Transcript APTA - Intranet - Mekong Institute

Regional Training Program on Enhancing Utilization of ASEAN FTA, Trade
Negotiation and Trade Policy Development, 31 July 2012, Mekong Institute,
Khon Kaen, Thailand
Recent progress and
Future of the Asia-Pacific Trade
Agreement (APTA)
Dr. Joong-Wan Cho
Chief, Trade Policy Section
Trade and Investment Division
UNESCAP
APTA: Past and Present
Past and Present of APTA
History of APTA
The oldest preferential trade agreement among
developing countries in the Asia-Pacific region
- Predecessor: Bangkok Agreement (BA), signed in 1975
China joined in 2001, providing fresh momentum
Renamed to the Asia-Pacific Trade Agreement
(APTA) in 2005
Established the Ministerial Council in 2005
Beijing(Nov 2005) → Goa(Oct 2007) → Seoul(Dec 2009)
Launched the 4th Round of tariff concessions in
2007
Past and Present of APTA
Performance of APTA (1)
Intra-regional trade share increased by almost 47% over 2003-2009
APTA Intra-Regional Trade Share
16.0
14.0
Percent
12.0
10.0
8.0
6.0
4.0
2.0
0.0
2003
2004
2005
2006
2007
2008
2009
Import
9.0
9.6
10.2
10.7
11.1
11.7
12.8
Exports
9.5
10.3
11.2
11.9
12.7
12.9
14.3
Trade
9.2
9.9
10.7
11.3
11.9
12.3
13.6
Source: Compiled from Trade Map, International Trade Centre
Past and Present of APTA
Performance of APTA (2)
(based on the ‘Pilot Study for China and the Republic of Korea’,
2009)
Utilization rates of APTA
(i.e. extent to which concessions are actually used)
 increased significantly from the 1st(07-08) to 2nd
year(08-09) of implementation of the third round:
- Republic of Korea : from 20% to 34%
- China : from 25% to 37%
Past and Present of APTA
New Momentum since 2007 (the second Ministerial Council)
The 4th Round of Tariff negotiations
Aim to:
Widen the preferences to cover at least 40% of the number of tariff
lines & average tariff concession of each Participating State;
Cover at least 20-25% of the value of bilateral trade.
Extend into new areas of cooperation
Trade facilitation
Trade in services
Investment
Non-tariff Measures
Revision of rules of Origin
General
Sectoral agreement (Product-Specific Rules of origin)
Expand membership on a priority basis
→ Mongolia: Formal application in 2009, expected to accede by end-2012.
Cambodia, Nepal, Papua New Guinea: Intention of application
Future of APTA
Future of APTA : Potentials
Potential of APTA
“Huge, but low level of deepening”
Pros
Cons
 The only truly regionwide preferential trade
arrangement
 Low connectivity due to
geographical reason
 Open system with huge
market potential
 Undeveloped potential
 Bridge to other RTAs
 Not “Core” for regional
economic integration
 Simple and operational
 Potential barriers for
deepening APTA further
 WTO consistent
APTA itself is an evolving Agreement
Future of APTA : Potentials
What-to-be of APTA: Evolving paths of APTA
No. of
Members
Trade Agreement
For All ESCAP
APTA
FTA
for all ESCAP
[‘real’ APFTA]
Asia-Pacific
FTA
Preference
Level
The future of APTA : Potentials
No ‘Core’ trade agreement for
economic integration in Asia-Pacific
Turkey
Caribbean nation
NAFTA +
Denmark
EMU
EFTA
Trans-Atlantic cooperation
UK
Chile
New EU
Australia
ASEAN+6 New Zealand
ASEAN
/AFTA
ROK
China
India
APTA
Japan
Tri-polarization
of World economy
MERCOSUR
Other Latin America
Former USSR
ACP
NAFTA
ASEAN+3
Other
Asian Countries
* ASEM: Asia Europe Meeting, APEC: Asia Pacific Economic Cooperation
The future of APTA : Potentials
APTA can be the “core” Regional Trade Agreement?
 Candidates
% of GDP
Evaluation
World
A-P area
13.8
40.7
ASEAN
3.0
8.3
Too small to be ‘core’
BIMSTEC
3.4
9.6
Too small to be ‘core’
China-Japan-Korea
19.7
61.1
Not yet materialized
ASEAN+3
22.7
69.4
Not yet an agreement
ASEAN+6
27.4
83.0
Not yet an agreement
APTA
• % of World GDP: NAFTA 27.2%, EU 25.8%
(based on World Economic outlook (IMF, April 2012) & Statistical Year book 2011 of UN ESCAP)
The Future of APTA : Potentials
How can APTA be the “core” regional trade agreement?
Consensus on the future direction of APTA &
Strategy/Roadmap among Member States
- The APTA Secretariat continues to facilitate/coordinate efforts
to accelerate regional integration through the APTA mechanism.
Deepening and Widening of APTA
- Keep on deepening the tariff preference, expansion of
coverage of the Agreement and Membership expansion.
Support from the private sector + Mobilize political
support
- Regional/national meetings for the business sector of APTA
are needed and planned under the above project.
The future of APTA : Potentials
Why is the Business sector important for APTA?
Users of APTA
- Utilizing the preferences offered under APTA (importers and
exporters)
Important stakeholders
- Supporters for the further progress of APTA
- Low support/awareness and Low Utilization from the
business sector => lead to slow evolution of APTA
The future of APTA : Potentials
Why the Business Sector is important ?
Potential
 Most dynamic
economies are
APTA members
 Strong Platform
for South-South
cooperation
(* Built-in Mechanism of
LDCs)
 Good candidate
for Economic
Integration of
Asia and Pacific
Role of Business
 Raising
awareness of
Business sector
 Increasing
Utilization rate of
Business sector
 Getting more
support from
Business Sector
Result
Virtuous
Cycle
Progress
of APTA
Raise
Increase
Awareness Utilization
/Support
/interest
The future of APTA : Potentials
Awareness-building project (by APTA Secretariat)
For Business sector
- A series of National seminars for the APTA business sector
in APTA Participating States
- Annual meetings of the APTA Business Network (ABN)
For Academia
- Regional seminars on APTA among experts from APTA
Participating States
- Expert Group Meetings
For the Public
- Upgrade of the APTA web site (user-friendly site)
- National seminars
Thank you!
APTA official website:
http://www.unescap.org/tid/apta.asp
Email of the Secretariat: [email protected]