Despite the different nature of their negotiations, a study prepared by the
Policy Support Unit of the Asia-Pacific Economic Cooperation has explored how
APEC and the Trans-Pacific Partnership (TPP) can be mutually beneficial.
APEC, consisting of 21 economies, is formulating best practices for regional
and bilateral free trade agreements (FTAs), and, ultimately, a Free Trade
Area of the Asia-Pacific (FTAAP), while nine of those countries are currently
involved in negotiating the extended Trans-Pacific Partnership (TPP) –
the United States, Australia, Peru, Vietnam, Malaysia, New Zealand, Chile, Singapore
and Brunei.
The TPP negotiations are intended to yield a ‘high-quality’ FTA,
covering not only tariffs and non-tariff barriers to trading in goods, services
and investment, but also such regulatory issues as intellectual property rights,
telecommunications, e-commerce and labour. However, that process is already
fuelling debate on, for example, the effectiveness of the TPP itself as one
of the stepping stones for an FTAAP, and the mutual relevance of APEC and TPP.
The study suggests, however, that the two processes may complement and feed
into each other. On the one hand, work developed within APEC can contribute
positively into the TPP negotiations. On the other hand, TPP can also assist
in strengthening regional economic integration in the APEC region.
In particular, the importance of keeping APEC’s nature, and not changing
it to an FTA-negotiating role, is highlighted, as that could affect APEC’s
key advantage as the most relevant consultative forum in the Asia-Pacific.
It is pointed out that the non-binding nature of APEC allows it to explore
issues that would otherwise not be discussed by its members, and that it is
better suited to keep its voluntary character and continue on its current role
as incubator of ideas for the TPP, amongst others; while the TPP is relevant
for APEC as one of many avenues to strengthen regional economic integration
across the APEC region.
The report shows how the work undertaken in APEC since its inception provides
useful guidance and reference for the participants in the current TPP negotiations.
Thanks to APEC, many ideas have matured after being discussed and analysed by
its members before being implemented.
It sees the TPP as a boost to the APEC agenda, no matter APEC’s condition
as a nonbinding and non-negotiating forum, since current TPP negotiations have
the potential to generate a substantial outcome that allows APEC to achieve
great progress in strengthening its regional economic integration work programme,
meeting its goals of free and open trade and investment, and promoting economic
convergence across the APEC region.
In that context, if successful, an expanded TPP could be a good opportunity
to have a large number of APEC members under a single FTA, representing an attractive
stepping stone towards the realization of the FTAAP. However, the study also
emphasizes that nobody currently knows how APEC members will finally give shape
to an FTAAP - it might involve an enlargement process by having the TPP, Association
of Southeast Asian Nations or another initiative as a starting point.
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