ASIAN economies could be long-term victims of the North American Free Trade Agreement if the accord means the United States' moving away from multi-lateral trade, World Bank officials have warned.
The World Bank was preparing a study on trade in East Asia in which it would look closely at how NAFTA might affect the region, its East Asia and Pacific chief economist, Vinod Thomas, told Sunday Money.
The warning comes as the World Bank today releases its annual report, which, once again, shows the region easily outperforming the recession-hit West in terms of growth.
Mr Thomas said the bold print of NAFTA - which establishes a free-trade zone between the US, Canada and Mexico - would not indicate a short-term problem for Asian countries' ability to enter the American market.
''But you've got to look at what it means for the future. If NAFTA comes at the cost of multi-lateralism, which has served Asia so well, that will clearly be a problem,'' he said.
Japan and South Korea are already concerned about how the agreement will affect their car exports once it has passed through its stormy autumn Congress session.
