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Trade Diversion Effects of the New EU Arrangements on ASEAN
Author(s) -
Cuyvers Ludo
Publication year - 1997
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/1467-8381.00036
Subject(s) - trade diversion , international trade , international economics , tariff , accession , trade creation , european union , product (mathematics) , economics , resizing , business , economic integration , competition (biology) , trade barrier , international free trade agreement , ecology , geometry , mathematics , biology
paper identifies the product groups of the ASEAN exports to Europe that will experience trade diversion effects from the enlargement of the EU (EU 12) with Austria, Finland and Sweden (EFTA 3) and the European association agreements with the Eastern European countries (EACs) using the methodology of Kreinin and Plummer. This methodology establishes for each sufficiently important ASEAN export product group to the EU 12, the EFTA 3 or the EACs whether or not competition is felt from one of the three groups of European countries, after which the tariff and non‐tariff preferences towards European products and against the ASEAN exports are analysed. The share of the exports in ASEAN's external trade with the EU 12, the EFTA 3 and the EACs that is affected by the trade diversion of these recent European integration initiatives, is calculated. It appears that the ASEAN exports to the EU 12 are affected by the accession of the EFTA3 only to a limited extent, but that the trade diversion effect on the EU 12 and the EFTA 3 markets to be expepected from the European association agreements with the EACs is considerable.