CEBU CITY, Philippines—Economic ministers of the 21 economies belonging to the Asia-Pacific Economic Cooperation (Apec) on Tuesday agreed to pursue “new directions” to implement structural reforms not only across the region but also in individual economies.
Specifically, ministers who participated in the Second Apec Structural Reform Ministerial Meeting that ended on Tuesday broadly agreed to tear down “behind-the-border” barriers or restrictions in the services sector.
“There is a general agreement to work on reducing these barriers,” Economic Planning Secretary Arsenio M. Balisacan, who chaired the two-day meeting, told a press conference.
Realization of benefits
“There is a realization of all benefits immensely to benefit an economy to unilaterally reduce these barriers,” added Balisacan, who is also the director-general of the National Economic and Development Authority (Neda).
While Apec is non-binding—hence adherence to agreements are on a voluntary basis—Balisacan said member-economies “do see mutually beneficial effects of doing these reforms.”
The Philippines, this year’s Apec host, itself stands to benefit from more open domestic and regional services sectors.
“It will be a big boost for the Philippines. The services sector is 57 percent of the economy,” Balisacan noted.
The 21 member-economies also accepted the proposed three pillars of the Renewed Apec Agenda for Structural Reform, which will guide the structural reform agenda in pursuit of inclusive growth.
“This work program strives to stimulate balanced and sustainable growth and reduce inequality,” Balisacan said.
Three pillars
The three pillars are as follows: more open, well-functioning, transparent and competitive markets; deeper participation in those markets by all segments of society, including micro, small and medium enterprises, women, youth, older workers, and people with disabilities; and sustainable social policies that promote market participation, enhance economic resilience, and are well-targeted, effective, and non-discriminatory.
The inclusive growth agenda through structural reforms should be pursued amid a fragile global economy, Balisacan said.