Four steps to greater trade and recovery in APEC

Members of the Asia-Pacific Economic Cooperation (APEC) are taking concrete actions to boost trade, development and recovery in the Asia-Pacific region, in spite of economic uncertainties emanating, in particular, from the Eurozone.

Leaders and Ministers of APEC’s group of 21 members are meeting this week in the eastern port city of Vladivostok, Russia to consider the results of APEC’s work in 2012, particularly in four key priority areas. They are expanding regional economic integration, strengthening food security, establishing reliable supply chains, and fostering innovative growth.

Step 1. Expanding regional economic integration

2012 is an important year. Russia’s accession to the World Trade Organization will no doubt strengthen the multilateral trading system.

On its part, APEC is continuing to define, shape and address ‘next generation’ trade and investment issues that future trade agreements should contain. Bolstering small and medium enterprises, improving supply chains, and promoting innovation policies are the issues identified for action. This year, members decided that advancing transparency in trade agreements is another ‘next generation’ issue to pursue. Making progress on these issues will contribute to APEC’s regional economic integration agenda and move us closer towards realizing a Free Trade Area of the Asia-Pacific.

Just as important, APEC is also promoting good regulatory practices to boost trade. One of the key ways APEC is doing this is by bringing industry representatives and government regulators together to share information and exchange views. Similarly, APEC is taking action to reduce trade transaction costs by 25 percent by 2015 to create a more favorable environment for businesses to thrive. Already, APEC has seen achievements in this area, including an 8.2 percent improvement towards its overall goal, exceeding the 2011 target of 5 percent.

Step 2. Strengthening food security

Here in Vladivostok, APEC members are also focused on strengthening food security, against a backdrop of rising food prices, increasing frequency of natural disasters and a growing world population.

To address these challenges, last May APEC Ministers responsible for food security agreed in Kazan, Russia to focus on ways to encourage increasing food production, reducing wastage, facilitating food trade, enhancing safety, and improving access to food for the region’s most vulnerable groups. In particular, APEC is boosting public-private investment and partnerships in agriculture and encouraging the development and application of innovative agricultural technologies through numerous collaborative workshops and seminars.

Additionally, concrete measures are also being formulated to minimize food safety incidents, combat illegal, unreported and unregulated fishing and associated trade, and facilitate sustainable, open and fair trade in fisheries and aquaculture products.

Step 3. Establishing reliable supply chains

It is clear that in today’s globalized world, goods are no longer made in a single economy ­— indeed, components and parts are sourced from all over the globe. The reliability of supply chains is therefore critically important for business and trade, as well as to ensure economic growth.

APEC economies are collectively working towards improving the region’s supply chains by reducing the time, cost and uncertainty of moving goods and services throughout the Asia-Pacific. This is being done by addressing chokepoints that relate to regulatory impediments, customs inefficiencies and inadequate transport networks.

This year, APEC members are reaffirming their commitments to achieve a 10 percent improvement in supply chain performance by 2015, making the region’s supply chains more dependable, efficient and secure.

Looking ahead, APEC members now have ambitious plans to build supply chains in the Asia-Pacific that incorporate technological enhancement to make them greener and smarter.

Step 4. Fostering innovative growth

Innovation sits at the heart of APEC’s overarching goal of expanding trade and investment and further integrating the region economically. It is also important to note that fuelling innovation also helps drive up the value of exports and improve investment, which create jobs and foster greater economic prosperity in the Asia-Pacific.

This year APEC formed a group specifically to intensify cooperation between governments, businesses and academia to address critical issues on how to foster greater innovative growth. In particular, APEC is working to strengthen networks and partnerships towards helping member economies develop market-driven innovation policies.

APEC’s innovation agenda is also focused on empowering the region’s small and medium enterprises and its entrepreneurs build their ability to engage in international trade.

Under the APEC 2012 theme of “Integrate to Grow, Innovate to Prosper,” APEC members are, therefore, taking the necessary steps to not only strengthen the region’s trade and prosperity, but also to reinforce its stance as the model for growth and recovery.