Drawing up plans in creating a regional free trade area (FTA) was one of the agendas of both the 15th China-Association of Southeast Asian Nations (ASEAN) summit held in Nanning, China on October 30, 2006 and the 14th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting last November 18-19, 2006 in Hanoi, Vietnam.

 

In a joint statement, China and the ASEAN have agreed to build a free trade area before 2010. This FTA will facilitate free flow of goods, services and investments in over 11 countries, which constitutes at least one-third of the world's population.

Similarly, the possibility of creating an FTA in the Asia-Pacific region was tackled during the APEC meeting. But critics warned on the creation of this regional FTA.

According to Matthew Coghlan, regional trade policy officer for Oxfam, in an article from the Inter Press Service News Agency, “APEC should think carefully about creating a regional free trade zone [since] APEC is made up of both developed and developing countries.” If APEC leaders will push through with the talks on this, then, the United States (US) FTA template should not be used as a basis for the creation of the regional trade area, Coghlan warns.

Peru and Thailand, two of APEC's 21 member-countries, could expect trouble in their agriculture sector, said Coghlan, since such deals “fail to take into account the fact that the US subsidises farm production with billions of dollars in taxpayer support,” which means that “small farmers in Thailand and Peru might face massive dumping of subsidised farm products on their market.”

The proposal for the creation of the regional trade zone is reportedly stalled for study until next year's regional meeting in Australia. But Thailand has already expressed resistance to the proposed FTA. 

Chutima Bunyapraphasara, director-general of the Trade Negotiations Department, in an article posted at bilaterals.org, said that “The idea was impractical because the 21 APEC economies differed so much. In addition, it was against APEC’s original objective of voluntary economic cooperation.”

International trade agreements pose disadvantages not only to developing countries but on women as well. In an article titled “Gender Issues in International Trade,” feminist economist Marina Durano writes that “Trade policies have different consequences on women and men because women and men differ in their economic and social status. Women and men respond differently to economic and trade policies because they have different sets of private resources and levels of access to public ones. Status and control over resources are intricately woven into the sexual division of labour, the assignment of productive and reproductive roles.”

Hence, women in developing countries are at a more disadvantaged position than anyone. “There is evidence that many of the poor are women. Women in poverty are least likely to take advantage of any opportunities that may be made available by trade liberalisation,” Durano said.

Sources:
“APEC puts off consideration of region-wide free-trade deal” from bilaterals.org, posted on November 11, 2006, <http://www.bilaterals.org/article.php3?id_article=6475>.
“ASEAN-China summit to chart FTA blueprint” from China Daily, posted on October 30, 2006, <http://www.chinadaily.com.cn/china/2006-10/30/content_720338.htm>.
“China, ASEAN ink joint statement” from China Daily, posted on October 30, 2006, <http://www.chinadaily.com.cn/china/2006-10/30/content_720396.htm>.
“Fears Over Asia-Pacific Free Trade Zone” from Inter Press Service News Agency, posted on November 16, 2006, <http://www.ipsnews.net/news.asp?idnews=35498>.
“Gender Issues in International Trade” from International Gender and Trade Network, <http://www.igtn.org/pdfs/79_Durano.pdf>.
“Thais against Apec FTA” from bilaterals.org, posted on November 11, 2006, <http://www.bilaterals.org/article.php3?id_article=6433>.