Asia Pacific FTA
FTA numbers have grown exponentially in the last decades, particularly in the Asia-Pacific Basin, yet the exact economic and political effects of such agreements remain unclear. Thus, the EU-funded project 'European Union, China and free-trade agreements in the Asia Pacific' (ASIA PACIFIC FTA) aimed to find out. The study investigated developments in FTAs in the Asia-Pacific. The focus was on comparing the effects of agreements with China on its large and small trade partners, including the EU and New Zealand. The 3-year project concluded early in 2014. Work began with a literature review of respective trade policies. Additional data were compiled from sources, including government websites. The researchers conducted survey-based fieldwork in Australia, China and New Zealand, and held interviews in Brussels with European officials and other experts. Results indicate an ingrained support for FTAs combined with anxiety about possibly missing out on the economic benefits. Different players have different goals. China is currently interested in rewarding political ties, reassuring its neighbours and guaranteeing the supply of materials, although more recent agreements start to reveal a shift to a more comprehensive approach to FTAs. The EU and the United States favour extending their preferred model of trade and economic governance, especially regarding compliance with World Trade Organization (WTO) principles and extension of liberalisation beyond WTO modalities. The EU's negotiations with Asian partners illustrate resistance to such models. For smaller economies, such as New Zealand, FTAs represent an opportunity for economic expansion beyond their limited market. More significantly, the agreements and relationships developed during negotiations, as in the case of the FTA with China, provide high-level access to Chinese government officials and diplomatic influence, which would be impossible otherwise. Small countries pioneered FTAs with China, which both opened the door for access by larger players and provided those players with key information. The project's findings resulted in 12 published articles, 4 book chapters, and over 20 presentations and seminars. A book about the outcomes will be published in 2015. ASIA PACIFIC FTA examined the complexities of FTAs in the Asia-Pacific, contributing a better understanding, including the ideological forces often at work. The outcomes showed the motivations of Asian policymakers, which can benefit their European counterparts in negotiations.
