Outgrowth of ASEAN, a Common Market of the Pacific: lessons to be learned from the European experience

Abstract

The success of the European Union is without comparison. With the inclusion of the European Free Trade Association, as well as much of Eastern Europe (a likely inevitable event by the turn of the century) it will have a population, GNP, economic and political force second to none among the world′s great powers. The tripartite NAFTA between the USA, Canada and Mexico may be only the precursor to a North American Common Market. Countries in the Pacific are taking notice of these economic pairings and wondering what they might have to do to compete against either or both. The inevitable conclusion to these two Common Markets appears to be efforts towards the creation of a Pacific Rim Common Market (PRCM). Examines the factors behind the success of the European Common Market, compares them with the present situation in the Pacific Rim, provides a set of prerequisites necessary before a successfully operating PRCM can develop, offers several alternatives to what an eventual PRCM may look like, and discusses the current likelihood of a PRCM. Concludes that any PRCM must include the USA to offer balance and offset potential Japanese economic hegemony. The likelihood for a PRCM in the near future is dim, owing to immense differences between the potential member nations and the lack of experience in working together for mutual, regional interests instead of national interests.

Citation

Day, K. and Herbig, P. (1995), "Outgrowth of ASEAN, a Common Market of the Pacific: lessons to be learned from the European experience", European Business Review, Vol. 95 No. 2, pp. 12-23. https://doi.org/10.1108/09555349510084372