The 1990s brought a great deal of talk among East Asian nations about regional co-operation on trade, investment and exchange rates. Since an exclusive regionalism could run counter to American economic interests, the US government has reacted negatively to some of these proposals. This study explores what is happening to regional trade and investment flows and what sort of regional arrangements are the most sensible. While something new and interesting is happening among East Asian nations, Lincoln argues that an exclusivist grouping is unlikely. Free trade negotiations have brought some economies in the region together, but also linkages outside the region. Some governments in the region, most notably Japan, continue to have difficulty embracing the concept of free trade even with favoured regional partners. In the wake of the Asian financial crisis, governments have also talked about exchange rate co-operation, but have done little. Because trade and investment linkages across the Pacific to the United States remain very strong, Lincoln argues that the Asia Pacific Economic Co-operation forum will likely remain the appropriate institution for pursuing regional trade and investment issues.