The third wave of Free Trade Agreements (FTAs) surged to Asia in the early 2000s with the Asian type of domino effect – the domino of proposing new bilateral agreements. However, with the launch of Trans-Pacific Partnership (TPP) negotiations, the mode of domino returned to the normal track (the domino of participating in existing agreements), which seems to have led to the end of third wave of FTAs. However, the number of FTAs in Asia would again increase in the near future, counter-reacting to TPP and Transatlantic Trade and Investment Partnership (TTIP). In fact, the majority of recent FTA proposals in Asia are those proposed by non-TPP parties, especially by China, or those between Asia and European Commission (EC).
This short paper will briefly discuss three issues in turn to provide an overview of the state of play of FTA policy activity in Asia: (i) the latest trend of FTAs in Asia; (ii) what is likely to happen to Asia’s FTA scene in near future; and (iii) desirable and effective trade policy in the era of FTAs.Global Trade and Customs Journal