APEC and emerging regionalism in North East Asia

This paper explores what kind of regional trade agreement is most likely to emerge in Northeast Asia by tracing the trajectories of APEC. Taking into account the underlying potential of realizing cumulative causation effects between market expansion and technology cooperation among China, Japan and Korea, it reaches the tentative conclusion that a Northeast Asia Regional Trade Agreement (RTA) might take shape in the near future despite the prevalence of polarized versions in the cultural heritage and the international relations between these three countries.

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Future targets for Asian regional integration

The central framework of Asian integration is ASEAN+3 and, since its first Summit meeting in 1997, it has advanced regional integration in East Asia. Based on the direct experience of the author, this article presents a critical assessment of the progress made over the past ten years and argues that the ‘Singapore Declaration’ of 2007 is not ambitious enough for the future. An East Asian customs union (EACU) and common regional market should be the next targets for trade integration. In terms of monetary integration, Asia should aim for de-dollarisation and to achieve this it is crucially important to create a regional Asian monetary system (AMS).

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Transregional security cooperation after September 11, 2001

The aim of this article is to answer the question what kind of global security architecture emerged after September 11 and what functions Europe, East Asia and the United States assumed in this triadic structure. The empirical findings reveal that the transpacific security cooperation is the strengthening link in this global security structure, the transatlantic security cooperation the weakening one and the Asia–Europe Security Cooperation is to be seen as the emerging link. In order to explain these different institutional manifestations of transregional cooperation, different theories of International Relations are applied to the three cases. It comes as no surprise that neoinstitutionalism and constructivism offer the best insights into the formation and development of international institutions.

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Operational oceanography in Indonesia

In 2005 Indonesian and European institutes joined to start the first step for the implementation of an Ocean Operational System in the Indonesian archipelago. The system will support the decision making process for the sustainable use of marine resources, providing useful information and added value products as well as a service for an improved management of the sea with high business impact to targeted groups as public authorities and commercial operators (coastal managers, fishermen, shipping companies). In this paper the System is shortly described with its potential benefits and economic and social impacts.

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Politics of differentiation: enhanced cooperation in the EU and the pathfinder in APEC

A large majority of studies on differentiated integration focus their attention on closer or enhanced cooperation in the EU, neglecting similar developments in other regions, for example, the pathfinder in APEC. In comparing enhanced cooperation in the EU with the pathfinder in APEC, this article aims to discover conditions under which ideas of differentiation can emerge and then be transformed into common policies endorsed by all member states in regional integration. It shall also make clear the reasons why the pathfinder has been applied in APEC while enhanced cooperation has never been used in the EU. It will begin with a detailed categorization of sub-integrations. Then, the author comparatively analyzes the developments of enhanced cooperation in the EU and the pathfinder in APEC, and as a conclusion, evaluates the contribution of this analysis to better understanding of differentiation.

Myanmar in EU–ASEAN relations

The aim of this paper is to discuss and examine the regional projects of institutionalism in Europe and Southeast Asia. The main focus is on Myanmar, a regional ‘outcast’ whose membership in the Association of Southeast Asian Nations in 1997 has helped it to gain international legitimacy and be able to stand relatively strong against Western sanctions. The military regime is riding on the wave of ASEAN norms and a communitarian culture. The question remains as to how long the country can continue to do so. A rather skeptical view is emphasized on the ‘ASEAN Way’ in dealing with the military regime, and for the overall political dialogue with the European Union. Many ambitious objectives such as sovereign equality in institutionalism are widely questioned, and the European Union has gone against many of its treaties in order to keep its relationship with Southeast Asia. The paper puts prominence on the political and security relationship rather than on the economic aspect, which has been far more successful. The role of values and the human rights debate will be highlighted and described as the greatest obstacle for any future political cooperation.

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The institutional failures of International Monetary Fund conditionality

The purpose of this paper is to propose an analytical framework integrating the diverse explanations of the failure of IMF conditionality. The IMF is a key player in the running of markets in a global economy. The institutional failures of IMF conditionality are appreciated at two complementary levels: (a) its intrinsic bureaucratic bias, and (b) the inability of the IMF to manage the institutional change required for the development of market processes. A new approach of conditionality suggests the separation of the role of the IMF as financial backer from its role as adviser to countries confronted by the globalization process.

Japan’s reluctance in East Asian economic integration

Until 1997, the only preferential trading arrangement, which existed in East Asia, was the ASEAN Free Trade Area (AFTA). Former Prime Minister of Malaysia Tun Dr. Mahathir had realized earlier the deficiency of AFTA in terms of stimulating economic development. In 1990, he proposed to ASEAN members to form the East Asian Economic Group. Due to regional political factors, his proposal was turned down and replaced with the East Asian Economic Caucus in 1992. In 1997, again, he proposed that ASEAN needed to establish large economic cooperation with other countries in East Asia. His suggestion had been warmly responded by the members of East Asian countries. At the ASEAN summit in Manila 1999, ASEAN Plus 3 (APT) was created. ASEAN, China, Japan, and South Korea had agreed and reached a joint statement to form a free-trade area by the year 2020. The establishment of APT was timely since most countries in the world are moving toward establishing wider or larger economic blocs due to the failure of multilateralism of the WTO in creating a new trade agreement. However, there is a shortcoming in the process of building APT, in the minimal and uncertain role of Japan in integrating economies in East Asia. This behavior has disappointed members of the group. The intention of this paper is to discuss the behavior of Japan in the economic integration process in East Asia.

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Potential Benefits from a Deep EU–India Free Trade Agreement

Both parties to an eventual EU India FTA have agreed that it should not merely address tariff barriers but should also go further into what is known as deep integration, originally developed in the 1990s by R.Z. Lawrence. This relates to the removal of all obstacles to cross border business whether actual trade barriers or domestic regulations. We distinguish deep institutional integration from the deep integration of markets. We ask the question how one may support the other. There are potential market failures that can be addressed by trans-national rules on standards and technical regulations and services, but we conclude that the biggest impact of a deep RTA would be on the domestic economy of India if it provides an opportunity for reform. It should be noted that the paper draws on a study undertaken by the authors for DG Trade, but it represents only the views of the authors.

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The political weakness of the EU in East Asia: a constructivist approach

This paper provides a constructivist explanation of the political weakness of the EU in East Asia. By examining the corporate identity of the EU as well as its social identities towards ASEM, China and Japan, I argue that the identities which the EU has constructed towards the outside world and in relation to the region, based on self recognitions of its superpower status and the defence of certain political values, is disliked by both China and Japan for different reasons. Without the support of the two regional superpowers, the EU is not capable of getting involved in the resolution of East Asian hard political affairs.

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The new impetus towards economic integration between Europe and Asia

With the end of the Cold War and the collapse of the Soviet Union the large economic space of the Eurasian super-continent has also become part of the world-wide globalization process. How this process of integration of Eurasia is proceeding in key areas of cross-continental linkages is of great importance for the future of the region and for the future of the World as a whole. One of the key questions will be whether the regional and global institutions can provide adequate support for this integration process.This paper was presented as a keynote speech at The Fourteenth OSCE Economic Forum in Vienna on 23 January 2006. It draws on a longer paper by (Linn and Tiomkin in press).The authors are, respectively, Executive Director of the Wolfensohn Initiative at The Brookings Institution, Washington, DC, USA, and MBA and MPA/ID candidate at Harvard University. Johannes Linn served as Vice President for Europe and Central Asia at the World Bank from 1996 to 2003.

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The European Union, the Doha Round, and Asia

Agriculture has been the most contentious issue in the Doha Round of multilateral trade negotiations, and the European Union (EU) intervenes substantially in agricultural markets. This paper reviews these interventions in light of the EU’s participation in the Doha Round of multilateral trade negotiations with specific attention to Asia. It concludes that the offers made by the EU were designed precisely to avoid any real liberalization in its agricultural markets and have undermined the development aspirations of the round.

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The awakening of the red dragon. China fills the power vacuum in the Far East

The paper analyses the basic parameters of the power of China, according to Geopolitical Theory. Even though the authors adopt a critical approach on some aspects of the geopolitical theory, the geopolitical analysis elucidates the interests of China and the United States and focuses on the way of which the American decision-making system perceives China. The article interprets the geopolitical role of China, starting from the origins of geopolitical theory to the contemporary international relations theory. In addition, it focuses on the current geo-strategic context of the Far East. It analyses Chinas' strategic thinking, China's nuclear doctrine and its military power as compared to the neighbouring countries and as a major player in the world economy.

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Regional energy cooperation in North East Asia: Lessons from the European Experience

The three major oil importing countries of Northeast Asia—China, Japan and South Korea—are concerned about future security of energy supplies to fuel their dynamic economic activity. Currently all three countries are highly dependent on imports of oil from the Middle East, a region with inherent political instability. Russia’s rich reserves of oil and gas in Eastern Siberia and the Russian Far East offer an obvious alternative. Given the geographical proximity of Russia and its desire to increase its energy exports to Northeast Asia, there is huge potential for cooperation. So far there has been no real intra-regional cooperation and no common external policy towards Russia. Despite obvious differences between Europe and North East Asia, the European model of energy cooperation, developed over the past 50 years, offers some useful lessons.

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The new generation of international investment agreements: recent developments in the Asia–Pacific region

Over the past decade, a number of countries in the Asia Pacific region have concluded a new generation of FTAs that liberalise trade in goods and services while also containing investment protection provisions. This paper provides an overview of the recent trends giving special attention to the impact of Investor State Dispute Settlement (ISDS) cases which has influenced the evolution of investment rule-making over the last decade. The paper asserts that investment disputes have influenced the refinement of the provisions of the new generation of investment agreements as well as the inclusion of a series of procedural and substantive innovations in these agreements. *Ambassador of Costa Rica to the European Union, Belgium and Luxembourg. This paper was written on the basis of several research projects in which the author participated, before assuming the current position with the Costa Rican government, as consultant with UNCTAD. However, the opinions and views expressed in this paper do not represent the position of UNCTAD, nor the Government of Costa Rica and fully fall under responsibility of the author.

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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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A systemic perspective on regional integration after the end of the Cold War

This paper explains the systemic pressures on states in Europe and Southeast Asia to broaden their alliances after the end of the Cold War, and how expansion impacts on regional integration. Inter-state cooperation is still very much the basis of regional integration. In Europe, states will scuttle attempts at deepening integration if this threatens their security, as the recent political impasse in the European Union reveals. In Southeast Asia, by contrast, the threat to the security of states arises from their failure to deepen economic integration in order to survive an anarchic world financial system. This failure is due to entrenched internal constraints that prevents closer inter-state cooperation and the pooling of sovereignty. Thus, while attempts to move into the area of political union will be resisted by states eager to maintain their sovereignty, the inability to advance into the area of monetary union can only lead to demise of states.

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Chinese medicine in an occidental perspective

This article treats the relationship between the Westerners and Chinese medicine. Firstly, the purpose is to comprehend how young Westerners have come to practice Chinese medicine in their lives and, secondly, to learn the eventual consequences of that practice on their lives and attitudes towards this medicine.

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Going nuclear in Northeast Asia: a global view

Northeast Asia (NEA) is on the international security agenda for a lot of reasons. The historical legacy, territorial disputes, the region’s growing importance as an economic actor and a trading partner accompanied by increasing defence expenditures and acquisition of high tech weaponry and the political isolation of a “rogue” North Korea have all contributed to fear that NEA could open a Pandora’s box of a nuclear arms race. In this paper, I analyse recent strategic trends in Asia and try to evaluate the main motivations and objectives of a country like North Korea behind Weapons of Mass Destruction proliferation and the impact of this “nuclear diplomacy” on the evolution of defence policy of major military power like Japan.

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Visas and work permits: Possible global negotiating initiatives

We discuss global options for initiatives intended to ameliorate adverse impacts of visa and work permit systems used by national governments around the world. We first describe and document some of their effects, noting the relative lack of other research work on these issues. We then discuss proposals for a new and supplemental global visa structure which have been made as part of the Mode 4 GATS negotiations in the WTO, suggesting that the GATS/WTO may be an imperfect institutional location for negotiating on these matters. We then evaluate other approaches, including what realistically could be possible if a new body specifically created for global negotiation in the area were to be used.