Beyond Special and Differential Treatment: Regional Integration as a Means to Growth in East Asia

Special and differential treatment (SDT) provisions in GATT were created to assist developing countries achieve economic progress while assimilating into the multilateral trading system. Despite these intentions, global trade imbalances still persist. Within this context, I focus on the region of East Asia which has experienced astounding growth in just several decades, propelling it far beyond other developing country regions. Although international trade continues to be the crucial factor driving growth in the region, reliance on SDT has in certain circumstances hindered development. As such, East Asia should seek alternatives to SDT. In that vein, I argue that sustainable growth and trade liberalization can be achieved by enhancing integration through a regional trade agreement. I further discuss various proposals for an East Asian trade agreement such as ASEAN+3, FTAAP, and EARTA. Finally, I highlight the importance of governance and identify several institutions essential for a successful regional arrangement.