21. Economic and Strategic Dimensions of Mega-FTAs: A Perception Survey of Asian Opinion Leaders
- Author:
- Xianbai Ji, Pradumna B. Rana, Wai-Mun Chia, and Changtai Li
- Publication Date:
- 12-2016
- Content Type:
- Working Paper
- Institution:
- Centre for Non-Traditional Security Studies (NTS)
- Abstract:
- The advent of mega-free trade agreements (mega-FTAs) including the Trans-Pacific Partnership (TPP), the Regional Comprehensive Economic Partnership (RCEP) and the Transatlantic Trade and Investment Partnership (TTIP) is a defining feature of global trade governance in the 21st century. What are the costs and benefits of mega- FTAs? What is the political and strategic calculus behind mega-FTAs? Is there a “domino effect” triggering off the mega-FTA troika in a chain of reactions? Does mega-regionalism reinforce or undermine multilateralism? Since commonly used econometrics models cannot shed light on non-economic issues, this paper examines mega-regionalism by conducting a perception survey. This survey received responses from 648 opinion leaders located in 31 Asian countries. Respondents felt that mega-FTAs are good trade policy instruments that are “building blocks” to multilateralism. Linked by a “domino effect”, the mega-FTAs have important political and strategic dimensions. The United States wants to socialise China by writing high- standard “rules of the road” through the TPP. China then pivoted to RCEP to counter the TPP. Brussels through TTIP wanted to join the mega-FTA bandwagon to stay relevant. Additionally, remaining questions on decentralising global economic architecture highlight the need for regional and global institutions to complement each other.
- Topic:
- European Union, Multilateralism, Trans-Pacific Partnership, Free Trade, and Decentralization
- Political Geography:
- United States, China, Europe, Asia, and Global Focus