In hosting APEC 2022, Thailand has acknowledged that the most pertinent matter for the Asia-Pacific Economic Cooperation is its transition to the post-COVID-19 era, in particular, reigniting trade and commerce and adapting to the New Normal.
The acknowledgement has led to the inclusion of "Open" in this year’s theme of "Open.Connect.Balance", and its elaboration of "Open to All Opportunities." At the start of the year, Thailand stated that it was intent on restarting conversations on the Free Trade Area of the Asia-Pacific (FTAAP).
Discussion on the endeavor mainly took place during the APEC Second Senior Officials’ Meeting (SOM2) in May of this year, especially at the Ministers Responsible for Trade Meeting, and attention was also devoted during the APEC Third Senior Officials’ Meeting (SOM3).
At these forums, Thailand reiterated that it was time for a reinvigoration of talks aimed at realizing FTAAP while also pointing out the need to introduce new thinking and fresh ideas for the program in light of the post-COVID-19 context.
The goal, according to Thailand, would be for APEC to have a "framework for a more resilient, more inclusive, and nimbler trade and investment regime".
FTAAP was introduced in a joint statement of APEC trade ministers in 2008 and was more recently brought up in November 2021 as part of the APEC Putrajaya Vision 2040.
Since its first proposal, FTAAP has been envisioned as a long-term path to supporting sustainable, inclusive growth in regional and global trade, empowering the creation of jobs and wealth. The proposed area involves 21 economies home to an estimated 2.9 billion people, accounting for 38 percent of the world’s population with a combined GDP of US$52 trillion, or 1.768 trillion baht.
With benefits such as zero import tax rates and friendly trade and investment regulations, as well as higher product and service standards, FTAAP is expected to increase APEC trade value by 200 to 400 percent from the current US $18 trillion, or 608 trillion baht.
Envisioned to take effect by 2040, FTAAP has been spotlighted this year by Thailand due to its potential to bring about robust trade and commerce recovery in APEC following the impacts of COVID-19.
The trade mechanisms required to facilitate FTAAP align with Thailand’s goal of opening APEC to all opportunities so that it may return to a positive growth trajectory. That is why the host economy has worked hard to revitalize the discussion about making FTAAP a reality.
