Report: APEC nations largely trade with each other
The Asia-Pacific Economic Cooperation provides nations with free trade agreement-like benefits without the binding agreement, according to a report released Monday by the organization.
Leaders of the 21 APEC member nations, which include the United States, are meeting in Singapore this week.
In a report completed last month, an independent research firm commissioned by APEC sought to answer whether the forum has an influence on trade. The report said APEC members trade with each other more than they do with other free trading agreement partners and much more with trading partners who are both members of APEC and members of the World Trade Organization.
'After taking into account the usual factors that influence trade — like size of economy, distance between economies, WTO membership and being in an FTA with a trading partner — APEC members are three times more likely to export to another member than to a non-member and two times more likely to import from another member than from a non-member,' APEC said in a statement Monday. 'Findings are further supported by a five-fold increase in trade within APEC since its establishment in 1989 and the 67 percent share that intra-regional trade comprises of total APEC trade. Notably, this is a larger intra-regional share of trade than that in the EU-27.'
'This provides analytical evidence that APEC achieves results,' said Philip Gaetjens, director of the APEC Policy Support Unit. 'It shows that regional integration is strong and has prospered under a voluntary and non-binding approach to enhancing trade.'