Examining the potential for cross-South Pacific trade: ASEAN and Latin America

Mikic, Mia and Jakobson, Elias (2010): Examining the potential for cross-South Pacific trade: ASEAN and Latin America.

Abstract

This paper discusses the potential for cross-South Pacific trade between selected Southeast Asian and Latin American economies. The objective of this discussion is to identify obstacles for more intensive trade between the observed countries. Firstly, the paper reviews trends in trade flows and trade patterns between the selected economies, and by using several trade performance indicators it finds the level of trade still relatively low. It then discusses the possible reasons for this state of affairs. It focuses on a review of tariffs, trading costs and other possible impediments to trade. Paper also considers how trade relations among these countries could be improved. It provides a background into the features of the trade agreements that have been signed among the countries belonging to these two sub-regions in an attempt to identify if any of them could be used as a “driver” for future integration.

• Item Type: MPRA Paper
• Language: English
• Keywords: ASEAN; Latin America; trade entropy; complementarity; trade agreements; cross-Pacific trade; noodle bowl
• Subjects: F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations

References

Economic and Social Commission for Asia and the Pacific (ESCAP), 2009. Asia-Pacific Trade and Investment Report 2009. Bangkok: ESCAP.

Economic Commission for Latin America and the Caribbean (ECLAC), 2008a. Opportunities for Trade and Investment between Latin America and the Asia Pacific: The Link with APEC. Santiago: ECLAC,November.

Economic Commission for Latin America and the Caribbean (ECLAC), 2008b. The Latin American Pacific Basin Initiative and the Asia-Pacific Region, Santiago: ECLAC, October.

Economic Commission for Latin America and the Caribbean (ECLAC), 2007. Latin America and the Caribbean in the World Economy, 2008 Trends, Santiago: ECLAC.

Estevadeordal, A. and K. Suominen with J. T. Harris and M. Shearer, 2009. Bridging Regional Trade Agreements in the Americas Special Report on Integration and Trade, Inter-American Development Bank.

International Monetary Fund, 2010. Online “World Economic Outlook Database, October 2010.”

Medalla, E. and J. Balboa, 2009. “Prospects for Regional Cooperation between Latin America and Caribbean and Asia Pacific: Perspective from East Asia” presentation at Fifth LAEBA Conference,Singapore, 15 July.

Mikic, M. and J. Gilbert, 2009. Trade Statistics in Policymaking – A Handbook of Commonly Used Trade Indices and indicators (Revised edition), Bangkok: ESCAP.

Mikic, M. and M. Wermelinger (eds.), 2010. Rising of non-tariff protectionism and crisis recovery, Bangkok;ESCAP.

World Bank, 2009. The World Trade Indicators On-line database, Washington, D.C.: The World Bank.

World Trade Organization (WTO), 2008 “Factual Presentation: Trans-Pacific Strategic Economics Partnership Agreement between Brunei Darussalam, Chile, New Zealand and Singapore (Goods and services)”, report by the Secretariat, WT/REG229/1, 9 May.