Asia-Pacific Economic Cooperation and Australia
APEC's Three Pillars
Trade and Investment Liberalisation
The 1994 Bogor Goal of free and open trade and investment in the Asia-Pacific region (by 2010 in industrialised economies and 2020 in developing economies) is APEC's core objective.
Trade and investment liberalisation, which involves reducing tariffs and non-tariff barriers and opening markets is central to achieving this target.
The study APEC Progress on Tariffs: Implications for a New Agenda (pdf) (2001) shows that continuing tariff reductions are translating to an increasing proportion of trade at lower tariff levels, and greater regional trade flows. In the last five years, APEC economies have reduced average tariff levels by one third, from 12% in 1995 to 8% in 2000. In 2000, 69% of goods imported in APEC were subject to tariffs of only 5% or less. Since 1990, APEC exports have more than doubled to nearly AUS$5 trillion, and APEC markets now purchase over 75% of Australia's merchandise exports.
Liberalisation by APEC economies generates additional income worth about US$30 billion each year, with the highest gains generally experienced by developing economies. The Open Economies Delivering to People (pdf) (2000) report highlights ways in which open trade and investment policies continue to deliver sustainable economic growth.
APEC measures progress on trade and investment liberalisation using Individual Action Plans (IAPs) and Collective Action Plans. IAPs detail the steps taken by each economy to progress the Bogor Goals during the preceding year and include proposed measures for the year ahead. They address fifteen areas specified in the 1995 Osaka Action Agenda, which sets out the general principles and framework for implementing the Bogor Goals. These areas include tariffs, non-tariff measures, services, investment, standards and conformance, customs procedures, intellectual property, competition policy, government procurement, deregulation/regulatory review, WTO obligations, rules of origin, dispute mediation, mobility of business people and information gathering and analysis.
Collective Action Plans (CAPs) are initiatives undertaken jointly by all APEC members in areas established by the OAA, such as market access, tariffs and non-tariff measures, services, investment, standards and conformance, customs procedures, intellectual property rights, competition policy government procurement, deregulation, dispute mediation, mobility of business people and WTO implementation agreements.
CAPs focus on trade and investment liberalisation and facilitation, lowering trade transaction costs and speeding up regional trade procedures. They are coordinated by the Committee on Trade and Investment (CTI) directly or through its sub fora.
APEC also plays an important role in the multilateral trade agenda in order to promote trade and investment liberalisation and facilitation in the region and beyond. APEC members are keen players in the WTO and their support was central in securing agreement to the latest round of negotiations, in November 2001 at Doha. They also advocate regional free trade agreements as a step towards the Bogor Goals.