This monograph addresses Asia's rise in global free trade agreement
(FTA) activity. This has sparked concerns about the erosion of the
World Trade Organization (WTO) trading system and the Asian "noodle
bowl" (multiple and possibly conflicting FTAs). The study
identifies for policymakers how best to minimize the costs of FTAs
while maximizing their benefits. It reexamines key trends and
challenges in Asian FTAs and offers new information from analysis
of FTAs, economic models, and firm surveys. This analysis supports
strengthening business support for FTAs; rationalizing rules of
origin and upgrading their administration; expanded coverage of
agricultural and services trade; forging comprehensive "WTO-plus"
agreements; and encouraging a region-wide FTA. The analysis
suggests a bottom-up approach to global trade liberalization as a
complement to WTO processes.
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