2015 is a critical year for the Asia-Pacific region. The Trans-Pacific Partnership (TPP), backed by the U.S. Senate’s recent approval of “fast-track” authority, is now entering the final round of negotiations in Hawaii. Another Asian free trade agreement (FTA), the Regional Comprehensive Economic Partnership (RCEP), is also due by the end of 2015, with a round of substantive talks in August and another to come in October.
With TPP spearheaded by the U.S. and RCEP led by China, there has been a lot of attention lately on how the two countries are using the FTAs to benefit themselves and keep each other out of their respective regional economic arrangements. Meanwhile, the Association of Southeast Asian Nations (ASEAN) and its member states are also playing an important role in the future of trade arrangements in the Asia-Pacific. As its economic cooperation and integration efforts have reached a crucial stage, ASEAN is concerned not only about the welfare effects of TPP and RCEP on its member states, but also about their impact on the development of ASEAN as an economic community.