Removal of Tariff and Non-tariff Barriers Average applied tariffs of APEC economies have been reduced significantly since APEC's inception, from 16.9 percent in 1989 to 5.5 percent in 2004. Trade regimes have also become more transparent, with tariff and customs information available online in most APEC economies since 1996. In dollar terms, intra-APEC trade in goods and services more than tripled between 1989 and 2003, and account for an ever-growing share of APEC economies' GDP (18.5 percent in 2003, compared to 13.8 percent in 1989).
Foreign Direct Investment The APEC Non-Binding Investment Principles (NBIP), adopted in 1994, served as a reference that enabled APEC members to increase the region's openness to foreign direct investment (FDI). While foreign investment flows have increased, supplementing domestic savings and facilitating transfer of technology, skills, and improved production processes, progress in moving towards Bogor deadlines for investment has been uneven.
Free Trade Agreements and Regional Trade Arrangements (FTAs/RTAs) Recognising the positive flow-on effects of high-quality RTAs and FTAs on the broader trade and investment liberalisation and facilitation agenda, APEC has encouraged members to conclude comprehensive, WTO consistent and high-quality agreements through APEC's Best Practices for RTAs and FTAs. APEC has also promoted high-quality FTAs through targeted programs of technical assistance and capacity building.
WTO/DDA Negotiations Representing nearly half of the world's trade flows, and almost 60 percent of global GDP, APEC Member Economies have consistently lent their collective weight to pushing forward WTO negotiations. APEC was a significant force in bringing the Uruguay Round negotiations to a conclusion, and has played a similarly positive role in progressing the Doha Round.
Capacity Building APEC has played a constructive capacity building role, helping to reduce technological gaps between its members, foster sustainable development and achieve greater common prosperity. APEC's economic and technical cooperation (ECOTECH) activities have included the fostering of human resources and small and medium enterprises, as well as improvements in systems supporting trade and investment flows.
Roadmap from Busan to the Bogor Goals
Support for the Multilateral Trading System APEC will continue to support trade and investment liberalisation through multilateral, regional and bilateral trade arrangements. The WTO Doha Development Agenda offers an immediate opportunity to bring all APEC economies closer to the achievement of the Bogor Goals. APEC Member Economies must redouble their collective efforts to advance negotiations in all areas of the DDA. Strengthening Collective and individual Actions IAPs and CAPs are two key mechanisms for advancing APEC's trade and investment liberalisation and facilitation agenda to achieve the Bogor Goals. These mechanisms will be strengthened to improve transparency, increase accessibility to business, and made more forward-looking. Promotion of High-Quality FTAs/RTAs APEC will continue to contribute to trade and investment liberalisation through the pursuit of high-quality RTAs/FTAs. By 2008 APEC will develop comprehensive model measures on as many commonly accepted RTA /FTA chapters as possible to encourage a high quality and comprehensive approach.
Busan Business Agenda As issues like trade and investment facilitation, transparency and behind-the-border regulations are acknowledged as important factors in economic growth, APEC will respond to business requests by developing a comprehensive business facilitation program, the Busan Business Agenda. In this regard, APEC will address issues such as intellectual property protection, curtailing public and private corruption, business regulation, secure trade and structural reform. Building on the 2001 Shanghai target which is currently on track to be met by 2006, APEC will cut transaction costs by another 5 percent by 2010.
A Strategic Approach to Capacity Building APEC economies will adopt a strategic approach to capacity building that ensures that ECOTECH efforts are targeted and focused. Capacity building programs will be tailored to accommodate the specific needs of each member economy, and more public-private partnerships in capacity building established.
The Pathfinder Approach Acknowledging the diversity in APEC economies and their respective differences in domestic policy priority settings, Pathfinders remain a valuable tool for furthering trade and investment liberalisation and facilitation.
