EAFTA or CEPEA: Which Way Forward?
ASEAN Economic Bulletin, Vol. 25, No. 2, August 2008
26 Pages Posted: 13 Jan 2009
Date Written: August 29, 2008
Abstract
The spread of free trade agreements (FTAs) in East Asia amidst slow progress in the WTO Doha negotiations has stimulated a debate over the way forward. This paper examines the region's evolving trade architecture, characteristics of FTAs and welfare implications of alternative FTA scenarios. It suggests that consolidation of multiple and overlapping FTAs into a single East Asian FTA can help mitigate the harmful noodle bowl effects of different tariffs, rules of origin and standards. The paper also suggests that WTO-plus elements need to be further expanded and that consolidation into a Comprehensive Economic Partnership in East Asia at the ASEAN 6 level would yield the largest gains to East Asia among plausible regional trade agreements. As the next priority, the paper points to the formation of FTAs between East Asia, the United States and the EU as well as making FTAs more multilateral-friendly.
Keywords: free trade agreements, EAFTA, CEPEA, East Asia, "WTO-plus" provisions
JEL Classification: F10, F13, F40
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Major Trade Trends in East Asia: What are Their Implications for Regional Cooperation and Growth?
By Francis Ng and Alexander J. Yeats
-
Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade
-
Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade
-
The Political Economy of Declining Industries: Senescent Industry Collapse Revisited
By S. Lael Brainard and Thierry Verdier
-
Managing the Noodle Bowl: The Fragility of East Asian Regionalism
-
The Formation of International Production and Distribution Networks in East Asia
By Mitsuyo Ando and Fukunari Kimura