Free Trade Agreements and Regional Trading Agreements (FTAs/RTAs) - Asia-Pacific Economic Cooperation
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Free Trade Agreements and Regional Trading Agreements

  

Official Links to Information on Member Economies' FTAs/RTAs

APEC recognises the important role Regional Trading Agreements (RTAs) and Free Trade Agreements (FTAs) can play in trade liberalisation in the APEC region.

In 2005, APEC Leaders included the promotion of high-quality RTAs and FTAs as an element of the Busan Roadmap towards the Bogor Goals and committed APEC to developing model measures for commonly accepted FTA chapters.


Achievements

Promoting high quality RTAs/FTAs
In 2008 the Committee on Trade and Investment (CTI) completed its work on model measures by concluding five chapters, including a chapter on Customs Administration and Trade Facilitation that was developed by the APEC Business Advisory Council (ABAC). This brings the total number to 15 (see Appendix 2 of the 2008 CTI Annual Report). These model measures will serve as a reference for member economies seeking to negotiate RTAs/FTAs, and assist in promoting consistency in RTAs/FTAs across the region. The initiative builds upon the APEC Best Practices for RTAs/FTAs which serve as a useful guide for APEC members when undertaking RTA/FTA negotiations.

Policy Dialogue on RTAs and FTAs
A Senior Official-level policy dialogue on RTAs and FTAs was held on 27 May 2008. The dialogue centred on the findings of the study on "Identifying Convergences and Divergences in APEC's RTAs/FTAs", undertaken by Peru in collaboration with the Inter-American Development Bank (IADB) and other lead economies (Chile, Japan, New Zealand and the United States). This study provides a broad and deep overview of trade liberalisation in APEC and serves as a guidance tool for future negotiations. APEC Senior Officials concluded that the process of harmonisation of agreements in the Asia-Pacific is an issue of great importance; particularly to help small and medium enterprises benefit from trade liberalisation.

The dialogue also included a session on docking and merging of FTAs which followed the outcomes of a CTI Trade Policy Dialogue (TPD) on Enlargement, Docking and Merging of FTAs held on 24 May 2008.

Identifying Convergences and Divergences
The first phase of the Convergences/Divergences study has analysed 14 chapters in 30 of the RTAs/FTAs that exist between APEC members. The chapters covered were: market access, rules of origin, customs procedures, environment, investment, trade remedies, competition policy, cross-border services, sanitary and phytosanitary measures, technical barriers to trade, government procurement, intellectual property, labour and dispute settlement. A pilot database that enables a comparison of the provisions of the 30 FTAs analysed in the study has also been developed. The database can be found at www.mincetur.gob.pe/apec_fta.

Regional Economic Integration (REI) and a Free Trade Area of the Asia Pacific (FTAAP)
In 2007, APEC Economic Leaders endorsed the report on Strengthening Regional Economic Integration which contains 53 agreed actions aimed at strengthening work towards REI among APEC economies and which includes an FTAAP as a long-term prospect. A progress report summarising the steps taken in 2008 to promote regional economic integration (REI) was presented to APEC Leaders in November.

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Current Activities
  • The Friends of the Chair (FOTC) groups on REI set up at both the CTI and Senior Officials levels will continue to oversee the work on the REI agenda. The CTI-FOTC will liaise with the relevant sub-fora to help them prioritise their REI-related work. The CTI-FOTC has agreed to focus its initial work in 3 areas: rules of origin; convergences and divergences of FTAs; and docking, merging and enlargement of FTAs.
  • Work to rationalise rules of origin in APEC members' FTA/RTAs is currently being undertaken by the CTI.
  • The CTI is updating the 14 chapters of the 30 FTAs/RTAs reviewed in the 2008 Convergences/Divergences Study. The study is also being expanded to include 12 more FTA/RTAs and to include a chapter on electronic commerce.
  • Capacity building workshops, policy dialogues or symposia will continue to be conducted at the CTI/CTI sub-fora level, allowing exchanges between government officials and FTA negotiators on best practice and strengthening FTAs in the region.
  • Analytical work on the economic impact of an FTAAP and on the specific benefits and challenges for APEC economies associated with such an agreement is being undertaken. A preliminary inventory of issues that would need to be addressed as part of a preparatory process for a possible FTAAP has been already been developed; and currently Korea, Australia, China, New Zealand, Peru and the United States are working on an analytical study to determine the likely economic impact, benefits and challenges of an FTAAP for presentation to the Concluding Senior Officials? Meeting and the APEC Ministerial Meeting in November 2009.
  • The CTI held a Trade Policy Dialogue (TPD) on 24 July to help members better understand the technical and policy issues related to the establishment of a FTAAP. Senior Officials will also hold a half-day TPD on 8 November to consider the results/outcomes of the expanded Convergence/Divergence Study and the Analytical Study of the Likely Economic Impact of an FTAAP. Drawing from these studies, Senior Officials will discuss options to achieve an FTAAP.


Free Trade Agreements and Regional Trading Agreements - Key Contacts

APEC Secretariat
Ms Catherine Wong
Director (Program)
E-mail: cw@apec.org
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Reviewed on: 22 October 2009