PBEC calls for ways to reduce Doha’s complexity by approaching trade on a sector-by-sector basis, and for APEC leaders to consider an Asia-Pacific free trade area at their upcoming meetings in November in Lima, Peru

The Pacific Basin Economic Council (PBEC), the organization that serves as the independent voice of business in Asia-Pacific, approved the following statement on September 1, 2008, for circulation to members and other opinion leaders.

Statement on the Doha Development Round
The Pacific Basin Economic Council (PBEC) has a long-standing commitment of more than four decades to the principle of free trade based on a rules-based multilateral trading system. From its inception, PBEC has been one of the strongest supporters of multilateral trading rounds, including the Uruguay Round, as well as the creation of the WTO in 1996.

While PBEC views the recent collapse of the Doha Development Round of multilateral trade talks in Geneva following a seven-year effort as a major setback, it is by no means the end of the road for multilateral trade. The most ambitious multilateral trade round yet, negotiations were bound to be contentious in making across-the-board cuts in agricultural tariffs and subsidies by developed countries, and offsetting cuts in imports of industrial goods, as well as greater market access in services by developing countries.

In the current pause, it would be well to explore ways of reducing Doha’s complexity by approaching trade on a sector-by-sector basis, for example in a services sector agreement patterned after the WTO's successful Information Technology Agreement (ITA) governing computers and peripherals, where vested interests are weaker and trade-offs more realistic.

In addition, PBEC supports ongoing APEC efforts to study the feasibility of an APEC wide free trade area of the Asia-Pacific (FTAAP) as first proposed by the APEC Business Advisory Council (ABAC) in Santiago, Chile, in November 2004. Such an effort could complement and potentially augment ASEAN, the fledgling East Asian Economic Community and the China-ASEAN FTA, due to take effect in 2010.

Further an APEC-sponsored FTAAP would constitute an important stepping stone to the achievement of the Bogor goals of free and open trade and investment in Asia-Pacific for developed countries by 2010 and developing countries by 2020.

Finally, efforts to rationalize the plethora of regional and bilateral FTA’s and PTA’s in the region by aligning them more closely with existing multilateral trade rules should be vigorously pursued.

Adopted by the PBEC Board of Directors on September 1, 2008

About PBEC
Founded in 1967, PBEC serves as the key organization through which regional executives create business relationships, encourage increased trade and investment, support open markets to lower trade barriers, and address emerging issues likely to shape the Pacific and global economies. PBEC believes that through exchange of ideas and close collaboration, business and government together could promote tremendous economic growth and prosperity.

Issued by Upstream Asia on behalf of the Pacific Basin Economic Council

Contact:
Martin Craig, President, PBEC
Tel: (852) 2815-6550
Email: mailto:martin.craigs@pbec.ordg

Media Contact:
Jennifer Shay/ Angel Cheng
Upstream Asia
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