Factors Leading

to the Greater Integration

of the Asian Region
ALFARAS . ALOJADO. BUENAFE . DAWA . DE LA CRUZ .
SARROZA
What is Greater
Integration?
Integration
-the act of bringing together smaller components into a single
system that functions as one.
 -the ‘convergence of life chances without convergence of
lifestyles
In short:
 Greater integration with other Asian economies would lead to
substantial investment inflows this year, as well as rapid tourism
growth and robust exports that would benefit not only big
businesses but micro and small enterprises as well.
 What is an Asian region?
ASIA:
the world’s largest and most diverse continent. It occupies
the eastern four-fifths of the giant Eurasian landmass.
vast area always carries the potential of obscuring the
enormous diversity among the regions it encompasses
bounded by the Arctic Ocean to the north, the Pacific Ocean to the
east, the Indian Ocean to the south, the Red Sea (as well as the inland
seas of the Atlantic Ocean—the Mediterranean and the Black) to the
southwest, and Europe to the west.
REGIONS OF ASIA:
Central Asia (Tajikistan, Uzbekistan, Kazakhstan, Turkmenistan, Kyrgyzstan)
East Asia (China, Mongolia, North Korea, South Korea, Japan, Hong Kong,
Taiwan, Macau)
South Asia (Sri Lanka, Bangladesh, India, Afghanistan, Pakistan, Bhutan, Nepal,
the Maldives)
Southeast Asia (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
Philippines, Singapore, Thailand, Timor Lester, Vietnam, Christmas Island, Cocos
Islands)
Western Asia (Georgia, Armenia, Azerbaijan, Turkey, Cyprus, Syria, Lebanon,
Israel, Palestine, Jordan, Iraq, Iran, Kuwait, Bahrain, Qatar, Saudi Arabia)
 REGIONS OF ASIA:
CENTRAL ASIA SOUTH ASIA
located in a strategic region, with strong ties referred to as Southern Asia. Eight nations
to neighboring regions. Its development around the Indian subcontinent, including the
depends, firstly, on the access to the rest of island nations of Sri Lanka and the Maldives
the world. Central Asia is an important part of that are situated south of India.
the political and economic world system,
being "surrounded by some of the most
dynamic economies in the world, including
three of the so-called BRIC countries (Russia,
India and China)"
EAST ASIA
 East Asia is the eastern sub region of Asia,
defined in both geographical and ethno-
cultural terms
SOUTHEAST ASIA
It consists of two dissimilar portions: a continental projection (commonly called
mainland Southeast Asia) and a string of archipelagoes to the south and east of
the mainland (insular Southeast Asia)
WEST ASIA
It significantly overlaps with the Middle East (or the Near East), the main
difference usually being the exclusion of the majority of Egypt, which would be
counted as part of North Africa (that is, Egypt without the Sinai Peninsula), and
of European Turkey and the inclusion of the Caucasus. The term is sometimes
used for the purposes of grouping countries in statistics, in which case Egypt
might be excluded and Turkey included entirely
Factors Leading
to a Greater
Integration
 Factors Leading
to a Greater Integration
1) MUTUAL BENEFIT - when it comes to trade, these nations can readily supply each other’s
needs.

2) TRADE - The world economy is intertwined with each other whether we like it or not. We
all want or need something from another part of the world, and global trade facilitates that.

3) SIMILAR CULTURE - The cultures of Asia is diverse but they do share many things. This
makes it an easier fit during times of negotiations.Tthe people of this region are generally
alike in appearance, temperament which is seemingly peaceful. They tend to get along quite
well even on an individual level.
Factors Leading
to a Greater Integration
4) COMMON GOALS - The Asian region recognizes the mutual benefit of a slow
integration. The territories involved are not far from each other and the
industriousness of its population can work as a powerful negotiating block
against those from other parts of the world.

5) SIMILAR SECURITY NEEDS - aside from small localized rebels, this association
needs only to contend with foreign-supported terrorist groups which are usually
handled well.
6) TRADE AGREEMENTS
What are Regional
Trading Agreements?
Regional trading agreements refer to a treaty that is signed by two or more countries
to encourage free movement of goods and services across the borders of its members.
The agreement comes with internal rules that member countries follow among
themselves.
When dealing with non-member countries, there are external rules in place that the
members adhere to. Quotas, tariffs, and other forms of trade barriers restrict the
transport of manufactured goods and services.
Regional trading agreements help reduce or remove the barriers on trade. Types of
Regional Trading Agreements Regional trading agreements vary depending on the level
of commitment and arrangement among the member countries.
O B JECT IVES

•  To obtain economic benefits.

•  To pursue non-economic objectives
•  To ensure increased security of market access.
•  To improve members bargaining strength.
•  To promote regional infant industries.
•  Trade Diversion.
 TYPES

•  Free Trade Area

•  Preferential Trade Area
•  Common Market
•  Economic Union
•  Custom Union
1. Preferential Trade Areas
The preferential trading agreement requires the lowest level of commitment to
reducing trade barriers, though members countries do not eliminate the barriers
among themselves. Also, preferential trade areas do not share common external
trade barriers.
2. Free Trade Area
In a free trade agreement,all trade barriers among members are eliminated,
which means that they can freely move goods and services among themselves.
When it comes to dealing with non-members, the trade policies of each
member still take effect.
3. Customs Union
Member countries of a customs unionremove trade barriers among themselves and adopt
common external trade barriers.
4. Common Market
A common market is a type of trading agreement wherein members remove internal trade
barriers, adopt common policies when it comes to dealing with non-members, and allow
members to move resources among themselves freely.
5. Economic Union
An economic union is a trading agreement wherein members eliminate trade barriers among
themselves, adopt common external barriers, allow free import and export of resources,
adopt a set of economic policies, as well as use one currency.
6. Full Integration
The full integration of member countries is the final level of trading agreements. Benefits of
Regional Trading Agreements Regional trading agreements offer the following benefits:
a) Boosts Economic Growth Member countries benefit from trade agreements, particularly in
the form of generation of more job opportunities, lower unemployment rates, and market
expansions. Also, since trade agreements usually come with investment guarantees,
investors who want to invest in developing countries are protected against political risk.
b) Volume of Trade Businesses in member countries enjoy greater incentives to trade in new
markets, thanks to attractive trading conditions due to the policies included in the
agreements.
c) Quality and Variety of Goods Trade agreements open a lot of doors for businesses. As they
gain access to new markets, the competition becomes more intense. The increased
competition compels businesses to produce higher quality products.
(FTA) FREE TRADE AGREEMENT
Treaty (such as FTAA or NAFTA) between two or more countries
to establish a free trade area where commerce in goods and services can be
conducted across their common borders, without tariffs or hindrances but (in
contrast to a common market) capital or labor may not move freely.
Member countries usually impose a uniform tariff (called common external
tariff) on trade with non-member countries
 TYPE S O F FR E E TRADE AG R E EME NT

•  BILATERAL AGREEMENT
Bilateral trade agreements are between two nations at a time, giving them favored trading status with each
other. The goal is to give them expanded access to each other's markets, and increase each country's
economic growth.

•  MULTILATERAL AGREEMENT
Multilateral trade agreements are commerce treaties between three or more nations. The agreements
reduce tariffs and make it easier for businesses to import and export. Since they are among many
countries, they are difficult to negotiate.

•  “Multilateralism” refers to the GATT/WTO system as well as the trade negotiations that take
place among all GATT/WTO members as a group
•  Recall that one of the founding principles of this system is nondiscrimination
•  Involves the most favored nation (MFN) and national treatment (NT) sub-principles
•  Each WTO member must grant to each other member treatment as favorable as they extend to any
other member country
In Asia there are several Trade Agreements (Free Trade
Agreements, Economic Partnership...), both regional and
extra-regional:
Intra-regional:  Extra-regional: India-Korea
ASEAN, Trans-Pacific Agreement,  
South Asian Association for APEC, Bilateral extra-regional:
Regional Cooperation
(SAARC), agreements with the China-Chile,
European Union (EU)
Bay of Bengal Initiative Mexico-Japan
(BIMSTEC),  
South Asian Free-Trade Area Bilateral intra-regional:
(SAFTA), China-ASEAN,
Eurasian Economic
Community (EurAsEc),
Economic Cooperation
Organisation (ECO)
Free Trade Agreements of India.
Asia-Pacific Trade Agreement India-European Union Proposed/Under consultation
and study:
Trans-Pacific Strategic Economic India-New Zealand
Partnership Agreement  
India-Mauritius
India-Sri Lanka India-Indonesia
ASEAN-India
India-Thailand India-Cooperation Council for
India-Southern Africa Customs the Arab States of the Gulf
India-Singapore Union
India-Canada
India-Chile  
India-Australia
India-MERCOSUR
India-European Free Trade
Andean Community-India Association (EFTA)
India-South Korea
Singapore:
Singapore-Korea  Preferential Trade Area Panama-Taiwan
Singapore-Australia Mauritius-Pakistan Guatemala-Taiwan
Singapore-New Zealand United States-Korea Taiwan-Honduras-El Salvador
United States-Singapore European Union-South Korea United States-Australia
Singapore-Peru South Korea-Chile Australia-Chile
Singapore-Panama Peru-South Korea
Singapore-European Free Mexico-Japan
Trade Association
(EFTA)Singapore- Taiwan-Nicaragua
JapanSingapore-Jordan
 Agreements (other Asian
Countries):
Free Trade Agreement (FTA) of China.
China-ASEAN
China-Pakistan
China-New Zealand
China-Singapore
European Union-China
China-Chile
Andean Community-China
China-Peru
China-Costa Rica
If the country of the exporter (or
importer):
a) Has Agreements in force with some Asian Country:
The exporter should take advantages of the agreement (tariff reductions, rules
and certificate of origin, technical standards, investment, Intellectual Property
Rights (IPR), public procurement, trade in services...) however, it also needs to
know if other countries may have agreements in force with one of these
countries.
 
b) Has no agreement in force with any Asian Country:
 One possible scenario is that another country (or region) can have an
agreement in force with Asian Countries. Then, the exporter has a disadvantage.
All these factors are essential to design and adapt the International Marketing
strategy for each target market in Asia.
 
For example, an Argentinian company wishing to export to Singapore would be
at a disadvantage with a Peruvian, Panamanian or Chinese company, as both
Peru, Panama, and China have a Trade Agreement in force with Singapore, and
the Peruvian, Panamanian or Chinese company have all the advantages inherent
to the FTA (although each agreement may vary in content). The Argentinian
company should consider this factor in its export strategy to the region.
ASEAN
The entire world is moving towards
integration, it is inevitable. But a regional
partnership is the first step, we can see this in
the EUROPEAN UNION, AFRICAN UNION,
UNION OF SOUTH AMERICAN NATIONS, and
there is more on the way. In Asia, the
southeast Asian countries have already
formed ASEAN (ASSOCIATION OF SOUTHEAST
ASIAN NATIONS.
P U R POSE
The emergence and successful operation of EEC and NAFTA gave impetus for the forming
ASEAN member countries have developed economically at a fast rate in the lies is well
educated and skilled human resources. The ASEAN member countries are rich in oil,
agricultural goods and modern industrial products.

As set out in the ASEAN Declaration, the aims and purposes of ASEAN are:
•  To accelerate economic growth, social progress, and cultural development in the region.
•  To promote regional peace.
•  To promote collaboration and mutual assistance on matters of common interest.
•  To provide assistance to each other in the form of training and research facilities.
•  To collaborate for the better utilization of agriculture and industry to raise the living standards of
the people.
•  To promote Southeast Asian studies.
•  To maintain close, beneficial co-operation with existing international organizations with similar
aims and purposes.
This regional power block appears to work fine, the member states
fit very well together because of the following factors:

The Asian region extends beyond the territories of the ASEAN

member nations. The northern Asian countries like Japan, Taiwan,
North Korea, South Korea do not get along and appears to distrust
each other. Of course the invisible walls between these nation will
fall someday, and hopefully, they will realize the benefit of
integration with regional AUTONOMY.
Example:
South Korea’s regionalism policies
At present, South Korea has concluded 8 FTAs with 45 countries, and
negotiations are under way for 8 new FTAs with 13 additional
countries including the FTA with China for which negotiations have
just begun. South Korea is also preparing for a trilateral FTA with
Japan and China. If such FTAs come into effect, South Korea will
become an ‘FTA hub’, engaged in free trade with economies
representing over 70 per cent of the global economy.
THANK YOU