Print This Page Print This Page
Send This Page Send This Page
 

Free Trade Agreements and Regional Trading Agreements

  

Official Links to Information on Member Economies' FTAs/RTAs

RTAs/FTAs: a Cross-Cutting Issue for APEC

APEC Economic Leaders and Ministers recognise 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. Leaders also committed APEC to developing model measures for as many commonly accepted FTA chapters as possible by 2008. The business community and APEC Senior Officials share the view that while the measures will be non-binding, the exercise will help address the problem of diverging FTA/RTA provisions which makes the process of trade liberalisation and the conduct of business across the APEC region more complicated than it needs to be.

Achievements

Promoting high quality RTAs/FTAs

In 2008 the 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 Committee on Trade and Investment (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

The most recent Senior Official-level policy dialogue on RTAs and FTAs, an annual event, was held on 27 May 2008. The dialogue centred on the findings of the studies 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 comparative analysis attempts to provide a broad and deep overview of trade liberalisation in APEC and, at the same time, serves as a guidance tool for future negotiations. The Senior Officials concluded that the process of harmonisation of agreements in the Asia-Pacific is an issue of great importance.This is particularly true for small and medium enterprises to 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 . The CTI TPD was aimed at helping members to have a better understanding of the technical and policy issues at hand, to enable the CTI to have a good discussion on possible next steps at the CTI and Senior Offical levels.

Identifying Convergences and Divergencies

APEC Ministers welcomed the completion of the initial stage of the study on identifying convergences and divergences in 14 chapters of 30 APEC's RTAs/FTAs. 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 was also developed. The database can be found at www.mincetur.gob.pe/apec_fta. The study found that in particular chapters the substance and intent of the rules employed in existing agreements did not vary markedly, whereas in other areas a higher level of divergence could be identified.

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.

Top

Current Activities

  
The 2009 work plan for the APEC REI agenda directs APEC to:

  • Examine the various types of preferential rules of origin used in the APEC region with the aim of increasing knowledge of their similarities and differences.

  • Explore, in close cooperation with the business sector, how rules of origin used in economies' RTAs/FTAs might be rationalised.

  • Expand dialogue on examining ways to achieve greater consistency in key provisions of RTAs/FTAs in the region.

  • Expand and deepen the convergences/divergences study by adding to the agreements and chaptered covered in 2008.

  • Examining the feasibility of enlarging, docking or merging existing FTAs.

  • Conduct analytical work on the economic impact of an FTAAP and on the specific benefits and challenges for APEC economies associated with such an agreement.

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.

Capacity building workshops, policy dialogues or symposia will continue to be conducted at the CTI/CTI sub-forum level, allowing exchanges between government officials and FTA negotiators on best practice and strengthening FTAs in the region.


 Free Trade Agreements and Regional Trading Agreements - Key Contacts

APEC Secretariat
Ms Catherine Wong
Director (Program)
E-mail: cw@apec.org
Top

Reviewed on: 13 February 2009