ASEAN members initiated ASEAN Free Trade Area (AFTA) both to increase trade among themselves and to create an integrated market, thus exploiting the comparative advantage that may come from producing and exporting products like palm oil and biodiesel. Following the rise of China and its increasing trading opportunities, ASEAN members and China itself acknowledged that the best way to develop and promote growth in their countries was through a Free Trade Agreement (FTA). Through the ASEAN-China FTA (ACFTA), not only tariffs and barriers considerably reduced, but a higher level of economic integration was achieved. This was expected to boost the economies of the countries involved and attract foreign investments into the area. Of particular interest for the present study is the case of Indonesia, the largest economy of ASEAN, and an attractive destination for investors from China due to its richness in raw material resources. However, China and Indonesia (together with Vietnam) recently experienced the attempt by the EU to limit trade through the imposition of antidumping duties. Specific case studies that will be treated in this paper are related to: Chinese and Vietnamese shoe production; Chinese solar panel; Indonesia biodiesel. In all these cases the EU imposed anti-dumping duties which raised much criticism and provoked serious trade retaliation (e.g. China imposed similar duties on the entrance of Bordeaux wine). The lack of political cohesion has so far reduced the effectiveness of the counter measures adopted by Asian countries. This paper suggests that things may rapidly change, as the higher level of economic integration reached through the ACFTA will progressively reinforce the ability of both ASEAN countries and China to respond to the protectionist policies adopted by the EU. To this regard, I will evaluate the impact of trade retaliation on some specific European industries. In particular, I will focus on the solar panel industry and on the biodiesel industry and highlight their connection to the 20-20-20 plan (20% increase in energy efficiency, 20% reduction of CO2 emissions, and 20% increases in renewables by 2020) set by the EU. I will argue that, in order to achieve its ambitious environmental goals, the European government should avoid unnecessary protectionist measures and collaborate more extensively with ASEAN nations and China.
The impact of ASEAN – China Free Trade Agreement on European Economy / Mantovani, Andrea. - STAMPA. - STRATEGICA 2015(2015), pp. 320-326. (Intervento presentato al convegno Strategica, International Economic Conference, Third Edition: Local versus Global tenutosi a National University of Political Sciences and Public Administration, Bucharest nel October 29-31, 2015).
The impact of ASEAN – China Free Trade Agreement on European Economy
MANTOVANI, ANDREA
2015
Abstract
ASEAN members initiated ASEAN Free Trade Area (AFTA) both to increase trade among themselves and to create an integrated market, thus exploiting the comparative advantage that may come from producing and exporting products like palm oil and biodiesel. Following the rise of China and its increasing trading opportunities, ASEAN members and China itself acknowledged that the best way to develop and promote growth in their countries was through a Free Trade Agreement (FTA). Through the ASEAN-China FTA (ACFTA), not only tariffs and barriers considerably reduced, but a higher level of economic integration was achieved. This was expected to boost the economies of the countries involved and attract foreign investments into the area. Of particular interest for the present study is the case of Indonesia, the largest economy of ASEAN, and an attractive destination for investors from China due to its richness in raw material resources. However, China and Indonesia (together with Vietnam) recently experienced the attempt by the EU to limit trade through the imposition of antidumping duties. Specific case studies that will be treated in this paper are related to: Chinese and Vietnamese shoe production; Chinese solar panel; Indonesia biodiesel. In all these cases the EU imposed anti-dumping duties which raised much criticism and provoked serious trade retaliation (e.g. China imposed similar duties on the entrance of Bordeaux wine). The lack of political cohesion has so far reduced the effectiveness of the counter measures adopted by Asian countries. This paper suggests that things may rapidly change, as the higher level of economic integration reached through the ACFTA will progressively reinforce the ability of both ASEAN countries and China to respond to the protectionist policies adopted by the EU. To this regard, I will evaluate the impact of trade retaliation on some specific European industries. In particular, I will focus on the solar panel industry and on the biodiesel industry and highlight their connection to the 20-20-20 plan (20% increase in energy efficiency, 20% reduction of CO2 emissions, and 20% increases in renewables by 2020) set by the EU. I will argue that, in order to achieve its ambitious environmental goals, the European government should avoid unnecessary protectionist measures and collaborate more extensively with ASEAN nations and China.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
