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An APEC Trade Agenda? The Political Economy of a Free Trade Area of the Asia Pacific

 

The proposal for a regional free trade agreement is the oldest idea for promoting mutual beneficial Asia-Pacific regional cooperation. Japanese economist Kiyoshi Kojima is usually credited with first Pacific Free Trade agreement proposal in 1966, and, while that proposal was clearly premature and unrealistic, it enhanced awareness of regional interdependencies and potentials for increased benefit through cooperation, and eventually led to the establishment of both the Pacific Economic Cooperation Council (PECC) and to the APEC
process.


In more recent times, economist C. Fred Bergsten has been the foremost advocate of a Free Trade Agreement of Asia-Pacific. His paper, prepared as part of this study, provides a most comprehensive and forceful statement in favor of an FTAAP. The most direct and comprehensive rebuttal to the proposal comes political scientist, Vinod Aggarwal. Based on an analysis of the American political economy. Dr. Aggarwal argues that selective liberalization through sector and bilateral trade agreements has rewarded freer trade interests, but left trade policy dominated by protectionist interests.

Download full report (pdf format 865kb) or by section:

  1. An APEC Trade Agenda: Charles E. Morrison (pdf format 92kb)
  2. A Free Trade Area of the Asia Pacific In the Wake of the Faltering
    Doha Round: Trade Policy Alternatives for APEC: C. Fred Bergsten (pdf format 116kb)
  3. The Political Economy of a Free Trade Area of the Asia Pacific
    A U.S. Perspective: Vinod K. Aggarwal (pdf format 158kb)
  4. The Political Economy of an Asia Pacific Free Trade Area: A China Perspective: Sheng Bin (pdf format 204kb)
  5. Japan’s FTA Strategy and a Free Trade Area of Asia Pacific: Shijuro Urata (pdf format 208kb)
  6. Lessons from the Free Trade Area of the Americas for APEC Economies: Sherry M. Stephenson (pdf format 166kb)
  7. Prospects for Linking PTAs in the Asia-Pacific Region: Robert Scollay (pdf format 125kb)
  8. ASEAN Perspectives on Promoting Regional and Global Freer Trade: Chia Siow Yue and Hadi Soesastro(pdf format 198kb)
  9. Endnotes for all papers (pdf format 124kb)

Links to Other Resources on the FTAAP

A Korean-American strand enters trade's spaghetti bowl - Martin Wolf's blog, with comments from Robert Wade, Andre Sapir, Fred Bergsten, Jagdish Bhagwati, Carla Hills, David Vines, Joe Francois - http://blogs.ft.com/wolfforum/2007/04/a_koreanamerica.html

FTAAP - Rationale and Feasibility (presentation at seminar organized by ISEAS) - Robert Scollay (2007) (pdf format)

Preliminary Assessment of the Proposal for a Free Trade Area of the Asia-Pacific (FTAAP): Robert Scollay (2004) (pdf format)

East Asian Regionalism & the Doha Agenda: Addressing the Hard Questions: Jean-Pierre Lehmann (PECC XVI GM: Plenary 2: Squaring FTAs with the Bogor Goals (pdf format)

Squaring FTAs with the Bogor Goals: How can it be done? Mari Pangestu, (PECC XVI GM: Plenary 2: Squaring FTAs with the Bogor Goals (pdf format)

A New Strategy for APEC: C Fred Bergsten (PECC XVI GM: Plenary 2: Squaring FTAs with the Bogor Goals (pdf format)

The Movement Toward Pacific Economic Cooperation Prior to 1980: Mark Borthwick (in "The Evolution of PECC: The First 25 years, PECC 2005) [for background on original PAFTA and OPTAD concepts) (pdf format)

Assessing Regional Trading Arrangements in the Asia Pacific, John Gilbert, Washington State University, US, Robert Scollay, APEC Study Center, University of Auckland, Bijit Bora, Trade Analysis Branch, UNCTAD (PECC Trade Policy Forum, 2001, Bangkok)

 

 

About the Authors

CHARLES E. MORRISON
Charles E. Morrison has been president of the East West Center since August 1, 1998. In September 2005, he was elected international chair of the Pacific Economic Cooperation Council (PECC). He is a founding member of the U.S. Asia Pacific Council, the U.S. National Committee for Pacific Economic Cooperation and a member of the U.S. Committee for Security Cooperation in Asia Pacific. He is a past chair of the U.S. National Consortium of APEC Study Centers. A former director of the Center's Program on International Economics
and Politics, he is a former U.S. Senate aide and a research adviser to binational Japan-U.S. commissions.

He holds a Ph.D. in international relations from Johns Hopkins School of Advanced International Studies.


C. FRED BERGSTEN
C. Fred Bergsten has been director of the Institute for International Economics since its creation in 1981. Dr. Bergsten was assistant secretary for international affairs of the US Treasury during 1977–81. He also functioned as undersecretary for monetary affairs during 1980–81, representing the United States on the G-5 Deputies and in preparing G-7 summits. During 1969–71, starting at age 27, Dr. Bergsten coordinated US foreign economic policy in the White House as assistant for international economic affairs to Dr. Henry Kissinger at the National Security Council. He has been a senior fellow at the Brookings Institution (1972–
76), Carnegie Endowment for International Peace (1981), and the Council on Foreign Relations (1967–68). Dr. Bergsten was chairman of the Eminent Persons Group of the Asia Pacific Economic Cooperation (APEC) forum from 1993 to 1995, authoring its three reports that recommended “free and open trade in the region by 2010 and 2020” as adopted at the APEC summits in 1993 and 1994.

Dr. Bergsten was a member of the two leading commissions on reform of the international monetary system: the Independent Task Force on The Future International Financial Architecture, sponsored by the Council on Foreign Relations (1999), and the International Financial Institutions Advisory Commission created by Congress (2000, on which he led the dissenting minority).


He received MA, MALD, and PhD degrees from the Fletcher School of Law and Diplomacy and a BA magna cum laude and honorary Doctor of Humane Letters from Central Methodist College.

SHUJIRO URATA
Shujiro Urata is Professor of Economics at Graduate School of Asia-Pacific Studies, Waseda University, Research Fellow at Japan Center for Economic Research, and Faculty Fellow at Research Institute of Economy, Trade and Industry in Tokyo.

He was formerly a Research Associate at the Brookings Institution and an Economist at the World Bank. He specializes in international economics and economics of development. He has held a number of research and advisory positions including senior adviser to the Government of Indonesia, consultant to the World Bank, OECD, the Asian Development Bank, and the Government of Japan. He is an author or coauthor of numerous articles in professional journals including The Review of Economics and Statistics, The Journal of Development Economics, The Journal of Comparative Economics, and The Mathematical Programming Study. He has also published and edited a number of books on international economic issues in English and Japanese, including Measuring the Costs of Protection in Japan (1995, Institute for International Economics) and Asia & Europe: Beyond Competing Regionalism (1998, Sussex Academic Press), Small Firm Dynamism in East Asia (2002, Kluwer Academic Publishers), Winning in Asia, Japanese Style: Market and Nonmarket Strategies for Success
(2002, Palgrave), Competitiveness, FDI and Technological Activity in East Asia (2003, Edward Elgar)


He is a graduate of Keio University, and holds MA and Ph.D in economics from Stanford University.


SHENG BIN
Sheng Bin is a Professor at APEC Study Centre, Nankai University, China and has been Senior Researcher at the Institute of International Economics since November 2003. He was formerly a visiting scholar at the Copenhagen Business School in Denmark and Helsinki Business Polytechnic and Seinajoki Polytechnic in Finland. He specializes in international trade and political economics and has published many books including Political Economy of APEC Development (2005, Tianjin: The Press of Nankai University) and WTO and
Multilateral Agreement of Investment (2003, Tianjin: Tianjin University Press) and has published papers in the World Economy, China Economic Quarterly, Pacific Journal and Economic Research Journal.

In 2004 Professor Sheng was awarded the Research Award by the HuoYingdong Education Foundation. He has a Ph.D in Economics from Nankai University.

VINOD AGGARWAL
Vinod Aggarwal is a Professor of Political Science at Haas School of Business, serving as the Chairman of the Political Economy of Industrial Societies Program from 1991- 1994. He is also the Director of the Berkley Asia Pacific Economic Cooperation Study Centre at the University of Berkley California and is a lifetime member of the Council of Foreign Relations.

He has previously been a Professor at the Graduate Institute of International Studies, Geneva and has been a Research Fellow the Brookings Institution, the East West Center and the Woodrow Wilson International Center for Scholars. A consultant to various multinational corporations, Professor Aggarwal is also a consultant to the Mexican Government, US Department of Commerce, WTO, OECD and the World Bank.

Having contributed papers to various publications and authoring several books, Professor Aggarwal’s most recent publication covers bilateral trade agreements in the Asia Pacific. He is a graduate of the University of Michigan and received his M.A and Ph.D in international political economy from Stanford University.


SHERRY STEPHENSON
Sherry Stephenson is the Acting Director of the Department of Trade, Tourism and Competitiveness at the Organization of American States (OAS) and is an active member of the Pacific Economic Cooperation Council’s trade network.Dr Stephenson previously served as Advisor to the Ministry of Trade, Government of Indonesia in Jakarta and has held positions within the GATT Secretariat in Geneva and with the Trade Directorate, OECD in Paris. Also having done consulting work for the World Bank, Asian Development Bank, APEC and several national governments, Dr Stephenson has taught at George Mason University and has published many reports on trade policy particularly on services and standards.

Dr Stephenson has an M.A in Economics from New York University and a Ph.D from the University of Geneva, Switzerland.

ROBERT SCOLLAY
Robert Scollay is Associate Professor and Director of APEC Study Centre at the University of Auckland and is an active member of Pacific Economic Cooperation Council’s trade network. Professor Scollay has also spent time as a visiting scholar at the Institute for International Economics, UNCTAD in Geneva, Institute of Southeast Asian Studies in Singapore, Bocconi University, Milan and Universidad del Pacifico in Lima.

Specializing in issues relating to regional trade agreements and regional integration in the Asia Pacific region, Professor Scollay has done consulting for the World Bank, UNCTAD, Inter-American Development Bank, Commonwealth Secretariat and the Pacific Islands Forum.

Professor Scollay was educated at Victoria and Auckland Universities in New Zealand and at Cambridge University in England.

CHIA SIOW YUE
Chia Siow Yue is a Research Associate with several international and regional organizations including Singapore Institute of International Affairs.

Formerly professor of economics at the National University of Singapore and retired as Director of the Institute of Southeast Asian Studies in October 2002, she is also serves as Regional Coordinator of the East Asian Development Network since 1998.

With a Ph.d in Economics from McGill University, she has published extensively, with over 150 books and journal and professional articles, she specializes in international trade, regional cooperation and international political economy.

HADI SOESASTRO
Hadi Soesastro is the Executive Director and Senior Economist at the Center for Strategic and International Studies in Jakarta and a member of the National Economic Council and is on the international advisory boards of various international institutions including The Asia Society in New York and the Pacific Economic Cooperation Council.

Dr Soesastro has lectured at national universities and at Columbia University, New York and is also an Adjunct Professor at the Research School of Pacific Asian Studies. He has edited and authored numerous publications and has been actively contributing to “track two” activities with PECC, CSCAP and CAEC. He earned his Ph.D from the Rand Graduate School in California.

 

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