Deepening Regional Economic Integration

KOMPAS/ALBERTUS HENDRIYO WIDI

Ministers in charge of trade (MRT) pose for a group photo before the opening of the Asia-Pacific Economic Cooperation (APEC) MRT in Vina Del Mar, Chile, Friday (17/5/2019) morning local time. This year, APEC carries the theme of digital community development, integration 4.0, inclusive growth and sustainable growth.

VINA DEL MAR, KOMPAS — In the midst of global economic uncertainty, members of the Asia Pacific Economic Cooperation (APEC) are focusing more on deepening regional economic integration. APEC has also called for reform of the World Trade Organization (WTO) and the multilateral trading system amid growing protectionism.

For this reason, APEC has four priorities. First is to increase the participation of women, small and medium enterprises, and inclusive growth. Second is to promote a digital society and the third is the integration of Industry 4.0 and the fourth is to promote sustainable economic growth.

The priorities were stipulated in a joint statement issued during APEC’s Ministers Responsible for Trade Meeting (APEC MRT) in Vina del Mar, Chile on Saturday local time. The statement was read by Chile’s minister of foreign affairs, Roberto Ampuero, who is also chairman of the 2019 APEC MRT Meeting.

Chile acts as the host of the meeting. This year\'s meeting was themed "Connecting People, Building the Future". The Indonesian delegation was led by Trade Minister Enggartiasto Lukita. Enggartiasto was accompanied by the ministry’s director general of international trade negotiations, Iman Pambagyo, and the ministry’s director of APEC and the International Organization, Antonius Yudi Triantoro.

Ampuero said efforts to increase the participation of people in the economy was very important for economic growth. APEC is committed to advancing economic, financial and social inclusion, including encouraging rural development and improving living standards.

The business climate is changing fast, driven by the implementation of Industry 4.0. Therefore, it is necessary to have a predictable, transparent trade and investment framework and technology.

"We support this year\'s focus on trade facilitation, global value chains and smart trade. We encourage further efforts, especially in ensuring small and medium enterprises benefit from the APEC initiative," Ampuero said.

Ampuero also stressed that international trade was important for productivity, innovation, job creation, and economic development. For this reason, APEC emphasizes that rules implemented within the framework of the World Trade Organization (WT)) should be transparent and non-discriminatory.

"We also continue to support the multilateral trading system that is still being implemented to improve international trade," he said.

International trade is important for productivity, innovation, job creation, and economic development. For this reason, APEC stressed the importance of transparent and non-discriminatory rules in the WTO.

KOMPAS/ALBERTUS HENDRIYO WIDI

Trade Minister Enggartiasto Lukita (second right) and Trade Ministry International Trade Negotiations Director General Iman Pambagyo (far right) attend a meeting of the Ministers in charge of Trade (MRT) at the Asia-Pacific Economic Cooperation (APEC) forum in Vina Del Mar, Chile, Friday (17/5/2019) morning local time. This year, APEC carries the theme of digital community development, integration 4.0, inclusive growth and sustainable growth.

Strengthening the WTO

Enggartiasto said that in the midst of trade wars and growing protectionism in the world, APEC member countries stressed the importance of reforming and strengthening the WTO. Almost all APEC member countries are concerned about the crisis that is taking place at the WTO.

The three main functions of the WTO, namely negotiation, monitoring and dispute resolution, are no longer effective. APEC countries are concerned that the multilateral trade system that has been embraced by the WTO has been eroded by the growing protectionism and the weakening of the WTO organizations.

"WTO reform needs to be done immediately. One of the priorities should be the effort to solve the problem related to the stalled process in the appointment of the WTO’s Appellate Body, which will end in December 2019," said Enggartiasto.

Iman Pambagyo said that in order to increase trade amid global economic uncertainties as the result of the escalation of the trade war between the United States and China, APEC was committed to strengthening regional economic integration in the Asia-Pacific. The creation of the Asia Pacific Free Trade Agreement (FTAAP) must be based on the principle of inclusiveness, reducing development gap among member countries and poverty alleviation.

KOMPAS/ALBERTUS HENDRIYO WIDI

Trade Minister Enggartiasto Lukita, Director General of International Trade Negotiations of the Trade Ministry Iman Pambagyo (right), and Director of APEC and International Organization of the Trade Ministry Antonius Yudi Triantoro (center), make conversation on the sidelines of meetings of the Minister for Trade (MRT) in the Asia-Pacific Economic Cooperation (APEC) forum in Vina Del Mar, Chile, Friday (17/5/2019) morning local time. This year, APEC carries the theme of digital community development, integration 4.0, inclusive growth and sustainable growth.

"FTAAP needs to prioritize public welfare and economic equality, not only to benefit business players. In addition, APEC needs to anticipate impact of the digital transformation that can disrupt old economic resources and labor, "said Imam.

APEC sees trade activities in the Asia-Pacific region as slowing down partly due to the trade war. APEC\'s economic growth this year is estimated at 3.8 percent, lower 4.1 percent in 2018. Global trade growth is expected to fall from 3.7 percent this year to 2.6 percent.

Meanwhile, the International Monetary Fund projects the world economy to grow 3.3 percent this year.