New regional economic partnerships under negotiation

Abstract

Two potentially competing trading blocs are being negotiated between countries of the Asia Pacific to boost world trade in the absence of progress with the Doha Round of World Trade Organization negotiations. One is the Trans–Pacific Strategic Economic Partnership Agreement (TPP) in which all negotiating parties are also members of Asia–Pacific Economic Cooperation (APEC). This paper outlines the two proposals and discusses some of the expectations of the negotiating parties. It is clear that the TPP concept has led to a number of concerns being raised by the negotiating parties, invitee countries, and external parties including those with vested interests in the outcome of these negotiations. The RCEP concept which is essentially a large multi–lateral free trade agreement raises less concern. The paper then discusses the dilemma facing Thailand which for centuries has been a trading nation and was a founding member of the World Trade Organization. Subsequently Thailand has negotiated a number of bilateral and multilateral free trade agreements. As a leading member of Association of South East Asian Nations (ASEAN) Thailand has sought to engage in free trade agreements with its ASEAN neighbours and their external trading partners.