A Research On Asia-Pacific Economic Cooperation Mechanisms

With the rise of new regionalism since the1990s, regional economic integration in the Asia-Pacific has entered the phase of rapid acceleration. After years of evolution, the Asia-Pacific economic cooperation mechanism has mainly proceeded into two tracks, i.e. the parallel development of "East Asian Model" and "Asia Pacific Model". Although a large number of competing bilateral or sub-regional trade arrangements have been built in this process, we have never seen the formation of a free trade area which covers the entire region. In that case, the Asia-Pacific economic cooperation mechanism has caught the troubles of low level cooperation, institutional surplus and the absence of controlling power. It is the essence of the appearance of multiple mechanisms that under the strategy of competitive liberalization, countries are establishing the regional mechanisms that are in accordance with their own benefits and helps them to compete for the dominance role in the region.While complicated regional economic cooperation mechanisms have appeared in the Asia-Pacific, the most eye-catching development is the competition between US-led Trans-Pacific Partnership Agreement (TPP) and the Regional Comprehensive Economic Partnership Agreement (RCEP) led by ASEAN. Since the two mechanisms are under fierce competition, this paper will focus on their development and try to analyze the construction of future economic cooperation mechanism in the Asia-Pacific region. By using the method of comparative analysis, this paper will analyze TPP and RCEP from the aspects of negotiation process, institutional characteristics and the strategic intent of the leading economies. This paper will also try to find the possibility of merging TPP and RCEP based on the analysis of the similarities and differences. In the end, this paper will point out the future development direction of Asia-Pacific economic cooperation mechanism and the appropriate measures that China should take to cope with the current situation.When East Asia regional economic cooperation was developing in full swing, the US joined and dominated the TPP negotiations in order to guarantee its leadership in Asia-Pacific. The US sees TPP as its primary means to "Pivot to Asia". The US’s accession into TPP has attracted wide-spread attention. And many countries expressed their willingness to join after Japan’s accession. TPP is characterized by its openness, comprehensiveness and high standards. It sets a very high threshold for the developing countries by its rules of no exception and high liberalization. Besides, the political intension of the US-led TPP is very obvious, that is to compete for the dominance position in the development of Asia-Pacific by changing the existing pattern of trade and economic cooperation in the region, in that way, the US can relatively maintain its strength in the area.For the purpose of balance the power of United States, ASEAN then promoted the development of RCEP. RCEP also intends to build a high level economic cooperation mechanism, but its standard is more moderate and conforms to the interests of the developing countries. The RCEP negotiation is based on the existing five "10+1" free trade agreement signed by ASEAN, with China, Japan, Korean, India, Australia and New Zealand. RCEP adopts the strategy of "progressive liberalization" which allows the special and differential treatment for some less developed countries. The aim of ASEAN to promote RCEP is to consolidate its own position in the region, to integrate the regional economic cooperation mechanisms and to offset the negative impact of TPP.There are many similarities and differences between TPP and RCEP and they also share the possibility of mutual integration. The ultimate goal of TPP and RCEP is to build Asia-Pacific free trade areas. They also have some overlap in member countries and negotiation clauses. But TPP is led by developed countries and its insistence on high level liberalization and principle of no exception will exclude some developing countries. In contrast, by insisting on progressive liberalization, RCEP is much more flexible than TPP. The integration of TPP and RCEP will depend on the integration of main issues and the promotion of common member countries.The paper argues that the process of economic integration in Asia Pacific is bound to institutional cooperation, which can be realized by the effective way of establishing Free Trade Area of Asia-Pacific (FTAAP). Apparently, the convergence of TPP and RCEP will lay a solid foundation for the development of FTAAP. As a responsible country, China should actively promote the establishment of FTAAP. Under current situation, the measures that can be taken by China are to reach a fair and transparent bilateral investment agreement with the US, to set the time schedule for FTAAP development and to promote the timely completion of RCEP negotiation. By these means, China can achieve positive interaction with the US and the two countries can jointly promote the development of Asia-Pacific economic cooperation mechanism.