CUSTOMS REGULATION IN THE ECONOMIC INTEGRATION OF EASTERN ASIA: ACTUAL PROBLEMS

Abstract

This paper examines economic integration in East Asia and the role played by Customs. The study is largely theoretical but also refers to empirical data. The author asserts that the various initiatives undertaken to date to promote economic integration represent only one aspect of this issue, and attention should also be paid to the concept of the East Asian Customs Union. The basis for creating such an association is the functional cooperation related to customs regulation. Customs cooperation could become the basis for a deeper economic integration of East Asia in terms of providing regional public goods. This can affect other sectors of the economy, such as the environment and finance, as well as political and even institutional spheres.Deeper economic integration in East Asia could and should start from areas of functional cooperation with the aim of providing regional public goods for East Asian countries. In the context of inadequate supply of international public goods, regional countries will increasingly apply to the supply, financing and management of additional public goods for the region. The regional regime could solve the potential problem of "free riders" by ensuring that countries share the costs of providing regional public goods. This strategy will also be attractive for East Asian countries.Given the special and important responsibilities of customs administrations, Customs can and should play a key role in the provision of regional public goods to promote functional cooperation with the aim of deepening economic integration. In East Asia, through regional customs cooperation, customs can provide regional public goods in terms of regional security, trade liberalization, public health and the environment, as well as disaster relief, etc. The second level of economic integration, the customs union, appears the most appropriate next step for East Asia.