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International Relations of the Asia-Pacific
Asia-Pacific regionalism and preferential trade agreements: the Australian case
by Nick Bisley
Abstract
Since the late 1990s, many developed states and customs territories have been seeking out preferential trade deals. This article examines this trend, which has been especially evident in the Asia-Pacific, and focuses specifically on Australia as a leading exponent of preferentialism in the region. The article has two distinct aims. First, to shed light on the thinking behind Australia's foreign economic policy and, specifically, to examine the motivations for moving away from multilateral and non-discriminatory means of advancing its free trade agenda in the region. Second, it aims to examine the developing dynamics of regional economic co-operation in the Asia-Pacific given the stasis of existing institutional efforts. This paper begins with a brief examination of the regional context and Australia's approach to trade policy. It then considers the nature of Australia's preferential bilateralism and its aims and motivations. The article shows that Australian policy-makers believe that preferential agreements can provide trade creation through market access, as well as broader benefits which derive from market expansion. Australia is motivated to pursue preferentialism by concern about existing institutions, by the technical appeal of bilateral agreements, and by the broader trend toward preferentialism in the international system, as well as shifts in its own domestic politics. The paper concludes with a short examination of the character of regionalism in the Asia-Pacific in the light of burgeoning regional bilateralism.