LIMA – The private sector advisory arm of the Asia-Pacific Economic Cooperation (APEC) forum has expressed concern over resurging trade protectionism as it maintained that economic integration is still key to promoting growth and improving the lives of people.
In a statement, the APEC Business Advisory Council (ABAC) said a retreat to protectionism and inward- looking policies would not solve the economic problems facing the region.
“In the face of growing public disquiet about the impact of freer trade and investment, business leaders are concerned that many governments are looking to impose new tariff and non-tariff barriers,” ABAC said in a statement.
President Duterte arrived here yesterday afternoon to attend the APEC Summit, his first engagement outside Asia as chief executive.
The President’s chartered plane landed at around 12:50 p.m. Duterte was welcomed by Peru culture minister Jorge Nieto and Peruvian ambassador to the Philippines Julio Cardenas Velarde.
The leaders’ meeting, the main event of the APEC meet, would be held from Nov. 19 to 29 and would be attended by leaders of the 21 member-economies.
Officials previously said the APEC meet would provide Duterte an opportunity to explain his platforms and showcase his “mystique.”
“Regional economic integration can be made to work better and its benefits more obvious. If governments adopt policies which enhance the capacity of economies, their communities and people will be better able to take advantage of more open and competitive markets,” the council said.
ABAC’s statement came in the wake of concerns that the withdrawal of the United Kingdom (UK) from the European Union or Brexit could lead to protectionist policies, including the imposition of tariffs and other restrictions.
Supporters of Brexit, however, claimed that the withdrawal would allow UK to negotiate its own trade deals, control its borders and ignore EU judges who are allegedly interfering in its affairs.
ABAC’s appeal also came more than a week after the election of Donald Trump, who wants his country to withdraw from the Trans Pacific Partnership (TPP) and to renegotiate the North American Free Trade Agreement.
Juan Raffo, the chair of ABAC for this year, said protectionist actions “make it harder for business to play its part in creating employment and raising living standards across the region.”
“Brexit and recent election results in both developed and developing economies seem to have served as a referendum on the merits of economic integration. They have created an unprecedented uncertainty about the direction of the global economy,” Raffo said.
“They appear to call into question the successful model of economic integration that has been responsible for rapid growth and the spread of prosperity around the world,” he added.
Raffo admitted there is much to be done to help convince citizens that economic integration is linked to expanding prosperity and that open markets have lifted millions out of poverty.
“Yet we also know not everyone has shared equally in this dividend and many feel left behind. While social safety nets can provide temporary relief as assistance in adapting to the new circumstances, it is structural economic reform that can address any negative consequences on a longer term and permanent basis,” the ABAC chair said.
Sound policy and regulatory quality, Raffo argued, would enhance businesses’ ability to maximize opportunities generated by open trade and investments.
“This will also spur new sources of growth such as in the services sector, raise productivity and promote innovation benefitting all sectors of our society,” he added.
Raffo lamented that the progress of measures leading to the ambitious Free Trade Area of the Asia Pacific (FTAAP), specifically the ratification of TPP and the completion of the Regional Comprehensive Economic Partnership, has slowed.
“We are, however, encouraged by the completion of the APEC Collective Strategy Study. It will position APEC to set some ambitious targets for FTAAP with a future timetable and further concrete actions,” he added.
The FTAAP is one of APEC’s initiatives to attain regional economic integration. It aims to create a free trade zone to expand commerce and achieve economic growth in the region.
Bilateral meetings
Duterte is expected to hold bilateral meetings with Russian President Vladimir Putin and Chinese President Xi Jinping, but details are still being worked out.
“There have been requests, particularly, China had made a request for bilaterals. We’re seeking to confirm that. It is likely that it will take place but we do not know exactly when. It’s mostly likely a pull aside meeting. Likewise with Russia,” Foreign Affairs Secretary Perfecto Yasay Jr. said in a press briefing yesterday here.