South-South Trade in Asia: The Role of Regional Trade Agreements

Abstract

The emergence of the dynamic South and the spectacular growth of South-South trade and investment flows - now seen as a corner stone of the new trade geography - present an important window of opportunity for all countries, regardless of their level of development. South-South regional trade agreements (RTAs), including bilateral, regional and interregional free trade agreements (FTAs), form part of an array of important instruments for trade creation, investment and regional development. Policymakers in developing countries are increasingly giving priority attention to enhancing South-South trade through regional and interregional cooperation arrangements. In this context, the experience of Asia, where about 85 per cent of total South-South trade in goods is now concentrated, can be considered as of practical value and holds lessons for other developing countries and regions. The Role of Regional Trade Agreements seeks to provide policymakers and decision-makers in government and in the private sector with an indepth analysis of the dynamic trends of South-South trade in Asia and rapidly evolving RTAs in the region, including analysis of their scope and coverage, their impacts on global and regional production strategies, and assessment of their contribution to South-South trade growth in Asia.