With no clear leader and few strong incentives for deep integration, Asian cooperation for the foreseeable future is likely to be intergovernmental, with little pooling of sovereignty to create supranational institutions or agreements on common rules and disciplines.
As Asia’s weight in the world economy grows, however, its interests will also be served by a strong commitment to global institutions. Asia is unlikely to see the institutionalization or pooling of sovereignty that occurred earlier in Europe as the region lacks the same incentives for doing so. Tariffs on goods are now relatively low as governments have reduced barriers through spontaneous unilateral liberalization, but sensitivities remain to giving up some sovereignty necessary for deeper integration — even within Asean, the default leader. The China-Asean Free Trade Agreement, however, created incentives for other large economies to counter potential discrimination with similar deals of their own.
As Asia’s weight in the world economy grows, however, its interests will also be served by a strong commitment to global institutions. Asia is unlikely to see the institutionalization or pooling of sovereignty that occurred earlier in Europe as the region lacks the same incentives for doing so. Tariffs on goods are now relatively low as governments have reduced barriers through spontaneous unilateral liberalization, but sensitivities remain to giving up some sovereignty necessary for deeper integration — even within Asean, the default leader. The China-Asean Free Trade Agreement, however, created incentives for other large economies to counter potential discrimination with similar deals of their own.
