The Asia-Pacific region continues to be the largest contributor to the worldwide build-up of preferential trade agreements (PTAs), accounting for nearly 60% of PTAs in force worldwide. PTAs have become bigger, deeper, and increasingly covering issues related to digital trade and sustainable development.
The Asia-Pacific region‘s "noodle bowl" of trade agreements now includes 374 PTAs with at least one party in the Asia-Pacific. Of these, 229 are in force, 27 have been signed but are awaiting ratification, and 100 are under negotiation.
Between January and December 2024, eight new PTAs were signed, while eleven were under negotiation. Most of these new PTAs are bilateral agreements with economies outside the region. The bilateral approach reflects a growing preference for tailored and flexible trade and investment terms, adding complexity to the existing noodle bowl of agreements. The choice of new partners highlights a strategic shift toward diversifying trade relationships aligned with the drive to seek more resilient supply chains.
Trade among PTA partners accounts for about half of all trade by Asia and the Pacific economies ? approximately 50 per cent of exports and 53 per cent of the total imports. Notably, this trend is significantly driven by East and North-East Asia, and South-East Asia, which are actively engaged in negotiating trade agreements.
Aside from tariff preferences, the most commonly included provisions in Asia-Pacific PTAs are ‘trade facilitation and customs cooperation’, followed by ‘competition policy’, and ‘intellectual property’. These provisions are present in more than 50 per cent of the signed and enforced PTAs. Since 2003, the inclusion of provisions surrounding sustainable development and digital trade in Asia-Pacific PTAs has also accelerated.