The Economics of the Enterprise for ASEAN Initiative

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The Enterprise for ASEAN Initiative (EAI), as envisaged in 2002 by the Bush administration, is set to be a landmark in U.S.-ASEAN trade relations. This study provides a detailed background and a map to the unfolding negotiations. It includes: a detailed review of the U.S.-ASEAN economic relationship, beginning with coverage of the U.S.-ASEAN trade in goods globally and ending with an in-depth analysis of the changing structure of bilateral trade in services, reviews of theories of FTAs and empirical testing of the economics of the EAI itself. Using the USSFTA as a reference point, this study identifies and highlights the special bilateral issues that will likely be involved in the ongoing EAI FTA negotiations. The EAI is considered in the context of a changing global, Asia-Pacific and sub-regional environment. Finally, the book makes a case for the EAI, focusing on policy motivations - that is, as a defensive strategy for ASEAN and a proactive commercial policy approach for the United States - as well as a strategic imperative for both. The Economics of the Enterprise for ASEAN Initiative is intended to inform governmental, and nongovernmental policy-makers, trade analysts, economists, and researchers who need to have a comprehensive guide to this major trade initiative.