It is an appropriate time to rethink the relationship between trade regionalism and multilateralism in the Asian context as we witness the proliferation of free trade agreements (FTAs) in Asia. In the 1980s and 1990s, many scholars and policymakers believed that Asian integration was market-based, rather than legal-based, and that Asian integration would never be codified through agreements. Yet today, there are a large number of FTAs signed and under negotiation in Asia.
This book investigates the appropriate relationship between regionalism and multilateralism, with a special reference to recent FTAs in Asia. It is undeniable that past trade multilateralism–regionalism debates centered on the trade-in-goods aspect. However, the majority of recent FTAs in Asia cover issues beyond trade-in-goods and tariff liberalization, such as trade facilitation, services, and economic cooperation. While the General Agreement on Tariffs and Trade (GATT) Article XXIV governs regional integration initiatives in trade in goods, there is no (or at most a thin) World Trade Organization (WTO) Agreement that stipulates the relationship between regionalism and multilateralism in issue areas other than goods.
Thus, this study carefully considers the meaning of “WTO-compatible FTAs” by distinguishing “WTO consistency” and “WTO friendliness”, going beyond GATT Article XXIV debates and proposes a general framework for examining the openness of regionalism in various issue areas by identifying tree-type questions to distinguish several types of exclusiveness. It then specifically asks the following questions: Can Asian FTAs that cover several issues be considered multilateralism friendly? How does the relationship between regionalism and multilateralism differ between trade-in-goods and non-goods issue areas? What are policies that might reduce the exclusiveness of regional initiatives? The study concludes by listing counterintuitive policy suggestions to make FTAs truly WTO compatible. The book also includes a comprehensive list of FTAs in Asia and several WTO Agreements relating to trade regionalism.
Sample Chapter(s)
Chapter 1: Introduction (101 KB)
Contents:
- Introduction: Conceptualizing the WTO Compatibility of FTAs
- Analytical Framework for WTO Friendliness of FTAs: How to Check If They are Real “Friends” of WTO?
- Free Trade Agreements in Goods: Is Trade Bilateralism in Asia Consistent with WTO Rules and Norms?
- Regional Approaches to Trade Facilitation: Are Regional Trade Facilitation Measures Discriminatory Against Non-Members?
- Regional Services Agreements: What is the Value of GATS-Plus Regional Services Commitments?
- Economic Cooperation Under FTAs: Do FTAs Impose WTO-Plus Technical Assistance Obligations on Members?
- Conclusion: Counter-Intuitive Policy Implications for WTO-Compatible FTAs
Readership: Researchers, professionals, undergraduate and graduate students interested in Free Trade Agreements, World Trade Organization, Regionalism, Trade in Services and Trade Facilitation.
“Shintaro Hamanaka has written an interesting and important book on Asian Free Trade Agreements and WTO Compatibility
. The first major contribution is to distinguish between the narrowly legal concept of WTO-consistency and the broader concept of WTO-friendliness. That distinction underpins the book's analysis, in which Hamanaka identifies examples of agreements that are WTO-consistent but not in the spirit of the WTO or likely to promote future multilateralism; as he points out, non-violation of rules is not the same as harmony. The book's second major contribution is in-depth analysis of 21st. Century trade agreements in Asia, covered in four substantive chapters on trade in goods, trade facilitation, services agreements, and economic cooperation. The author's detailed knowledge of more than a hundred agreements is used to support analysis in which the big picture is kept impressively in focus.”
Prof. Richard Pomfret
University of Adelaide
Shintaro Hamanaka is an Economist at the Asian Development Bank (ADB). He also holds the position of Honorary Research Fellow at White Rose East Asia Centre in the United Kingdom (UK). In the Office of Regional Economic Integration of ADB, he is currently responsible for economic and political analysis of regional trade and investment integration in the Asia-Pacific, including FTAs and bilateral investment treaties. He also designs and organizes ADB trade and investment capacity building projects. Before joining ADB, he served as a service negotiator for the Doha Round at the Japanese Mission to the World Trade Organization (WTO) in Geneva. Prior to this, he was an economist at the Bank of Japan (BOJ), where he was involved in macroeconomic research and policymaking on international financial relations.
His research interests include international political economy; global and regional economic governance; political economy of regionalism; regional economic architecture in Asia; and FTAs, particularly regional services agreements. He has authored several books and numerous academic journal articles in the fields of political science, international relations, economics, and international law. He holds a BA from Kyoto University and a PhD from the University of Sheffield.