Conclusive answers cannot be found at this early stage of the APEC experiment. It will take several more years to "bed down" an approach to co-operation which can achieve substantial economic benefits and be acceptable to all participants . In its evolution, APEC has mush to learn from the experience of others . However, Asia Pacific government cannot proceed simply by transplanting approaches to co-operation developed in different places and circumstances. The pragmatic approach is to adapt all good ideas for economic co-operation; drawing on positive aspects, but leaving behind any features which are not fully consistent with the realities of the Asia Pacific.
the paper explains that the sensible approach, and the only one that will allow APEC government to begin dismantling obstacles to economic integration immediately.Is to continue to evolve as an open economic association of Asia Pacific economies: a voluntary process of outward-looking economic co-operation, based on consensus and mutual respect. That is the approach which is consistent with the private sector driven integration already proceeding apace in East Asia as well with the sweeping trend towards a global economy, where it is becoming meaningless to attempt to distinguish between products or producers by the location of production or of ownership.
The paper explores the implications and potential limitations of a voluntary process of co-operation, setting out a strategy for achieving the specific long-term targets, such as those listed above, including some proposals currently seen as extremely sensitive.
A voluntary process of co-operation can achieve results if, and only if, all participants perceive clear net benefit from proposals for co-ordinated, or concerted decisions for reform. Accordingly, the proposed strategy begins with proposals which are perceived to benefit all participants without requiring major structural adjustment. The evidence of the all-round benefits of early co-operation will help to change perceptions of the balance of long-term gains and short-term costs of subsequent proposals for closer economic Integration. Objective monitoring of the process of co-operation based on concerted unilateral decision-making by APEC governments will be essential to confirm that participants are implcmenting the domestic policy changes needed to achieve free and open trade and investment in the Asia Pacific and to demonstrate the economic gains to all participants flowing from those decisions. That should, over time, reassure those participants, like the USA, who are more accustomed to co-operation by means of negotiations of binding obligalions.
While perceptions will evolve, there may be limits to persuasion. It ls certainly possible that some of the most entrenched forms of regulations or prolection can only be dismantled through the negotiation of some binding agreement. But that does not require a needless effort to convert the entire APEC process into a formal structure. It certainly must not lead to a perception that all reforms to achieve co-operation are "concessions" to others, rather than inherently positive-sum games. It may prove sensible to deal with some impediments to trade and investment In the Asia Pacific through multilateral institutions, especially the WTO. Multilateral negotiations can also serve to ensure a positive global response to the dismantling of impediments to international economic transactions By Asia Pacific economies.
Accordingly, an important ingredient of a well-rounded strategy for APEC is to create synergy between intra-regional consensus-based action and collective leadership by APEC participants in multilateral economic ncgotiations.