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New APEC Policy Support Unit report analyses FTAs influence on exports in the Asia-Pacific region. The findings of the report were submitted to APEC Trade Ministers in Boracay on May 23-24, 2015.
Initial analysis showed that the average exports five years after an FTA is enforced is significantly higher vis-à-vis the average exports five years before. In addition, the quality of a free trade agreement was also found to be important in terms of encouraging exports. For example, some agreements only cover goods but exclude services. Others are more comprehensive and include regulations affecting labor, environment, competition policies and other chapters. The study tested for quality through comparing FTAs enforced before 2005 and those after 2005, the rationale being that later FTAs are more comprehensive and of higher quality.
The number of regional and bilateral free trade agreements (FTAs) in the Asia-Pacific region has multiplied since the 1990s with APEC members among the most active economies in negotiating FTAs. At present, APEC members have 144 enforced FTAs, approximately 53 percent of the global number of FTAs.