 7 (4) ◽  
pp. 1850122 ◽  
Author(s):  
Helen Cabalu ◽  
Cristina Alfonso
Keyword(s):  
Trade Liberalization ◽  
Free Trade ◽  
Free Trade Area ◽  
Trade Diversion ◽  
Trade Creation ◽  
Commodity Trade ◽  
Trade Patterns ◽  
Trade Data ◽  
Trade Area ◽  
The Impact

In this article the changes in trade patterns introduced by the ASEAN Free Trade Area (AFTA) are examined. Variation in growth trends and the shift-and-share methodology are used to identify the impact of trade liberalization under AFTA on intra- and extra-regional commodity trade. Data at the commodity level are used and the results indicate that AFTA had trade creation effects, with little evidence of trade diversion.

Amicus Curiae Intervention in China-ASEAN Investment Disputes: Rationale, Dilemmas and Reform Path

China Report ◽  
2021 ◽  
Vol 57 (2) ◽  
pp. 151-168
Author(s):  
Xinglong Yang
Keyword(s):  
Dispute Settlement ◽  
Free Trade Area ◽  
Amicus Curiae ◽  
Trade Area ◽  
Economic Partnership ◽  
Asean Countries ◽  
Dispute Settlement System ◽  
Regional Comprehensive Economic Partnership ◽  
Main Criticism ◽  
Investment Agreements

One main criticism levelled against the investor-state dispute settlement system (ISDS) is the existence of limited opportunities for amicus intervention. Against this backdrop, this article firstly studies what reforms regarding amicus intervention in ISDS proceedings have been put forward by China and ASEAN countries and the relevant dilemmas. Subsequently, to ensure that maximum benefits can be realised from amicus participation in ISDS proceedings in China-ASEAN Free Trade Area (CAFTA), this article proposes procedures for when and how an amicus may participate in arbitral proceedings under the upcoming investment agreements, particularly the Regional Comprehensive Economic Partnership (RCEP). Additionally, given the fact that the level of amicus participation in ISDS proceedings is still limited, the article suggests that China and ASEAN need to establish safeguards to provide amici with access to key arbitral documents and oral hearings. However, achieving the above objectives should not come at the expense of undermining the confidential and protected information of both disputing parties.

scholarly journals Dampak ACFTA (ASEAN-China Free Trade Area) Terhadap Trade Creation Dan Trade Diversion Indonesia Di Kawasan ACFTA+3

2020 ◽  
Vol 8 (1) ◽  
pp. 84-100
Author(s):  
Siti khamila Dewi ◽  
Sahara ◽  
Sri Mulatsih
Keyword(s):  
Panel Data ◽  
Free Trade ◽  
World Bank ◽  
Free Trade Area ◽  
Trade Diversion ◽  
Trade Creation ◽  
Trade Area

Indonesia terlibat aktif dalam jejaring kerjasama Free Trade Area (FTA), salah satunya dengan menjadi anggota pada ASEAN-China FTA atau dikenal juga dengan ACFTA. Studi ini bertujuan untuk menganalisis faktor yang memengaruhi nilai impor Indonesia dan mengetahui dampak ACFTA terhadap trade creation dan trade diversion Indonesia. Penelitian menggunakan pendekatan model panel data dengan data sekunder selama periode tahun 2000 hingga 2018 yang dikumpulkan dari WITS, WORLD BANK, UNCTAD, dan CEPII. Hasil empiris menunjukkan bahwa setelah ACFTA diberlakukan, nilai impor Indonesia dari negara-negara anggota ACFTA mengalami kenaikan. Nilai impor Indonesia secara signifikan dipengaruhi secara positif oleh GDP per kapita Indonesia, GDP per kapita mitra dagang (negara ACFTA+3), dan jarak ekonomi antar negara. Sementara nilai tukar riil antar negara berpengaruh negatif terhadap nilai impor Indonesia. Secara keseluruhan Indonesia diduga mengalami kerugian dari adanya ACFTA akibat terjadinya trade diversion dari negara non-anggota ke negara-negara anggota di wilayah ACFTA +3.

scholarly journals THE IMPACT OF ASEAN-CHINA FREE TRADE AREA (ACFTA) AGREEMENT ON INDONESIA’S MAJOR PLANTATION EXPORT COMMODITIES

2021 ◽  
Vol 22 (1) ◽  
pp. 91-97
Author(s):  
Erlambang Budi Darmanto ◽  
Rossanto Dwi Handoyo ◽  
Wisnu Wibowo
Keyword(s):  
Free Trade ◽  
Palm Oil ◽  
Free Trade Area ◽  
Trade Diversion ◽  
Area Measurement ◽  
Trade Creation ◽  
Negative Coefficient ◽  
Trade Area ◽  
Export Destination ◽  
The Impact

This study aims to analyze the impact of ASEAN-China Free Trade Area (ACFTA) on the 4 major exports of plantation commodities (including the commodities of coffee, cocoa, rubber, and palm oil) in Indonesia. The trade impact is measured based on the occurrence of trade creation or trade diversion. The negative coefficient as the result of dummy FTA (Free Trade Area) measurement indicates the presence of trade diversion. Meanwhile, the positive coefficient indicates the presence of trade creation. This study examines the export of major plantation commodities of Indonesia to China and compared with the 10 major export destination countries worldwide. The findings show that trade creation exists within the commodities of coffee, rubber, and palm oil while the trade diversion exists in the commodity of cocoa.

China’s Foreign Policy: A More Confident and Assertive China Amidst Global Uncertainties

2017 ◽  
Vol 09 (01) ◽  
pp. 5-20
Author(s):  
Liang Fook LYE
Keyword(s):  
Free Trade Area ◽  
Asia Pacific ◽  
Veto Power ◽  
Infrastructure Investment ◽  
Regional Security ◽  
Investment Bank ◽  
Trade Area ◽  
China’S Foreign Policy ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership

Amidst growing protectionist and anti-globalisation sentiments, China has led the call for a free, open and inclusive multilateral order. It supports a multilateral trading regime, a Free Trade Area of the Asia-Pacific and the Regional Comprehensive Economic Partnership. It has launched the Asian Infrastructure Investment Bank where it wields significant veto power. China is pushing for a new regional security architecture. While shaping the international order, China is upholding its sovereign claims over the South China Sea and Taiwan.

scholarly journals Trade Creation dan Trade Diversion Indonesia dengan AANZFTA pada Komoditas Garam

2020 ◽  
Vol 20 (1) ◽  
pp. 94-110
Author(s):  
Dwi Tjahya Nugraha ◽  
Tony Irawan ◽  
Dedi Budiman Hakim
Keyword(s):  
New Zealand ◽  
Free Trade ◽  
World Bank ◽  
Free Trade Area ◽  
Trade Diversion ◽  
Import Demand ◽  
Demand Elasticity ◽  
Trade Creation ◽  
Trade Area ◽  
The World Bank

ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) is a free trade area formed in 2009. One of its implementations is the reduction of import duties on salt commodities in 2011. Its implementations has an impact on trade creation (TC) members and trade diversion (TD) on salt commodities product. The objective of this study is to analyze the occurrence TC and TD on salt commodity. Import demand elasticity and substitution elasticity approach for TC and TD estimation models was developed by the World Bank. The result is no all AANZFTA’s members get profit in the form of TC but just TD with dominated by Australia (99%) and other member (1%). --------------------------------------------- ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) adalah kawasan perdagangan bebas terbentuk pada tahun 2009. Awal pembentukannya adalah adanya penurunan tarif bea masuk komoditas garam. Kebijakan tersebut berdampak terhadap trade creation (TC) dan trade diversion (TD). Oleh karena itu, penelitian ini bertujuan menganalisis terjadinya TC dan TD pada komoditas garam. Pendekatan yang digunakan adalah elastisitas permintaan impor dan elastisitas substitusi untuk estimasi model TC dan TD yang dikembangkan oleh Bank Dunia. Hasil penelitian yang didapat adalah adanya keuntungan berupa TC dan TD yang didominasi oleh Australia (99%) dan anggota lainnya (1%).

scholarly journals THE AWAKENING OF INVESTMENT CREATION: A CASE STUDY FROM SOUTH-EAST ASIA

2020 ◽  
Vol 14 (2) ◽  
pp. 177-194
Author(s):  
Indriana Oktavia ◽  
Kiki Verico
Keyword(s):  
Free Trade ◽  
Positive Impact ◽  
Free Trade Area ◽  
Least Square ◽  
Economic Community ◽  
Trade Area ◽  
Economic Partnership ◽  
Asean Countries ◽  
Asean Economic Community ◽  
Regional Comprehensive Economic Partnership

Abstrak ASEAN membentuk integrasi ekonomi, seperti ASEAN Free Trade Area (AFTA), AFTA+1, dan ASEAN Economic Community (AEC), untuk meningkatkan perdagangan intra dan investasi antarnegara ASEAN. Tujuan dari penelitian ini adalah untuk meneliti dampak integrasi ekonomi ASEAN terhadap ASEAN FDI (AFDI) dan perdagangan intra ASEAN (AIT). Penelitian ini menggunakan data sepuluh negara ASEAN dan enam negara mitra selama periode 2001-2017 dan di estimasi dengan menggunakan Generalized Least-Square (GLS). Hasil estimasi menunjukkan CEPT-AFTA ASEAN6 tidak dapat meningkatkan AIT dan AFDI. Dampak positif CEPT-AFTA pada AFDI dan AIT hanya terjadi pada tahun 2015, meskipun dampak pada AIT tidak signifikan. Penelitian ini mengindikasikan bahwa AFTA+ dapat meningkatkan AIT dan AFDI antara negara-negara ASEAN+6. AEC memiliki dampak positif pada AFDI dan dampak negatif pada AIT. Penelitian ini juga menyimpulkan bahwa jika dengan kerangka ASEAN+ menyebabkan investment creation di kawasan ASEAN+6. Untuk memperkuat perdagangan dan investasi, maka pemerintah perlu memperkuat kerja sama melalui Regional Comprehensive Economic Partnership (RCEP). Kata Kunci: ASEAN, FDI, AFTA, Perdagangan Intra, AEC   Abstract ASEAN created several economic integrations, such as the ASEAN Free Trade Area (AFTA), AFTA+1, and ASEAN Economic Community (AEC), to increase intra-trade and investment between ASEAN countries. This study aimed to examine the impact of ASEAN economic integration to ASEAN FDI (AFDI) and ASEAN Intra-Trade (AIT). The data consists of ten ASEAN countries and six partner countries from 2001 to 2017. It was estimated using the Generalized Least-Square (GLS). Estimation results showed that CEPT-AFTA ASEAN6 could not increase AIT and AFDI. The positive impact of CEPT-AFTA on AFDI and AIT occurred in 2015, with insignificance on AIT. The study also indicated that AFTA+ could increase AIT and AFDI between ASEAN+6 countries. Contrarily, AEC provided a positive impact on AFDI and an insignificant negative impact on AIT. The study concluded that the ASEAN+ framework causes investment creation in ASEAN and partner countries. The government needs to strengthen cooperation through Regional Comprehensive Economic Partnership (RCEP) to escalate FDI and trade.   Keywords: ASEAN, FDI, AFTA, Intra-Trade, AEC JEL Classification: F13, F14, F15

scholarly journals Defending Foreign Policy at Home: Indonesia and the ASEAN-Based Free Trade Agreements

2020 ◽  
Vol 39 (3) ◽  
pp. 405-427
Author(s):  
Rakhmat Syarip
Keyword(s):  
Foreign Policy ◽  
Free Trade ◽  
Free Trade Agreements ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Trade Area ◽  
International Pressure ◽  
Economic Partnership ◽  
Asean Economic Community ◽  
Regional Comprehensive Economic Partnership

Scholars have devoted little attention to foreign policy motive of Indonesia’s free trade agreement (FTA) policy. This article finds that, under competitive international pressure, Indonesia has instrumentalised some FTAs to serve its “Association of Southeast Asian Nations (ASEAN)-first” foreign policy, specifically to ensure the geopolitical and geoeconomic relevance of ASEAN. Three FTAs display this motive: the ASEAN Free Trade Area, later extended to the ASEAN Economic Community, the ASEAN–China FTA, and the Regional Comprehensive Economic Partnership. Domestically, the pro-ASEAN group has supported this motive against other influential domestic actors, especially the nationalist and the pro-liberalisation groups. However, diffused political authority has led to an inconsistent FTA policy across various trade policymaking phases. The “pro-ASEAN” FTA policy has been relatively stronger in both the negotiation and ratification, but substantially weaker in the implementation phases.

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