APEC still on track toward Bogor goals<\/p>\n
Dian Triansyah Djani and I.B. Made Bimantara, Jakarta<\/p>\n
Many have questioned the achievements of the Asia Pacific
\nEconomic Cooperation (APEC) to date. It has been more than 10
\nyears since the Bogor Goals were declared by the leaders of APEC.
\nIn essence, the goals were made to achieve free and open trade
\nand investment in the Asia-Pacific region: 2010 for
\nindustrialized economies and 2020 for developing economies.<\/p>\n
Analysis of economic data, compiled extensively and
\nscrutinized thoroughly by independent experts has concluded that
\nAPEC is "on track" to achieving the Bogor Goals. However, APEC
\neconomies should not be complacent, as formidable challenges lie
\nahead.<\/p>\n
The first test is meeting the 2010 goals for industrialized
\neconomies. At stake is the credibility of APEC. Fulfilling the
\ncommitment of comprehensively reducing barriers to trade in the
\nregion would boost its international stature, provide a fresh
\noutlook and renew APEC's energy. Conversely, the failure to
\nachieve those goals would slide APEC into economic cooperation
\nirrelevance and would open APEC's floodgates to even more
\ndiscussions and initiatives far beyond the economic field.<\/p>\n
A symposium held recently in Korea to assess APEC's progress
\nunderlined the importance of individual and collective action
\nplans to open markets.<\/p>\n
Two independent studies conducted by the Project Team Experts
\nReport and the Center for International Economics reflected the
\nmain accomplishments of the APEC economies and to some extent,
\nIndonesia.<\/p>\n
It was found that trade and investment barriers across the
\nAPEC region fell from 16.6 percent in 1988 to 6.4 percent in
\n2004. Foreign direct investment inflow increased by more than 50
\npercent, while outflow more than doubled.<\/p>\n
Furthermore APEC economies have also come closer to attaining
\nthe UN Millennium Development Goals than other nations.<\/p>\n
According to independent experts commissioned by APEC to
\nreview its progress, Indonesia has passed the halfway mark on the
\nroad to achieving the Bogor Goals, and in some cases has gone
\nbeyond the World Trade Organization (WTO) commitments.<\/p>\n
Unquestionably, progress has been made, but many difficult
\nquestions remain unanswered.<\/p>\n
First, barriers remain in key sectors, particularly in
\ntextiles, clothing and footwear, motor vehicles and agriculture.
\nThese sectors are the most labor-intensive ones, and agriculture
\nrepresents a politically sensitive industry.<\/p>\n
Second, for the high-income APEC economies striving to meet
\nthe 2010 deadline, a crucial issue here is whether they will be
\nable to address a number of lingering issues, i.e. sectors with
\nsignificant levels of protection.<\/p>\n
Third, although APEC has proved to be helpful in shaping
\nconstructive responses to issues such as communicable diseases
\nand terrorism, on the other hand, such engagements have to draw
\nupon APEC's limited resources. APEC, by its original design, was
\nintended as an economic forum. Policy consultations extending
\nbeyond the economic field, however relevant they are to the
\ncurrent world situation, divert the focus of APEC from its core
\nbusiness.<\/p>\n
The APEC Ministers Responsible for Trade (MRT) recently
\nconcluded a meeting on Jeju Island, Korea, with the main agenda
\nof ensuring APEC's continued support for the WTO\/Doha Development
\nAgenda (DDA) round of negotiations and to review the progress
\nmade toward the Bogor Goals.<\/p>\n
The former agenda is the key to attaining the Bogor goals,
\nparticularly to resolving difficult and sensitive issues that
\ncannot solely be addressed through APEC. Whilst the latter
\nensures that APEC is indeed on the right track and recommends a
\nnumber of adjustments as necessary.<\/p>\n
Accordingly, it is fitting that APEC's theme for 2005 is "to
\nmeet the challenge and make the change."<\/p>\n
One of the priorities for this year is to take stock of
\nachievements made in the fields of liberalization and
\nfacilitation as well as the difficulties in realizing them.<\/p>\n
APEC is on the right path and can be proud of its achievements
\nthus far. Nevertheless, APEC should remain cautiously optimistic.<\/p>\n
The writers are officials at the Directorate of Asia-Pacific
\nand African Intra-Regional Cooperation at the Indonesian Foreign
\nMinistry. The views expressed in this article are solely those of
\nthe authors and do not necessarily reflect the views of the
\nministry.<\/p>",
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