Cross Regional Trade Agreements: Understanding Permeated by Saori N. Katada, Mireya Solis

By Saori N. Katada, Mireya Solis

An unacknowledged key function of East Asian FTA international relations is the region's lively cross-regional preferential buying and selling kin. In sharp distinction to the Americas and Europe, the place cross-regional projects won power after the consolidation of local exchange integration, East Asian governments negotiate exchange offers with companions outdoors in their quarter at an early degree of their FTA rules. The booklet asks 3 major questions: Are there local components in East Asia encouraging international locations to discover cross-regionalism early on? What are an important standards in the back of the cross-regional accomplice choice? How do cross-regional FTSs (CRTAs) impact their intra-regional alternate tasks? via specified kingdom case reports from China, Japan, South Korea, Singapore, Thailand and Malaysia, we convey the ways that those governments search to leverage their CRTAs within the pursuit of intra-regional exchange integration ambitions, a method that yields a way more permeated regionalism.

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Malaysia, on the other hand, was critical of CRTAs since it feared they could dilute the regional integration project and that they could threaten key priorities of domestic industrial and social policy. Malaysia has slowly warmed up to FTA negotiations, however, as it has learned of the negotiation techniques to preserve the protectionist status quo: rules of origin, exclusions, deferments on tariff cuts, etc. Indeed, Hoadley’s chapter highlights the differences in tempo and reach of Thailand’s and Malaysia’s FTA policies, but it also identifies a key commonality: both governments have deliberately refrained from using FTA policy to leverage domestic reform; and this is particularly clear in their troubled negotiations of a CRTA with the United States, where issues such as services, intellectual property (and in the case of Malaysia government procurement and automobile industrial policy) have stalled negotiations.

36 During the negotiations with Chile, opposition to the OMT’s initiative came from the Ministry of Agriculture and Forestry and farmers’ organizations such as the Korean Farmers League and the Korean Women Farmers Association. In addition, the OMT’s mission to maneuver through bureaucratic and social opposition was challenged by rival institutions, such as the Ministry of Commerce, Industry and Energy and the Ministry of Finance and Economy. Despite its shaky start, 33 See Sohn, “Korea’s FTA Developments,” pp.

Online, cited 5 December 2006]. Y=1998&M=09& D=17&ID=9809170210. 7 Interviews with South Korea’s FTA negotiators, Seoul, July 2006. 8 Hae-Kwan Chung, “The Korea–Chile FTA: Significance and Implications,” East Asian Review, vol. 15, no. 1 (2003), p. 74; Chan-Hyun Sohn, “Korea’s FTA Developments: Experiences and Perspectives with Chile, Japan and the US” (paper presented at Regional Trading Arrangements: Stocktake and Next Steps, Trade Policy Forum, Bangkok, 12–13 June 2001). 9 Inkyo Cheong, “Han-Chile FTA eui kyung-je-jeok hyo-gwa mit eui-eui (The economic significance of the Korea–Chile FTA),” Journal of International Economic Studies, vol.

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