ID :
368634
Mon, 05/25/2015 - 11:50
Auther :

FTA's Lead To Rising Exports In Asia-Pac, Study

SINGAPORE, May 25 (Bernama) -- A new Asia Pacific Economic Cooperation (APEC) Policy Support Unit report confirms that regional free trade agreements (FTAs) in the Asia-Pacific do make a difference in boosting exports. These preliminary findings were submitted to the APEC Trade Ministers in Boracay (the Philippines) over the weekend. According to the report, the number of regional and bilateral FTAs in the Asia-Pacific region has multiplied since the 1990s, with APEC members among the most active economies in negotiating them. At present, APEC members have 144 enforced FTAs, about 53 per cent of the global number. Executive director of the APEC Secretariat Dr Allan Bollard said: "However, despite this growth, more than 50 per cent of trade in the region takes place without the benefit of any preferential trade agreement. "This begs the question of whether FTAs actually matter. To answer this question, the APEC Policy Support Unit study took a preliminary look at the effects of the FTAs on exports. "Initial analysis showed that the average exports five years after an FTA is enforced is significantly higher vis-à-vis the average exports five years before. "For the entire sample, average annual exports for the five years before FTAs was US$4.1 billion. After FTAs were in place, the following five years saw a jump in average annual exports to US$6 billion." He said in addition, the quality of a FTA was also found to be important in terms of encouraging exports. For example, some agreements only cover goods but exclude services. Others are more comprehensive and include regulations affecting labor, environment, competition policies and other chapters. The study tested for quality through comparing FTAs enforced before 2005 and those after, the rationale being that later ones were more comprehensive and of higher quality. "These initial findings suggest that FTAs between economies do make a difference and have a significant impact on exports, despite the cost and time required to negotiate them," said Gloria Pasadilla, senior analyst at the APEC Policy Support Unit. -- BERNAMA

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