[27]ec.europa.eu/trade/policy/eu-position-in-world-trade/ [28]For example, to participate in the EU’s Generalised Scheme of Preferences, developing  countries have to put into practice key UN human rights and International Labour Organization conventions. [29]Bradford, A (2012), “The Brussels effect”, Northwestern University Law Review, 102(1). [30]See European Commission/EACEA/Eurydice (2018), The European Higher Education Area in  2018: Bologna Process Implementation Report, Luxembourg: Publications Office of the European Union. [31]For a discussion of these phenomena in the US context, see Inman, R. and Rubinfeld, D.  (1997), “Rethinking Federalism”, Journal of Economic Perspectives, Volume 11, Number 4, Fall 1997. [32]See ec.europa.eu/trade/policy/countries-and-regions/negotiations-and-agreements/#_in-place  andustr.gov/trade-agreements/free-trade-agreements [33]Capella-Ramos, J. (2018), “Country-specific recommendations for economic policies under  the 2018 European Semester”, Economic Bulletin, Issue 5, ECB. [34]For an in-depth discussion of the policies that are needed to increase the international role of  the euro see Cœuré, B. (2019), “The euro’s global role in a changing world: a monetary policy perspective”, speech at the Council on Foreign Relations, New York City, 15 February. [35]European Commission (2018), op. cit. [36]Case 6/64, Costa v E.N.E.L., judgment of the Court of 15 July 1964, p. 594; Case 314/85,  Foto-Frost v Hauptzollamt Lübeck-Ost, judgment of the Court of 22 October 1987, paragraphs 15–16. [37]Habermas, J. (2008 repr. ), Between Facts and Norms: Contributions to a Discourse Theory  of Law and Democracy, translated by William Rehg, MIT Press, p. 144 et seq. ; Luhmann, N. (1993), Das Recht der Gesellschaft, Suhrkamp, pp. 150–3. [38]Sermon at St. Winfried Church, Bonn, 26th November 1981.

While we see significant adverse impacts of global integration, Asian economic integration, in fact, has a crucial role in helping a number of our regional economies withstand this enormous external destabilizing shock. Hence, our essential tasks are about determining an appropriate pace of further integration and making us increasingly resilient in response to the fast changing environment. To elaborate the above points, allow me to briefly talk about the developments of Asian economic integration with the world and within the region. On the trade side, there are two important on-going forces. First, international trade with the economies outside the region has risen significantly especially due to the emergence of China and India in the world trade arena, as well as policies to lower trade barriers and establish trade agreements. Second, within East Asia, intra-regional trade has grown rapidly and surpassed trade with the outsiders since 2004. The driver is vertical integration of the production networks of multinational corporations across regional economies. On the financial side, since the Asian financial crisis, East Asian economies have taken various efforts to deregulate and deepen the financial markets and liberalize their capital account. We have witnessed significantly rising financial linkages within East Asia. We have also seen rising FDI activities both within the regional economies and with other regions. Increasing regional FDI is largely a result of the aforementioned regional production networks. Portfolio investment has also increased significantly prior to the period of the subprime problem due to increasing demand of international investors for emerging market assets.