Bridges Weekly Trade News Digest • Volume 14 • Number 21 • 9th June 2010

APEC Trade Ministers Pledge Firm Commitment to Doha

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Trade ministers and other officials from 21 countries around the Pacific Rim gathered in Sapporo, Japan last week for the annual gathering of high-ranking trade officials from Asia-Pacific Economic Cooperation (APEC) countries. The ministers reiterated the bloc’s commitment to furthering the WTO’s Doha Round of global trade talks, and discussed progress on regional economic integration.

Ahead of the 5-6 June meeting, WTO Director-General Pascal Lamy voiced his concern that the APEC talks could detract from the political momentum of the Doha negotiations. Lamy, who attended the APEC gathering, stated that he was “watching this carefully because we know that we need a quantum of political energy in these trade issues and we need a large part of that to conclude the round,” according to Indian newspaper The Economic Times.

The trade ministers may have assuaged Lamy’s fears with an expression of their “strong commitment to the multilateral trading system and our unwavering determination to bring the Doha Development Agenda (DDA) to a successful conclusion as soon as possible.” They also stated that they are “deeply concerned about the current impasse of the negotiations.”

APEC ministers also discussed the Bogor Goals, which were set 16 years ago through the Bogor Declaration in Indonesia. The goals of this declaration are for APEC members to achieve free and open trade, with a 2010 deadline for industrialised economies and a 2020 deadline for developing economies.

At this weekend’s meeting, APEC members decided to begin assessing progress on the 2010 Bogor deadline. The trade ministers hope that a report summarising progress made by the 13 signatories will be ready in time for the APEC Japan Economic Leaders’ Meeting in Yokohama this November.

Ministers also discussed the potential establishment of a Free Trade Area of the Asia-Pacific (FTAAP), which - if finalised - would help fulfil APEC’s goal of deepening regional economic ties. The APEC Chair instructed officials to report by November on possible pathways to achieve the FTAAP, emphasising the importance of ensuring that “standards, technical regulations, and conformity assessment procedures do not create unnecessary obstacles to international trade.”

The APEC ministers also reiterated their commitments against protectionism. In a joint statement, they mentioned that they would extend until at least 2011 APEC leaders’ commitment to a “standstill” on implementing new barriers to trade. The ministers also agreed to avoid, if possible, implementing new protectionist measures, even if they did not violate WTO rules.

The ministers also agreed to improve transparency in trade, strengthen intellectual property rights, and make it 25 percent “cheaper, easier, and faster” to conduct business in the region by 2015, according to the APEC Chair’s statement.

The 21 APEC countries are Australia, Brunei, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the United States and Vietnam.

Trans-Pacific Partnership talks on the sidelines

Ministers from the eight APEC countries involved in the Trans-Pacific Strategic Economic Partnership (TPP) talks met separately over the weekend, at a gathering hosted by Deputy US Trade Representative Demetrios Marantis. The ministers discussed the progress made towards the TPP deal, which - if implemented - would phase out all tariffs among signatories by 2015. They also considered expanding the group of countries involved in the talks.

The TPP currently covers Brunei, Chile, New Zealand and Singapore. Four countries are actively negotiating entry into the free trade zone: Australia, Peru, the United States and Vietnam. Several other countries have expressed interest in doing the same.

Proponents say that a successful TPP could serve as a framework for a broader trade deal across the Asia-Pacific region. However, some APEC countries have chosen instead to focus on their own free trade deals with the existing Association of Southeast Asian Nations (ASEAN), rather than taking part in a new binding agreement.

The next TPP negotiating round will take place the week of 14 June in San Francisco.

ICTSD reporting; “Asia-Pacific ministers claim progress in free trade talks,” AGENCE FRANCE-PRESSE, 7 June 2010; “Regional pacts must not sap Doha talks: WTO chief,” THE ECONOMIC TIMES, 6 June 2010; “APEC trade ministers vow to press on with Doha,” REUTERS, 6 June 2010.