scholarly journals Sustaining International Trade with China: Does ACFTA Improve ASEAN Export Efficiency?

2020 ◽  
Vol 12 (15) ◽  
pp. 6159
Author(s):  
Antonio Alleyne ◽  
Zhaoyong Zhang ◽  
Yifei Mu
Keyword(s):  
International Trade ◽  
Value Chain ◽  
Free Trade Area ◽  
Chinese Market ◽  
Trade Area ◽  
Asean Member ◽  
Efficiency Measures ◽  
Export Pattern ◽  
Zero Sum ◽  
Sustainable Trade

The business of international trade has never been identified as zero-sum. Yet, dependence on regional agreements to provide alternate means for countries to overlook shortcomings persists. China’s recent rise up the trade value-chain has fostered an assumption that the regional agreement provides various advantages to exports from Association of Southeast Asian Nations (ASEAN) member countries. This paper provides an empirical assessment of the ASEAN-China Free Trade Area (ACFTA) impact on ASEAN export efficiency into the Chinese market, in pre and post eras. Using a structured gravity approach to estimate potential export pattern at aggregate and industry level, this research indicates that though not consistent across years, the ACFTA offers improvements to ASEAN exports to China. No clear effects of the ACFTA can be extrapolated from the years surrounding the initial signing (Article 8—2004). However, following its full enactment (2010), the ACFTA resulted in more sustainable trade from ASEAN members towards China, at both the industry and country levels. While seeing improvements in export efficiency during its era, ACFTA’s facilitation of efficiency measures with China came at no expense to other major export destinations.

Cross-Cumulation Arrangement as FTA Under GATT Article XXIV

2019 ◽  
Vol 23 (1) ◽  
pp. 165-185
Author(s):  
Jong Bum Kim
Keyword(s):  
World Trade Organization ◽  
Free Trade ◽  
Value Chain ◽  
World Trade ◽  
Free Trade Area ◽  
Rules Of Origin ◽  
Free Trade Areas ◽  
Intermediate Products ◽  
Trade Area ◽  
The World

ABSTRACT A cross-cumulation arrangement helps manufacturers meet the demands of the global value chain economy by facilitating the sourcing of intermediate products within the territories of participants in the arrangement. It is a de facto free-trade area formed by a network of bilateral free-trade areas underpinning the arrangement. However, a cross-cumulation clause provided in a bilateral free-trade area that underpins a cross-cumulation arrangement is inconsistent with General Agreement on Tariffs and Trade (GATT) Articles I and III because the intermediate products from the participants in the arrangement are more favorably treated than products from non-participants in the arrangement. The GATT inconsistencies of a cross-cumulation clause cannot be justified by the GATT Article XXIV exception, because a cross-cumulation clause of a bilateral free-trade area derogates from the free-trade area’s aim by facilitating trade in intermediate products between the free-trade area parties and non-parties to the free-trade area that are participants in the arrangement. In contrast, a cumulation clause provided in a free-trade area contributes to the free-trade area’s aim by facilitating trade in intermediate products between the parties to the free-trade area. To bring a cross-cumulation arrangement such as the Regional Convention on Pan-Euro-Med Preferential Rules of Origin into conformity with World Trade Organization law, the arrangement and its underlying free-trade areas should be recognized as a de jure free-trade area under GATT Article XXIV and notified to the World Trade Organization as such. A large cross-cumulation arrangement as a mega-free-trade area is likely to contribute to the world trading system by harmonizing divergent free-trade area rules of origin and providing an efficient mechanism for the formation of a mega-free-trade area.

Ghana’s Akufo-Addo faces economic diplomacy challenges

2021 ◽  
Keyword(s):  
International Trade ◽  
Free Trade ◽  
Free Trade Area ◽  
African Union ◽  
Content Type ◽  
Economic Diplomacy ◽  
Trade Area ◽  
Social Tensions ◽  
Trade Partners

Significance However, the success of Akufo-Addo's second term could depend in large part upon effective economic diplomacy with regional and international trade partners now the African Continental Free Trade Area (AfCFTA) has become operational. Impacts Ghana will push for all African Union (AU) members to ratify the AfCFTA to secure its position as a regional hub. Economic plans may heighten existing social tensions within Ghana, notably Western Togoland, if growth is not shared equitably. More AU members will likely undertake full ratification of the AfCFTA to not be left outside of lucrative continental markets.

scholarly journals Regional Economic Building Amidst Rising Protectionism and Economic Nationalism in ASEAN

2016 ◽  
Vol 4 (1) ◽  
pp. 1 ◽  
Author(s):  
Alexander Christian Chandra
Keyword(s):  
Political Economy ◽  
Economic Reform ◽  
Free Trade Area ◽  
Economic Stability ◽  
Economic Nationalism ◽  
Trade Area ◽  
Asean Member ◽  
Regulatory Changes ◽  
Asean Economic Community ◽  
Political Economy Approach

Despite its ambitious ASEAN Economic Community (AEC) project, protectionism and economic nationalism are on the rise in ASEAN. Protectionism, however, is not new to Southeast Asia, with governments across the region employ such an inward-looking economic policy when they enjoy economic stability, and pursue economic reform when confronted with major economic challenges. Unfortunately, embryonic industries will always exist in the region, and governments will find excuses to safeguard their existence. Consistent with the so-called 'Murdoch Schoold of critical political-economy' approach, this article mainly argues that the inclination towards protectionism in ASEDAN is primarily rooted in the domestic political-economy of ASEAN Member States. Apart from bringing about domestic regulatory changes, major economic liberalisationinitiatives of ASEAN, such as the ASEAN Free Trade Area and the AEC, significantly redistribute power and resources, and ignite struggles between competing domestic economic influences, many of which are in favour of government's protection. Whilst existing technical initiatives to address protectionism are useful, major crises that encourage major structural adjustments in all AMS might be needed to overcome fundamental protectionist inclination in the region

scholarly journals Indonesia dan Persaingan di Era Asean Economic Community

2018 ◽  
Vol 2 (2) ◽  
Author(s):  
Hendra Maujana Saragih
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Economic Opportunity ◽  
Economic Community ◽  
Trade Area ◽  
Asean Member ◽  
Systemic Impact ◽  
Strategic Position ◽  
Asean Countries ◽  
Asean Economic Community

Abstract This paper focusing on looking at Indonesia's readiness to deal with the Era of the Economic Community in ASEAN with the urgency that Indonesia's preparations should have a systemic impact on Indonesia's economic growth. The socialization that has been carried out continues and continues to be inflated by every child of the nation so as not to lose compete and be swallowed by the existence of regional countries that really use ASEAN Economic Community as a positive and constructive economic opportunity for each ASEAN member country officially. ASEAN Economic Community is one form of Free Trade Area (FTA) and located in Southeast Asia .ASEAN Economic Community which is formed with a mission to make the economy in ASEAN to be better and able to compete with countries whose economy is more advanced than the condition of ASEAN countries currently. The realization of ASEAN Economic Community, can make ASEAN a more strategic position in the international arena. Researchers expect that with the realization of the ASEAN economic community can open the eyes of all parties, resulting in an inter-sectoral dialogue that will also complement each other among the stakeholders of the economic sector in ASEAN countries and this is very inherent formally. Keywords: Competition, Free Trade Area, Opportunity, Challenge

China’s Economic Approach to ASEAN

2017 ◽  
Author(s):  
Chen Shaofeng
Keyword(s):  
East Asian ◽  
Free Trade Area ◽  
The Other ◽  
Economic Approach ◽  
Trade Area ◽  
Asean Member ◽  
Trading Patterns ◽  
The One ◽  
Economic Ties ◽  
Southeast Asian Countries

The implementation of the China-ASEAN Free Trade Area (CAFTA) has deepened regional economic connectivity. Even so, challenges brought about by the potential of TPP, unsustainable trading patterns, and ASEAN misgivings remain concerning the prospect of CAFTA. The author presents two trends: On the one hand is the trend that bilateral economic ties will be further enhanced and, looking ahead, that ASEAN member states will benefit more from CAFTA. On the other hand, distrust and misgivings about China are mounting among Southeast Asian countries, largely due to the unresolved territorial disputes. Hence, the gap between their close economic ties and strategic mistrust will likely grow. Countries in East Asian have to struggle between these conflicting trends.

scholarly journals The Impact Of ASEAN Free Trade Area On Intra-Asean Manufacturing Trade

2017 ◽  
Vol 18 (3) ◽  
pp. 633-643
Author(s):  
Colin Koh-King Wong ◽  
Venus Khim-Sen Liew ◽  
Mohammad Affendy Arip
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Set Covering ◽  
Trade Creation ◽  
Data Set ◽  
Trade Area ◽  
Asean Member ◽  
Trading Partners ◽  
Manufacturing Trade ◽  
The Impact

This study investigates the effects of ASEAN Free Trade Area (AFTA) agreement on the bilateral manufacturing trade between the 10 member countries of ASEAN and 39 of their trading partners. The period ofstudy covers 1995 to 2014. Results obtained from panel data analysis of the gravity model with random effectsshow that the economic sizes, populations, relative endowments, common language and geographical factors like distance, island, landlocked and neighbour are significant determinants of the bilateral manufacturing trade for ASEAN member countries. Moreover, results obtained from the fixed effects model in this study suggests that AFTA has generatedpure trade creation effects in terms of exports. Ontop of that, AFTA has resulted in larger magnitude of trade creation effects in imports than import diversion effects. Overall, AFTA promotes trades among ASEAN member countries through the elimination of tariff and non-tariff barriers, for bringing aboutpure trade creation effects in terms of exports as well as imports and also trade diversion effects in terms of imports. In sum, this study with more recent data set covering more ASEAN trading partners shows empirical evidence to justify the success of AFTA arrangement.

Uneven e-government will hinder South-east Asia trade

2015 ◽  
Keyword(s):  
Public Administration ◽  
Free Trade Area ◽  
Electronic Government ◽  
Content Type ◽  
Trade Area ◽  
Asean Member ◽  
Government Capacity ◽  
Asean Economic Community ◽  
Rural Industries ◽  
Governance Reforms

Subject E-government systems in ASEAN member states. Significance The ASEAN Economic Community (AEC) free trade area will be rolled out later this quarter. In part, the AEC requires development of electronic government (e-government) systems in ASEAN states. However, these systems are of uneven quality and capacity due to comparatively slow public administration and governance reforms, differing business and political cultures, bureaucratic divisions and technological divides. Impacts Uneven e-government systems could constrain the movement and monitoring of labour under the AEC. Rural-area governments will suffer e-government capacity gaps, constraining rural industries' development. International bodies' concerns about governance in ASEAN states will mute faith in e-government provisions.

scholarly journals The Effects of ASEAN-China Free Trade Agreement on Bilateral Trades

2021 ◽  
Vol 56 (2) ◽  
pp. 249-256
Author(s):  
Colin Koh-King Wong ◽  
Venus Khim-Sen Liew ◽  
Mohammad Affendy Arip
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Bilateral Trade ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Positive Finding ◽  
Trade Area ◽  
Asean Member ◽  
Trading Partners

This article adopts the augmented versions of the Gravity Model to examine the effects of the signing of the ASEAN-China Free Trade Agreement (ACFTA) on the bilateral aggregate trades. Specifically, ACFTA dummy variables are incorporated in the basic model is to estimate the direction and magnitude of the ACFTA effects. A total of 79 trading partners of ASEAN member countries plus China were examined in this article. The study finds that the Gross Domestic Product, population, natural endowment, distance, and common language are the main determining factors of the bilateral trade for ASEAN member countries and their trading partners. Estimated results from this Augmented Gravity Model showed that ACFTA had increased the bilateral aggregate trades not only between intra-bloc member countries but also intra-bloc and extra-bloc countries. With this positive finding, ASEAN and China could consider expanding their free trade area to a broader regional perspective, enhancing economic growth and reducing regional inequality.

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