Asia Regional Integration Center

Thailand, one of East Asia's most active users of free trade agreements (FTAs), had 11 concluded FTAs by December 2009. Although Thai trade negotiators have striven to secure market access via FTAs, little is known on how FTAs affect exporting firms. Using a survey of 221 Thai exporters, this study by G. Wignaraja, R. Olfindo, W. Pupphavesa, J. Panpiemras and S. Ongkittikul examines the business impact of FTA’s in Thailand. Specific recommendations on how  to take better advantage of regional trade agreements are discussed. Download the paper.

Lotte Schou-Zibell and Srinivasa Madhur examine the determinants of a business friendly environment that underpin rapid and sustained economic growth. The authors suggest that regular monitoring of relevant indicators and comparative benchmarking can provide incentive structures that serve as a starting point for dialogue between government and the private sector on improving the business environment. Read more.

After being signed on February 2009 in Thailand, the AANZFTA entered into force on 1 January 2010. Starting on this date, tariffs will be gradually reduced, achieving free trade by 2015. The AANZFTA agreement covers a market of 600 million people with a combined GDP of US$2.7 trillion. It is a comprehensive economic agreement where the goods, services and investment components were negotiated simultaneously.   Read the official press release of ASEAN, Australia, and New Zealand. Follow AANZFTA on ARIC's website (resources include legal documents, studies and research, news, and more.

A major component of a free-trade agreement covering trade in goods between China and ASEAN came into full force on Friday, 1 January 2010. It created a trade bloc comprised of 1.9 billion people in 6 ASEAN countries and China. The agreement creates the world's third largest free trade area and initially covers tariffs on 90% of goods and trade worth around $200 billion, but will eventually cover all goods and all ASEAN countries. The agreement has generated reaction from within the region. Follow this FTA on ARIC’s website (resources include legal documents, studies and research, news, and more).

Within East Asia, the outward-oriented Philippine economy is a latecomer to using free trade agreements as a trade policy instrument. This study by Ganeshan Wignaraja, Dorothea Lazaro and Genevieve DeGuzman evaluates the impact of free trade agreements—particularly the 15-year-old ASEAN Free Trade Area (AFTA) agreement—on business activity in the Philippines. Using a survey of 155 manufactured goods exporters from three sectors, this study deals with three questions: (i) Do firms use AFTA and why?; (ii) What impedes firms from using FTAs?; and (iii) What can be done to improve FTA use at firm level? Download the paper. Read more about AFTA on ARIC's website.   

Prema–Chandra Athukorala and Jayant Menon examine in an environment of increased global production sharing, the extent and pattern of these flows in East Asia and probe its implications for the analysis of the determinants of trade flows. The paper draws implications on the role of exchange rate policy in the balance of payments adjustment, particularly in countries where component trade is high and growing. Download the paper.

Emerging East Asian economies have performed better than anticipated this year thanks to swift policy responses and an improved external environment, according to the December issue of the Asia Economic Monitor. GDP is now expected to grow 4.2% in 2009 and 6.8% in 2010. Read news release. Download report.

Srinivasa Madhur, Ganeshan Wignaraja and Peter Darjes examine the link between regional roads and ADB's support in Asia between 1966 and 2008 and find that regional highways are a notable and growing part of ADB's road portfolio since the 1990's, and that ADB road investment has made a significant contribution to the Asian Highway.  Read more.