The article examines how trade agreements impact Indonesia and other Pacific Rim countries. By using a computer model, the researchers found that removing trade barriers in industrial countries can help Asian developing countries increase exports and productivity. Creating a free trade area in Asia-Pacific benefits participants greatly, while ASEAN countries see little benefit. All economies benefit most from further global trade liberalization. Exchange rate changes affect trade balances, but not as much as trade liberalization. Removing sectoral protection and subsidies leads to efficiency gains.