Bilateral trade agreements in the Asia Pacific: wise or foolish policies?
Dieter, Heribert, 1961- (2005) Bilateral trade agreements in the Asia Pacific: wise or foolish policies? Working Paper. Coventry: University of Warwick. Centre for the Study of Globalisation and Regionalisation. (Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)).
WRAP_Dieter_wp18305.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/csgr/research/wo...
Bilateralism is mushrooming in the Asia - Pacific, yet the motives for it remain puzzling. Why do countries devote substantial effort to bilateral free trade agreements that are providing limited additional benefits when compared both with unilateral liberalisation and with the multilateral regime? Furthermore, some of the deals recently implemented are less trade liberalising than the powerful rhetoric would suggest. For example , the free trade agreement between Australia and the United States is not including “substantially all the trade” and, on top of that, is asymmetric – Australia’s access to the American market is more restricted than vice versa. The paper first addresses some conceptual issues and analyses the disadvantages of bilateral free trade agreements. Here, the need for rules of origin is of particular concern. These have two effects. First, they result in additional costs to producers. Whilst the dismantling of tariffs reduces the cost of trade, the need to administer rules of origin increases them. Second, transnational production is made more complicated. In order to qualify for duty free trade, the region for the sourcing of inputs shrinks, with negative consequences for competitiveness. Subsequently, the bilateral agreements of Australia, Singapore and Thailand will be examined. At closer inspection, these preferential deals are not convincing. All of them require complex rules of origin and do not make a significant contribution to the liberalisation of trade.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HF Commerce|
|Divisions:||Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation|
|Library of Congress Subject Headings (LCSH):||Free trade, International trade, International economic relations, Protectionism, Certificates of origin|
|Series Name:||Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)|
|Publisher:||University of Warwick. Centre for the Study of Globalisation and Regionalisation|
|Place of Publication:||Coventry|
|Number of Pages:||40|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|References:||Australian Government (2003): Advancing the National Interest, Canberra. Australian Government (1997): In the National Interest, Canberra. Capling, Ann (2004): All the Way with the USA. Australia, the US and Free Trade, Sydney: University of New South Wales Press 2005. Dacquila, Teofilo C.; Huy, Le Huu (2003): Singapore and ASEAN in the Global Economy. The Case of Free Trade Agreements, in: Asian Survey, Vol. 43, No. 6 (November/December 2003), pp. 908-928. Dieter, Heribert (2005): Die Zukunft der Globalisierung. Zwischen Krise und Neugestaltung, Baden-Baden: Nomos -Verlagsgesellschaft. Dieter, Heribert (2004): Präferenzielle Ursprungsregeln in Freihandelszonen: Hemmnisse für den internationalen Handel? Aussenwirtschaft. Schweizerische Zeitschrift für internationale Wirtschaftsbeziehungen. 59. Jg., Heft III (September 2004), pp. 273-303. Dieter , Heribert; Higgott, Richard (2003): Exploring alternative theories of economic regionalism: From trade to finance in Asian co-operation?, in: Review of International Political Economy, Vol. 10, No. 3 (August 2003), pp. 430-455. Hilaire, Alvin; Yang, Yongzheng (2004): The United States and the New Regionalism/Bilateralism, in: Journal of World Trade, Vol. 38, No 4 (2004), pp. 603-625. Hufbauer, Gary Clyde; Wong, Yee (2005): Prospects for Regional Free Trade in Asia, in: Institute for International Economics, Working Paper Series, WP 05-12, October 2005. Ikenson, Daniel (2005): America’s Credibility goes ‚Timber!’, in: Center for Trade Policy Studies, Free Trade Bulletin No. 20, 28 October 2005, in the web at http://www.freetrade.org/pubs/FTBs/FTB-020.html. Inama, Stefan (2005): The Association of South East Asian Nations – People’s Republic of China Free Trade Area: Negotiating Beyond Eternity With Little Trade Liberalization?, in: Journal of World Trade, Vol. 39, No. 3 (June 2005), pp. 559-579. Jakob, Thinam; Fiebinger, Gernot (2003): Preferential Rules of Origin – A Conceptual Outline, in: Intereconomics, May/June 2003, pp. 138-146. Lee, Jong-Wha; Park, Innwon (2005): Free Trade Areas in East Asia: Discriminatory or Non-discriminatory? in: The World Economy, Vol. 28, No. 1(January 2005), pp. 21-48. Liang, Margaret (2005): Singapore’s Trade Policies. Priorities and Options, in: ASEAN Economic Bulletin, Vol. 22, No. 1 (April 2005), pp. 49-59. Low, Linda (2003): Singapor e’s Bilateral Free Trade Agreement: Institutional and Architectural Issues, mimeo. Sally, Razeen; Sen, Rahul (2005): Whither Trade Policies in Southeast Asia? The Wider Asian and Global Context, in: ASEAN Economic Bulletin, Vol. 22, No. 1 (April 2005), pp. 92-115. Talerngsri, Pawin; Vonkhorporn, Pimchanok (2005): Trade Policy in Thailand. Pursuing a Dual Track Approach, in: ASEAN Economic Bulletin, Vol. 22, No. 1 (April 2005), pp. 60-74. Thangavelu, S.M.; Toh, Muh-Heng (2005): Bilateral ‘WTO-Plus’ Free Trade Agreements: The WTO Trade Policy Review of Singapore 2004, in: The World Economy, Vol. 28, No. 9 (September 2005), pp. 1211-1228. Tongzon, Jose l. (2005): ASEAN-China Free Trade Area: A Bane or Boon for ASEAN Countries? in: The World Economy, Vol. 28, No. 2 (February 2005), pp. 191- 210. Weatherall, Kim (2004): Locked in. Australia Gets a Bad Intellectual Property Deal, in: Policy, Vol. 20, No. 4 (Summer 2004-2005), pp. 18-24. Weiss, Linda; Thurnbon , Elisabeth; Math ews, John (2004): How to kill a country: Australia’s devastating trade deal with the United States, Sydney: Allen & Unwin. World Trade Organization (2004): The Future of the WTO. Addressing Institutional Challenges in the New Millennium. Geneva. Ziltener, Patrick (2005): Die Verhandlungen über bilaterale Wirtschaftsabkommen zwischen Japan und den ASEAN-Ländern, 2000-2005, in: Aussenwirtschaft, 60. Jg., Heft III, S. 279-304.|
Actions (login required)