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THE 2014 informal meeting of the Asia- Pacific Economic Cooperation （APEC） is to be themed “Shaping the Future through Asia-Pacific Partnership.” The meeting this year will focus on three topics – advancing regional economic integration， promoting innovative development， economic reform and growth， as well as strengthening interdependence and infrastructure. The summit will also discuss the feasibility of the Free Trade Area of the Asia-Pacific （FTAAP） and determine if the Free Trade Area can be started.
Bright Future for the FTAAP
Founded in 1989， APEC， as an intergovernmental organization operating on the basis of non-binding commitments， open dialogue and equal respect for its 21 member economies， is devoted to facilitating economic growth， cooperation， trade and investment. “Advancing regional economic integration” is a longstanding goal of APEC meetings. The long-term goal of APEC is to liberalize and facilitate trade and investment. However， due to the huge disparity between APEC members， APEC set two timeframes. First， the 1994 Bogor Declaration set the goal of free and open trade and investment by 2010 for industrialized economies and by 2020 for developing ones. Second， APEC’s Osaka Action Agenda in 1995 and Manila Action Plan in 1996 were reached to ensure that the Bogor Declaration would be implemented through individual and collective action plans.
Although APEC first proposed the FTAAP in 2006， the issue has foundered in debate and argument. Today the FTAAP has finally entered the process of pragmatic discussion. The APEC meeting will set new goals for advancing the FTAAP and seek to introduce “acceptable”plans and routes under the APEC trade frameworks and mechanisms.
The establishment of the FTAAP will substantially improve the environment for trade and investment， help realize the Bogor goals and seek new vitality and direction to lead the Asia-Pacific economic cooperation. It conforms with the objectives of APEC – to maintain economic growth and development， promote economic interdependence， strengthen the open multilateral trading system， and safeguard the common interests of the people in the Asia-Pacific region.
Regional economic integration is for the common good of APEC member states. It is essential for reviving the Asia-Pacific economy， enhancing regional competitiveness and boosting employment in the member economies. Therefore， we should make concerted effort to promote the liberalization and facilitation of trade and investment. Many Difficulties， but More Solutions
In recent years， the slow revival and outdated development modes of the Asia-Pacific economy forced the region to seek new modes of cooperation. The successful examples of other areas have boosted the integration of the Asia-Pacific region. However， APEC is at cross-roads， facing the awkward choice of fragmentation or economic integration.
The difficulties are as follows. The first is the different directions and priorities in regional economic cooperation. The 21 member states of APEC， in terms of geography， are located in North America， South America， East Asia and Oceania. They include developed industrialized and developing countries； capitalist and socialist countries； and they are further diversified in religion and culture. The diversity of its member states is the basis for APEC’s existence， as well as the premise that must be considered when formulating any guiding principles. Over the past 10 years， trade volume within Asia has increased from US $1 trillion to US $3 trillion， climbing from 30 percent to 50 percent of all Asian trade. How- ever， compared with that of the EU， the gap is still huge.
The second is fragmentation and subregional interests. There are several culprits： some developed member states hold a negative attitude towards economic and technical cooperation and often operate on a unilateral basis. Although the Trans-Pacific Partnership （TPP） and Regional Comprehensive Economic Partnership （RCEP） are workable pathways to realize the FTAAP， some countries still act independently without coordinating with other members. Diversity within APEC is also an obstacle to cooperation. Political factors， including issues related to history， territory and culture clashes， also negatively affect cooperation. Moreover， recent years have seen diversified forms of free trade area worldwide. The free trade agreements within the Asia-Pacific region have seen rapid development. Although they are conducive to trade development， they still cause the “spaghetti bowl”effect of many differing agreements that make it difficult for enterprises to adapt to local conditions. For example， if different treatments are applied to the same product of an enterprise in different free trade areas， the requirements for their Certificate of Origin are also different. A Free Trade Area can end the “spaghetti bowl” effect that all APEC members are facing now.
The third obstacle is the shortage of feasible and workable mechanisms and funds for regional development.
Bright Future for the FTAAP
Founded in 1989， APEC， as an intergovernmental organization operating on the basis of non-binding commitments， open dialogue and equal respect for its 21 member economies， is devoted to facilitating economic growth， cooperation， trade and investment. “Advancing regional economic integration” is a longstanding goal of APEC meetings. The long-term goal of APEC is to liberalize and facilitate trade and investment. However， due to the huge disparity between APEC members， APEC set two timeframes. First， the 1994 Bogor Declaration set the goal of free and open trade and investment by 2010 for industrialized economies and by 2020 for developing ones. Second， APEC’s Osaka Action Agenda in 1995 and Manila Action Plan in 1996 were reached to ensure that the Bogor Declaration would be implemented through individual and collective action plans.
Although APEC first proposed the FTAAP in 2006， the issue has foundered in debate and argument. Today the FTAAP has finally entered the process of pragmatic discussion. The APEC meeting will set new goals for advancing the FTAAP and seek to introduce “acceptable”plans and routes under the APEC trade frameworks and mechanisms.
The establishment of the FTAAP will substantially improve the environment for trade and investment， help realize the Bogor goals and seek new vitality and direction to lead the Asia-Pacific economic cooperation. It conforms with the objectives of APEC – to maintain economic growth and development， promote economic interdependence， strengthen the open multilateral trading system， and safeguard the common interests of the people in the Asia-Pacific region.
Regional economic integration is for the common good of APEC member states. It is essential for reviving the Asia-Pacific economy， enhancing regional competitiveness and boosting employment in the member economies. Therefore， we should make concerted effort to promote the liberalization and facilitation of trade and investment. Many Difficulties， but More Solutions
In recent years， the slow revival and outdated development modes of the Asia-Pacific economy forced the region to seek new modes of cooperation. The successful examples of other areas have boosted the integration of the Asia-Pacific region. However， APEC is at cross-roads， facing the awkward choice of fragmentation or economic integration.
The difficulties are as follows. The first is the different directions and priorities in regional economic cooperation. The 21 member states of APEC， in terms of geography， are located in North America， South America， East Asia and Oceania. They include developed industrialized and developing countries； capitalist and socialist countries； and they are further diversified in religion and culture. The diversity of its member states is the basis for APEC’s existence， as well as the premise that must be considered when formulating any guiding principles. Over the past 10 years， trade volume within Asia has increased from US $1 trillion to US $3 trillion， climbing from 30 percent to 50 percent of all Asian trade. How- ever， compared with that of the EU， the gap is still huge.
The second is fragmentation and subregional interests. There are several culprits： some developed member states hold a negative attitude towards economic and technical cooperation and often operate on a unilateral basis. Although the Trans-Pacific Partnership （TPP） and Regional Comprehensive Economic Partnership （RCEP） are workable pathways to realize the FTAAP， some countries still act independently without coordinating with other members. Diversity within APEC is also an obstacle to cooperation. Political factors， including issues related to history， territory and culture clashes， also negatively affect cooperation. Moreover， recent years have seen diversified forms of free trade area worldwide. The free trade agreements within the Asia-Pacific region have seen rapid development. Although they are conducive to trade development， they still cause the “spaghetti bowl”effect of many differing agreements that make it difficult for enterprises to adapt to local conditions. For example， if different treatments are applied to the same product of an enterprise in different free trade areas， the requirements for their Certificate of Origin are also different. A Free Trade Area can end the “spaghetti bowl” effect that all APEC members are facing now.
The third obstacle is the shortage of feasible and workable mechanisms and funds for regional development.