Time for Apec to take lead

By CHRIS DANIELS

Apec leaders have a perfect opportunity this month to put world trade liberalisation back on course, says its Business Advisory Council.

In its annual report, just delivered to political leaders, the council says it is imperative that the group takes the lead in advancing the WTO's Doha round of trade liberalisation.

The collapse of world trade talks in Cancun, Mexico, last month had provided the perfect opportunity for Apec leaders to re-affirm their commitment to free trade, said the council's New Zealand chairman, Sir Dryden Spring, yesterday.

Apec's 21 world leaders, including US President George W. Bush, meet for their annual summit in Bangkok on October 21-22.

Sir Dryden said the Cancun failure would at best delay and at worst halt progress on vital trade reform.

"This is a region that has committed itself to achieving complete and comprehensive free trade. It represents more than half of the world economy and if it commits itself to a certain course of action then it makes the possibility of a satisfactory outcome in a reasonable period of time that much greater."

If Apec failed to commit to these goals, then it risked undermining its own credibility. There was a risk of the collapse at Cancun leading to a rush towards preferential trade agreements between individual Apec members, something the council did not support.

Such agreements were "stumbling blocks to increased trade liberalisation, not building blocks", said Sir Dryden.

The Doha round could be resuscitated, even within the present format of the WTO. If it could not, then the structure of the WTO needed to be "looked at pretty carefully".

There was a good possibility that the Bangkok meeting would produce a declaration committing the region to increased trade liberalisation, he said.

In its report, the business council is asking the Apec leaders to:

* Take the lead in strengthening the WTO system.

* Quickly resolve agricultural trade policy issues, especially high tariffs, domestic support and export subsidies.

* Take "resolute steps" to achieve the Apec goal of reducing transaction costs 5 per cent by 2006.

* Ensure that bilateral trading arrangements help rather than hinder broader trade facilitation.

* Work with the private sector on good corporate governance and transparency.

* Ensure that new anti-terrorism measures do not hinder legitimate commerce.

* Improve anti-dumping laws.

* Increase the liberalisation of trade in services, multilateral investment rules and air transport, particularly cargo.

Apec

* Full name Asia Pacific Economic Co-operation.

* Established 1989.

* 21 members, including United States, Canada, Chile, Mexico, New Zealand, Australia, Japan, China and Russia.

* Accounts for 47 per cent of world trade.

* Aims for free trade and investment in the region by 2010 for developed economies and 2020 for developing economies.