原創 博鰲亞洲論壇 博鰲亞洲論壇 收錄於話題#自由貿易協定：亞洲的選擇5個
Free Trade Agreements: Asia's Choice
Since the late 1990s, Asian economies have increasingly engaged in various regional and trans-regional free trade agreements (FTAs), driven by fast growth of international trade and investment and slow progress in the WTO Doha Round. The WTO statistics show that the number of FTAs involving Asian economies currently accounts for more than half of all FTAs worldwide. As of the end of June 2020, there were 51 FTAs signed between Asian economies and 104 between Asian and Non-Asian economies, all of which remain in force. This network of FTAs in Asia has played an important role in promoting regional trade liberalization and economic integration, bolstering the region’s growth, peace, and stability, as well as improving economic liberation and economic governance in each participating country.
Though a latecomer in pursuing institutionalized regional integration, Asia has embraced FTAs swiftly thanks to its regional production network and large cross-border investment made by the multinational corporations (MNCs). The development of regional production network and region-wide distribution of production strategy adopted by MNCs in Asia have been instrumental in strengthening economic integration, and called for formal trade arrangements to enhance efficiency. Moreover, many Asian economies have also formed FTAs with other economies to obtain competitive advantage. By analyzing and comparing the main rules and standards of different FTAs in Asia from such aspects as trade in goods, trade in services, investment, and dispute settlement mechanism, we identified the following key features:
First, FTAs in Asia are multi-level and diversified in terms of coverage and degree of market openness. Some FTAs aspire to achieve high level of liberalization, like the TPP/Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Japan Economic Partnership Agreement (EUJEPA), and KORUS FTA; some have modest goals, such as ASEAN-India FTA and China-Pakistan FTA; and still some focus on trade in goods only. These FTAs adopt different criteria and reflect different development stages. From the perspective of market access, except for a few highly open economies such as Singapore, which has opened nearly 100 percent of trade in goods to all its FTA partners, all the other economies have been flexible in setting liberalization degree. The final criteria are both a balance of strengths among the FTA partners and a result of games among interest groups.
Second, Asian FTAs are evolving to have an increasingly high level of liberalization and more stringent rules and criteria. In terms of market access, Asian regional trade agreements (RTAs) have a low level of openness, with liberalization rates for trade in goods prescribed by some agreements even below 90 percent. In comparison, newly concluded RTAs by and large have a rate above 95 percent. Some FTAs, like the Trans-Pacific Strategic Economic Partnership (TPSEP or P4), even have a liberalization degree up to 100 percent. After the Regional Comprehensive Economic Partnership (RCEP) Agreement enters into force, over 90 percent of the trade in goods in the region will eventually be duty-free, most of which will have zero-tariff immediately or within ten years. In the areas of trade in services and investment, some Asian economies have shifted the opening-up model from a positive list to a negative list, but they are divided on the mechanism of investor-state dispute settlement (ISDS), which has thus become a pending issue in some recently signed pacts. As for rules and criteria, some of the early agreements are merely about trade in goods, but the later ones mostly cover trade in goods, trade in services, investment, and dispute settlement. The FTAs signed recently have expanded the scope and coverage from border measures to behind-the-border measures.
Third, Asian FTAs aligned themselves with the WTO rules, sticking to the WTO’s fundamental principles of non-discrimination, trade liberalization, fair competition, transparency, reciprocity, and special and differential treatment of developing members. The FTAs even aim to go beyond the WTO in terms of liberalization, rules, and criteria; and in most cases, they indeed are more advanced, inclusive, and open. They respect each party’s development conditions instead of adopting a one-size-fits-all approach, grant special treatment to some less developed parties, and welcome the participation of outside stakeholders.
Fourth, high-standard FTAs, including TPP/CPTPP and EUJEPA, will help lift existing multilateral economic and trade rules by setting out high standards in market opening and new frontiers such as digital trade. Nevertheless, it does not necessarily mean that the higher the standard, the better off the FTA partners. For example, if one party sets high standards to protect intellectual property rights, it is creating an enabling environment for innovation. But if the standards are too high, they will raise the innovation cost to a large extent and become a straitjacket for innovators. Furthermore, the level of standards has a direct bearing on interest groups and stakeholders and thus may cause fierce competition in how to write the rules.
Fifth, as the number of FTAs increases, rules in the FTAs may unavoidably overlap and become burdensome and costly for firms to benefit from. For instance, multiple Rules of Origins (ROOs) in Asian FTAs have imposed a significant burden on SMEs. Meanwhile, governments』 capacity in some countries needs to be enhanced to assist firms to better understand the benefits of various FTAs.
In the post-pandemic era, Asian economies need to continue to work together to further promote regional cooperation arrangements including FTAs and inject new impetus to regional growth. The report proposed six recommendations:
First, beef up the utilization rate of Asian FTAs and give stronger sense of fulfillment to businesses and people in the region. FTA partners are expected to strengthen the exchange and sharing of data and information on signing and verifying certificates of origin (COs), and improve procedures for applying for, approving, and issuing COs. Mechanisms like the Joint Committee on FTAs could be fully leveraged. Trade facilitation under FTAs needs to be furthered. Current platforms like Asian Development Bank (ADB) and Asia-Pacific Economic Cooperation (APEC) can serve as key information hubs for FTAs within the region. Efforts could be made to establish, improve, and regularly update a database encompassing the texts of FTAs within Asia and related commitments on market access, and to jointly prepare and publish guidelines for the use of those FTAs.
Second, promote reform through opening up, and align domestic policies with the FTAs. Great efforts need to be made to create a market-oriented and rules-based business environment in line with the highest international standards and to provide stronger institutional supports for expanding foreign trade and investment. Priorities may be placed on strengthening policy coordination, information exchange, and best practices sharing among FTA partners and on developing a mechanism to address potential risks arising in the process of opening up. Asian economies are also advised to promote inclusive development and make efforts to improve industrial and regional policies, boost development of weak industries and backward regions, and drive transformation and upgrading of economy by technological innovation.
Third, promote capacity building of the less developed members to encourage their participation in FTA-related affairs. To encourage active participation of the less developed members, major Asian economies should give special treatment to them as much as possible when conducting FTA talks. Major Asian economies should also help the less developed members enhance capacity building through best practices and policy sharing, training programs, seminars, and technical support, focusing on the improvement of their capability in engaging in negotiations, deriving benefits from FTAs.
Fourth, enhance study on FTA rules in the post-pandemic era with focus on trade in essential public goods, unimpeded supply chains and digital trade, among others. Efforts could be made to explore the mechanisms or arrangements and key areas of cooperation, set up new and fair international rules for trade in essential public products and supply chain connectivity as well as a dispute settlement mechanism during a pandemic outbreak, and ensure cross-border movement of essential medical supplies and equipment, key agricultural products, and other essential goods and services. Asian economies need to further study digital trade and consider adding a new chapter for digital trade into the negotiations on new FTAs or revising existing ones. They are also advised to move faster to conclude multilateral negotiations on e-commerce, thus forming new global digital trade rules.
Fifth, promote FTA connection and integration among major Asian economies so as to expand FTA coverage and jointly develop a new blueprint for Asian economic integration. Concerted efforts are needed to firmly implement the newly signed RCEP, accelerate the China-Japan-ROK FTA talks, forge closer FTA ties among major FTA players in Asia, reach more FTAs with economies in Europe and America, and enhance coordination and cooperation in rule-making under RCEP, CPTPP, and EUJEPA. Building on these mega FTAs, Asian economies are expected to conclude larger regional FTAs like the Free Trade Agreement of the Asia Pacific (FTAAP) to pave the way for a highly efficient network of global supply and industrial chains and serve as an engine driving robust and sustainable recovery of Asia and the world in a green and inclusive way.
Sixth, accelerate the building of high-standard and future-oriented Asian free trade areas in light of national conditions of countries and providing Asia’s solution to the reform of multilateral trading system. Asian economies need to continue to align the basic trade and investment principles with the WTO. Based on this, they may provide feasible ways to engage other countries into Asia’s FTAs, and make these pacts deliver benefits to more regions, countries, and groups. Asian economies can promote the conclusion of future-oriented and high-standard FTAs in a flexible approach, not only supporting signing off one-step high-standard FTAs, but also encouraging gradual upgrading of progressive FTAs. The aim is to develop a system of economic and trade rules that satisfies Asian economies』 overall interests and to offer Asia’s solution to the reform of multilateral trading system.
亞洲浪潮，博鰲視野
立足亞洲 面向世界
傳遞論壇最新動態 促進亞洲深度合作
全球重要對話的傳達者 亞洲共同發展的瞭望者
原標題：《Free Trade Agreements: Asia's Choice Report Executive Summary》
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