Asia Trade Issues

In an era of globalization, trade in goods and cross-border services and capital flows play a key role in determining the economic growth path of countries. Over the last two decades, countries have embarked on several alternate tracks to liberalize and deepen their linkage with the world economy. The growing trade-investment nexus and the emerging developments lead to deeper international production networks, rise in cross-border trade in services and in regional trade agreements and so on. The debate of whether it is possible to empirically validate the potential benefits of this deepening trade-investment linkage is ongoing. The evidence in literature is, however, ambiguous. This book contributes to the literature by looking at Asian economies and at the EU, Maghreb countries and Pacific Island economics. It examines the issues under four broad areas, namely: (1) trade: theoretical and policy issues, (2) factor flows: impact on trade and welfare, (3) impact of trade and factor flows on environment and (4) institutions, international trade and policy issues.

Asia has witnessed a proliferation of free trade agreements (FTAs) since the turn of the millennium. The first regional agreement - the ASEAN FTA - was transformed into the ASEAN Economic Community at the end of 2015. In the meantime, ASEAN forged five ASEAN+1 FTAs and began to negotiate a sixteen-member Regional Comprehensive Economic Partnership (RCEP) Agreement. In parallel, the U.S.-led Trans-Pacific Partnership (TPP), supporting U.S. foreign policy of "e;Pivot to Asia"e;, was broadly agreed in October 2015. The RCEP and the TPP are accompanied by other mega-regional integration processes developing elsewhere in the world, including the Transatlantic Trade and Investment Partnership for the European Union and the United States, and the Pacific Alliance among four Latin American member states. Meanwhile, APEC is also striving to meet its Bogor Goal targets and create a Free Trade Area of the Asia-Pacific. Each of these mega-regionals aims to achieve greater trade and investment liberalization and facilitation and more harmonized trade and investment rules so that all member economies can participate in the global value chain of production. Instead of undermining, these regional exercises can be building blocks for a more liberal global trading system supported by the World Trade Organization. This book ruminates on these regional agreements, their economic and strategic rationales and challenges during negotiations and afterwards. The book brings together eminent scholars and experts to deepen our understanding of the complex nature of the mega-regional trade agreements and their implications. It is useful both for the academic and research community and for policymakers who focus on trade and economic cooperation issues.

The Regional Comprehensive Economic Partnership (RCEP) aims to achieve greater integration between the ASEAN region and its six free trade agreement (FTA) partners (India, China, Japan, Australia, New Zealand and Korea). The RCEP is the only agreement to include three economies which are among the seven biggest economies of the world—China, Japan and India. The book opens with an introduction to the current status of economic integration and factors that would affect it and looks at key issues like non-tariff barriers, evolving investment regulations in China (in the context of FTAs), connectivity initiatives to integrate the region, rules of origin in the context of value chain integration in selected sectors as well as region-specific aspects of South Asia and South East Asia which would shape the regional economic architecture going forward. With an attempt to cover key imperatives, the book concludes by noting primary impediments to easier trade and investment flows in the region, highlighting possible policy recommendations to improve economic integration.

Regional Cooperation and FTA's in Asia examines the opportunities and challenges arising from the proliferation of FTA's in Asia.

In an era of globalization, trade in goods and cross-border services and capital flows play a key role in determining the economic growth path of countries. Over the last two decades, countries have embarked on several alternate tracks to liberalize and deepen their linkage with the world economy. The growing trade-investment nexus and the emerging developments lead to deeper international production networks, rise in cross-border trade in services and in regional trade agreements and so on. The debate of whether it is possible to empirically validate the potential benefits of this deepening trade-investment linkage is ongoing. The evidence in literature is, however, ambiguous. This book contributes to the literature by looking at Asian economies and at the EU, Maghreb countries and Pacific Island economics. It examines the issues under four broad areas, namely: (1) trade: theoretical and policy issues, (2) factor flows: impact on trade and welfare, (3) impact of trade and factor flows on environment and (4) institutions, international trade and policy issues.

This book is an important contribution to the policy debate on the future of regional integration around the world, and in Asia in particular. The complex linkages between regional integration and regional cooperation, soft and hard integration, trade facilitation and regional infrastructure are all addressed competently in different chapters of this publication, which should be read by all of those concerned with the future of regional integration and cooperation in Asia. Antoni Estevadeordal, Inter-American Development Bank (IDB) As we emerge from the worst global economic setback in two generations, the momentum of Asian economies suggests that this region will redefine the geography of trade and growth even more quickly and decisively than expected. Because Asia offers the largest emerging markets, superior growth rates, and new patterns of trade diversification, this region is becoming the leading edge of the global economy for the next generation. This volume addresses the essential issues related to Asian trade and regionalism with intellectual authority and essential timeliness. Brooks and Stone have assembled leading experts, distilled evidence, and synthesized policy lessons on the salient issues and trends that will drive the world s most dynamic economic region. Their book should be a desk reference for policy-makers and leading private sector players who want to respond effectively to the momentous challenges and opportunities presented by the Asian century. David Roland-Holst, University of California, Berkeley, US This insightful book collects empirical analyses and case studies to clarify issues and draw policy recommendations for facilitating greater regional trade through increased cooperation. Asia s rapid development has been heavily dependent on markets external to the region. However, given the unlikely timely recovery of the United States or Europe there is an urgent need to develop domestic and regional markets. While greater integration has long been a regional goal, its importance has never been more pressing. To facilitate trade and promote growth and regional integration, and to counteract declining markets in other regions, Asian countries have announced large expenditures for developing infrastructure. Thus, a look at how investment in regional infrastructure promotes and supports interregional trade growth has never been timelier. While the focus is on informing policy-making in Asia, the findings also have relevance for other regions. The detailed studies in this book will be of particular interest to academic economists, policy-makers, and the broader development community.