One category of external institutional structure with ambiguous
effects on ASEAN’s capacity to complete regional integration
comprises the bilateral and plurilateral free trade agreements
(FTAs) and similar economic partnership agreements that ASEAN
governments have negotiated individually and collectively with
non-ASEAN members. Despite the lack of convincing evidence that
such FTAs generate substantial net economic gains for participating
countries, governments continue to pursue them for their perceived
economic (especially market access) as well as political benefits.52
By 2010, the ten ASEAN states together had concluded a total of
91 FTAs (excluding AFTA/AEC) with 60 either under negotiation or
proposed.53 This, for many observers, has created a “noodle bowl”
effect in the region, with losses coming from trade diversion effects
and higher business costs as firms negotiate the inconsistencies
between the many agreements in place.54 Notwithstanding these losses,
it is possible for these bilateral and plurilateral arrangements to be
supportive of ASEAN regional integration if these agreements lead
to domestic regulatory reform that in turn facilitates AEC implementation.
However, these FTAs could as well divert the attention
and resources of ASEAN members away from AEC matters.55
Under these circumstances, FTAs such as these could be regarded as
hindering rather than facilitative structures.