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The following article was published in our article directory on December 14, 2010.
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Asia-Pacific Free Trade Zone Concept and Reality

Article Category: Business Management

Author Name: xia zihui

Eighteenth in this year's APEC informal leadership meeting, the Asia-Pacific free trade zone is written to the leaders of the Declaration, the members way of mechanisms to promote through the process of economic integration achieved a new consensus, which is the Asia-Pacific Economic Cooperation organizations in promoting trade and investment liberalization goals of the significant progress made.

In fact, the Asia-Pacific free trade zone as early as 2006 or earlier to have been some initiatives, but the conditions were not suitable. Passage of time, in 2008 the international financial crisis profoundly affected the world economy, world economic growth over the past lead the developed members, and now give the developing members, especially members of the development of the Asia Pacific region. Asia-Pacific region to enhance the status of the developing members and regional members of the United States, Japan and other developed relative decline in economic power, and further narrowed the distance between each other, thus beginning the prelude to the Asia-Pacific free trade zone.

Established members of the Asia-Pacific Free Trade Area of the region has many benefits. In general, the establishment of a free trade zone to facilitate the region's commodities, capital, personnel, resources, free and convenient flow, and this alone, can reduce the Asia-Pacific region each year because of trade barriers to capital flows caused by the loss of billions of dollars ; through the Free Trade Area of the institutional arrangements, can form a tight economy, the increasing diversity in the pattern of the world economy, the formation of a strong risk of resilience outside the region; help strengthen the Asia-Pacific region in the world economy ownership or right to speak. Establishment of a free trade area, you can also eliminate many bilateral and multilateral trade agreements inconsistent rules in the system caused the problem, but also conducive to solve some difficult problems, such as urges to speed up some economies open up some sensitive industries, products and other fields.

However, in the present circumstances, the establishment of the Asia-Pacific free trade zone there are still many obstacles. First, the level of economic development in the Asia-Pacific region vary widely, if not to force the adoption of special trade and investment liberalization as a mechanism of protection is not feasible. Second, the various paths leading to free trade need to coordinate. So far, the reality of the Asia-Pacific free trade zone means is not clear. Third, the economic vitality of the Asia Pacific region mainly from market forces. In other words, the Asia-Pacific region the rapid growth of trade and investment, in large part not specifically in the institutional arrangements to achieve, but the internal momentum region dictates. That being the case, today is it really necessary to implement a wider free trade area to promote rapid growth of trade and investment, which have caused people to reflect.

In short, the establishment of the Asia-Pacific free trade zone is a long-term goal, can not be done overnight in the short term, but this does not mean that the Asia-Pacific free trade zone is unattainable thing. Convergence of per capita income for the Asia-Pacific free trade area provides the basic impetus for the construction of the Asia-Pacific economies have been carried out by multilateral or bilateral regional cooperation and the regional powers will shift the political focus to the Asia Pacific region for the realization of this vision to create a premise.

China joined APEC in 1991. When over 20 years, China and the Asia Pacific region have undergone considerable change, Asia-Pacific region to become the world's most dynamic regions in the world economy's position in the steady increase in China is to become a leader in regional economic development. Is a regional economic impact of past economic development in China, now it is two-way interaction. Taking into account the actual situation in the Asia Pacific region, China's support for the Asia-Pacific free trade zone as a long-term goal to continue to conduct research on related issues. This reflects China in the Asia-Pacific free trade zone concept into reality by the terms of an open and pragmatic attitude.

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