The IMF Spring Meetings are taking place from 13 to 18 April 2026. The meetings include press briefings on the latest issues of IMF publications, panel discussions involving prominent politicians and finance experts, presentations of analytical studies and civil society forums.
On 13 April 2026 Chikako Baba and Ashique Habib of the IMF’s Asia Pacific department gave a presentation with the title Navigating the evolving trade landscape: The Case for Deeper Asia-Pacific Trade Integration. They looked at how trade can continue as an engine of growth in Asia Pacific as trade barriers rise. The presenters argued that deeper integration is needed in the region, with a reduction of non-tariff barriers. Asia Pacific economies trade in a large number of intermediate goods that are made within Asia and exported for assembly in other Asian countries such as China or Vietnam. The final products are normally expected to be sold outside the region. As a result, currently the Asia Pacific share of trade in final products is only around 30%.
Tariffs within the region have come down, but non-tariff barriers have risen. These include quotas, restrictions on foreign investment and licensing barriers to trade. The Asia Pacific region has numerous trade agreements, some containing commitments to lower non-tariff barriers. These could be called “deep” agreements, but other agreements do not lower the non-tariff trade barriers. The median “depth” of trade agreements in the region is shallower than those in Europe and North America. The Asia Pacific economies have mostly concluded bilateral trade agreements and a patchwork of regional agreements such as ASEAN.
By reducing non-tariff barriers, countries in the region could raise real GDP by around 2% in the medium to long term. This could be done by increasing market access for their companies and products in other countries, making it easier to sell intermediate goods and final goods. Research has suggested that giving market access to the domestic market for firms from other countries is a larger factor in raising growth than gaining market access in those other countries. By lowering non-tariff barriers for imports into the country, it is possible for final goods to be imported at lower prices, while domestic firms can specialise in their comparative advantage.
The gains from lower tariff barriers vary across countries. Generally, countries can gain more if they liberalise more. Also, smaller economies tend to gain more from lowering non-tariff barriers as they have a smaller domestic market and production base. Countries already integrated in the value chain can benefit from lower costs of production, that compound along the supply chain. Also, deeper trade agreements can support the growth of services.
