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EU enlargement and the rise of Asian FTAs: Implications for Asia-Europe relations
Authors:John Lawrence Avila
Affiliation:(1) Institute of Political Economy, University of Asia and the Pacific, Manila, Philippines, PH
Abstract:  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.
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