This policy paper offers a well-rounded perspective on the economic rationale for South-South trade cooperation and regional integration while bringing out its nature and pattern in the Asia-Pacific region and its underlying main drivers. Based on extensive data analysis, the paper also identifies limitations and vulnerabilities for countries involved in the process of South-South trade. It identifies a wide array of policy measures with a potential for creating new synergies and enhancing the participation of low income countries in the rapid growth of intra-industry trade and product sharing arrangements.