Working together to bring regional economic integration

MANILA, Philippines - The Asia-Pacific region is leading global growth as a result of the active participation by the region’s diverse producers, suppliers, consumers and workers and multilateral cooperation is critical for advancing regional economic integration. The strategic goals of Asia-Pacific Economic Cooperation (APEC) and Association of Southeast Asian Nations (ASEAN) can converge to achieve an even higher level of regional economic integration to increase opportunities and improve the quality of life for our people.

ASEAN and APEC are a dual (a twin) architecture that keeps propelling economic cooperation and policy coordination in the wider Pacific region for over two decades. Both organizations have pioneered work on trade facilitation, the ease of doing business, regulatory reform, standards, SMEs and non economic areas such as disaster management. We are addressing these next-generation issues which have emerged as a result of changes in the global trading environment. We pledge to share resources and expertise, collaborate on specific initiatives or activities, and exchange experiences on institutional development.

Our work is complimentary and the links between the two secretariats support initiatives that help members fulfill obligations to their strategic partners. Collaboration between APEC and ASEAN dates back to 1989 and has continued for over 20 years. This relationship has contributed to the development of APEC and the broadening of ASEAN’s role to strengthen regional economic cooperation.

APEC and ASEAN share common ideals. Both aim to achieve sustainable growth and reduce the development gap, as well as strengthen the sense of community, among their members. APEC and ASEAN understand the importance of openness and the need to be fully integrated into the world economy in order to reap the benefits of globalization. Trade, investment and economic cooperation are considered important tools to reach these goals. Learning from each other facilitates the interests of our members. 

In recent times, APEC-ASEAN cooperation has strengthened. For the last several years both secretariats have engaged each other and worked together. For example, some areas for cooperation include human security, such as dealing with health pandemics and emergency preparedness.

We cooperate to build a resilient economy and stronger institutions to support it. Sharing information on trade facilitation matters, such as single-window initiatives and supply-chain connectivity enhances the way we secure, simplify and streamline customs procedures. Initiatives aimed at reducing at-the-border, behind-the-border and across-the-border barriers to trade are helpful to promote growth and accelerate regional economic integration.

Measures like these reduce the time and cost of doing business, which represents several billion dollars in savings. In the same way, a good regulatory environment facilitates trade and cuts costs for businesses. Ultimately, these gains are felt by everyone and help to increase opportunities, create employment and fight poverty across the region.

APEC and ASEAN are conscious that growth needs to be inclusive. To enable widespread and sustainable prosperity, the benefits of growth need to reach the people on the street. Projects to promote the development of small and medium enterprises (SMEs), for example, open opportunities and increase living standards. Indeed, a previous report by the APEC Policy Support Unit and ASEAN shows that SMEs account for more than 90 percent of the firms in the region and employ around half of the workforce.

The partnership between APEC and ASEAN can be further strengthened by working together on issues that require coordinated responses and global actions. Initiatives to promote green growth will help mitigate and prevent climate change problems. Steps we take to facilitate green growth through capacity-building activities are crucial to address climate change problems.

ASEAN and APEC operate through a process of consultation. Our cooperation will continue as we exchange views by drawing upon research, analysis and policy ideas that mutually benefit our region. Our secretariats will continue meet regularly to continue this dialogue.

(Ambassador Muhamad Noor is the Executive Director of the APEC Secretariat in Singapore. Dr. Surin Pitsuwan is the Secretary General of the ASEAN Secretariat in Jakarta, Indonesia. They met this week in Jakarta to examine areas of cooperation.)