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Can RCEP and the TPP be Pathways to FTAAP?

To appear as Chapter 2 in Pacific Economic Cooperation Council, State of the Region, 2014

21 Pages Posted: 25 Oct 2014  

Peter A. Petri

Brandeis University - Brandeis International Business School; Brandeis University - Department of Economics; East-West Center

Ali Abdul-Raheem

Ministry of Finance and Treasury

Date Written: October 12, 2014

Abstract

The Regional Comprehensive Economic Partnership (RCEP) and Trans-Pacific Partnership (TPP) negotiations could create way-stations toward the Free Trade Agreement of the Asia-Pacific (FTAAP). They could yield new, regionally acceptable rules and facilitate experimentation with and adjustment to deeper integration. However, neither negotiation includes both China and the United States and would thus fall well short of potential regional free trade. One or the other agreement might be enlarged to achieve region-wide integration. If not, a new FTAAP agreement might be developed to complement RCEP and the TPP. Such an agreement could set high standards, encourage liberalization across the region, and lead to tiered rules for economies at different stages of development. The paper explores these negotiating pathways and estimates gains from them. The benefits and challenges of a region-wide agreement are large.

Keywords: Trans-Pacific Partnership, Asian economic integration, U.S. trade policy, free trade areas, regional economic integration

JEL Classification: F12, F13, F14, F15, F17

Suggested Citation

Petri, Peter A. and Abdul-Raheem, Ali, Can RCEP and the TPP be Pathways to FTAAP? (October 12, 2014). To appear as Chapter 2 in Pacific Economic Cooperation Council, State of the Region, 2014 . Available at SSRN: https://ssrn.com/abstract=2513893

Peter A. Petri (Contact Author)

Brandeis University - Brandeis International Business School ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

HOME PAGE: http://ppetri.com/

Brandeis University - Department of Economics

Waltham, MA 02454-9110
United States

HOME PAGE: http://ppetri.com/

East-West Center

1601 East-West Road
Honolulu, HI 96848
United States

HOME PAGE: http://ppetri.com/

Ali Abdul-Raheem

Ministry of Finance and Treasury ( email )

Ameenee Magu
Block 379
Male', 20379
Maldives

HOME PAGE: http://www.finance.gov.mv

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