Reintegration of Formerly Centrally Planned Economies into the Global Trading System

Abstract

This article analyses the progress of the reintegration of the formerly centrally planned economies into the global trading system, focusing on the relationship between multilateral processes and regional integration schemes. Almost all the countries in transition from central planning have accepted the WTO rule-based system in principle. Although most of the European economies in transition are likely to join the European Union, they will then be in a trading unit which generally respects WTO principles. The regional blocs to which the transition economies of Southeast Asia and the former Soviet Union are attaching themselves do not have a strong record of implementing preferential trade policies. In sum, the potential danger of regionalism proving more attractive than multilateralism has not eventuated. Some implications for ASEAN members are drawn.