APEC Officials LoginAPEC Groups
 |
||
|
|
||
|
|
||
|
|
||
|
Free Trade Agreements and Regional Trading Agreements |
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 of chapters 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 will assist in promoting consistency in RTAs/FTAs across the region. The initiative builds upon the APEC Best Practices for RTAs/FTAs which also serve as a useful guide for APEC members when undertaking RTA/FTA negotiations.
In 2009 the CTI explored possibilities for the model measures for trade facilitation to be expanded in order to provide more specificity and content. A comparative listing of the 2005 APEC model measures for trade facilitation, the 2008 ABAC model measures for trade facilitation and customs facilitation, and the trade facilitation chapter from the Canada-Costa Rica FTA was compiled for this exercise. The CTI noted the possible contribution of comparative listing to future work on APEC's Second Trade Facilitation Action Plan (TFAP II) and on the Supply-Chain Connectivity (SC) Framework.
Policy Dialogue on RTAs and FTAs
In 2009 the CTI held two Trade Policy Dialogues (TPD) on a Free Trade Area of the Asia-Pacific (FTAAP) to help members better understand the economic benefits and technical and policy implications of the establishment of an FTAAP. The TPDs covered: possible pathways to an FTAAP (for example, by docking and merging FTAs/RTAs based on APEC studies of the levels of convergence and divergence in FTAs between members); the "next generation" elements that should go into a 21st century trade agreement; the suggestion from ABAC that Senior Officials should start work on a timeline.
Identifying Convergences and Divergences
In 2009 the Convergences/Divergences Study of APEC FTAs was updated by expanding the scope from 30 to 42 intra-APEC FTAs/RTAs and deepening the coverage to include a new chapter on electronic commerce. The 14 chapters covered previously 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. The updated information has been uploaded to the APEC FTA database of the Convergence and Divergence Study at http://www.mincetur.gob.pe/apec_fta/
Regional Economic Integration (REI) and a Free Trade Area of the Asia Pacific (FTAAP)
In 2009 Korea led a study on the economic impact of a possible FTAAP and identified specific benefits and challenges for APEC economies. In 2009 Senior Officials endorsed an updated REI Multi-Year Work Programme. It contains concrete actions that economies can take to advance REI and work towards an FTAAP. One such step will be the promotion of comprehensive and consistent RTAs/FTAs that open markets and maximise trade and economic benefits.
Current Activities
Accelerating regional economic integration (REI) remains a priority for APEC in 2010 and this work is advanced by Senior Officials, the CTI and its sub-fora. To this end, discussions on possible pathways to an FTAAP continue. Senior Officials will report to APEC Ministers by November 2010 on the outcomes of the discussions.
Recent developments include:
At the second Senior Officials' Meeting (SOM2) held in June in Sapporo, Japan, Senior Officials reviewed the progress made on REI activities, including investment, standards/Technical Barriers to Trade (TBT), environmental goods and services, and supply chain connectivity, and considered updates on developments of RTAs/FTAs in the region.
The CTI held a TPD on 31 May in Sapporo, Japan on investment and standards/technical barriers to trade (TBT). The TPD contributed to the development of the Road Map on Investment through discussion of (i) the core elements in the work undertaken by the United Nations Conference on Trade and Development (UNCTAD); and (ii) findings of the Convergences/Divergences Study as possible contributions to the development of the APEC Investment Principles. The discussion on standards/TBT was aimed at raising awareness of the gamut of methods in which overcoming Non-Tariff Measures (NTMs) could be facilitated. The need for better alignment of standards and increased understanding through regulator collaboration was emphasised.
The CTI endorsed a proposal on "Capacity Building Needs for Strengthening REI." A survey will be conducted that identifies capacity building needs of developing member economies, including upgrading of negotiation skills when establishing larger-scale FTAs/RTAs. The proposal was developed to take forward the results of the FTAAP Analytical Study completed in 2009. Progress of the survey will be reported at the third Senior Officials' Meeting (SOM3) in September, and the final analysis of the survey will be considered at the Concluding Senior Officials' Meeting (CSOM) in November.
An overview and a matrix of a new chapter analysis on cooperation were completed by Thailand, bringing the total number of chapters analysed to 16. The analysis of the cooperation chapter showed that a broad convergence among the cooperation chapters of the analysed FTAs is highly feasible. Most of the objectives, forms/activities, mechanism/work programme of cooperation are common in content.
Free Trade Agreements and Regional Trading Agreements - Key Contacts
APEC Secretariat
Ms Catherine Wong
Director (Program)
E-mail: cw@apec.org
Reviewed on: 06 August 2010