SINGAPORE will focus on upping the pace of economic integration among the Asia-Pacific countries when it takes over the Apec chair next year, said its Trade and Industry Minister on Friday.
Mr Lim Hng Kiang said it will put in place 'building blocks'' to realise the Asia-Pacific Economic Co-operation's long-term vision of a free trade area spanning both sides of the Pacific Ocean.
One such building block has already been constructed, grouping Singapore, Chile, Brunei and New Zealand in a free trade agreement known as the Trans-Pacific Economic Partnership, he noted.
This group, more commonly known as P4, is set to be enlarged, with the United States, Australia and Peru joining the first round of negotiations of the expanded group in March next year in Singapore.
The expanded P4, or P7, was announced on the final day of the meeting of Apec ministers, providing a much needed boost to efforts by the 21-member grouping to free up trade.
In their joint statement, Apec ministers reiterated the need to 'stand firm against protectionist sentiments' which could arise from the current financial crisis; and to continue its work on trade and investment liberalisation.
It was a statement dominated by the financial crisis, evident right from the preface which read: 'We met during the most difficult set of economic conditions we have seen since Apec was created in 1989.'
Separately, the Apec Business Advisory Council trotted out a free-trade message similar to the that of ministers', but with more emphasis on rebuilding confidence and helping small and medium entreprises ride through the storm.
Apec leaders who meet this weekend are likely to repeat this call yet again, as well as to endorse the Washington Declaration by the G20 countries last week to refrain from raising new trade barriers.
Their senior officials have been directed to begin work this weekend on ways to re-start the Doha Round of trade talks which broke down in July because of differences between the United States and China and India on agriculture subsidies.
The ministers urged members of the World Trade Organisation to 'show flexibility and make contributions toward an ambitious and balanced outcome, and we will do the same''.
Speaking at the close of the ministerial meeting, Singapore's Foreign Minister George Yeo said the financial crisis would set the tone for Singapore's year at the helm, just as previous problems had coloured Apec's agenda.
'Over the years, Apec has had to contend with many challenges, the Asian Financial Crisis, East Timor, Sars... This crisis environment dominates our work,' he said.
How Singapore will approach its Apec year to accelerate regional economic integration was elaborated upon by Mr Lim in a luncheon speech to American businessmen here at Lima hotel.
Although there is much criticism of the 30 or so FTAs cirulating within Apec, he noted that they could provide a foundation for practical steps to achieve the Apec vision.
One move would be to cut through the thicket of red tape in FTAs, by streamlining so-called 'rules of origin'. This would reduce compliance costs and draw more businesses to take advantage of the trade pacts.
Another would be to examine the FTAs within Apec to see if those with common features could be 'docked' or merged 'so that they form a bigger FTA over time', he added,
Singapore also wants Apec to deal with two other aspects that nag businesses: the need for streamlined rules within countries to make doing business cheaper and easier, and ways to speed up the flow of goods and services across borders.
He cited one study which said that trade is reduced by 1 per cent for each day a product is delayed prior to shipment.
'Indeed measures that enhance physical connectivity can deliver greater benefits for trade than tariff reductions.'
