Abstract
This paper explores the recent developments for regional trade agreements (RTAs) in North East Asia since China’s accession to the WTO in 2001. After having successfully achieved high growth rates since it became a WTO member, China’s stance towards RTAs has become more positive. In particular, an RTA in North East Asia will be facilitated if China, Japan and Korea fully acknowledge the positive spillover effect from launching such an RTA. This paper further argues that all three nations have to endeavor to resolve the prolonged confrontation in their collective defense systems if they want to expedite any real progress towards a federal RTA in North East Asia.
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Notes
The launch of a FTAA has, somehow, failed to reach an overall consensus due to the objection of Brazil in 2006.
The Chinese Statistical Bureau: www.stats.gov.cn
Japan successfully penetrated into Southeast Asia by making use of capital and technology since the Plaza Agreement of 1985, and the United States increased its influence by making use of its dominance in the world capital market. China, somehow, increased its leverage by not taking a further devaluation of its domestic currency during the currency crisis in 1997.
Grauwa and Zhang (2006) also maintain that there are some further discussions on possible windfall gains of launching monetary union in East Asia.
For further details on the China’s accession, see Kim (2002)
David Romer used the socialist market economy in the context of introducing stock market into the socialist economy. In China, it refers to a market economy under the leadership of the Chinese Communist Party. But the EU has not recognized the market economy status of China through 2016. The United States and Japan are also joining the EU by showing reluctant stances in making blank endorsements on this on the ground of the relatively big leverage of the state in economic affairs. But other 53 nations fully accommodate this usage.
The EU has resolved this trade dispute with China on 11 June of 2005, but trade frictions on footwear items have emerged in February of 2006. China also reached an agreement on textile and apparel-related goods with the US on November 8, 2005: http://ccct.mofcom.gov.cn/aarticle/zhongyts/200602/20060201504044.html
Statistical Bulletin of Economic and Social Development, Statistical Bureau of China
Since the suspension of DDA negotiations in July 2006, most free trade agreements are launched in the commodity sector with a view of waiting for the outcome of DDA negotiations in the service sector.
For further details on the new economic geography, see Martin and Ottaviano (2001).
The screen quota has been one of the most sensitive areas for carrying out liberalization.
For further details, see Lee, D (2006). Until 2003, FTA negotiations with ASEAN, Singapore and Japan belonged to the realms of short-term projects whereas those with the United States and China belonged to the scope of long-term projects.
Most Koreans are still dubious how the incumbent government has accomplished the FTA with the United States in that it is a complete U-turn of its foreign policy which attached great importance to the Northeast Asia Committee. This committee emphasizes the imperative need to maintain close ties with China by keeping a certain distance with the United States.
See www.whitehouse.gov for further details.
The Chiang Mai Initiative was reached to implement the “ASEAN plus three” cooperation system.
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Acknowledgement
We are grateful for the helpful comments of late Professor David Wall of University of London and Jean Monnet Professor Bernadette Andreosso-O’Callaghan of the University of Limerick. We also appreciate the encouraging recommendations of the two anonymous referees.
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Hwang, Hd., Yin, X. Recent developments on RTAs in North East Asia. Asia Europe J 6, 455–466 (2008). https://doi.org/10.1007/s10308-008-0188-9
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DOI: https://doi.org/10.1007/s10308-008-0188-9