At a meeting in Taipei last week, the APEC Business Advisory Council (ABAC) called on member economies to be prepared to take quick and coordinated action, should the crisis in Europe persist and spread toward the APEC region.
Reviewing APEC's own progress toward its guiding principle of free trade throughout the region, the group noted that both developed and developing member economies have become considerably more open since the adoption of the Bogor Goals* by APEC leaders in 1994.
However, ABAC chair Gempachiro Aihara said: "The world has changed and APEC needs a renewed focus on removing barriers to deeper integration and deliver stronger business growth."
ABAC called for a new vision for economic integration that takes into account the evolving nature of global business, particularly regional supply chains and value chains in the Asia Pacific region. According to members, this vision should not only include liberalising the flow of goods throughout the region, but also the flow of services, investments, ideas and people. It should be underpinned by balanced and inclusive growth and sustainable development and should take into account the needs of SMEs as well as micro-enterprises.
ABAC continues its call for the establishment of a Free Trade Area of the Asia-Pacific (FTAAP), which appears to be the most viable concept for achieving economic and market integration in the region. It called for APEC ministers to provide greater detail on the modalities and process toward an FTAAP to enable the business community to be more actively involved in its evolution.
ABAC will put forward their recommendations to Leaders on the way forward for APEC during their meeting with Ministers Responsible for Trade which will take place on 5-6 June 2010 in Sapporo, Japan.
* In 1994, APEC established the "Bogor Goals" of free and open trade and investment in the region by 2010 for industrialised economies, and by 2020 for developing economies.
