Apec prepares road map for FTA talks
Draft schedule to be finalised today for potential negotiation in 2015
Ministers from the Asia-Pacific Economic Cooperation forum will today finalise a draft schedule for their countries’ leaders with a view to proceeding to negotiations next year for a Free Trade Area of the Asia-Pacific (FTAAP), and including a comprehensive feasibility study on a strategic FTA.
At their two-day Apec Ministerial Meeting in Beijing, 21 Asia-Pacific member states agreed to a plan to pursue negotiations about an Apec FTA, which supporters claim would strengthen trade growth in the region.
China, which chairs this year’s Apec Ministerial Meeting and will host the Apec Leaders’ Summit on Monday and Tuesday, has pressed for a road map comprising a joint comprehensive feasibility study on the realisation of an FTAAP, so that all members can prepare for talks next year.
The target is to have the FTAAP fully in place by 2025, and China is encouraging fellow Apec member states to move in this direction to balance benefits from the Trans-Pacific Partnership (TPP), which is led by the United States.
Meanwhile, at this year’s leaders’ meeting, China will also urge the establishment of an Asian Industrial Investment Bank to strengthen the financial sector in the region.
If the idea is supported by other member states and is successfully implemented, it will increase China’s clout in the Asia-Pacific region, as Beijing has said it would invest about 50 per cent of the institution’s initial capital.
On the trade front, Thailand supports the idea of forming an FTAAP, and proceeding initially with a schedule and feasibility study, as such a broad pact would give the Kingdom an opportunity to join a major global economic and trading bloc, having delayed joining the secretive and controversial TPP talks.
Deputy Commerce Minister Apiradi Tantraporn yesterday said Thailand fully supported FTAAP negotiations, as such an agreement would increase trade and investment opportunities among member states.
The FTA should also promote the Kingdom as a nation with high potential to connect to many economically powerful countries, he said.
It should also act as a counterweight to the marathon talks at the World Trade Organisation, where member states were not able to finalise a full agreement on trade and agricultural subsidy-reduction issues, he added.
During the upcoming Apec Leaders’ Summit, Prime Minister General Prayut Chan o-cha will have a bilateral meeting with Chinese President Xi Jinping.
Prayut will also have bilateral talks with leaders of other Apec member countries, including Papua New Guinea, Brunei and the Philippines.
The PM will, moreover, meet representatives of Thai enterprises in China, and with leading Chinese businesses and state-owned enterprises such as Huawei, ZTE, Power China and the Shandong businesspeople’s group.
At the Apec Retreat, leaders will discuss three key issues: advancing regional economic integration; strengthening connectivity and infrastructure development; and promoting innovation development, economic reform and growth.
Besides attending the ministerial meeting, Commerce Minister General Chatchai Sarikulya will meet executives from China National Cereals, Oil, Foodstuffs Corp – widely known as Cofco – to encourage China to purchase more rice from Thailand.
