Apec agrees on new trade area, but not US deal
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CHINA HAS gained support for its version of a regional free-trade arrangement as leaders to the Asia Pacific Economic Cooperation (Apec) agreed to create a new free-trade area "as early as possible." The US-sponsored Trans Pacific Partnership, however,
In a drafted joint statement, leaders of 21 economies reaffirmed commitment to the Chinese-backed Free Trade Area of the Asia-Pacific for further regional economic integration.
Meanwhile, US President Barack Obama has called for a deal to be reached “as soon as possible” on a proposed free-trade agreement, which has added to China-US discord, at a regional summit in Beijing.
Obama and leaders from 11 other Pacific Rim countries including Japan, Canada, Australia and Mexico instructed negotiators to build on “significant progress” and push toward a conclusion of difficult talks on the Trans-Pacific Partnership (TPP) free-trade idea.
“With the end coming into focus, we have instructed our ministers and negotiators to make concluding this agreement a top priority ... to reap the real and substantial benefits of the TPP agreement as soon as possible,” a statement said.
The TPP countries met on the sidelines of the Apec summit in Beijing.
Washington has for years pushed for the TTP, which proposes a loosening of trade restrictions, but notably excludes China, the world’s second-largest economy. However, the talks have become bogged down amid resistance from some prospective members wary of opening up domestic markets, notably Japan.
A US official who spoke on condition of anonymity said: “This is not an agreement which is about to get signed. This will take a period of time to finish off some of the difficult issues.”
China wanted the 21-member Apec meeting to endorse a stronger commitment to the Free Trade Area of the Asia-Pacific idea, a longer-term concept for the entire region that would build on the TPP and other free-trade initiatives.
Prime Minister Prayut Chan-o-cha attended the Apec summit and delivered a statement endorsing regional economic integration, particularly establishment of a FTAAP. He emphasised reduction of disparity in sustainable growth, further development in food and energy security, and attempted to boost confidence in Thailand in order for the country to commit to global responsibility.
Prayut did not make clear his stance on the TPP although Thailand was persuaded to join the scheme with many Asean members. Prayut yesterday met bilaterally with the Philippines’ President Aquino, and Papua New Guinea Prime Minister Peter O’Neill.
