Professional Documents
Culture Documents
• ASEAN nations need to undergo structural reforms within and take bold
measures to deepen the economic integration which is a key to achieve objectives
of AEC
• There is a need for proper coordination of regulations and synchronization of
national policies across member nations ,businesses
• Requires changes in domestic laws
• The establishment of AEC is not the end goal
• Blueprint 2025 has been adopted
FALSE FRIENDS? EMPIRICAL EVIDENCE ON
TRADE POLICY SUBSTITUTION IN RTA
• AD originally intended to prevent or offset “unfair ”price setting in international trade
relations
• There are 3 central findings to highlight:
RTA’s generally reduce the likelihood of AD activity among integration partners
An improvement in the tariff treatment between trading partners—regardless of
whether expressed as the directly faced tariff or as a tariff margin—generally leads
to a lower likelihood of bilateral AD
A higher tariff margin between integration partners leads to a higher likelihood of
bilateral AD than an equal tariff margin among non‐integration trading partners.
Conclusions & way forward
• The estimated result indicate an increase in the likelihood of bilateral AD activity
with increasing ad-valorem tariffs
• The co-efficient estimate for RTAijt points towards a decreased likelihood of AD
activity between member countries of the same RTA
• Based on these results further research can be conducted. But however there some
questions to address . That include
i) Why does this effect appear to be particularly pronounced in RTA’S with ‘south’
country involvement?
ii)What are the implications with regard to the design of future and existing RTA’S?