Full circle? Ideas and ordeals of creating a Free Trade Area of the Asia-Pacific

Abstract

In 2004 and 2006, proposals were made at APEC summits to establish a Free Trade Area of the Asia-Pacific (FTAAP). This was an essentially a reworking of an idea first raised in the mid-1960s to create a Pacific Free Trade Area, or PAFTA. Although the PAFTA initiative never advanced, it helped lay the first organizational foundations for regional economic community building in the Asia-Pacific. The recent FTAAP proposal thus brings us full circle to the antecedent origins of APEC itself. If realized, an FTAAP would also create a free trade zone that would encircle the Pacific Rim economy and thereby subsume the region's now large number of bilateral and sub-regional free trade agreements (FTAs) into one unified agreement. Yet there are many inherent problems with establishing an FTAAP. These broadly relate to deconstructing the preferentialism of existing bilateral and sub-regional FTAs, achieving a consensus on the technical policy content and ideational principles on which an FTAAP would be based, and addressing various geopolitical issues such as reconciling the formation of a pan-regional Asia-Pacific FTA with an already fragile multilateral trading system. Growing interest in a ‘rival’ East Asia Free Trade Area project presents another geopolitical challenge. In considering these and other questions, it is concluded that many obstacles will remain in the path to realizing an FTAAP, and that this may not actually be a desirable objective to pursue for some time yet.     

Between bilateralism and regionalism in East Asia: the ASEAN–Japan Comprehensive Economic Partnership

Abstract

This paper examines economic regionalism in East Asia with a focus on the key issues in harmonizing bilateral free trade agreements. The ASEAN+1 free trade agreements with China, South Korea and Japan represent the first attempts to structure cooperation in trade across Southeast and Northeast Asia. It is therefore important to examine the coverage of these agreements and the extent to which they actually liberalize trade. This study focuses on major choices made in the negotiation of the ASEAN–Japan Comprehensive Economic Partnership Agreement and the ways in which these choices help or hinder the consolidation of economic regionalism. The results achieved in the ASEAN–Japan Comprehensive Economic Partnership Agreement are limited at best. The agreement does establish some new areas of cooperation among the signatories but fails to address important issues for regionalism such as labor mobility. It also makes limited progress in harmonizing and liberalizing rules of origin. The ASEAN–Japan Comprehensive Economic Partnership Agreement applies product-specific rules to fewer categories of goods than most of Japan's bilateral agreements with ASEAN members but those rules in place are still very restrictive. Moreover, the parties to the ASEAN–Japan Comprehensive Economic Partnership Agreement have the option of applying the rules of their bilateral agreement if it provides more favorable treatment. Thus, there is no guarantee the more liberal terms of the ASEAN–Japan Comprehensive Economic Partnership Agreement will be applied.     

Unearthing the challenges and prospects of regional integration in Southern Africa

Regional integration is viewed as a significant initiative with regard to stimulating economic growth amongst member states and enhancing intraregional trade, security initiatives, and bilateral and multilateral agreements. This paper examines the challenges and prospects of African regional integration with the focus on Southern Africa. The paper posits that regional integration is an imperative factor for Southern African states as it plays a pivotal role in stimulating their economic growth prospects. Nonetheless, economic growth prospects realizing the benefits of regional integration seem to be still a work in progress. The paper concludes by outlining that regional integration is a diverse component that entails the private sector and economically advanced regional states such as South Africa to be at the fore in orchestrating developmental blueprints and that there is a need for the necessary support from regional heads of states as so to realize the benefits of regional integration and the benefits it brings with it.     

The ASEAN Regional Forum in United States East Asian strategy

This paper analyses the development of the US approach to the ASEAN Regional Forum (ARF), from 1991 onwards. It examines theories of why a superpower would participate in a multilateral security institution, and investigates the motivations for the attitudes and extent of participation of the George H. Bush, Clinton and George W. Bush administrations towards the ARF. It argues that, in the post-Cold War period and in the face of a rising China, US East Asia strategy has been geared towards retaining the American preponderance of power. Thus, the US has pursued a strategy of containment and deterrence centred upon the regional bilateral alliance structure. Multilateral institutions have been treated as a supplementary means of supporting the secondary strategy of engaging with China. However, the ARF is not viewed as one of the important institutions through which to fulfil this supplementary aim. Because it cannot deal with the key regional security issues, the ARF is seen as a low-stakes arena by Washington. But the paper concludes that US participation in the ARF may nevertheless be crucial in boosting the legitimacy of American security interests in the region, thus helping to safeguard US preponderance.     

The WTO's Appellate Body: Legal Formalism as a Legitimation of Global Governance

The creation of the Appellate Body (AB) of the World Trade Organization (WTO) entails an unprecedented delegation of power to an international adjudicator, because the WTO requires states to ensure compliance of their domestic regulations with the sweeping obligations in WTO agreements. This is legitimized in some academic analyses and much political rhetoric in terms of the rule of law, suggesting that the role of the adjudicator is merely to apply the precise words of the texts agreed by states, according to their natural meaning. The AB has supported this by adopting a formalist approach that combines an objectivist view of meaning with a legalistic style of judgment. However, both the general structure and many of the specific provisions of the WTO agreements are indeterminate and raise issues of interpretation that were known to be highly contestable. Although the delegation of adjudication in its early phase was considered to be of a narrow technical function, in the current phase interpretation is more clearly seen to involve a flexible application of principles to cases in light of the policies involved. The AB's role would be better legitimized by adopting a more open epistemology and reasoning that could be accessible to a wider constituency. However, it is constrained by fear of usurping the political legitimacy of the governments to which it is primarily accountable, and governments, in turn, are motivated by a reluctance to admit to their domestic constituencies how much power has been transferred to supranational instances such as the AB.     

Death of the East Asian Goose and the Rise of China’s Geoindustrial Policy

China’s Belt and Road Initiative and its associated domestic industrial policies represent a parallel trade and investment strategy that challenges the Akamatsu principle of the Flying Geese pattern of industrial development in East Asia. This paper is positioned against the dominant orthodox theory of national systems of industrial development in East Asia. It argues that China’s trade and industry policy in the 2012–2017 period has demonstrated that government will expand its industrial policy market intervention rather than retract, moving away from the regional economic integration order by moving industrial production and import trade away from the Asia-Pacific along a Westward axis to the Indian Ocean and Eurasia. Implications are that the emergence of China’s geoindustrial policy will subvert multilateral trade norms as China begins to institutionalise its external trade and industrial policies.     

东亚安全:现实主义和自由主义的视角评析

东亚地区日益成为21世纪国际政治的中心舞台之一,有关该地区的安全问题也逐渐被人们提上了议事日程。时至今日,该地区仍尚未形成一种稳定的国际关系格局。不同学者对于东亚地区未来安全的前景也存在多种解读,本文从国际关系理论的两大流派———现实主义和自由主义的不同视角,综合分析对东亚安全的不同解释,并提出东亚安全面临的现实挑战及可能选择。     

The energy factor in China’s foreign policy

This paper argues that China’s foreign policy behavior has been influenced by growing energy dependence. As a major importer, China can pursue energy security through strategies that result in conflict; alternatively, energy vulnerability might lead it toward cooperation with rival oil consuming nations through participation in multilateral organizations and other forums. After outlining the argument for the strategic nature of energy, China’s increasing energy dependence is assessed, as are Beijing’s efforts to shift China’s energy balance. China’s energy diplomacy with the Middle East, Russia and Central Asia, the Asia-Pacific, Africa and Latin America are examined, and Beijing’s efforts toward greater energy security through multilateral organizations are discussed. The evidence supports the liberal hypothesis that economic interdependence promotes international cooperation. Energy demands have accelerated China’s rise to global prominence, and appear to moderate conflictual aspects of Chinese foreign policy. He is co-editor of and contributor toRussia’s Far East: A Region at Risk (University of Washington Press, 2002), and author ofThe History of Russia (Greenwood, 1999),Foreign Policy and East Asia (Cambridge University Press, 1993), andEnvironmental Policy in the USSR (University of Massachusetts Press, 1987). His articles have appeared inProblems of Post-Communism, Asian Survey, Pacific Affairs, Comparative Politics, Political Science Quarterly, British Journal of Political Science, and many other journals and edited books. The author would like to thank Igor Danchenko for his able research assistance on this project.     

Security architecture in Asia: the interplay of regional and global levels

I argue that there is a distinct and longstanding regional structure in East Asia that is of at least equal importance to the global level in shaping the region's security dynamics. Without considering this regional level neither ‘unipolar’ nor ‘multipolar’ designations can explain East Asian international security. To make this case, I deploy regional security complex theory both to characterize and explain developments in East Asia since the end of the Cold War. The shift from bipolarity to unipolarity is well understood in thinking about how the ending of the Cold War impacted on East Asia. Less written about in Western security literature are the parallel developments at the regional level. Prominent among these are the relative empowerment of China in relation to its neighbours, and the effect of this, as well as of the growth of regional institutions, and the attachment of security significance to East Asian economic developments, in merging the security dynamics of Northeast and Southeast Asia. How China relates to its East Asian region, and how the US and China relate to each other, are deeply intertwined issues which centrally affect not only the future of East Asian, but also global, security. With the notable exception of some crisis between China and Taiwan, this whole pattern looks mainly dependent on internal developments within China and the US. Also significant is whether the basic dynamic of interstate relations in East Asia is more defined by the Westphalian principle of balancing, or by the bandwagoning imperative more characteristic of suzerain-vassal relationships. The main probability is for more of the same, with East Asian security staying within a fairly narrow band between mild conflict formation and a rather odd and weak sort of security regime in which an outside power, the US, plays the key role.     

Still better together? Purpose and power in intergovernmental councils in the UK

ABSTRACT

Intergovernmental relations in the United Kingdom were intended to be predominantly informal, but a machinery of intergovernmental councils (IGCs) developed alongside informal relations. This article examines the development, purpose and dynamics of the UK’s IGCs, with a particular focus on the multilateral Joint Ministerial Committee and the bilateral Joint Exchequer Committees. These IGCs remain weakly institutionalized and multilateral forums, in particular, are regarded by the devolved governments as providing limited opportunities for exercising influence. By contrast, bilateral IGCs have enabled devolved governments to utilize a range of non-constitutional resources to exert influence, irrespective of their relative constitutional weakness. The Brexit referendum generated an intensification of multilateral IGCs while exposing their weaknesses as forums for the exercise of shared rule. The purpose and dynamics within IGCs are shaped by the asymmetrical distribution of power, continued constitutional hierarchy, party competition and competing nationalist projects.     

Competition and cooperative practices in Sino-Japanese energy and environmental relations: towards an energy security ‘risk community’?

Abstract

This article reexamines the conventional wisdom that characterizes Sino-Japanese energy relations as predominantly competitive, but views Sino-Japanese environmental relations as essentially cooperative. Using sociological theories of risk, it is argued that Sino-Japanese cooperation is more likely in both the energy and environmental areas when common risks are perceived and relative gains are minimized. Despite their many conflicting strategic, political, and economic interests, as energy importers who are vulnerable to supply interruptions in the Middle East and competitors for global energy supplies, China and Japan share common risks to their energy security. Consequently, there actually may be increasing opportunities for China and Japan to address their common concerns through bilateral and multilateral cooperative practices, such as common positions on pricing or energy conservation initiatives. Although one would expect China and Japan to highlight their mutual interests in tackling environmental problems such as air pollution, in fact relative gains often impede cooperation. Japan increasingly views China as an economic competitor and is reducing environmental aid, while China continues to set a priority on economic growth, which sets limits on the use of costlier Japanese green technologies. By examining a selection of scholarly articles, reports and newspaper articles by Chinese and Japanese analysts, as well as material from interviews in Beijing and Tokyo in May–June 2007, the paper shows how environmental and energy issues in Sino-Japanese relations may be framed as threats, requiring counter-measures, or common risks, which can be addressed through cooperative practices. Lastly, the paper discusses the possibility of the development of an energy security ‘risk community’ as cooperative practices develop between China and Japan. Nonetheless, conflicting political interests, strategies, and self-images, accentuating relative gains, may provide obstacles to their cooperation in both energy security and environmental protection.     

International marriage in East and Southeast Asia: trends and research emphases

This paper gives an overview on international marriage in East and Southeast Asia. It first reviews the available data on the incidence and trends of transnational marriage. It then discusses the factors generally cited as contributing to the rising incidence of international marriage in the region: the increased mobility of population, particularly with respect to tourism, business travel, short-term employment and international study; and marriage market issues in a number of countries of the region, leading to deliberate and targeted search for spouses in other countries. It also reviews the types of international marriages in the region, including the national, ethnic and social characteristics of spouses in such marriages. Finally, it discusses the issues and problems covered and not (or inadequately) covered in the literature of international marriage in East and Southeast Asia in relation to the questions of rights and of the boundaries and sovereignty of the state.     

The PLA and regionalism in Guangdong

The traditional view that bi- and multilateral security arrangements are mutually exclusive is misleading. Since the Korean War the multilateral UN Armistice regime and strong bilateral alliances have kept peace and stability on the Korean Peninsula. In the 1990s, multilateral security institutions such as KEDO have become more important in supplementing bilateral security treaties. Reflecting upon a future Korean Unification, the article argues that multilateral security institutions serve important complementing functions such as building additional trust, stabilizing commitment and enhancing resources that bilateral institutions often lack. The article concludes by suggesting that current bilateral relations (US-DPRK, US-ROK, ROK-J, US-PRC) and multilateral arrangements (KEDO) must be reinforced through enhanced multilateral co-operation to allow a peaceful Korean unification accepted by all parties concerned.     

North Korea and the East Asian Security order: competing views on what South Korea ought to do

This article investigates South Korean views on how to deal with the two major security issues regarding North Korea: its nuclear threat and regime instability. In this Special Section, the article analyzes the ongoing debate in South Korea over the government's policy toward North Korea in regard to these two issues. It argues that uncertainties about these two major issues are shaping the regional order in East Asia. In particular, the different levels of cooperation between South Korea and the United States may affect the regional security order in East Asia. In analyzing policy options available to South Korea, the riskiest option would be to employ early preemptive attacks and accelerate the collapse of North Korea given the security dilemma-driven action?reaction in East Asia. Given that the role of China has become the most crucial factor in dealing with North Korea, the most promising strategy would be to reinforce guarantees of extended nuclear deterrence and prompt a soft-landing unification.     

Intergovernmental councils in Spain: Challenges and opportunities in a changing political context

ABSTRACT

This paper reviews the most important characteristics and of the Spanish Intergovernmental Councils (IGCs) and theorizes about the effect of the increasing fragmentation of the party system on the nature and dynamics of multilateral bargaining in IGCs. The essential argument is that party system fragmentation may have an impact on IGCs through its effect on the formation of minority and coalition governments. These types of governments may put an end to the two-bloc confrontation, bring to the system higher levels of party congruence between levels of government and lower the costs of compromise, three factors that may help to grease the bargaining process and, in turn, enhance the achievement of intergovernmental cooperation agreements. The positive effect will be conditional on several factors, namely the ideological coherence of inter-party alliances, the predominant type of government in the system (coalition or single-party minority) and the duration of governments.     

Naming the Pacific

Abstract

A conventional explanation for the establishment of the ASEAN Regional Forum (ARF) holds that it was an attempt on the part of the Association of Southeast Asian Nations (ASEAN) to maintain US military engagement in Asia while tactically promoting cooperative relations with China in the post-Cold War era. This line of argument is associated with realism and neoliberalism. This article maintains that such an explanation is unsatisfactory, and seeks to offer a sounder explanation by employing a constructivist perspective. It argues that the interests and policies of the ASEAN countries which had led them to initiate the ARF were defined by what can be regarded as a norm of security cooperation in Asia. This norm contains two sets of ideational elements. The first is common security thinking fostered in the Conference for Security and Cooperation in Europe (CSCE). Such thinking emphasizes efforts to achieve the security of the whole region through multilateral security cooperation, on the basis of the view that regional security is indivisible. The second element is a set of diplomatic norms associated with the ASEAN Way of diplomacy, which underline the Southeast Asian countries' commitment to the habit of dialogue and consultation. Today, the nature of the ARF may be disputed. Critics of the ARF assert that it is a mere ‘talking shop’ in which no significant measure to achieve security has been carried out. Yet only by understanding thoroughly the establishment process of the forum can a fair assessment be made of its significance. The research in this article concludes that the ARF should be seen as an arena for the development and practice of norms – in other words, a ‘norm brewery’.     

Asia's competing multilateral initiatives: quality versus quantity

East Asia has many distinctive features that set it apart from other comparable regions, not least attitudes to regional development and cooperation. Despite a growing number of regional initiatives in East Asia, however, they are generally distinguished by their ineffectiveness. It is entirely possible that ‘institutional balancing’, like its more well-known power balancing counterpart, is designed not to facilitate but to prevent something from happening. The sort of ‘multilateralism 1.0’ developed by the Association of Southeast Asian Nations (ASEAN) has a lot to answer for in this regard: having established its own pattern of institutional effectiveness ASEAN's ‘leadership’ has caused it to be replicated under the new wave of ‘multilateralism 2.0’. Consequently, I suggest that not only is China very comfortable with the idea of a rather feeble and ineffective institutional architecture, but the USA is also unlikely to do anything to change this picture, especially under a Trump administration that is highly skeptical about the efficacy of multilateral institutions at the best of times.     

Cooperation between counterparts in parliament from an agenda-setting perspective: legislative coalitions as a trade of criticism and policy

Governments may bargain with parties in parliament to silence them. This insight follows from the agenda-setting literature, which emphasises the power of the opposition to criticise the government. The literature on legislatures points to the fear of loss of future voter support as a motivation for majority building. However, it does not name factors that can cause such uncertainty. One such factor is opposition criticism. This article argues that majority building does not only involve an exchange of policy support; governments use legislative coalitions to dampen unwanted opposition blame. By offering the opposition noteworthy policy influence in legislative coalitions, governments avoid opposition criticism in return, in addition to having initiatives passed. In order to test this argument, a large dataset is compiled on opposition criticism in parliament and the media before and after the 325 bargained legislative agreements settled in Denmark from 1973 to 2003. It is found that such agreements are more likely amidst opposition criticism and that they dampen opposition criticism.     

Chinese—Indian relations and the process of building confidence: Implications for the Asia‐Pacific

China's traditional approach to security questions appears to be antithetical to the cooperative security approach that has been adopted by ASEAN and by embryonic multilateral organizations such as the ASEAN Regional Forum. Yet, in the course of normalizing relations with India, China has shown itself willing to explore the kind of confidence‐ and security‐building measures associated with this approach. Although it was a change in interests that prompted China to explore the worth of such measures, nevertheless cooperative security ideas have proved helpful in defusing tensions between New Delhi and Beijing. Possibly as a result of its experience with India, there are indications that China has become more receptive to the use of a cooperative security framework elsewhere in the Asia‐Pacific, most notably in dealing with the ASEAN Regional Forum. Its involvement in this process has increased the diplomatic and economic costs that would be incurred should it decide to use force to make good its irredentist claims in the South China Sea.     

Ideas,identity, and institution‐building: From the ‘ASEAN way’ to the ‘Asia‐Pacific way'?

Abstract

This article examines the extent to which the development of multilateral institutions in the Asia‐Pacific region may be viewed as an exercise in identity‐building. It argues that institution‐building in this region is more of a ‘process‐orientated’ phenomenon, rather than simply being an outcome of structural changes in the international system (such as the decline of American hegemony). The process combines universal principles of multilateralism with some of the relatively distinct modes of socialization prevailing in the region. Crucial to the process have been the adaptation of four ideas: ‘cooperative security’, ‘open regionalism’, ‘soft regionalism’, and ‘flexible consensus’. The construction of a regional identity, which may be termed the ‘Asia‐Pacific Way’ has also been facilitated by the avoidance of institutional grand designs and the adoption of a consensual and cautious approach extrapolated from the ‘ASEAN Way’. The final section of the article examines the limitations and dangers of the Asia‐Pacific Way. It concludes with the assertion that while the Asia‐Pacific Way is an over‐generalised, instrumental, and pragmatic approach to regional cooperation, and there remain significant barriers to the development of a collective regional identity that is constitutive of the interests of the actors, it has helped introduce the concept and practice of multilateralism into a previously sceptical region and might have ‘bought’ enough time and space for regional actors to adapt to the demands of multilateralism.