Trade and investment officials from APEC member economies affirmed their commitment to safeguard the smooth flow of supply chains, remove trade uncertainties for trade and accelerate work on the digital economy in a bid to speed up economic recovery resulting from the COVID-19 pandemic, the APEC Trade and Investment Committee said in a statement.
In a virtual meeting held last week across eight time zones, the Trade and Investment Committee ofAPEC pursued a strategic course of action to optimize its work to address trade and investment-related bottlenecks.
“All APEC member economies are currently managing the unthinkable challenges brought by the pandemic,” he said. Krasna Bobenrieth, chair of the committee“The Trade and Investment Committee can be part of the solution by adjusting our ongoing work and initiatives to respond to COVID-19, and exploring new areas that can be incorporated to accelerate the recovery process of member economies.”
Movement restrictions and factory closures have disrupted supply chains and exposed their vulnerability. Members highlighted the need to increase the resilience and connectivity of supply chains by focusing on harmonizing and modernizing customized procedures, increasing the use of digital technologies and greater cross-border connectivity.
Trade facilitation is seen as one of the main tools to accelerate recovery. Members pressed for the need to encourage and deepen the rate of implementation of the World Trade Organization's Trade Facilitation Agreement (WTO TFA)According to APEC's Policy Support Unit, broader implementation of the WTO TFA could result in an 8 to 15 percent reduction in trade costs.
"It is clear that members expressed their commitment to keeping markets open and avoiding restrictive measures that could disrupt trade in essential goods," he explained.Members also explored ways to facilitate trade in medical and other essential goods.«.
Members also highlighted the urgency of enhancing efforts in building, facilitating and promoting the capacity of micro, small and medium-sized enterprises to integrate and participate in international trade through digital trade and inclusive policies. APEC's newly established Digital Economy Steering Group will continue to work on the development of the Internet and the digital economy.
The COVID-19 pandemic has restricted the movement of people in the region and made it even more difficult to support trade and investment activities. Members exchanged views on the importance of facilitating business travel and allowing some flexibility to continue business activities.
Bobenrieth believes the committee can play a leading role in implementing the tasks mandated by the APEC Trade Ministers’ Officer in their COVID-19 statement.
“Trade and investment are key components for economic growth and I am very encouraged by the constructive discussions and valuable exchange of ideas by member economies in this novel format,” she said, adding that the committee currently has more than 40 initiatives in its portfolio that can contribute to solving current challenges.
Policy monitoring and information exchange mechanism are critical aspects to assist policymakers across the region in developing sound policies. Members commit to keeping the lines of communication open and continuing to seek breakthroughs to strengthen trade and supply chains and rejuvenate investment in APEC.
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What is APEC?
APEC is the Asia-Pacific Economic Cooperation (APEC) forum, established in 1989 to facilitate economic growth, technical and economic cooperation, trade and investment facilitation and liberalization in the Asia-Pacific region. Its members include the following 21 member countries:
Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore; Taipei-China, Thailand, United States and Vietnam.
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