East Asian Way of Linking the Environment to Trade in Free Trade Agreements

Abstract

This study examines how East Asian countries have responded to the challenges that the trade–environment nexus presents. A total of 85 free trade agreements (FTAs) concluded by 15 East Asian economies are analyzed by using ordered logistic regression and generalized ordered logistic regression techniques. The results show that East Asian countries incorporate strong and specific environmental provisions in their bilateral FTAs when they share concern about environmental issues. These findings reject the view that East Asian countries have adhered to collective ideas that favor weaker and ill-defined environmental commitments related to trade. It is notable that environmentally conscious East Asian countries have responded positively to trade–environment linkages with like-minded partners. Meanwhile, the results partially support the conventional view that an environmentally conscious big country can bully environmentally less conscious small countries into making strong and specific environmental concessions.