Regional Economic Integration in the Asia Pacific Region: Is an FTAPP the Catalyst for One Community?
KIEP Research Paper NO. APEC-11-01
58 Pages Posted: 3 Sep 2013 Last revised: 10 Oct 2013
Date Written: December 30, 2011
In order to argue that the proposed FTAAP is the second-best policy option for APEC member economies and the world economy com-pared to the stalled first-best multilateral liberalization effort like the DDA (Doha Development Agenda), we examine existing arguments for and against the proposed FTAAP. From our examinations, we find that the FTAAP is a sustainable RTA (Regional Trade Agreement) and will work as a stepping stone towards global free trade. In addition, the FTAAP will be a more desirable RTA if it is cooperated with the APEC’s principle of open regionalism or/and evolves to a customs union of the region. However, unlike traditional FTAs, the FTAAP has some APEC-specific impediments to its establishment of a regional trade bloc at present. Some policy recommendations would be proposed to overcome the obstacles.
Keywords: open regionalism, multilateralism, regional trade agreement, APEC, FTAAP
JEL Classification: F13, F15
Suggested Citation: Suggested Citation
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By Peng Yu