Publication Number: 3402

Report Title: International Economic Review: Preferential Trade Agreements and the Multilateral Trading System; ASEAN Free-Trade Area Discussions on including China, Japan, and South Korea

Author's name(s): Soamiely Andriamananjara, Michael Barry

Date Published: February 2001

Report Description/Introductory Text: Two models were presented in “Preferential Trade Agreements and the Multilateral Trading System,” which show how PTAs could affect the multilateral trading system. One model suggests that global free trade may–or may not–be achieved through PTA expansion, depending on a PTA’s membership policies. The second model suggests that the greater the degree of preference between the PTA and nonmembers, the less likely PTA members will be willing to undertake multilateral trade liberalization and more likely nonmembers will be to support large-scale multilateral liberalizations.

“ASEAN Free-Trade Area Discussions on including China, Japan, and South Korea” detailed how leaders from ASEAN countries agreed in November 2000 to initiatives aimed at promoting further economic integration in the region. Leaders from China, Japan, and South Korea also joined in these discussions, in what has become known as the “ASEAN-plus-three” meetings. Among the agreed proposals was one to study the impact of creating an ASEAN free-trade area that would include China, Japan, and South Korea.

Topics Covered: USITC, Preferential Trade Agreement (PTA), multilateral trading system, multilateral trade liberalization, World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), European Community (EC), regionalism, multilateralism, Association of Southeast Asian Nations (ASEAN), free trade agreement (FTA), regional trade agreement (RTA), ASEAN FTA (AFTA), ASEAN-plus-three

Countries: China, Japan, Korea (South), United States

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