Studies On Creating East-Asia Free Trade Area

Since 1990s, protective trades became the main stream in advanced countries and a new round of WTO multi-lateral talks slowed down the global free trade. The European Union and North America Free-Trade Area, the international and regional economy integration organizations, which successfully speeded up the development in economy, trade and investment. Other countries took those successes as examples to organize regional economy integrations, so that economy might be accelerated. With the rising of integration of world region economy, China, Japan, Korea and East Union 10 Countries, which are of the same geographical location and well transportation facilities, of large trade turnovers at all times, of competitive against and complementary to each other in industries, and of similar culture and tradition, and values, could generate more economic profits by integrating into an economic organization. Therefore, China, Japan, Korea and East Union 10 Countries shall, basing on the existing condition (the ongoing East Union Free Trade Area program, China and East Union Free Trade Area, and 10+3 Dialogue) set up an economy integration program, which is restrictive and feasible to each member to this program, to form an economy integration to upgrowth economy in good condition. This article analyzes the theory and practices in world economy regions, shows a picture of establishment of East-Asia Free Trade Area taking into consideration of the present economic and trade status in East Asia countries, and is composed of four topics.Section One Theory and practical analyses on world economy regions. In recent 10 years, both developed and developing countries were enthusiastically focusing on the integration of regional economy, and regional economy organizations constituted differently. Regional economy organizations could be of four different patterns in difference of integration margins, they are free alliance, common market, economic union, and economic and monetary federation. The European Union and North America Free Trade Area shall be the typical examples, of which the successful experience and laws shall help East Asia's economy to go forward rapidly.Section Two East Asia countries' economic trade and cooperation. The economic development of countries and regions in East Asia is the fastest in the world. The international trade turnovers in quantity or at the ratio to world trade amounts shall be important figures to other regions and countries. The establishment of East Union Free Trade Area and 10+3 dialogue mechanism, and China and East Union Free Trade Area program help laying the foundation to the establishment of East Asia Free Trade Area. Section Three Importance and feasibility for establishing East Asia Free Trade Area. The importance for establishing the East Asia Free Trade Area shall be a) earning resources distributions and scale economy revenues, b) benefiting economic stability and increasing investment, c) decreasing products prices, d) lowering banking risks, reforming international expenditures and profits, and safeguarding regional economic stability, e) fasting upgrade of industry structure, and f) strongly backing up the international trade negations. The feasibilities for establishing the East Asia Free Trade Area shall be A) among the 13 countries in East Asia, the large-sized counties in East Union, China, Japan, and Korea are the member to WTO. The establishment of East Asia Economy Integration shall be under the agreements or rules of WTO. The General Agreement on Tariffs and Trade 1994 Article XXIV.5 Accordingly, the provisions of this Agreement shall not prevent, as between the territories of contracting parties, the formation of a customs union or of a free-trade area, from which we could find the legal basis for establishing the East Asia Economy Integration. B) In economic system, China, Japan, Korea, and East Asia 10 countries are market-oriented countries. They have open-door policies. Those open policies might help the performance of regional economy integration. Alt...