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China, US to use WTO debacle to speed Asian deals
Singapore, Sept 15: Size matters. That is what China and the United States will find if they accelerate negotiation of bilateral or regional free trade agreements in the wake of the collapse of the World Trade Organisation (WTO) talks.
Singapore, Sept 15: Size matters. That is what China and the United States will find if they accelerate negotiation of bilateral or regional free trade agreements in the wake of the collapse of the World Trade Organisation (WTO) talks.
It will not be economic interests alone but also political imperatives that drive a race by China, the United States and latecomer Europe to sign country-to-country deals after the weekend failure in Cancun, said regional analysts.
"This involves the high politics of foreign policy," said Razeen Sally, a trade expert with the London School of Economics.
"My bet is that these FTAs in the region are going to revolve more around China than Japan," he said.
Analysts expect the big trading powers to wield the biggest clout.
"The US initiative is likely to speed up...It will be China-ASEAN (Association of South East Asian Nations), India-ASEAN, Japan-ASEAN. But the ones that really count are China-ASEAN," said Sally.
He cited two primary reasons -- China's ambition to boost its regional role and its desire for market access that will have been spurred by the failure of talks in Cancun.
"They have ambitions to be a major power in the region, and this is one way to do this," Sally said. "And they want market access and now, after Cancun, they will want insurance policies."
Bureau Report
"This involves the high politics of foreign policy," said Razeen Sally, a trade expert with the London School of Economics.
"My bet is that these FTAs in the region are going to revolve more around China than Japan," he said.
Analysts expect the big trading powers to wield the biggest clout.
"The US initiative is likely to speed up...It will be China-ASEAN (Association of South East Asian Nations), India-ASEAN, Japan-ASEAN. But the ones that really count are China-ASEAN," said Sally.
He cited two primary reasons -- China's ambition to boost its regional role and its desire for market access that will have been spurred by the failure of talks in Cancun.
"They have ambitions to be a major power in the region, and this is one way to do this," Sally said. "And they want market access and now, after Cancun, they will want insurance policies."
Bureau Report