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List of Tables=vii

List of Figures=ix

List of Abbreviations=xi

Preface=xiii

1. Introduction / Antoni Estevadeordal ; Masahiro Kawai ; Ganeshan Wignaraja=1

Part I. Trade Facilitation

2. Origin and Beyond : Trade Facilitation Disaster or Trade Facilitation Opportunity? / Brian Rankin Staples ; Jeremy Harris=23

3. Accelerating Regional Integration : Issues at the Border / Douglas H. Brooks ; Susan F. Stone=40

4. Trade Logistics and Regional Integration in Latin America and the Caribbean / Pablo Guerrero ; Krista Lucenti ; Sebastián Galarza=73

Part II. Supply Chains

5. Supply Chain Dynamics in Asia / Ruth Banomyong=111

6. The Internationalization of SMEs in Regional and Global Value Chains / Hank Lim ; Fukunari Kimura=140

7. Regional Integration Behind the Border : Applying a Value Chain Approach / Grant Aldonas=170

Part III. Asia-LAC Relations

8. PRC's Outward FDI to Latin America : Trends and Motivations / Gloria O. Pasadilla=193

9. Asia-Latin America FTAs : An Instrument for Interregional Liberalization and Integration? / Ganeshan Wignaraja ; Dorothea Ramizo ; Luca Burmeister=210

10. Prospects for Regional Cooperation between Latin America and Caribbean and Asia and Pacific : Perspective from East Asia / Erlinda M. Medalla ; Jenny D. Balboa=260

About the Editors and Contributors=300

Index=303

List of Tables

3.1. Trade Growth in Asia's 10 Leading Exporters, 1987-2007=43

3.2. Trade in Asian Subregions and Other World Regions, 1990-2007=44

3.3. Costs of Exporting, by Region, 2006-2007=53

3.4. Commodity Aggregation=59

3.5. Time Costs of Exports in APEC Asia=61

3.6. Impacts of Trade Cost Reduction of 25%=62

3.7. Changes in Bilateral Exports=65

4.1. Trade Agreements in Latin America and the Caribbean, North-South Agreements=80

4.2. Trade Agreements in Latin America and the Caribbean, South-South Agreements=82

4.3. IIRSA Project Status and Financing Structure=98

4.4. Comparison of Average Inventory Levels, Losses to Markets, and Logistics Costs in Latin America and OECD, 2004=100

5.1. Players in the Security Supply Chain=119

5.2. Routing Alternatives between Thailand and Viet Nam=124

5.3. Comparison of Cost Components for One Leather Seat Cover (Mexico vs. Thailand)=135

7.1. Cost and Delay for Processing Foreign Trade at Border=185

8.1. M&A in the PRC's OFDI (US$ million)=198

8.2. Greenfield Investments of Top Company Investors in Latin America and the Caribbean=202

9.1. Shares of Latin American Countries' Trade and Investment with Asia and Number of FTAs, 1990-2012=221

9.2. Shares of Asian Economies' Trade and Investment with Latin America and Number of FTAs, 1990-2012=222

10.1. Analytical Framework for Regional Cooperation=265

10.2. Asia-Pacific Intra-Regional Trade by Geographic Grouping (percentage of the region's total trade)=266

10.3. Inward Foreign Direct Investment=267

10.4. Growth in International Trade=268

10.5. Population=277

10.6. GDP=278

10.7. Merchandise Trade, 2012 (US$ billion)=279

10.8. Services, 2012 (US$ billion)=279

10.9. Tariff Trade Restrictiveness Index (TTRI)=280

10.10. Latin America and the Caribbean : Ranking of the PRC, Japan, and the Republic of Korea in Each Country's Trade, 2000 and 2007=281

10.11. Latin America and the Caribbean Exports by Major Exports Region, 2007=283

10.12. Latin America and Asia-Pacific : Trade by Regions and Products by Technology Intensity, 2006=285

10.13. Grubel Lloyd Indices for Some Latin America and Caribbean Countries with Asia-Pacific, 2006=287

10.14. Logistics Performance Indicator, 2012=290

10.15. ISO Certifications in 2012, by Standard=291

10.16. Some Research and Development Indicators=294

10.17. PISA Rankings and Scores, 2006=296

List of Figures

3.1. Growth in Output and Trade=46

3.2. International Logistics Performance Index (LPI)=54

3.3. Ranking for Trade Facilitation Measures=57

3.4. Changes in Exports by Sector=64

4.1. Manufactured Exports by Regions (% of merchandise exports)=75

4.2. Intra-Regional Exports of Major Trading Blocs (%of merchandise exports, 1990-2012)=76

4.3. Index of Intra-Industry Trade by Region=86

4.4. Total Import Freight Expenditures as a Share of Imports, 2006 (%)=88

4.5. Return of Investment in Transport Infrastructure Hardware=90

4.6. Heavy Vehicles Average Ages―Central America and Selected Countries 2010-2012=90

4.7. Average Distance T rave led (km truck/year)―Central America and Selected Countries=91

4.8. Central America Trucking : Percentage of Empty Backhauls=92

4.9. Tariffs (US$/km/year) and Trucks Average Age―Central America and United States=92

4.10. Logistics Costs as Percentage of Product Value for Selected Economies (2004)=94

4.11. IIRSA Corridors=96

4.12. IIRSA Project Portfolio by Sector=97

4.13. IIRSA Project Portfolio by Countries=98

4.14. Mesoamerican Project Corridors=101

5.1. Role Played by Logistics Service Provider in Global Supply Chain=123

5.2. Supply Chain Routing Alternatives between Thailand and Viet Nam=124

5.3. Pipeline of Weekly Shipments between Thailand and the United States=134

6.1. Intra-Regional Trade (export and import ration in percent)=141

6.2. Trade Share of East Asia with Partner (%)=142

6.3. Trade Pattern inside East Asia (%)=142

6.4. Production/Distribution Networks (geographical fragmentation)=144

6.5. The Theory of Fragmentation=145

6.6. Fragmentation in a Two-Dimensional Space=146

6.7. Roles and Characteristics of SMEs=152

6.8. How SMEs Fit into Global Value Chains=155

7.1. Agro-Exports Supply Chain―Upstream=182

7.2. Peru Agro-Export Supply Chain―Downstream=187

8.1. Chinese Stock of OFDI=195

8.2. Chinese OFDI Stock in Latin America and the Caribbean, 2010=200

8.3. Distribution of Projects by Sector=204

8.4. Distribution of Number of Projects by Business Activity=205

8.5. Chinese OFDI to Latin America and the Caribbean=206

8.6. Chinese OFDI to Latin America and the Caribbean by Sector=206

8.7. Latin America and the Caribbean Exports to the PRC of Ores and Metals=207

8.8. Latin America and the Caribbean Exports to the PRC of Mineral Fuels, Lubricants, and Related Items=208

9.1. Trade Flows between Asia and Latin America, 1990-2012 (US$ billion)=213

9.2. Trade Flows from Asia and PRC to Latin America, 1990-2012 (US$ billion)=215

9.3. Top Asian Traders with Latin America, 1990-2012 (% of total trade)=216

9.4. Top Latin American Traders with Asia, 1990-2012 (% of total trade)=217

9.5. FDI Flows between Asia and Latin America, 2003-2012 (US$ billion)=218

9.6. Growth of Asia-Latin America FTAs, 2004-2020=220

9.7. Asia's FTA Trade Coverage with Latin American Countries, 2004-2012=223

9.8. Latin America's FTA Trade Coverage with Asian Economies, 2004-2012=224

9.9. Distribution of Approaches to Tariff Liberalization, Services Coverage, and New Issues=228

10.1. FTAs in East Asia, 2000 and 2012=272

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Accelerating Regional Integration: Latin America, the Caribbean, Asia and the Pacific reviews the current state of the regional integration agenda in LAC-Asia-Pacific and explores various issues faced by these regions in their integration process. It talks about the issues faced in the process of trade and investment liberalization in the Asia-Pacific region with particular attention to the internationalization of small and medium scale enterprises (SMEs) in regional and global value chains. The book also puts special emphasis on the state of play of different integration processes currently underway such as APEC/FTAAP/ARCO/ASEAN+/ etc., and ways for the process to be accelerated. It brings to light issues regarding the need to enhance connectivity between countries and regions to deepen the regional integration prospects with particular attention to the role of trade logistics.