ASEAN-China Trade Deal Boosts Economies, Reshapes Global Commerce
The article looked at free trade agreements involving ASEAN and other countries to see how they affected trade. They studied data from 1993 to 2013 and found that the trade creation effect was bigger in the ASEAN-China agreement compared to those with Korea and Japan. They also found that trade diversion effects were negative in all three agreements. The reason for the larger trade creation effect with China might be because of the difference between regular and preferential tariff rates for ASEAN in China.