Citations (3)



EAFTA or CEPEA: Which Way Forward?

Masahiro Kawai

Asian Development Bank Institute

Ganeshan Wignaraja

Asian Development Bank

August 29, 2008

ASEAN Economic Bulletin, Vol. 25, No. 2, August 2008

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.

Number of Pages in PDF File: 26

Keywords: free trade agreements, EAFTA, CEPEA, East Asia, "WTO-plus" provisions

JEL Classification: F10, F13, F40

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Date posted: January 13, 2009  

Suggested Citation

Kawai, Masahiro and Wignaraja, Ganeshan, EAFTA or CEPEA: Which Way Forward? (August 29, 2008). ASEAN Economic Bulletin, Vol. 25, No. 2, August 2008 . Available at SSRN: https://ssrn.com/abstract=1326750

Contact Information

Masahiro Kawai
Asian Development Bank Institute ( email )
Kasumigaseki Building 8F 3-2-5
Kasumigaseki Chiyoda-ku
Tokyo, 100-6008

Ganeshan Wignaraja (Contact Author)
Asian Development Bank ( email )
6 ADB Avenue, Mandaluyong City 1550
Metro Manila

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