However, far from undermining regional cooperation, flexibility
may have saved the AFTA project by allowing affected member
governments the chance to renegotiate their original commitments. The
quid pro quo was for ASEAN to develop clearer, legally binding rules
to govern regional liberalization in future.8 Although flexibility became
institutionalized through new procedural rules that allowed exemptions,
modifications of concessions, and notifications of intent to delay or withdraw commitments, these rules nonetheless introduced greater
order into the regional liberalization exercise, thereby also signalling
to business investors that regional economic liberalization remained on
the cards.9 The relevant question to ask is how to reap the positive
benefits of flexibility whilst tempering its negative consequences. The
next section draws on the theoretical literature on institutions to address
this question.