Intra-Regional Trade and Pacific Cooperation: Problems and Prospects

Abstract

In contrast to Western Europe or the Economic Community (EC) respectively, regional interdependence and intra-regional trade is far less developed in the EAR. Especially Southern and Southeastern European newly industrializing countries (NICs) hardly look for overseas markets comparable to the Asian NICs looking West or ”Far East” (i.e. USA). Consequently, the EAR has been widely known as the most ”outward-looking region” of the world economy for nearly two decades. That became true not only for Japan (often called the first NIC) but also for the two other generations, the ”four little tigers” (NICs) and ASEAN (NECs).² In particular with respect to trade flows of manufactures a well documented Japanese study underlines this most important point, arguing that ”the ultimate destination of exports from the region, inspite of the notable development of intermediate commodities trade within the region …, has been predominantly outside the region, mainly the United States and West Europe.” (Yamazawa et al., p. 283) In order to make the extra-regional bias more transparent and specific we can add two sets of empirical investigations.