daigai

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1. Introduction
Since the early 1990s, significant progress has been made in regional integration in the most important economic areas in the
world. According to a report by the WTO in 2011, more than 500 regional trade agreements are currently in force. As bilateral and
regional trade liberalisation is becoming increasingly prominent, it is important to ascertain what implications this may have for
world trade. In the last two decades, Asian economies have been involved in market integration of all sorts and have gained fame
as the “world factory” as a result. Since the economic crisis in 1997, Asia has been moving towards closer region-wide economic
integration, including the proliferation of bilateral free trade agreements and even monetary institutional cooperation with
neighbouring countries. Accompanied by enhanced economic interaction between Northeast and Southeast Asian countries,
economic cooperation and integration between the economies in the region has become more efficient. ASEAN and China are
playing a key role in the evolving dynamics of East Asian regionalism through their various bilateral free trade agreements. Since
2002, China and ASEAN have signed a series of free trade agreements as part of an economic cooperation agreement1 (hereafter
referred to as ACFTA2), including the agreement on a dispute settlement mechanism, the agreement on trade in goods and the

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