ASEAN Attempts at the Initiatives to Broaden Free Trade Agreements in East Asia

2018 ◽  
pp. 125-146
Author(s):  
Suthiphand Chirathivat
Keyword(s):  
East Asia ◽  
Free Trade ◽  
Free Trade Agreements ◽  
Trade Agreements

scholarly journals Free Trade Agreements versus Customs Unions: An Examination of East Asia

2009 ◽  
Vol 8 (2) ◽  
pp. 119-139 ◽  
Author(s):  
Innwon Park ◽  
Soonchan Park
Keyword(s):  
East Asia ◽  
Free Trade ◽  
Computable General Equilibrium ◽  
East Asian ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Computable General Equilibrium Model ◽  
Policy Option ◽  
Customs Unions ◽  
Ex Post

The spaghetti bowl phenomenon expected from the proliferating East Asian regional trade agreements (RTAs) is worrisome. In particular, the complicated web of hub-and-spoke type of overlapping free trade agreements (FTAs) can result in high costs for verifying rules of origin. As an alternative policy option to avoid the negative effect of trade deflection, customs unions (CUs) should be examined. Most of the theoretical analyses on the formation of CUs highlight stronger positive welfare effects compared to FTAs. However, there is a lack of empirical evidence to support the second-best theory of customs unions. This paper is an attempt to fill this gap by applying two methodologies: an ex ante simulation approach and an ex-post econometric approach. We quantitatively estimate the trade effect of CUs and FTAs by adopting a Gravity regression analysis. In general, we find that a CU is a superior type of RTA to an FTA in terms of creating more intra-bloc trade. In addition to analyzing the trade effects of RTAs according to type, we quantitatively evaluate the welfare and output effects of CUs for East Asia (an ASEAN+3 CU and a China-Japan-Korea CU) compared to FTAs by applying a computable general equilibrium model analysis. The East Asian CUs adopt a system of common external tariffs (CET) based on simple-averaged, import-weighted, consumption-weighted, and minimum rates. Overall, we find that the ASEAN+3 CU with the minimum CET are the most desirable type of RTA for both East Asian member countries and the world economy as a whole.

Bilateral Free Trade Agreements: Boon or Bane for Regionalism in East Asia and the Asia-pacific?

2005 ◽  
Vol 4 (2) ◽  
pp. 287-314 ◽  
Author(s):  
Christopher Dent
Keyword(s):  
Structural Foundation ◽  
East Asia ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
The United States ◽  
Asia Pacific ◽  
Distant Future

AbstractSince the late 1990s there has been a rapid proliferation of bilateral free trade agreement (FTA) projects in East Asia and the Asia-Pacific, regions previously largely devoid of FTA activity by comparison to others. As this trend has intensified, so have discussions on whether it will help advance regional co-operation and integration. This paper examines the nature of FTAs themselves and the main causes of East Asia and Asia-Pacific FTAs. The 'lattice regionalism' hypothesis is considered: whether dense economic bilateralism provides a sub-structural foundation on which economic regionalism (i.e. co-operation and integration) can build. Closely related is the issue of competing FTA models and modalities in the Asia-Pacific, and special attention is afforded to the 'asymmetric neoliberal' FTA model of the United States and the 'developmental–industrial' FTA model championed by Japan. It is argued that the contrasts between these make the emergence of an Asia-Pacific FTA unlikely in even the distant future. Japan's FTA model is also considered relative to perhaps East Asia's most important FTA project, the ASEAN–China FTA (ACFTA), and we discuss how bilateral FTA developments in the region more generally may or may not lead to enhanced regional economic co-operation and integration in East Asia.

Merger will strengthen Japan's shipping sector

2016 ◽  
Keyword(s):  
East Asia ◽  
Free Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Global Market ◽  
Shipping Industry ◽  
Content Type ◽  
International Shipping ◽  
South Korean ◽  
Retail Prices

Subject Developments in the Japanese shipping industry and the international shipping market. Significance Three of Japan’s largest shipping lines -- Nippon Yusen Kaisha, Mitsui OSK and Kawasaki Kisen Kaisha -- plan to consolidate their operations in July 2017 to save an estimated 1 billion dollars per year. The three lines combined will control an estimated 7% of the global market, and expand their share of the increasingly critical trans-Pacific market, which has realigned significantly in response to the bankruptcy of South Korean shipping firm Hanjin in August. Impacts This major consolidation may prompt other carriers in other states to follow suit. Powerful new opposition to free trade agreements in major economies will lead to previously unexpected trade contractions. Retail prices for goods imported from East Asia will likely rise.

East Asia Institutionalises: China, Japan and the Vogue for Free Trade

2008 ◽  
Vol 77 (3) ◽  
pp. 301-318 ◽  
Author(s):  
Timothy Webster
Keyword(s):  
East Asia ◽  
Free Trade ◽  
Regional Integration ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Comprehensive Approach ◽  
Partner Country ◽  
The Past ◽  
China And Japan

AbstractIn the past decade East Asia has taken steps to increase regional integration. This paper examines the vogue for Free Trade Agreements (FTAs) currently raging in China and Japan. After mapping the regional links that knit East Asia together during the 1990s and 2000s, the focus then shifts to the specific trade agreements that China and Japan have signed. Both countries exhibit a particular FTA “style;” Japan has adopted a more orthodox and comprehensive approach to its treaties, while China has shown greater flexibility and gradualism when dealing with FTA partners. It is still unclear whether these efforts will lead to a region-wide FTA, or a continued crisscrossing of bilateral arrangements. In either case, China's eagerness to adapt to partner country expectations likely gives it an edge in becoming the regional hub of East Asia.

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