ASIA-EUROPE: APEC Unlikely to Become a 'Coherent' Trading Bloc

BRUSSELS, Nov 09 (IPS) - The European Union (EU) does not believe the Asia Pacific Economic Cooperation (APEC) will develop into the sort of "coherent" grouping like for example the EU, a spokesperson of the German EU presidency said here Wednesday.

"Unlike the EU, member states of APEC do not have the same historical links and are very different in their economic development, in their sizes, in their regional importance and basically in their historic and political culture," the German diplomat told IPS.

In any event, she added: "We do not consider that APEC is in anyway directed against any other region. We do not see APEC developing itself in coherent protectionistic trade bloc."

Her comments come ahead of next week's APEC summit meeting in Jakarta, which will be chaired by Indonesian President Suharto.

APEC is a forum of 17 countries (it will be 18 when Chile is admitted as a member next week) designed to better coordinate and facilitate the growing inter-dependence in the Asia-Pacific region, and sustain economic growth.

The forum, which was set up in Canberra, Australia in 1989, consists of the six ASEAN countries -- Thailand, Singapore, Malaysia, Indonesia, Brunei, and the Philippines -- plus Australia, Canada, China, Hong Kong, Taiwan, Japan, New Zealand, the United States, South Korea, Mexico and Papua New Guinea.

Together they have a combined population of 2.2 billion, or 40 per cent of world's population, and generate 40 per cent of global trade.

With this in mind, a spokesman of EC Trade Commissioner Leon Brittan, says that while they may never become a "coherent" trading bloc, "the European Union must keep in constant dialogue with APEC".

One issue which may come up at next week's meeting is whether the Asia-Pacific can and/or should be turned into a free trade zone.

Proponents claim that the grouping could benefit from U.S. liberalisation at a time when other regional trading blocs are more inward looking. They propose a dispute mediation service that would help resolve likely trade disputes that are bound to arise within such a body.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service