Former Deputy Prime Minister Vu Khoan (R) and other delegates prepare to take part in the Multi-Stakeholder Dialogue on APEC toward 2020 and Beyond (Photo: VNA) Hanoi(VNA) - The Asia-Pacific Economic Cooperation (APEC) forum needs to hold aloftthe flag of trade and investment liberalisation despite the fact that there remainedscepticism about globalisation and protectionism has arisen in several membereconomies.
Vietnam’s formerDeputy Prime Minister Vu Khoan, who was once Chairman of the APEC 2006 NationalCommittee, made the recommendation while talking with reporters on thesidelines of the “Multi-Stakeholder Dialogue on APEC toward 2020 and Beyond” inHanoi on May 16.
In 1994, APECeconomic leaders convened in Bogor, Indonesia, where they fixed the deadline torealise the free and open trade and investment goals, known as the Bogor Goals,for developed member economies by 2010 and developing economies by 2020.
The Bogor Goalsbecame an orientation for APEC cooperation until 2020 and were expected to turnAPEC into a leading region in terms of trade and investment liberalisation. Thegoals have inspired APEC members to pursue their economic development targetsthrough open trade and investment facilitation in the region.
In pursuance of theBogor Goals over the past 23 years, APEC has obtained impressive achievements intrade and investment liberalisation. The Second-term Review of APEC’s Progresstowards the Bogor Goals released in 2016 showed that the current level of tradeand investment liberalisation, and open market has surpassed the level in 1994when the Bogor Goals were laid out.
The Asia-Pacificregion’s annual trade growth was 7.8 percent between 1994 and 2015, reaching16.5 trillion USD in 2014, while the bloc’s inner trade value grew by fourfolds. Tariff on average had been slashed by half, from 11 percent in 1996 downto just 5 percent in 2015.
APEC’s trade liberalisationwas also indicated by a rapid increase in the number of free trade agreements(FTA) and regional trade agreements (RTA). In other words, APEC became a catalystfor the establishment of many trade agreements. From 1996 to 2015, the numberof FTAs/RTAs coming into force increased from 22 to 152, of which 62 deals weresigned among APEC members.
However, APEC membersare facing a wide range of challenges in realising the Bogor Goals on scheduleas there are only three years left and the global economy has experienced variouschanges since 1994. The global economy has recovered slowly after the financialcrisis in 2008 triggered sluggish trade growth in the region.
Khoan toldreporters that the progress in tariff elimination is now hindered by protectionismand non-tariff barriers in several APEC member economies, especially inagriculture, obstructing the process of trade liberalisation and economic connectivityin the region. But, the common trend will overwhelm, he said, adding that ifthe whole APEC advocates trade liberalisation, protectionism will be pushedback.
Khoan forecastthat in the future, APEC will have to rely upon three pillars, namely trade liberalisation,digital technology promotion and response to climate change. The pillars will supporteach other and help APEC uphold its role, he elaborated.
As the host ofAPEC Year 2017, Vietnam has included the acceleration of the Bogor Goals intothe list of important priorities in the APEC agenda. The country has workedclosely with other member economies to deploy initiatives in order to removeobstacles mentioned in the Second-term Review of APEC’s Progress towards the BogorGoals.
These will be asolid foundation for APEC to build and shape its operation orientations after2020, focusing on the broader goals of trade and investment liberalisation in abid to effectively cope with emerging challenges such as innovative, inclusiveand sustainable growth, and e-commerce, among others.
To help APECconsistently pursue the Bogor Goals, it requires the steady goodwill of APEC leadersas well as the trust and consensus from businesses, workers and people aboutthe benefits offered by trade liberalisation, and most important, the driver ofgrowth and stability proved over the past two decades.-VNA
VNA
