Can the JPEPA serve as a model or model for future trade agreements that the Philippines can conclude with other developed countries? Former Philippine Secretary for Socio-Economic Planning, Cielito Habito, however, proposed that a bilateral agreement between the US and ASEAN might be preferable as a “one-party”, given that a number of member states do not have a free trade agreement with the US. However, many are confident that ASEAN-United States relations will continue to flourish in order to ensure peace and stability in the Asia-Pacific region. There are cases where there is no alignment of interests and agenda, so the Philippines, along with other ASEAN member countries, tends to take the lowest common denominator to reach consensus on issues in order to reach agreement. In addition, the Philippines recognizes that there are differences in perception and analysis of the threats faced by Member States. This was last illustrated during the debacle of the ASEAN Foreign Ministers` Meeting in 2012, which failed to issue a joint communiqué. Since 1990, intra-regional trade in East Asia has gradually increased thanks to free trade agreements (FTA). This is also known as the second wave of regionalism (see Urata 2004); Yoshimatsu 2005; Ali and Caldentey 2007; Liu 2007; Bui 2008; Park and Park 2011; Jalles 2012; Reyes et al. 2014; Suvannaphakdy and Toyoda 2014; Kahouli and Maktouf 2015). The authors explain that they have no conflicts of interest. Based on the results obtained, the elimination of tariffs under the JPEPA has a positive impact on trade with regard to increasing Philippine exports to Japan. It should also be noted that the negative relationship between AT and TV has a dilatory effect. The introduction of a new trade agreement creates both a trade reorientation and a creation.
In the case of JPEPA and ACJEP, where the Philippines and Japan are the two partner countries, Japan has increased its number of trading partners, which has led to a diversion of trade from the Philippines to the creation of trade with other ASEAN countries. While most of the studies that have been verified so far on this paper have used the Standard Gravity Model and the Pseudo-Maximum Likelihood Fish Model, very little disagcrusted data on trade volume has been used compared to the corresponding tariff reduction created by the bilateral trade agreement. Due to the slow progress of multilateralism thanks to the World Trade Organization (WTO) General Agreement on Tariffs and Trade (GATTS) (Ali and Caldentey, 2007); Zhang et al. 2007; Yoshimatsu and Ziltener 2010) moved Japan to regional and bilateral trade liberalization agreements (Yoshimatsu and Ziltener 2010). As a first step, Japan concluded trade agreements with developing countries in Southeast Asia and Latin America. Japan`s first free trade agreement (FTA) was with Singapore in 2000, followed by Mexico and Malaysia (Yoshimatsu and Ziltener 2010). Suvannaphakdy S, Toyoda T (2014) Impact of regional trade agreements in East Asia on members` trade flows. J Southeast Asian Econ 31(3):361-378 Fratianni M, Oh C (2009) Size of regional trade agreements and regional trade bias. Appl Econ Lett 16:1603 Park I, Park S (2011) Best practices for regional trade agreements. .
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