APEC focuses on improving connectivity to enhance trade in the region

Tuesday, April 09, 2013

The APEC Secretariat, based out of Manila named improving the Asia-Pacific regions transport and logistics networks, a highly supportive industry, as a key goal in its APEC at a Glance 2013 publication which was realised in January.

“APEC’s work on logistics and transport networks aimed at enhancing physical connectivity across-the-border is being undertaken under the ambit of the APEC Supply Chain Connectivity Initiative, with the goal of achieving an APEC-wide 10 percent improvement in supply-chain performance in terms of time, cost and uncertainty by 2015.” (APEC Secretariat 2013, p. 5)

 

The full report can be downloaded here.

Current initiatives have developed from preceding regional discussions in the space. One of these being the Supply-Chain Connectivity Framework which was created during the 21st APEC Ministerial Meeting in Singapore on 12 November 2009. This framework named eight checkpoints that were restricting trade in the region. They included burdensome customs processes, inefficient regulation and physical linkage inefficiencies which all act as blockages to trade.

The full framework can be accessed here.

 

A focus on reducing logistic bottlenecks is high because they limit effective trade and will benefit all links in the supply chain as flows increase in predictability and logistic capacities are reached. For regulators, an improvement in supply chain process regulation underpinned by progressive policies will nurture business.

 

For business, an improvement in logistic flows and connectivity by supporting industries will allow corporations to plan with more predictability when transporting, exporting and importing goods. Improvements in these areas will increase productivity, reduce waste and costly delays. Thus reducing logistic risks and promoting access to new markets which will improve competition and allow for an increase in the availability of goods and services in developing markets across the region.

 

 APEC Secretariat 2013, APEC at a Glance: Advancing Free Trade for Asia-Pacific Prosperity, APEC Secretariat, viewed 4 April 2013 <http://publications.apec.org/publication-detail.php?pub_id=1364>