East Asia's Free-Trade Pacts Are More Help Than Burden

Asia - "East Asia's web of free-trade agreements (FTAs) boosts businesses in the region and could help counter falling trade and protectionism, said a study released by the Asian Development Bank (ADB).... The study, written by the ADB Dean Masahiro Kawai and ADB Senior Economist Ganeshan Wignaraja, is the first comprehensive survey of the impact on business of East Asia's numerous trade pacts, the Manila-based ADB said Tuesday...." [Associated Press/Factiva]

The Business Times adds that "...based on surveys of 609 exporting firms in Japan, Singapore, Korea, Thailand and the Philippines in 2007 and 2008, the report shows... that in March this year there were 37 FTAs in East Asia and 72 more in the pipeline - a sharp rise from just three in 2000. Critics have said these criss-crossing deals, with complex rules and variable tariffs, raise transaction costs, especially for small and medium enterprises...." [The Business Times (Singapore)/Factiva]

However, Xinhua writes that "... 'Rather, the agreements provide net benefits to firms that use them,' says Kawai, detailing the benefits that include wider market access and preferential tariffs.... Wignaraja said FTAs, if designed in line with World Trade Organization (WTO) principles and in the spirit of openness, may be critical in curbing economic isolationism and falling trade activity...." [Xinhua/Factiva]