APEC Paves Way For Realisation Of Asia Pacific FTA

SINGAPORE, April 30 (Bernama) -- APEC is taking concrete steps toward the realisation of a Free Trade Area of the Asia-Pacific (FTAAP), by making an important and meaningful contribution as an incubator for leadership and ideas, said APEC Secretariat Executive Director, Ambassador Muhammad Noor Yacob. He said APEC or the Asia-Pacific Economic Cooperation grouping is defining, shaping, and addressing "next generation" trade and investment issues such as SME participation, supply chain improvements and innovations which an FTAAP should contain. "APEC economies emphasise the strategic importance of regional economic integration and cooperation as a way to achieve sustainable growth and equitable development in the region. "These roots lie in APEC’s original agenda to support the multilateral trading system," he said, when addressing members of the business community, public sector and academia in Singapore, at a conference organised by the Pacific Economic Cooperation Council (PECC) here. The participants had gathered to discuss ways to address emerging challenges in the region. Despite the absence of a formal agreement, Muhammad Noor said a study conducted by the APEC Policy Support Unit found that APEC economies are more likely to export and import among members, rather than non-members. "Already, the impact of APEC membership on trade among members is comparable to a free trade agreement, even though they are not bound by formal rules or trade treaties," he added. Mohammad Noor, a Malaysian, revealed that APEC is expected to outperform global growth over the next two years. According to the recent IMF World Economic Outlook released last week, the global economy is forecast to grow by 3.5 per cent in 2012 and 4.1 per cent in 2013. Real gross domestic product (GDP) in the APEC region is projected to grow by 4.3 per cent in 2012 and 4.7 per cent in 2013 – higher than the forecast for world growth. Economic growth in APEC is forecast to grow faster in 2012 compared to the previous year, partly reflecting the recovery process from natural disasters that struck the region in 2011. Mohammad Noor said in addition to lowering tariffs, significant progress had been made in reducing non-tariff barriers, and increasing trade facilitation in the region. He said member economies had taken concerted action and progressed in a wide array of economic, trade, investment and social areas. Despite these achievements, he added that APEC’s continued efforts on regional economic integration, remain especially important under the current difficult economic situation. -- BERNAMA