The Role of Customs in the Economic Integration of East Asia: Problems and Proposals

The supply and consumption of regional public goods offers a new perspective from which to analyse economic integration. Further, functional cooperation should be generally acknowledged as constituting the main approach to and essential content of the deeper economic integration of East Asia. In this respect, the provision of regional public goods represents a fundamental element of functional cooperation. This paper examines economic integration in East Asia and the role played by Customs. The study is largely theoretical but also refers to empirical data. The author argues that the various initiatives embarked on to date to promote economic integration represent only one aspect of this subject and attention should also be paid to the concept of an East Asian customs union. The foundation for establishing such a union lies in customsrelated functional cooperation. Customs cooperation could provide the basis for deeper economic integration of East Asia in terms of providing regional public goods. This could then impact on other economic sectors such as the environment and finance as well as political and even institutional areas.