Abstract
Over the past two decades, free trade agreements (FTAs) negotiated between neighboring countries and regions have increased tremendously. Governments worldwide continue to see the importance of forging trade pacts despite the disappointment caused by the global economic crisis. In East Asia, bilateral FTAs are seen as a useful approach to enhance economic cooperation and boost foreign direct investment. Advocates see it as a crucial step towards trade liberalization and regional economic prosperity. However, FTAs are not purely intended for wealth creation. They have intrinsic political and strategic values for states. Through binding agreements, states aim to maximize their political and economic benefits. However, in doing so, they expose their societies to unprepared structural transformation that could have negative impact on citizens’ livelihood. Human security often takes a backseat as states engage in numerous negotiations and compete against time. This chapter looks at the various factors influencing FTA partner selection and identifies the human aspects of several case studies to highlight how states and societies perceive issues pertaining to FTA proliferation. It argues that the selection of FTA partners has been mainly a state affair and, coupled with the lack of involvement of the public in negotiations, not only reflects a lack of sensitivity of states to human security concerns but also exemplifies how states unwittingly put their societies at great risk to the pitfalls of external forces.
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Notes
- 1.
For a list of the various rules of origins on concluded FTAs in East Asia, see Kawai and Wignaraja (2007).
- 2.
The ASEAN + 3 Economic Ministers (AEM + 3) meeting in 2004 approved a proposal by China to set up an Experts Group to study the feasibility of EAFTA. The Group held 4 meetings between April 2005 and July 2006 before submitting their report to the AEM + 3 meeting in August 2006. Senior officials have been tasked to study the recommendations in the report.
- 3.
This figure is based on the average of six ASEAN countries – Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
- 4.
It would be a formidable challenge for Japan and the EU to conclude an FTA in the short term period because of the agricultural sector that is highly subsidized by both economies.
- 5.
While political considerations marked China’s initial FTA proposal to ASEAN, the commitment to negotiation and the unfolding cooperation have helped both sides to see the economic benefits.
- 6.
Malaysia’s FTA with the US actually involved 19 negotiation teams representing various ministries and agencies (Bernama 2007).
- 7.
There are also reasons to believe that such differences stemmed from the approach that these two ministries take towards FTA. MOFA sees FTA as a broad comprehensive agreement that should best be approached bilaterally while METI is more concerned with trade issues and thus defined it in narrower terms.
- 8.
Though ASEAN has publicly expressed dissatisfaction with such an approach citing solidarity concern, member countries privately support it as it allows them to negotiate and demand for more benefits from Japan in competing with other members (personal discussion with a MOFA official, July 2006).
- 9.
Even after 15 years, NAFTA has not been able to provide a permanent solution to the problem of illegal Mexican immigrants entering the US in search of economic security.
- 10.
‘Yarn forward’ means that 100% of the yarn must come from either Thailand or Japan to qualify for lower tariffs while ‘fabric forward’ requires fabric to be made in either country irrespective of the yarn origin.
- 11.
Similar clauses are found in JMEPA and JSEPA although they have received less public attention than in Thailand and the Philippines.
- 12.
Part of the reason for the delay was due to the clash of interests between Japan’s MOFA, METI and the Ministry of Justice (MOJ).
- 13.
Nurses can extend their stay for 2 more years and caregivers 3 more years.
- 14.
See Advocacy Network for Foreign Trainees (2006) and Kawakami (2008). Some steps have been taken such as the drafting of a guideline on the transparency in job placement by the Ministry of Health, Labor and Welfare, and the support networks that Filipinos residing in Japan are providing to the new arrivals but their efficacy remains unclear.
- 15.
Also known as fast-track, it allowed the White House to sign deals that will then be sent to Congress for approval or rejection without amendment.
- 16.
Here, it is interesting to note that Bolivia’s President, Evo Morales (n.d.) has developed an alternative to the FTA in 2006, calling it People’s Trade Agreement (PTA). The PTA aims to safeguard the interests of small nations by calling for a more equitable agreement that promotes development, defends national production and involves active participation from the general public.
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Guan, B.T.C. (2012). The Proliferation of Trading Agreements and Implications on Human Livelihood. In: Teh Cheng Guan, B. (eds) Human Security. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-1799-2_10
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