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DP 2006-02: Preferential Trading Agreements and Agricultural Liberalization in East and Southeast Asia

The paper analyzes how various preferential trading arrangements deal with agriculture liberalization and examines a few case studies highlighting the provisions on agriculture. It assesses the effect of preferential trade agreements on agriculture trade flows in the case of ASEAN. It finds that while the tariff reduction on all goods, including agriculture, in ASEAN provides a marked advantage from the MFN tariff rates, intra-ASEAN agriculture trade have not been all that significant. Most of the growth in the intra-ASEAN trade had come from trade in industry; and if total agriculture trade had expanded, much of it was due to trade outside the region. The paper argues that AFTA, by original design, had not really been made to boost intraregional agriculture trade, but rather to facilitate the interindustry trade arising out of the vertically integrated network of manufacturing transnational corporations.

Philippine Institute for Development Studies
Authors Keywords
Pasadilla, Gloria O.; tariff; ASEAN; ASEAN Free Trade Area (AFTA); regional trade liberalization; preferential trading arrangements (PTAs); relative tariff ratios; agriculture; free trade agreements (FTAs);
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Published in 2006 and available in the PIDS Library or can be downloaded as full text Downloaded 1,744 times since November 25, 2011