Competitive Regionalism: FTA Diffusion in the Pacific Rim

302 Pages·2009·1.784 MB·English

by  Mireya Solís, Barbara Stallings, Saori N. Katada (eds.)

Competitive Regionalism
International Political Economy Series
General Editor: Timothy M. Shaw, Professor and Director, Institute of
International Relations, The University of the West Indies, Trinidad & Tobago
Titles include:
Andrew F. Cooper and Timothy W. Shaw (editors)
THE DIPLOMACIES OF SMALL STATES
Between Vulnerability and Resilience
Anthony Leysens
THE CRITICAL THEORY OF ROBERT W. COX
Fugitive or Guru?
Mireya Solís, Barbara Stallings and Saori N. Katada (editors)
COMPETITIVE REGIONALISM
FTA Diffusion in the Pacifi c Rim
International Political Economy Series
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Competitive Regionalism
FTA Diffusion in the Pacific Rim
Edited by
Mireya Solís
Associate Professor, School of International Service, American University, USA
Barbara Stallings
William R. Rhodes Research Professor, Brown University, USA
and
Saori N. Katada
Associate Professor, School of International Relations, University of Southern California, USA
Introduction, selection and editorial matter © Mireya Solís, Barbara Stallings and
Saori N. Katada 2009
Individual chapters © contributors 2009
Softcover reprint of the hardcover 1st edition 2009 978-0-230-57778-7
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Library of Congress Cataloging-in-Publication Data
Competitive regionalism : FTA diffusion in the Pacific Rim / edited by
Mireya Solís ... [et al.].
p. cm. — (International political economy series)
Includes bibliographical references and index.
1. Free trade—Pacific Area. 2. Free trade—East Asia.
3. Pacific Area—Commerce. 4. East Asia—Commerce. 5. Pacific Area—
Commercial treaties. 6. East Asia—Commercial treaties.
I. Solís, Mireya.
HF2570.7.C66 2009
382'.71095—dc22 2009013631
10 9 8 7 6 5 4 3 2 1
18 17 16 15 14 13 12 11 10 09
Contents
List of Figures vii
List of Tables viii
Acknowledgments ix
List of Abbreviations and Acronyms xi
Notes on Contributors xv
1 Explaining FTA Proliferation: A Policy Diffusion Framework 1
Mireya Solís and Saori N. Katada
Part I Thematic Chapters
2 Exclusion Fears and Competitive Regionalism in East Asia 27
Shujiro Urata
3 Political-Security Competition and the FTA Movement:
Motivations and Consequences 54
Mike M. Mochizuki
4 Competitive Regionalism through Bilateral and Regional
Rule-Making: Standard Setting and Locking-in 74
Junji Nakagawa
Part II The Western Hemisphere
5 The US as a Bilateral Player: The Impetus for Asymmetric
Free Trade Agreements 97
Cintia Quiliconi and Carol Wise
6 Chile: A Pioneer in Trade Policy 118
Barbara Stallings
7 Competitive Regionalism and Mexico’s FTA Strategy 139
Aldo Flores-Quiroga
Part III East Asia
8 Competitive Regionalism in Southeast Asia and Beyond:
Role of Singapore and ASEAN 161
Takashi Terada
9 South Korea’s FTAs: Moving from an Emulative
to a Competitive Strategy 181
Min Gyo Koo
v
vi Contents
10 Japan’s Competitive FTA Strategy: Commercial Opportunity
versus Political Rivalry 198
Mireya Solís
11 China’s Competitive FTA Strategy: Realism on a Liberal Slide 216
Jian Yang
12 Conclusion: FTAs in a Competitive World 236
Barbara Stallings and Saori N. Katada
Bibliography 252
Index 278
Figures
1.1 FTA diffusion: S-curve 10
1.2 FTA partnerships among developed and developing countries 11
1.3 FTA diffusion: Enlargement versus proliferation (number of
FTAs reported to the GATT/WTO by decade) 11
6.1 Chilean exports and imports: 1975–2007 120
vii
Tables
1.1 FTA diffusion: Emulation versus competition 16
1.2 Competitive distance: Similarity in export profiles by
market of destination (average 1995–2005) 17
1.3 Key destination markets of selected exporters 19
2.1 Changing patterns of East Asia’s trade from 1995 to 2005 34
2.2 Commodity composition of international trade for East Asian
economies with other East Asian economies (percentage share
of total) 37
2.3 Sources of FDI inflows to East Asian developing economies (%) 40
2.4 Sectoral distribution of FDI inflows (%) 41
2.5 Trade liberalization in selected East Asian economies 44
2.6 Economic effects of FTAs in East Asia 50
5.1 US agreements, preferential agreements, and
trade negotiations (as of March 2009) 101
5.2 The United States’ FTA network (as of March 2009) 107
6.1 Chile’s FTA network (as of March 2009) 122
6.2 Impact of Chile’s bilateral and plurilateral
trade agreements, 1992–2007 133
7.1 Mexico’s FTA network (as of October 2008) 141
7.2 Mexico: The drivers of competitive regionalism 154
8.1 Singapore’s FTA network (as of October 2008) 164
8.2 ASEAN’s FTA network (as of March 2009) 178
9.1 South Korea’s FTA network (as of October 2008) 184
9.2 Key side-payments under President Roh Moo-hyun 191
10.1 Japan’s FTA network (as of February 2009) 200
11.1 China’s FTA offensive (as of October 2008) 217
12.1 Explanations for FTA diffusion by country and period 240
12.2 Types of competition by size of country 243
12.3 Geographic coverage of FTAs (as of March 2009) 248
viii
Acknowledgments
In carrying out this collaborative project involving participants from around
the Pacific Rim, we owe numerous debts of gratitude to several individuals
and institutions. Special thanks are owed to Shujiro Urata who played a
pivotal role in the grant application process and who generously hosted our
second conference at Waseda University in the spring of 2008. We are also
extremely grateful to the Center for Global Partnership (CGP) of the Japan
Foundation for financing the major portion of this research project. Without
the support from CGP, the project would have never taken off, and we very
much appreciate the help of its dedicated staff: Tomoki Akazawa, Carolyn
Fleisher, and Melanie Standish. We feel extremely fortunate to have received
additional financial support from other sources and take this opportunity to
thank them all: the Japan–United States Friendship Commission; the Global
COE Program-Global Institute for Asian Regional Integration (GIARI) and the
Organization for Asian Studies (OAS) of Waseda University; and the Center
for International Studies (CIS) at the University of Southern California
(USC), as well as several of its other centers: the US–China Institute, the East
Asian Studies Center, the Korean Studies Institute, the Marshall Business
School, and the School of International Relations. In managing these grants,
we benefited from the expertise and competence of Conrad Hohenlohe and
Stefanie Drame at American University, and Indira Persad, Brianna Shepard,
and Marisela Schaffer at USC.
We were fortunate to hold two international conferences. Both proved to
be very productive opportunities for the exchange of ideas and allowed the
project to mature intellectually. We first convened in December 2007 in Los
Angeles, hosted by the CIS at USC. The Center’s Director, James Patrick, was
very supportive of our project, and Indira Persad did a splendid job in man-
aging such a complex event. We met again in Tokyo the following spring
hosted by Waseda University. We are grateful to Satoshi Amako, the pro-
gram leader of the Global COE program at GIARI, for the warm welcome he
accorded us, and to the following staff of GIARI and OAS for running such
a smooth conference: Miki Honda, Masato Kamikubo, Atsuko Maruyama,
Shoko Miyano, Yoji Osada, Kaoko Takahashi, and Atsuko Tsuriya.
At these two conferences and panels at the International Studies
Association and the American Political Science Association, we benefited
from the feedback of a very distinguished group of scholars, whose names are
listed in alphabetical order as follows: Maxwell Cameron, Yukiko Fukagawa,
Geoffrey Garrett, Stephan Haggard, Axel Huelsemeyer, Ken Jimbo, David
Kang, Masahiro Kawai, Long Ke, Akira Kotera, Ellis Krauss, James Lehman,
ix