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date: 19 February 2020

Abstract and Keywords

This chapter analyzes the political economy of trade agreements in the Asia-Pacific region. It provides evidence that does not support rationales for preferential trade agreements (PTAs) based on increased economic interdependence or substantial economic benefits from such agreements. It questions the potential positive impacts of PTAs in the Asia Pacific region and suggests that they could possibly undermine the deepening and consolidation of overall regional cooperation. This chapter also considers the impacts of regional production networks and of floating exchange rates on PTAs.

Keywords: trade agreements, political economy, Asia-Pacific region, PTAs, economic interdependence, regional cooperation, regional production networks, floating exchange rates

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