TRADE ARRANGEMENTS AND EVOLVING EAST ASIAN AND ASIA PACIFIC ECONOMIC ARCHITECTURES

The paper begins by noting that proposals involving significant developments in the regional trade architecture are being developed within regional processes that in some cases are simultaneously pursuing other dimensions of regional economic integration: monetary and financial cooperation in the case of ASEAN + 3, and the establishment of a common market in the case of ASEAN. At least three of these regional processes (ASEAN, ASEAN +3, and APEC) count among their ultimate objectives the development of some form of regional “community”, with a scope in that each case includes but also goes beyond traditional elements of regional economic integration. This paper then considers the economic analysis and evidence relating to the choice of optimal regional trade architecture for the Asia-Pacific region, and the extent to which it might correspond to any of the trade architectures currently being proposed. The analysis will include the possibility that optimal regional trade architecture might extend beyond the conventionally-defined boundaries of the Asia-Pacific region. The paper then goes on to consider questions of coherence between an optimal regional trade architecture and the ongoing pursuit of other elements of regional economic integration within other regional processes. This leads to a discussion of coherence between the different regional integration processes themselves and their variously specified objectives, including any changes that might be proposed to enhance coherence.