1 An EU – ASEAN FTA, What May be the Point?1

Abstract: A widely-held consensus view claims that East Asia has been shifting recently from a market-led to an institution-based regional integration. Next to post-crisis financial cooperation schemes under the ASEAN+3, the surge of Regional Trade Agreements (RTAs) involving East Asian countries may to some extent substantiate this claim. Yet these developments require a closer analysis. In a first part, the paper shows the limits of the formal regional integration movement in East Asia to date and highlights the confusing role played by bilateral RTAs. It suggests in particular that the case of ASEAN countries exemplifies the ambiguous role of RTAs in enhancing de jure regional integration. As a next step, the paper examines the implications of these changes for the EU. It suggests that discriminatory trade arrangements involving East Asian economies are associated with high risks for EU producers who may find themselves at a disadvantage vis-à-vis US or Japanese producers in the region. While an EU – ASEAN FTA may help mitigate these risks, it can also contribute to other objectives. In particular, such an agreement can be expected t