Free Trade Agreements in the Asia-Pacific.ppt

* * * * Christopher M. Dent University of Leeds FTA Activity on the Rise… Global expansion of FTA activity and regionalism since the early 1990s Europe and Latin America as early main centres of new FTA activity East Asia, US and Oceania only start to catch up from the late 1990s onwards Asia-Pacific witnesses the most intense growth of FTA activity in the world system during the 2000s FTAs have significantly shaped the Asia-Pacific’s international economic relations and business environment… The Evolving Nature of FTAs Traditionally, FTAs have primarily entailed the elimination of conventional trade barriers (e.g. tariffs) between signatory parties Have been around for a while. Last great spurts of FTA activity were 1860-1914 and the 1930s However, the portrayal of FTAs found in conventional economic textbooks are increasingly outdated… tariffs, etc now as less significant features… more now about commercial regulation and other policy-related measures FTAs are becoming increasingly heterogeneous often ‘stretched’ into wider economic partnership agreements FTA Heterogeneity Each FTA is crafted in accordance to the political economic interaction between the trade partners concerned Agreements can vary significantly in terms of: scope of commercial liberalisation implementation schedules and modalities commercial regulation provisions, e.g. investment, IPR, government procurement, rules of origin, standards economic co-operation provisions philosophical or ideational approach Dominant trade partners can significantly determine the overall framework and content This is often in accordance to their preferred ‘FTA model’ The large majority of FTAs in the region are bilateral, consistent with the global trend Notwithstanding FTA heterogeneity, three main FTAs models are evident: US, Japan, China/ASEAN ASEAN as hub for quasi-regional FTAs: with China, Japan, Korea, Aus/NZ, India Plurilateral FTAs: Mexico– Northern Triangle (2000) and TPSEPA (2005, expanding to TPP) Many