ASEAN-Pacific Trade Relations

Abstract

ASEAN countries' trade linkages with other Asia-Pacific countries are extensive. They not only account for the bulk of ASEAN countries' exports and imports but also contribute most significantly to their expansion. Trade flows between ASEAN and the Pacific also have been affected by policy distortions. For instance, protectionist measures both within and without have tended to impede flows and resource reallocations. This study attempts to systematically analyse ASEAN-Pacific trade flows, using several standard methodologies. Additionally, it examines various policy issues of relevance to ASEAN-Pacific trade relations. The importance of trade to the economies of the Asia Pacific can hardly be exaggerated for the Pacific Basin houses many of the world's most dynamic and active trading nations. For the Association of South East Asian Nations (ASEAN), in particular, trade is the life-blood of their outward-looking economies. The value of intra-Pacific trade, in terms of both exports and imports, has increased more than ten times during 1970-87. The contributions of the North East Asian Newly Industrializing Economies (NLEs) ? Korea, Taiwan and Hong Kong ? and ASEAN to the intra-Pacific trade have grown impressively. The United States is importing more from the region than it is exporting to it, while Japan is exporting more to the region than importing from it.1 ASEAN countries' trade linkages with other Asia-Pacific countries are extensive. These not only account for the bulk of ASEAN countries' exports and imports but also contribute most significantly to their expansion. Trade flows between ASEAN and the Pacific