Asia Regional Integration Center

The recent proliferation of free trade agreements (FTAs) in Asia and the Pacific is placing mounting strain on the region’s FTA negotiating capacity and on the knowledge and technical skills of government officials. Complementing the FTA training courses conducted by ADB, this reference book aims to increase the knowledge and capacity of officials who are actively involved in designing, negotiating, and implementing FTAs. The book consists of three parts: (i) Economics of an FTA; (ii) Coverage of an FTA; and (iii) Negotiating, Implementing, and Evaluating FTAs. Read more.

Soyoung Kim of Korea University and Doo Yong Yang of Korea Institute for International Economic Policy show that the surges of capital inflows in East Asia have contributed to asset price appreciation, although capital inflow shocks explain a small part of the fluctuations.

Charles Adams of the National University of Singapore notes that East Asian banking has improved since the financial crisis through more foreign ownership, greater transparency, new lending, and better supervision and regulation, but argues further restructuring and reform are needed.

To galvanize support from the region's successful economies to help the small and weak economies is one key message of the Mobilizing Aid for Trade: Focus Asia and the Pacific conference held in Manila in September 2007. As agreed during this event co-hosted by ADB, WTO and the Philippine Government, and as reported to the Global Aid for Trade Review in Geneva, in November 2007, the future steps in Regional Aid for Trade includes a Regional Technical Group on Aid for Trade, a succinct Proposal for Aid for Trade in Asia and the Pacific, and a study on trade performance and Aid for Trade in Asia-Pacific. Read more.

The most immediate and visible fallout from the global credit market turmoil has been an increase in volatility in emerging East Asian bond markets, says the latest issue of Asia Bond Monitor, launched in Mumbai this week. Read the news release and full report.

OREI Head Jong-Wha Lee analyzes the patterns and determinants of financial integration in East Asia by using the data set of cross-border holdings of financial assets such as equity portfolio, long-term and short-term debt securities, and bank claims. He finds that financial integration among East Asian economies, particularly in equity and debt securities, is relatively lower than in Europe, and largely due to heavy intra-regional trade in goods. Read more.

ADBI Dean Masahiro Kawai and Ganeshan Wignaraja of OREI examine how consolidation of multiple and overlapping free trade agreements (FTAs) can help mitigate the harmful noodle bowl effects of different or competing tariffs, standards, and rules. A computable general equilibrium (CGE) model finds that consolidation at the ASEAN+6 level would yield the largest gains to East Asia among plausible regional trade arrangements. Read more.

Regional and bilateral free trade agreements (FTAs) continue to proliferate in the Asia and the Pacific region. Compared with more than 192 FTAs at the end of 2006, the Asian Development Bank (ADB) identified 204 bilateral and sub-regional FTAs that were concluded or under consideration within the region or with the rest of the world at end-2007. Over 65 FTAs are being implemented, 30 have been signed, 60 are under negotiation, and 49 have been proposed. East Asian economies -- involved with about 114 FTAs -- continue to be the major drivers of FTA formation in the region. View the tables.