The Asia-Pacific region has consistently been the most economically dynamic region in the world. Since APEC's inception in 1989, APEC's total trade has grown 395%, significantly outpacing the rest of the world.1 In the same period, GDP (in purchasing power parity terms) in the APEC region has tripled, while GDP in the rest of the world has less than doubled.2
APEC's work under its three main pillars of activity, Trade and Investment Liberalisation, Business Facilitation and Economic and Technical Cooperation, has helped drive this economic growth and improve employment opportunities and standards of living for the citizens of the region.
Trade and Investment Liberalisation
- APEC is the premier forum for trade and investment liberalisation in the Asia-Pacific and has set targets dates for "free and open trade": no later than the year 2010 for industrialised economies, and 2020 for developing economies (the Bogor Goals).
- When APEC was established in 1989 average trade barriers in the region stood at 16.9%; by 2004 barriers had been reduced by approximately 70% to 5.5%.3
- As a consequence, intra-APEC merchandise trade (exports and imports) has grown from US$1.7 trillion in 1989 to US$8.44 trillion in 2007 - an average increase of 8.5% per year; and merchandise trade within the region accounted for 67% of APEC's total merchandise trade in 2007.4
- Similarly, trade with the rest of the world has increased from US$3 trillion in 1989 to US$15 trillion in 2007, an average increase of 8.3% per year. Trade in the rest of the world has increased at 7.6% over the same period.
- Over 30 bilateral free trade agreements (FTAs) have been concluded between APEC Member Economies.
- APEC is also pursuing trade and investment liberalisation through its Regional Economic Integration agenda. Progress to date includes:
- Investigating the prospects of and options for a Free Trade Area of the Asia-Pacific.
- The development of 15 model measures for RTAs/FTAs that serve as a reference for APEC members to achieve comprehensive and high-quality agreements.
APEC has also acted as a catalyst in the advancement of World Trade Organisation multilateral trade negotiations over the past 20 years.
Business Facilitation
- As a result of the APEC Trade Facilitation Action Plan (TFAP I) the cost of business transactions across the region was reduced by 5% between 2002 and 2006.
- A second trade facilitation action plan (TFAP II), aims to reduce transaction costs by a further 5% between 2007 and 2010.
- APEC initiatives that help facilitate trade include:
- The introduction of electronic/paperless systems by all member economies, covering the payment of duties, and customs and trade-related document processing.
- The Single Window Strategic Plan, adopted in 2007, provides a framework for the development of Single Window systems which will allow importers and exporters to submit information to government once, instead of to multiple government agencies, through a single entry point.
- Providing business with a concise one-stop repository of customs and trade facilitation related information for all APEC economies through the APEC Customs and Trade Facilitation Handbook
- The APEC Tariff Database provides users with easy access to APEC member economies' tariff schedules, concessions, prohibitions and other information.
- In 2008, a groundbreaking Investment Facilitation Action Plan was endorsed; it aims to improve the investment environment in Member Economies.
- The APEC Privacy Framework provides guidance and direction to both APEC Member Economies and businesses on implementing information privacy protection policies and procedures. By facilitating information flows it will facilitate trade and e-commerce.
- The APEC Business Travel Card (ABTC) provides substantial time and cost savings to business people and facilitates their travel in the region, by allowing visa free travel and express lane transit at airports in participating economies.
- APEC is also removing behind-the-border barriers to trade through its Structural Reform agenda, which focuses on reforming domestic policies and institutions that adversely affect the operation of markets, and the capacity of businesses to access markets and to operate efficiently.
Economic and Technical Cooperation
- APEC's Economic and Technical Cooperation (ECOTECH) activities are designed to build capacity and skills in APEC Member Economies at both the individual and institutional level, to enable them to participate more fully in the regional economy and the liberalisation process.
- Since APEC first began to undertake capacity building work in 1993, more than 1200 projects have been initiated; and in 2008, APEC was implementing a total of 212 capacity building projects with a total value of US$13.5m.
- A particular focus has been reducing the digital divide between developed and developing economies:
- In 2000, APEC set a goal of tripling internet usage in the region and that goal has now been achieved, as recognised by the 2008 APEC Ministerial Meeting on the Telecommunications and Information Industry. APEC's new goal is to achieve universal access to broadband by 2015.
- A network of 41 APEC Digital Opportunity Centers (ADOC) now operate in seven Member Economies. ADOC's objective is to transform the digital divide into digital opportunities and the centres act as local information and communication technology (ICT) resource centres, providing citizens and businesses of the region with access to ICT technologies, education and training.
- APEC is also developing a Digital Prosperity Checklist that outlines specific steps economies can take to enable them to utilise ICT as catalysts for growth and development.
Other Achievements
APEC has also been able to evolve its agenda to include pressing regional priorities. Examples include: counter-terrorism (The Shanghai Statement in 2001, and the Counter-Terrorism Task Force); human security (Health Working Group); emergency preparedness (Task Force for Emergency Preparedness); climate change, energy security and clean development (The Sydney Declaration in 2007); and the global financial crisis (The Lima Statement in 2008).
1 The Department of Trade and Foreign Affairs (2008), The APEC Region Trade and Investment 2008, Australia.
2 Op cit
3 APEC (2005), A Mid-Term Stocktake of the Bogor Goals
4 The Department of Trade and Foreign Affairs (2008), The APEC Region Trade and Investment 2008, Australia.
