APEC business leaders call for greater free trade and investment

Economies in the Asia-Pacific region should promote free trade and investment while stepping up structural reform to achieve sustainable and high-quality growth, according to members of The APEC Business Advisory Council (ABAC).

At a time when the global economy remains fragile, it would be damaging for regional growth if countries adopted a protectionist policy, the business leaders told the third ABAC meeting in 2016, held in Shenzhen from Aug 1 to 4.

A consensus at the meeting agreed that government and business should do a better job of explaining the benefits of open trade and investment, while at the same time putting in place policies that ensure those benefits can be shared by all sectors of the community.

Juan Raffo, ABAC Chair 2016, said, "As business leaders, we know that globalization - enhanced by the application of new technologies and ways of doing business - has lifted millions out of poverty. Yet not everyone has shared equally in this dividend.

"While social safety nets can provide temporary relief and assistance in adapting to the new circumstances, structural reform can address any negative consequences on a longer term and permanent basis," Juan said. "Sound policy and regulatory quality will enhance the ability of business – no matter what size - to access the opportunities that open trade and investment generates."

The meeting also highlighted the importance of developing the services sector, which contributes to 46 percent of employment and 70 percent of output in APEC, and increasing participation by micro, small and medium-sized enterprises into the global market.

ABAC, created by APEC Leaders in 1995, is the primary voice of business in APEC. The organization presents advice and suggestions to APEC leaders. This year's APEC Summit will be held in Peru in November.

sally@chinadailyhk.com