Closer economic relations with East Asia?

This paper examines Australia's economic links with East Asia and the polic y implications of these links. The main issue is whether Australia should j oin the regional trading arrangements with East Asian countries that have b een proposed. It examines the factors which determine the share of East Asi a in Australian exports. One of these, the country bias factor, is threaten ed by proposed regional trading arrangements which might exclude Australia. After considering the costs of exclusion, the paper concludes that Austral ia should consider developing new bilateral or regional trade arrangements with countries in East Asia.