APEC TRADE TRENDS. the Asia Pacific Economic Cooperation (APEC) regional trends analysis virtual briefing on Wednesday (Nov. 18, 2020). Photo shows (top left to right) APEC Secretariat director of Communications and Public Affairs Michael Chapnick and APEC Policy Support Unit (PSU) analyst Emmanuel San Andres; and (bottom left to right) APEC PSU director Denis Hew and APEC Secretariat executive director Rebecca Fatima Sta. Maria. (Screenshot of APEC virtual briefing)
MANILA – The Asia Pacific Economic Cooperation (APEC) has welcomed the new development in the region as 15 of its 21 member economies concluded the Regional Comprehensive Economic Partnership (RCEP).
In a virtual press briefing Wednesday, APEC Secretariat executive director Rebecca Fatima Sta. Maria said the RCEP sets the stage for APEC economies to advance the agreement into a wider context.
The 10 member states of Association of Southeast Asian Nations (Asean) – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, the Philippines, Thailand, and Vietnam, and its five free trade agreement (FTA) partners namely Australia, New Zealand, China, Japan, and South Korea concluded the free trade deal on Nov. 15.
Prior to RCEP, 11 APEC economies including Brunei, Malaysia, Singapore, Vietnam, Japan, Australia, Canada, New Zealand, Chile, Mexico, and Peru signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or known as the TPP.
“You will see how the region is coming together to make sure that we are on this track for recovery and efforts that are being made to ensure that we work together,” Sta. Maria said. “This is one of the pathways what we see going forward in the region: the eventual realization of the Free Trade Area of the Asia Pacific. So the fact that Asean and its dialogue partners managed to conclude this agreement says a lot about regional economic integration during this very difficult time.”
APEC Policy Support Unit (PSU) director Denis Hew echoed that RCEP and TPP are important pathways to FTAAP, a proposed FTA among the 21 APEC economies.
“These types of regional trade agreements would help to support particularly regional supply chains as well as production networks, and given our concerns of a slowdown in FDIs (foreign direct investments) in the region,” said Hew.
On Monday, APEC PSU reported that economic growth in the APEC region declined by 3.7 percent in January to June 2020 period amid the coronavirus pandemic.
For the full year, APEC’s economic growth is expected to contract by 2.5 percent or USD1.8 trillion.
Hew mentioned that APEC economies should continue their efforts in containing the Covid-19, while ensuring having fiscal space to continue rolling out of stimulus package for households and businesses, especially micro, small, and medium enterprises (MSMEs).
APEC leaders will have their meeting this Friday, concluding this year’s summit hosted by Malaysia. (PNA)
