Chen-Sheng Ho, Ph.D.Associate Research FellowChinese Taipei APEC Study CenterTIER

Describe APEC’s work in enhancing REI. Examine the APEC-ASEAN+N-TPP triangular

relationship. Provide suggestions for Taiwan’s

participation.

Free Trade Area of the Asia-Pacific (FTAAP) In 2004, members of ABAC Canada proposed the

creation of the FTAAP. In 2006, APEC Leaders stated that the FTAAP could

be a long-term goal. In 2009, ABAC urged APEC to start negotiations on

the FTAAP and Leaders to decide on a framework by 2010 Summit.

Key Areas of REI for APEC 2010: SOM1 Document1. Accelerating REI: Promote convergences in key areas: services,

digital economy, investment, trade facilitation, rules of origin, and standards/technical barriers to trade.

Implement APEC environmental goods and services (EGS) work.

2. Improving the Business Environment: Implement Leaders’ instruction on an APEC-wide

improvement of 25% in five key areas of doing business by 2015.

Develop a post-LAISR agenda (structural reform). Strengthen intellectual property rights (IPR).

Key Areas of REI for APEC 2010: SOM1 Document

3. Enhancing Regional Connectivity and Trade Facilitation:

Promote supply chain connectivity. Promote digital connectivity. Develop Authorized Economic Operator (AEO)

programs.

The work can be divided into two parts: FTAAP and Key Areas of REI.

FTAAP is direct and strong integration. REI Key Areas are indirect and weak integration or

just cooperation. Integration means building a larger unit. Cooperation means creating mutual benefits.

U.S. Views:“Asia-Pacific Regional Economic Integration and

Architecture” by Dr. Fred Bergsten, Peterson Institute for International Economics, March 25, 2010

Asia-Pacific Bloc versus Asian Bloc Asia-Pacific Bloc: APEC, TPP (Trans-Pacific

Partnership); U.S. influential Asian Bloc: ASEAN+N; China influential Stress the need to move in parallel. TPP: 1st step to Asia-Pacific integration. The addition of Canada, Malaysia, Japan, and

Korea to the TPP (P8) would certainly create a critical mass.

TPP leads to FTAAP; Bogor Goals=FTAAP

ASEAN Views:

ASEAN+N: China, Japan, South Korea, India, Australia and New Zealand.

Possible ASEAN+8 (ASEAN+6+U.S.+Russia): Meet on sidelines of APEC meeting held in Asia.

ASEAN+N: ASEAN wants to be the driver. Asian Bloc (ASEAN+N): More important than Asia-

Pacific Bloc (APEC, TPP)

Triangular Relationship Analysis: The U.S. position is important because it is willing

and able to influence outcomes. The U.S. would continue to promote APEC

because it represents the Asia-Pacific Bloc. The U.S. could transform TPP (P8) into a larger

TPP (Canada, Malaysia, Japan, Korea). The U.S. could support more APEC economies to

join TPP by 2020, if APEC endorses the idea that TPP equals FTAAP and FTAAP equals Bogor Goals.

ASEAN would focus on Asian Bloc first and then the Asia-Pacific Bloc.

China would support Asian Bloc first (ASEAN+China) and then Asia-Pacific Bloc.

Japan and Korea would continue to support both blocs without preference but may change with clearer benefits.

Support the Clarification of the Bogor Goals, so as to strengthen APEC. Specifically, what is free and open trade and investment?

Support the idea that Bogor Goals equal FTAAP, if it is heard, so as to promote FTAAP.

Support the U.S. proposal to describe the TPP (P8) negotiations and membership enlargement at the 2010 MRT Meeting in June.

Promote Taiwan’s participation in the 2010 Bogor Goals’ assessment, so as to show Taiwan’s support for free trade and to increase the possibility of joining TPP.

Continue to participate actively in APEC and to promote the idea that APEC initiatives must include all APEC members.