New Asian regionalism in international economic law

Abstract

The economic dynamics of Asian countries have undergone a remarkable transformation over recent decades, culminating in unprecedented levels of growth and development. More recently, Asia has also become more connected and economically integrated through the formation of stronger trade and investment linkages. At a time when multilateralism is subject to stalemate or even backlash, Asian regionalism remains on an upwards trajectory. Asia’s rapid growth and integration make it an intriguing region to study, and it is globally important to focus on the legal regimes based on which the region’s trade and investment ties are proliferating. Some of the most pertinent questions are: Is Asian regionalism qualitatively different from previous waves of regionalism? What are the endogenous and exogenous influences that have shaped Asian regionalism? Will Asian countries take the lead in devising a new approach to economic integration for the Global South? How do we assess the significance of Asian regionalism and its impact on the multilateral trading system? In his detailed and ambitious book, Professor Pasha L. Hsieh, Associate Professor at the Singapore Management University, provides sharp observations and rich interdisciplinary analysis to answer the questions raised above. In doing so, Hsieh reveals his deft understanding of the region and its relationship with international economic law through the depth of his insightful ideas, thought-provoking arguments, and astute and pragmatic proposals. At the outset, Hsieh introduces Asian regionalism as a paradigm shift in international economic law, which he describes as representing a new form of regionalism that he calls ‘Third Regionalism’ and the ‘New Regional Economic Order’ (NREO). Here, through detailed research, Hsieh points to the increasing number of countries in the region using their rising economic weight to generate normative changes in new trade dynamics. Given the changing status of Asian countries and regionalism in the twenty-first century, Hsieh argues that a new framework to comprehend these dynamics and their nuances is needed if not overdue. Revisiting existing scholarship on regionalism and international relations theories, Hsieh establishes the NREO as a new normative framework better equipped to take fundamental economic and geopolitical changes into consideration. Having set out the book’s theoretical scope, Hsieh moves on to provide a vivid portrait of the legalization process of the Association of Southeast Asian Nations (ASEAN) framework. The transformation of ASEAN from an apolitically oriented regime to a legal one, imposing both soft-law and hard-law obligations, has rendered it an indispensable pillar of new Asian regionalism. Hsieh’s argument that pragmatic incrementalism as embodied in ASEAN could serve as an(admittedly imperfect) model for developing countries is persuasive, as is his reasoning for why ASEAN does not, cannot, and does not want to simply replicate what has been done in Europe. Hsieh then devotes attention to the Regional Comprehensive Economic Partnership (RCEP), which he argues is a milestone for Asian regionalism marking a departure from the Northdominated Washington Consensus. While there is a convergence of key legal and political