JAKARTA: Asia is benefiting hugely from many free trade agreements reached in the last decade but the region needs to consolidate those agreements, says a new book from the Asian Development Bank Institute (ADBI) and Asian Development Bank (ADB)."A region-wide free trade agreement would have clear economic benefits. It would, of course, increase market access to goods, services, skills, and technology. It would also increase market size, permitting specialization and greater economies of scale. It would also help buffer against protectionist sentiments which pose a risk to Asia's trade and economic recovery," said ADB President Haruhiko Kuroda during the book launch.The book, Asias Free Trade Agreements: How is Business Responding? was edited by Masahiro Kawai, Dean of ADBI, and Ganeshan Wignaraja, Principal Economist in ADB's Office of Regional Economic Integration. It surveyed 841 firms in the People's Republic of China (PRC), Japan, Republic of Korea, the Philippines, Thailand, and Singapore and found that 53% either use or plan to use free trade agreements.As quoted from its official website, ADB perceived that Asia has seen a rapid increase in free trade agreements since 2000 with about 50 in place in East Asia alone as of January 2011 and another 80 or so currently being prepared.East Asian economies like the People Republic of China, Republic of Korea, Thailand, and Singapore have been the leading players in the spread of the agreements, while others such as the Philippines have become increasingly active through the Association of Southeast Asian Nations (Asean). The agreements have all boosted trade within the region.However, the book highlighted that some of the agreements are complicated because they apply to different sectors and have different requirements, raising the cost for companies that trade with many countries. Small and medium-sized businesses, in particular, struggle to make use of free trade agreements. (T02/NOM)
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