Mon, Nov 20, 2006 page12

• Analysis: Analysts suggest APEC is becoming less important

  OVERLOAD The grouping's evolving agenda, including everything from bird flu to the North Korean nuclear crisis, has distracted meetings from trade liberalization

  • By Jessie Ho / STAFF REPORTER
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  This year's APEC leaders meeting -- with representatives from 21 member economies, along with businesspeople, government officials and reporters -- has thrust quiet Hanoi, the capital of Vietnam, into the world spotlight.

  But irrespective of the number and rank of people who turned up, the fact is that the importance of APEC is diminishing.

  According to a survey of 370 regional opinion leaders released this week by the Pacific Economic Cooperation Council (PECC), an advisory group to APEC, concern about the viability of APEC is widespread.

  Only 42 percent of respondents agreed with the statement "APEC is as important today as it was in 1989," while a majority of respondents identified "weak commitment from member economies" and "lack of focus" as key challenges facing the regional forum.

  The result could be a problem for Taiwan, as APEC is a vital means for the nation to engage with the international community, both politically and economically.

  "Taiwan should be alert to the situation," Wu Lin-jun (吳玲君), an associate research fellow at National Chengchi University's Institute of International Relations, said at a seminar last week.

  The increase in the number of issues discussed at APEC meetings -- everything from from bird flu to the North Korean nuclear crisis -- have distracted meetings from the main focus of APEC, which originally was trade liberalization and facilitation, Wu said.

  Because it operates as a nonbinding forum, APEC has trouble delivering substantial results, which is another frustration among member states, Wu said.

  The rise of several other regional organizations in Asia may eclipse APEC, especially ASEAN, with China in tow, or Japan's new East Asia Summit, Wu said.

  In theory, integrated trade partners are more likely to be political allies, and both ASEAN and the East Asia Summit, which exclude Taiwan, are the focus of a push to establish a regional common market, Wu said.

  The US will not sit on its hands while this happens. The US pushed its own regional agenda during this year's APEC meeting -- a new APEC-wide free trade zone or Free-Trade Area of the Asia Pacific (FTAAP).

  The US-led initiative was originally suggested by the APEC Business Advisory Council and PECC two years ago, but was only listed as a long-term goal this year.

  Despite the fact that the US said it was promoting the idea to resolve the current WTO impasse, there has been speculation that China was behind the recent move to reintroduce the plan.

  Aside from the political tussles that surround its operation, APEC's well-developed committee system and working groups still make it an important organization that Taiwan should find a way to make better use of, Wu said.

  One major initiative the nation has contributed to APEC is the APEC Digital Opportunity Center (ADOC). Established in 2003, ADOC aims to help eliminate the digital divide among member economies by setting up IT centers in Vietnam, Chile, Peru, the Philippines, Indonesia and Papua New Guinea.

  ADOC was extended to the "ADOC Plus" program last year to help remote townships in participating countries sell local produce on the Internet. This year, ADOC will incorporate the APEC Cultural Digital Archives Sharing initiative to promote cultural artifacts.

  The series of digital projects is certainly welcomed among member economies, but a macro initiative involving the participation of all members is needed for the nation to drive the agenda and increase its presence in APEC, said Chyungly Lee (李瓊莉), an associate researcher at National Chengchi University's Institute of International Relations.

  The government should also highlight the role of the APEC Business Advisory Council (ABAC), a non-governmental organization that has an official role in the APEC Economic Leaders Summit through a formal dialogue with business representatives, Lee said.

  The participation of private business groups will help to bring the focus back to trade

  issues, as well as inject more creativity in mapping out strategies, she said.

  Taiwan Institute of Economic Research Division of International Affairs Deputy

  Director Wu Fu-cheng (吳福成) suggested that the nation should adopt a flexible

  strategy while participating in APEC and other international organizations to avoid

  conflict with China.

  Taiwanese leaders are not able to join the APEC Summits and the nation is also

  excluded from APEC's foreign policy meetings — the result of pressure from China.

  But the nation should not be frustrated with this treatment, Wu said.

  Taiwan should

  still use APEC as a platform to build contacts with member countries by organizing

  APEC events, he said. The nation is not permitted to host meetings involving senior

  officials.

  Becoming familiar with the operation of APEC will help the nation find a niche within

  the organization, which it can use to leverage its international relationships. This will

  be more effective than remaining locked in disputes over the nation's sovereignty, Wu

  said.
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