Semi-inclusive regional economic agreements in the pacific: a perspective from global value chains

ABSTRACT A flurry of recent regional economic agreements in the Pacific are best characterized as ‘semi-inclusive,’ as each tends to include some large economies in the region but omit some others. With a perspective from global value chains (GVCs), we assess two particular dimensions of these agreements: (a) reduction in trade barriers, and (b) promotion of cross-border direct investment. We argue that China can be expected to gain from both the RCEP and China-EU Comprehensive Agreement on Investment (CAI), and it will likely gain even further from undertaking the necessary reforms to become a member of the CPTPP.