EU enlargement and the rise of Asian FTAs: Implications for Asia-Europe relations

  Over the past few years, there has been resurgence in regionalism and preferential trade across the global economic system. The European Union has taken steps at enlargement of their economic community to include countries in Central and Eastern Europe. Bilateral trade arrangements are proliferating in Asia involving the region's largest economies Japan and China. These arrangements mirror similar initiatives in the Americas. These developments have profound implications on the world trading system, in general, and to Asia-Europe relations in particular. The rise of preferentialism runs the risk of heightened discrimination, trade diversion and the fragmentation of the multilateral trade order. This prospect will have a direct impact on the future relations between Asia and Europe. Both Europe and Asia should remain outward oriented, open to reciprocal arrangements with non-member economies, and supportive of the multilateral trading system.     

The challenge of institution-building in Asia and its implications for Asia-Europe relations

  East Asia, including Northeast Asia and Southeast Asia, has developed tightly-linked production/distribution networks through globalizing corporate activities. The vertical chain of production in East Asia has been even more sophisticated than economic integration in East Europe or Latin America. However, the political environment of East Asia for trade and investment has been far from borderless. The integration effort at the policy level has been very much limited so far, due to the historical background as well as geopolitics surrounding East Asia. The Asian currency/financial crisis provided these countries a historical turning point. After the burst of the crisis, East Asians realized that they have to take care of themselves in their difficulties, not depending on outside forces. A natural choice for them was to step into the realm of regionalism. In 1998, Japan and Korea officially announced that they would discard the long-lasting GATT/WTO-only approach and adapt the multi-layered approach, including both regionalism and multilateralism. The ultimate goal of regionalism would be a region-wide integration including ASEAN+3. As a steppingstone, Japan signed the Japan-Singapore Economic Partnership Agreement (JSEPA) in January 2002. In a parallel move, the ASEAN and China Leaders announced in November 2001 the establishment of an ASEAN-China Free Trade Area (ACFTA) within 10 years. This article will follow up the most recent advancement of regional institutional building in East Asia with the emphasis on peculiar characteristics of economic integration in the region and discuss its implications for Asia-Europe relations. This paper is heavily drawn from Kimura (2002, 2003).     

Whither East Asian economic integration? Korea��s regionalization cum globalization strategy

The recent regionalization in East Asia can be defined in terms of regionalization cum globalization. In the case of Europe, regionalization was originally intended to create a preferential and protected area. From its inception, however, regionalization in East Asia emphasized open membership and global liberalization. This so-called open regionalism was then adopted as a fundamental principle of the Asia-Pacific Economic Cooperation (APEC). Given that APEC is an inter-regional institution, however, the concept of open regionalism is not applicable to characterize exclusively Asian integration process that gained momentum on the basis of the ASEAN + 3 framework. For many East Asian countries, a regionalization initiative, especially after the 1997 financial crisis, was a natural response to cope with globalization. Indeed, although East Asian economies are increasingly regionalized, the global market remains crucial and exclusively Asian arrangements are still rare. Globalization and regionalization processes are mutually reinforcing. Singapore is one example that developed into a regional economic hub through the regionalization cum globalization strategy. Given that Korea concluded recently two important free trade areas with the USA and the EU, Korea is also capable of building such a regional economic hub. The first step is to strengthen a cooperation network between the three Northeast Asian countries, China, Japan, and Korea. This network, together with ASEAN, is expected to catalyze the regional integration in East Asia and shape its future evolution.     

New regionalism(s) in the global political economy. Conceptual understanding in historical perspective

  This paper places the contemporary study of regionalism in historical context. It argues that the study of regionalism has occurred in two waves. The first gathered pace as a sub-field of International Relations from the late 1950s and the second emerged in the context of the globalisation of the late 1980s and the 1990s. RID="*" ID="*" This paper, originally presented as a lecture to the Asia Europe Foundation University, 7^th Summer School, Barcelona: November 11, 2002, represents an abbreviated and revised version of Shaun Breslin and Richard Higgott (2000) Studying Regions: Learning from the Old Constructing the New, New Political Economy 5 (3): 333–352. Permission of the Editors of New Political Economy to publish in this form is gratefully acknowledged. The support of the Economic and Social Research Council in the writing of this paper is also gratefully acknowledged.     

Japan, China and East Asian regionalism: implications for the European Union

East Asia is becoming an increasingly coherent regional entity in political economic terms, and remains a region of enormous geo-strategic significance for the European Union. Europe’s links with China and Japan are especially important, and moreover these two countries are looking in various ways to exercise various forms of regional leadership in East Asia. This has critical implications for the EU’s relations with the East Asia region generally, and also for the wider international system. Similar and related impacts maybe construed from deepening East Asian regionalism, involving processes where both Japan and China play vitally important roles. The analysis presented here examines the both micro and macro level developments in East Asian regionalism, and issues relating to Japan, China and regional leadership. It concludes by discusses the implications of these matters for the European Union, and recommends that the EU should pay particularly close attention to emergent exercises of regional leadership in East Asia, most likely to be performed by Japan and/or China.

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新地区主义视角下的中国东亚区域合作外交

在全球化时代的世界政治中,东亚新地区主义的发展为20世纪90年代以来的中国外交提供了广阔的舞台。当前,东亚区域合作外交正在成为中国外交中一个日益凸显的亮点。在新地区主义理论的视野中,中国提出新安全观,塑造负责任的大国形象;提出并倡导“开放的地区主义”思想,为新地区主义在亚太地区的发展开辟了道路;积极推进“10+3”合作,着力发展“10+1”;积极参与东亚区域合作的制度化建设,支持东盟为推进东亚区域一体化所作的努力;以“10+3”机制为契机,深化中、日、韩三国合作。在未来的东亚区域合作中,中国应在加快自身经济发展的同时,让东盟国家从中切实受益;继续坚定不移地树立负责任的大国形象,发挥大国作用;切实按照《南海各方行为宣言》所规定的各项原则处理同有关国家的海上领土争端和历史遗留问题;大力发展中、日、韩三国经贸合作,切实推进三国次区域自由贸易区建设;以建设性的合作精神发展中美关系。     

Early American Views Regarding European Unification

This article examines the origins of US foreign economic policy in the post-1945 period and the major challenges posed to US policy by European economic integration and the establishment of a multilateral trade regime. US post-war economic planning began in the early stages of World War II. The US promoted bilateral trade agreements based on reciprocity and most-favoured-nation principles. During the war, US policy makers debated the merits of various plans to provide economic and financial assistance to Europe based on the assumption that Nazi Germany would be defeated. The plans for economic reconstruction of Europe were made under the premise that US economy would benefit from the creation of export markets in Europe. However, US policy makers were also concerned that the creation of a unified European market could potentially constitute a challenge to US economic hegemony and perhaps a political threat should Europe fall under another tyrannical regime. US policy therefore pursued twin tracks: it promoted economic reconstruction and integration in Europe; at the same time, it facilitated the establishment of an international trading regime that would promote principles of liberalised trade, support US economic growth and contribute to the development of a free enterprise capitalist trading system. This article illustrates that US economic planners in the 1940s were aware of the benefits and risks of European economic integration, seeking to balance European economic reconstruction with the establishment of a robust multilateral trading system.     

The security policy of the greens in Italy

This article provides an overview of the current state of financial regionalism in East Asia and discusses why and how the East Asian countries should go forward in terms of financial and monetary regionalism. It highlights intra-regional exchange rate stability as an important regional public good and makes the case for greater exchange rate cooperation. To this end, East Asian countries should gradually reduce their exposure to the US dollar and move towards currency basket regimes which would sustain relative intra-regional exchange rate stability while allowing for sufficient flexibility to accommodate idiosyncratic shocks. Against the backdrop of the global and European financial crisis, the article also urges a reconsideration of the costs and benefits of international – and regional – financial integration and calls for a further strengthening of East Asia's regional financial architecture.     

The emergence of regional economies in China and its implications,with special reference to Hong Kong and Guangdong

  China's continental physical expanse has been a dominant, shaping influence of its political, social and economic development throughout its modern history. Thanks to its relative ethnic homogeneity, as well as the absence of political reform, it has – unlike the former Soviet Union – preserved its unity as a state. Nevertheless, regionalism remains a powerful counterpoint to centralisation in China. In particular, under the impact of post-1978 economic reforms, differentials and tensions between provinces and regions have emerged as a potent force, threatening the authority and power of Beijing. This article begins by seeking to explore some of the regional forms in which economic change has manifested itself during the last two decades. It highlights the unique problems faced by an economy that is still in transition in a country as large as China. Brief consideration is also given to the wider regional context in which China is sometimes placed as the central player – namely, that of `Greater China'. At the heart of the article is a case study that examines the evolution of a particular kind of regionalism, captured in the economic integration – even symbiosis - between Hong Kong and Guangdong. The question is addressed whether the form of regionalism contained within the forging of an ever-closer economic relationship between these two areas of South China can be a model for the integration of other regions both within and across China's national boundaries. Hong Kong's transformation from a tiny, dependent, colonial enclave into one of the most successful economies in the world is one of the most remarkable stories of post-World War II economic history. During the 1960s and 1970s, Hong Kong's growth record was unmatched anywhere else in the world. But by the beginning of the 1980s, high land rents and spiralling wages started to erode the international competitiveness that had been the basis of Hong Kong's previous economic success. By a happy coincidence, however, the emergence of such pressures coincided with the opening of China to the outside world. China's `open door' policy thereby made available to Hong Kong entrepreneurs a huge, hitherto untapped reservoir of cheap labour and gave them access to inexpensive factory sites just across the border in Guangdong. It was a lifeline to which they responded eagerly and, through the relocation of their factories, provided the means whereby Hong Kong manufacturers discovered a new lease of life. The benefits associated with this process accrued not only to Hong Kong through the regeneration of its manufacturing industry. Rather, it was a two-way process that also facilitated economic growth, structural transformation and improvements in living standards in Guangdong (above all, in the Pearl River Delta). In short, the process became the basis of deepening integration between the economies of the two regions. Indeed, it was the key element in the emergence of a new regional economic grouping, known as `Greater China' – an informal triangular partnership between Hong Kong, Taiwan and two southern Chinese provinces (Guangdong and Fujian). The emergence of `Greater China' can be regarded as a particular manifestation of the coastal bias that has so strongly characterised China's economic trajectory under reform. To this day, the triangular economic nexus between Hong Kong, Taiwan and South China remains an important dimension of China's external economic relations, even if developments in other coastal provinces have caused it to weaken. To what extent recent and future developments have challenged and will continue to challenge the regionalism inherent in the original notion of Greater China is something that deserves close attention. Not least, the strategic initiative of opening up China's western regions poses interesting and important questions that touch on future developments of `trans-nationalism' and `trans-regionalism' affecting China.     

New Regionalism and Regional Integration: the Role of National Institutions

This article focuses, first, on the under-explored issues of new regionalism: its subnational level and transnational regional cooperation as an initial stage of new regionalism. Second, it analyses the development of new regionalism between a country in regime transition (Russia in the 1990s) and stable democratic actors (in Europe). Third, it addresses the question of whether European integration contributes to new regionalism outside Europe's geographic borders. The regions chosen for this analysis are the 89 constituent units of Russia. Such variables as historical legacies, regime transition as domestic context, and the European integration as an international context all remain stable for the 89 units of analysis. Thus, the research design allows one to distinguish other potential variables that may be significant in the development of new regionalism. Given that Russia is located on both the European and Asian parts of the Eurasian continent, the research design also permits the testing of the hypothesis that regional integration and new regionalism are interconnected across Eurasia.     

Study on Xinjiang’s bilateral trade using a gravity model

Based on the basic trade gravity model and Xinjiang’s practical situation, new explanatory variables (GDP, GDPpc and SCO) are introduced to build an augmented trade gravity model adapted to Xinjiang’s bilateral trade. From the empirical analysis of this model, it proposes that these three variables affect the Xinjiang’s bilateral trade positively. Whereas, geographic distance is found a significant factor influencing Xinjiang’s bilateral trade negatively. Then, the augmented trade gravity model analyzes the present trade situation between Xinjiang and its main trade partners in 2004 quantitatively. It indicates that Xinjiang cooperates with its most trade partners successfully in terms of present economic scale and developing level. Xinjiang has established successful trade partnership with Central Asia, Central and Eastern Europe, Western Europe, East Asia and South Asia. However, the foreign trade development with West Asia is much slower. Finally, some suggestions on developing Xinjiang's foreign trade are put forward.     

试析中国“自由贸易区战略”的新区域主义特征

2007年,中国共产党十七大报告中正式提出要着力推进"自由贸易区战略"(英语简称FTA).在新区域主义逐渐由区域兴起到全球扩展的阶段,中国的FTA战略既具有新区域主义的共性,而且还将具有自己独特的个性.     

Normative and Civilisational Regionalisms: The EU,Russia and their Common Neighbourhoods

The contours of regionalism in a wider Europe are shaped by two dominant actors, the European Union (EU) and Russia, which often have divergent visions of the regional landscapes in a vast area constituting their common neighbourhood. The EU can be characterised as the promoter of normative regionalism, while Russia generates different forms of civilisational regionalism. Russia’s emphasis on the civilisational underpinnings of its regional integration model paves the way for two different strategies: one based on liberal imitation and replication of EU experiences in order to strengthen Russia’s position in the global neoliberal economy, and another grounded in illiberal contestation of the normative premises of the EU with the purpose of devising an ideologised alternative to the liberal West.     

Eurasia: re-emergence of two world regions

Relations between Asia and Europe have a long history back to ancient times. This history is also a history of superpowers. Today the relations between Asia and Europe are dominated by various regional actors, mainly the EU and ASEAN. Their bi- and multilateral cooperations have changed the international system. These processes, called inter- or transregionalism, also have deep impact on the regional integration in both regions, but especially in Asia. Interregionalism fosters open regionalism in Asia and has catalysed further efforts to multilayered regional integration in this world region.     

EU trade relations with Emerging Asia: identifying the issues

Trade interdependence between Europe and Asia has rapidly increased in recent years. Europe–Asia trade flows now constitute a ‘third link’ in the global economy. As trade expands, however, global trade governance has declined and free trade agreements (FTAs) have increased. Hence, the Global Europe strategy has been designed to enhance trade relations with emerging Asia which is the most dynamic region in the global economy today. But Asia’s model of export led growth leaves it more exposed to shocks emanating from outside the region than ever before raising questions about its sustainability. Deep integration agreements between Europe and Asia are needed to foster economic growth. They also need a development dimension to help Asian countries address their key development challenges. Brigid Gavin was the Research Coordinator of the workshop on ‘Deep Integration and North–South Free Trade Agreements: EU Strategy for a Global Economy’ which provided the papers and discussion forum for the articles in this special edition. The workshop took place at the United Nations University-Comparative Regional Integration Studies (UNU-CRIS) centre in Bruges, Belgium on 19–20 June, 2008. She wishes to express her thanks to Mr Luk Van Langenhove, Director of UNU-CRIS for financial support and to all the authors and participants in the workshop for their contribution to making this project a real success. A special word of thanks goes to Lars Nilsson, Chief Economist Unit, DG Trade, European Commission for his opening presentation to the workshop. Alice Sindzingre is Research Fellow, National Centre for Scientific Research (CNRS), University of Paris and Visiting Lecturer at School of Oriental and African Studies (SOAS), University of London. This analysis draws from her paper ‘The EU Economic Partnership Agreements with Africa’ which she presented at the workshop and available on the UNU-CRIS website.

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Experiential regionalism and political processes in south India

Regional identities have periodically asserted themselves in Indian politics, both before and after Independence. The intensity of this regionalism has, however, tended to vary quite substantially from state to state and over time, ranging from a somewhat benign influence on state politics to demands for secession. These differences are typically explained in terms of specific local political conditions. While the local is undoubtedly important, this article argues that a larger theoretical explanation is also possible: Once we recognize that regionalism operates in multiple spaces, it becomes evident that the way these spaces are experienced has its influence on the practice of local politics. The article goes on to match its theoretical expectations with the politics of regionalism in the neighboring south Indian states of Karnataka and Tamil Nadu.     

The New Economic Bilateralism in Southeast Asia: Region-Convergent or Region-Divergent?

A new pattern of bilateralism is evident in Southeast Asianeconomic diplomacy, and this may be broadly viewed from extra-regionaland intra-regional perspectives. Regarding the former, an increasingnumber of states from the Association of Southeast Asian Nations(ASEAN) group have engaged in the Asia-Pacific's new bilateralfree trade agreement project trend, and two ASEAN member states– Singapore and Thailand – have been at its forefront.Regarding the latter dimension, recent developments in intra-ASEANdiplomacy have revealed the emergence of a Singapore–Thailandbilateral axis or alliance on matters of Southeast Asian economicregionalism. These two dimensions of economic bilateralism arestudied in relation to their implications for Southeast Asianor ASEAN-led regionalism. In this context, region-convergentbilateralism can make positive contributions to the developmentof regionalism, whereas region-divergent bilateralism essentiallyundermines regional community-building endeavours. This formsthe conceptual framework for studying the impact of Singaporeand Thailand's active bilateral economic diplomacy upon ASEAN'sown regional economic projects, such as the ASEAN Free TradeArea (AFTA), and also on ASEAN as an organization for fosteringSoutheast Asian economic regionalism generally. It is contendedthat based on both the deeper strategic intentions behind Singapore'sand Thailand's foreign economic policies and wider internationalpolitical economy considerations the region-divergent outcomesare more likely to arise within Southeast Asia from the economicbilateralism they are currently championing.     

论GMS地区主义的发展与中国利益的实现

GMS地区虽然是一个历史文化多样、政治体制和经济发展水平差别很大的地区,但GMS地区主义的多样性在GMS迅速发展的进程中,为成员国共同创造了和平稳定的地区环境。GMS地区主义在其发展过程中遭遇了各种阻碍,中国要真正实现和平崛起,就需要克服GMS地区主义发展中的各种阻碍,抓住发展机遇,维护和实现其政治价值观念、国家安全利益及国际经济安全。     

明治时期日本政治精英的中国观——以原敬为中心

日本近代政党政治家原敬(1856—1921)的中国观具有典型的时代烙印,即"适时适机"地从中国牟取利权。同时,原敬的中国观亦有其独特的思维模式和见解:"对清政略即对欧政略,对欧政略即护国政略。"另一方面,原敬在这一时期已经将目光更多地转向日本资本主义在中国的经济利益。从重视经济利益和国际竞争的角度出发,原敬认为日本在外交上不能采取强硬的举措,要注意和中国官民"友好相处",在中国维持一种对日本而言比较和平的氛围。     

The perceptions of the European Union among tertiary education students in Singapore

Students from the three main universities in Singapore were surveyed in the third quarter 2008 to assess their perceptions and knowledge of Europe/the European Union. This survey complements and expands upon that done in 2006 by the National Centre for Research on Europe (NCRE) which was supported by Asia–Europe Foundation. The student survey showed that this important age and education cohort had a middling to low assessment of the EU in its importance for Singapore, an assessment which was much lower than the objective view of the relation (in terms of trade and the EU as a dialogue partner) would warrant. The sources of this perception were examined, and it was found that there was no immediate correlation between level of assessment of Europe/the EU and: gender, nationality, year of study, subject of study or frequency of accessing the local media for international news. Therefore, such perceptions can be assumed to derive from sporadic, ad hoc intangible contacts and fleeting impressions rather than through formal education, the media and specific, focussed and localised EU-related outreach programmes.

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