Promote free trade

To promote free and open trade and investment is APEC's core agenda. Since its founding 20 years ago, much progress has been achieved in opening markets and reducing trade barriers.

Up to date, APEC economies have virtually reduced the average tariff in the region to 5 percent from 17 percent and continue to find ways to reduce trade barriers.

APEC's total trade grew five-fold between 1989 and 2007, an annualized average growth rate of 9.5 percent compared to the world average of 8.9 percent.

However, free trade in the region has faced challenges of growing protectionism after the global financial crisis broke out last year.

The APEC leaders are well aware of the danger of protectionism, fearing that it could lead to a full-scale trade war that will not only dampen the hope of recovery but also shatter the basis the APEC is built upon.

"We firmly reject all forms of protectionism and reaffirm our commitment to keep markets open and refrain from raising new barriers to investment or to trade in goods and services," said the leaders in the declaration.

They said, "the most effective means of dealing with protectionist pressures and delivering a global stimulus package to sustain and secure our recovery is an ambitious and balanced conclusion to the Doha Development Agenda (DDA) in 2010."

Despite that the road to Doha is bumpy, the leaders' statement at least gave some relief to business people in the region at the moment.

Accelerate regional integration

Regional economic integration is a major goal for the APEC. And the key to achieving the vision is what are referred to as the 'Bogor Goals', adopted by APEC leaders at their 1994 meeting in Bogor, Indonesia.

According to the Bogor Goals, industrialized economies should achieve the goal of free and open trade and investment no later than 2010 and developing economies no later than 2020.

Nevertheless, no actions seem to have been taken by any developed member economy, casting a shadow on the integration process of the region.

In their declaration, the APEC leaders reaffirm their commitment to the Bogor Goals, saying that "We direct ministers and officials to report to us next year with a meaningful assessment of the industrialized APEC economies' achievement of the Bogor Goals."

The leaders also said that they will continue to explore building blocks towards a possible Free Trade Area of the Asia Pacific (FTAAP) in the future.

To further push regional integration, the leaders promise to take "a comprehensive approach that focuses our work on trade liberalization "at the border"; improving the business environment "behind the border"; and enhancing supply chain connectivity "across the border."

Analysts said that if the leaders translate their promise into concrete action, not only the Asia-Pacific region but also the whole world will benefit enormously.