APEC is an appropriate structure for such a collective effort, as long as the USA remains effectively engaged. It is, therefore, imperative that the APEC experiment to bridge the Pacific should succeed.
The Asia Pacific in 2020
If the APEC experiment does succeed in achieving the historic Bogor vision of free and open trade and investment in the region is achieved, the Asia Pacific will become a truly integrated zone of remarkably efficient production. By 2020, the consistent increase in the productivity of all Asia Pacific economies can achieve a marked convergence towards high standards of living, contributing to self-confidence and regional security. The removal of impediments to all types of economic transactions in the region can lead to deep integration, with a high free degree of specialization made possible by the tree region-wide flows of intra-firm and intra-industry trade as well as investment. The resulting gains in efficiency can ensure that the Asia Pacific region remains the most competitive in what will be an essentially global market for goods and services. (Elek et al., 1995). Following the dismantling of all significant penalties and obstacles to trade imposed at customs barriers, there should be no quotas; no Asia Pacifi economy will impose tariffs of more than 5 per cent and most trade in goods and services will be entirely free. International investment from all over the world will flow freely into and around the region if, in line with their commitment to free and open trade and investment. APEC governments eliminate all needless distinctions in the treatment of producers on the basis of ownership. By 2020, extensive harmonization of commercial legislation, ranging from competition policy, standards of disclosure and auditing, approaches to taxation and fiscal incentives and the complete elimination of exchange controls, can do away with most the current uncertainties and policy-imposed transaction costs imposed on international commerce in the Asia Pacific
At present, many goods and services are "non-tradables", not just because of tariffs or high transport costs, but due to the incompatibility or absence of product standards. If APEC governments implement a far-sighted programme of technical co-operation during the next ten years, then all APEC participants can have clearly documented domestic standards backed by effective legislation and cost-efficient administratlon. This would allow the mutual recognition of a very wide range of quality, safety and other standards
Economic co-operation can reduce the cost of international trade in many other ways. The exchange of better data and joint forecasts of trends in trad and investment will make it possible to anticipate where investment is needed in infrastructure, especially transport and telecommunications, allowing the private sector as well as development agencies such as the World Bank to channel capital towards these commercially attractive prospects.
The efficiency of infrastructure can also be enhanced by policy co-ordination. Exchanges of information and the region-wide pooling of technology and expertise can do away with many of the current delays and administrative costs. Regional telecommunications systems can be made fully compatible.