Regional News
ASIA-PACIFIC executives want regional leaders to address supply chain issues and work on further trade liberalization during a summit, set for this weekend, that comes amid mounting concerns about the global economy.
The Asia-Pacific Economic Cooperation (APEC), a forum of 21 economies, is staging its annual meeting in Hawaii this week. Preliminary discussions began on Monday and the region’s leaders will end the summit on Sunday.
The APEC Business Advisory Council (ABAC), which is currently holding its own meeting, renewed calls for a comprehensive and high quality free trade agreement in a recent report addressed to US President Barack Obama. It also urged measures to set up an integrated supply and value chain network for goods, services, and investments in a bid to improve preparedness of economies to cope with large-scale disasters.
“[Our] recommendations were informed by a volatile and uncertain economic environment characterized by strains on financial markets caused by the lack of progress in global rebalancing, high levels of debt and low growth. This situation has created disincentives for private sector investment and risks renewing protectionist sentiments,” the ABAC report states.
The report details 11 recommendations that deal with the council’s five priorities: regional economic integration; micro, small, and medium enterprises (MSMEs); sustainable growth; finance and economic support; and advocacy and action planning.
Promotion of the Free Trade Area of the Asia-Pacific (FTAAP) was considered central to the region’s growth strategy as a means to remove trade and customs bottlenecks and strengthen global supply or value chain links.
“Despite the best efforts of APEC to date, there remain significant barriers to the efficient flow of goods and services through the supply chains. This prevents the realization of the full economic value that can be derived from the free availability and efficient application of the value chain,” the council claimed.
Free trade area discussions, however, must consider how integrated economies can be vulnerable to choke points that may arise from a single disrupted link.
“We have only to look at the serious national, regional and global supply chain disruptions that occurred in the wake of Japan’s devastating earthquake and tsunami to realize the critical importance of the integrated supply chain and value chain framework,” the report states.
“There is a clear need to keep supply chains open in times of large-scale disasters. Moreover, APEC economies need to step up the level of emergency preparedness to keep supply chains open.”
The report also stressed the role of MSMEs as “engines of growth and prosperity in APEC economies.” As such, the council urged ministers to address “next generation” trade issues such as SME participation in global production chains, competition and innovation policies, shortages of skilled personnel, and government procurement.
ABAC also recommended increasing cross-border trade among MSMEs and enhancing their access to finance.
==============================================================================
By: EJD
Source: Business World, Nov. 9, 2011
To view the original article, click here.
Subscribe to the Arangkada NewsRoom via RSS
Comment here