Engineering Free Trade in the Asia-Pacific: the Key Future Role of APEC

Looking at recent trade liberalization developments in the pan-Asian region, the author considers the evolution of the APEC agenda and its growing role as a trade facilitator rather than trade liberalization negotiator. Demonstrating the poor fit of the EU economic integration model in the Asian context, the paper considers how APEC can use its new developing capacities in “behind the border” trade facilitation and echo/tech cooperation to create a new iterative model for trade liberalization that relaxes discriminatory and reciprocity preferences in favor of a unilateral, flexible model. The goal of this model may be to encourage liberalization in an inclusive manner, finding ways to avoid over extension into politically contentious policy areas, while serving common goals in new areas not well serviced by FTAs, RTAs, or trade-oriented architectures such as creating growth from SMEs, expanding the role of women, and ensuring environmental protection and sustainability.