Asia-Pacific regionalism and preferential trade agreements: the Australian case

Since the late 1990s, many developed states and customs territorieshave been seeking out preferential trade deals. This articleexamines this trend, which has been especially evident in theAsia-Pacific, and focuses specifically on Australia as a leadingexponent of preferentialism in the region. The article has twodistinct aims. First, to shed light on the thinking behind Australia'sforeign economic policy and, specifically, to examine the motivationsfor moving away from multilateral and non-discriminatory meansof advancing its free trade agenda in the region. Second, itaims to examine the developing dynamics of regional economicco-operation in the Asia-Pacific given the stasis of existinginstitutional efforts. This paper begins with a brief examinationof the regional context and Australia's approach to trade policy.It then considers the nature of Australia's preferential bilateralismand its aims and motivations. The article shows that Australianpolicy-makers believe that preferential agreements can providetrade creation through market access, as well as broader benefitswhich derive from market expansion. Australia is motivated topursue preferentialism by concern about existing institutions,by the technical appeal of bilateral agreements, and by thebroader trend toward preferentialism in the international system,as well as shifts in its own domestic politics. The paper concludeswith a short examination of the character of regionalism inthe Asia-Pacific in the light of burgeoning regional bilateralism.