APEC studying how to use existing forums for regional free trade zone+

SENDAI, Sept. 25 Kyodo -
Pacific Rim economies are studying how to use existing regional frameworks for
the creation of a proposed free trade zone in the region, a Japanese official
said Saturday after senior officials of the Asia-Pacific Economic Cooperation
forum ended the first day of their two-day meeting in the northeastern city of
Sendai.
At the meeting aimed to prepare for an upcoming APEC summit in Yokohama in
November, the officials, however, did not agree on whether to set a timeline
for achieving the proposed Free Trade Area of the Asia-Pacific, or FTAAP.
Promoting regional economic integration is one of the main areas on which APEC
has focused its efforts this year, with the 21 member economies exploring
''possible pathways'' to achieve an FTAAP, which is a long-term prospect yet to
be clearly defined.
A series of APEC ministerial meetings, including those on food security and
finance, will follow the officials' talks, culminating in the annual leaders'
meeting Nov. 13 to 14 in Yokohama, where they will issue a joint declaration.
Japan assumed the rotating chair of the forum this year for the first time
since 1995.
''As we are tasked with presenting realistic options we can take toward an
FTAAP, we held discussions so that we can show them in a document at the
Yokohama meeting,'' the Japanese official said after the end of Saturday's
meeting, although he declined to explain in detail. The senior officials will
conclude their talks Sunday.
Japan's ability as chair is likely to be tested in steering the discussion on
the issue, as there are different approaches to the creation of an FTAAP among
the economically diverse members.
China is known to prefer the so-called ''ASEAN plus three'' framework which
groups Japan, China, South Korea and the 10-member Association of Southeast
Asian Nations, while Japan favors ''ASEAN plus six,'' which adds Australia,
India and New Zealand to ''ASEAN plus three.''
Meanwhile, a U.S.-backed multilateral Asia-Pacific free trade agreement, called
the Trans-Pacific Partnership Agreement, or TPP, has become more prominent in
recent years as a potential core framework for the creation of an FTAAP.
Eight APEC countries, including the United States and Australia, are currently
engaged in negotiations for the TPP.
The Japanese official said that the participants discussed in Sendai on
Saturday how to use such existing frameworks to create an FTAAP, possibly
through mergers, but they need to continue discussions to reach a consensus.
Japan has also set 2020 as a target year for the establishment of an FTAAP in
the basic policy for its own growth strategy through that year.
But the official said the APEC members will also need more time for discussions
on the timeline.
''Some say (the year 2020) is too early and some think it is too late,'' he said.
Meanwhile, the senior officials are in the final stage of compiling reports on
their past trade liberalization efforts and an envisioned regional economic
growth strategy -- both to be finalized at the November summit.
In June, APEC trade ministers acknowledged that ''significant progress'' had
been made toward achieving the forum's long-held goals of seeking free and open
trade and investment.
Under the so-called Bogor Goals, named after the Indonesian city where APEC
leaders reached the agreement in 1994, developed economies are committed to
achieving free and open trade and investment by 2010, with developing economies
aiming for 2020. The goals have no specific numerical targets.
According to Japanese officials, the average applied tariff rate among APEC
economies was reduced to 6.6 percent in 2008, compared with 16.9 percent in
1989 when the forum was launched.
With APEC's future direction in mind, the forum is also working on crafting its
first-ever regional growth strategy. Member economies affirmed earlier the need
to improve the region's ''quality of growth'' through job creation, development
of smaller businesses and structural reforms.
The issue of whether to expand the forum's membership was also touched on, but
there is ''no consensus at the moment,'' the Japanese official said.
Sources close to the matter said in late August that APEC plans to put off
making a decision on adding India and other countries to the grouping for some
time.
APEC, which accounts for more than half of the world's economic output and 44
percent of global trade by value, includes among its members China, Peru,
Russia, South Korea, Taiwan and seven ASEAN members.
==Kyodo
2010-09-25 21:18:29


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