%0 Journal Article
%T ASEAN¡¯s Preferential Trade Agreements (PTA) Strategy
%A Guanyi Leu
%J Journal of Current Southeast Asian Affairs
%D 2011
%I German Institute of Global and Area Studies, (GIGA)
%X This paper provides a diversification explanation in order understand the development of PTAs in Southeast Asia. I argue that an important reason why ASEAN states participate in PTAs has been to diversify existing trade ties and to reduce overdependence on a narrow range of export markets. Southeast Asian countries have formed PTAs with markets with which they had weak or unexplored economic relations, as demonstrated by three case analyses: the ASEAN Free Trade Area (AFTA), the ASEAN-China Free Trade Agreement (ACFTA) and the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP). To maximise the economic gains and the diversification effects of PTA participation, ASEAN countries have pursued a strategy of strengthening economic unity while keeping external economic linkages as diversified as possible. Although East Asia, and especially China, was an important alternative market to reduce ASEAN¡¯s dependence on trade with America, ASEAN countries have also pursued PTAs with a number of other trading partners. This paper explains how PTAs have helped ASEAN states to develop more policy autonomy in their trading environment.
%K Political Science
%K China
%K ASEAN
%K ACFTA
%K PTA
%K economy
%K 320
%K 327
%K 330
%K 332
%K China
%K ASEAN
%K Southeast Asia
%K 2000-2011
%U http://hup.sub.uni-hamburg.de/giga/jsaa/article/view/444