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18
Part1.MacroeconomicTrendsintheGlobalEconomy
Fig.2.RTAsinforce,participationbyregion(2020)
Source:(WTO,2020).
AsseeninFigures1and2,theRTA/FTAboomsettleddowninrecentyears,but
isstillanimportanteconomicengineintheAsia-Pacifcregion.Therehavebeen
someattemptstoexplorenewpossibilitiesforestablishingacomprehensive
mega-FTAinthisregion.
ThischaptershowstheoverviewofrecentRTA/FTAtrendsandnewmovements
tomega-regionalintegrationinAsia-Pacifc.Next,itexaminestheglobalvalue
chainexpansionanditsdeepeningaccompaniedwiththeRTA/FTAboom,and
considershowtheglobalvaluechain(GVC)isbenefcialforparticipantcountries.
1.1.Mega-regionalintegrationframeworksinAsiaPacific
TheAsia-PacifcregionhadtwomainframeworksofregionalFTA/RTAnet-
works.OnewastheASEAN/AFTA-leadframework,whiletheotherwasthe
US-ledframeworkTPP(Trans-PacifcPartnershipAgreement).TheASEAN
FreeTradeArea(AFTA)wassignedin1992forestablishingintra-regionalfree
tradeareaswithintheASEAN10membercountries.Theobjectiveofthe
agreementisHtoachievethefreeflowofgoodsinASEANasoneoftheprincipal
meanstoestablishasinglemarket”(ASEANSecretariat,2010,p.2),andit
requiredeliminatingalltariffsforintra-regionaltradeby2010fortheformersix
membercountries,or2015forthefourlatterparticipantsCLMVcountries3.The
AFTAnegotiationbroughtplentyofopportunitiesforASEANmembercountries
toobtainadequateexperiencefortradenegotiation,andtheyweregradually
playingtheroleasaleaderinAsiantradenegotiations.HenceASEANestablished
thepositionofaHregionalFTAhub”inthe2000s.
3Thistariff-eliminationrequirementwassuccessfullyachievedinsixformermembercountries,
Brunei,Indonesia,Malaysia,Philippines,SingaporeandThailand.However,theschedulewas
delayedto2018forfourlatterparticipants,Cambodia,LaoRepublic,MyanmarandVietnam.