Book Review: Antoni Estevadeordal, Masahiro Kawai and Ganeshan Wignaraja (Eds), New Frontiers in Asia-Latin America Integration: Trade Facilitation, Production Networks and FTAs.

DOI10.1177/0015732516659595
AuthorDebashis Chakraborty
Published date01 February 2017
Date01 February 2017
Subject MatterBook Review
Book Review
Antoni Estevadeordal, Masahiro Kawai and Ganeshan Wignaraja (Eds),
New Frontiers in Asia-Latin America Integration: Trade Facilitation, Production
Networks and FTAs. New Delhi: SAGE in collaboration with Asian
Development Bank Institute and Inter-American Development Bank,
2015, `1395, 311 pp., ISBN 978-81-321-0976-1.
The globalization wave is being propelled by three distinct forces in the recent
period, namely deepening of trade facilitation measures between countries,
removal of tariff barriers through regional trade agreements (RTAs) and growth in
intra-firm trade cutting across borders in intermediate products, that is, develop-
ment of regional production networks. The three forces are often not mutually
exclusive but overlapping, for example, conclusion of RTAs with detailed trade
facilitation measures including tariff reforms, mutual recognition of standards and
customs cooperation agreements may facilitate trade in semi-processed products
and raw materials. In this context, the recent volume edited by Estevadeordal,
Kawai and Wignaraja is a well-structured and timely contribution to the literature,
which analyzes the issues pertaining to integration on Asia and Latin America
through these three forces.
The introductory chapter by Estevadeordal, Kawai and Wignaraja discusses the
integration experience in Latin America and East and Southeast Asia. The global
factory in Asia has strengthened its presence owing to the advantages pertaining to
low-cost highly productive labour, creation of strong infrastructure base, investment
in human capital, strong macroeconomic fundamentals and so on. While the regional
integration has deepened, the challenge for Latin America is to integrate the local
firms into the sophisticated international production networks and supply chains.
The Trans-Pacific Partnership (TPP) therefore provides economies in both sides of
Pacific a vast opportunity.
Presently, all countries are members of multiple trade blocs, which increas-
ingly facilitates sourcing of raw materials and parts and components from part-
ner countries, processing at home and export to various destinations. Exporting
to a non-member third country therefore poses a challenge for complying with
rules of origin (ROOs) provisions. The process for post-entry compliance veri-
fication, paperwork for determining eligibility for preferential tariff access etc.
involve high time as well as monetary costs. Analyzing the existing practices,
Staples and Harris explores various options including self-certification by reg-
istered economic operators, fixing fraud liabilities, extension of cumulation
provision, promotion of e-origin traceability etc.
Foreign Trade Review
52(1) 60–62
©2017 Indian Institute of
Foreign Trade
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0015732516659595
http://ftr.sagepub.com

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