Although the ASEAN Economic Community (AEC) was established at the end of 2015, some of the objectives remain for it to be fully realized, and many of the actions and measures in the AEC Blueprint have not been fully implemented and have to be carried forward to future years. Among these “works in progress” is transport and other physical infrastructure, which is necessary for the physical flows of goods and people. Analysis of free trade and economic integration agreements do not usually place emphasis on the importance of the physical delivery of the goods and people flows made possible by trade and investment liberalizations, particularly in geographically dispersed and diverse regions such as ASEAN. This paper examines the importance of physical connectivity to implement the AEC. It explores the various dimensions of land, maritime, and aviation connectivity with the complex agreements, national policies and regulatory frameworks and challenges of implementation and infrastructure financing, including the Chinese initiative of the One Belt-One Road and the Asian Infrastructure Investment Bank.

This paper examines the recent emergence of mega–free trade agreements, namely, the Asian-centric Regional Comprehensive Economic Partnership, the Trans-Pacific Partnership, and the Trans-Atlantic Trade and Investment Partnership. In a comparative context it discusses the rationale for their emergence; their distinctive membership features, objectives, and negotiating agendas; their quantifiable benefits and dissenting voices; issues and challenges; and likely outcomes. Aspirations for “high standards” are unlikely to be met because their negotiating timelines are repeatedly missed as negotiators struggle with political, diplomatic, commercial, economic, regulatory, and technical issues. Although negotiations appear relatively simple at the outset, their complex and daunting hurdles will ultimately limit their impact on the world trading system.

This paper examines regional market integration through production networks and free trade agreements in East Asia and their attendant challenges and issues. It examines progress in the ASEAN Economic Community and in various ASEAN+1 free trade and economic integration agreements. It argues that there is a strong case for a region-wide agreement to maximize economic synergy and resolve emerging problems, including market fragmentation and the “noodle bowl” effect. It explores three possible paths to region-wide integration, namely, the East Asia Free Trade Area (encompassing ASEAN+3 [the People's Republic of China, Japan, and Korea]), the Comprehensive Economic Partnership for East Asia (encompassing ASEAN+3 countries and Australia—New Zealand and India) and the Trans-Pacific Partnership, currently involving nine negotiating countries in the Asia-Pacific Economic Cooperation. The paper explores the economic and political benefits and challenges of forming these three regionwide agreements.

East Asia is catching up with the rest of the world in establishing regional trade arrangements (RTAs). This region is responding to pressures from globalization, regionalism in the Americas and Europe, the rise of China and India, improved political relations in the region with the end of the Cold War, as well as market-driven trade and investment integration and the emergence of production networks. ASEAN formed the first RTA in 1992, and by the turn of the decade, ASEAN was signing or negotiating free trade agreements (FTAs) with Japan, China, South Korea, India, Australia–New Zealand, and the European Union. It also entered into bilateral FTAs with the United States and countries in Latin America, Africa, the Middle East, and South Asia. ASEAN is also considering an East Asian FTA. Can ASEAN remain in the driver's seat of regional integration and be an effective hub? The FTA proliferation also has important consequences and effects for East Asia and the world trading system.