New trade pacts seen to sustain Apec expansion

“Next generation” free trade deals such as the recently forged Trans-Pacific Partnership (TPP) among 12 Pacific Rim countries are seen to bolster growth not only among partners but also across the bigger Asia-Pacific region, experts told Tuesday’s Asia-Pacific Economic Cooperation (Apec) CEO Forum.

In the case of Vietnam, for instance, its participation in the TPP as well as a bilateral free trade agreement (FTA) with the European Union expected to be signed by year’s end would help the country achieve inclusive growth, equity and resilience, Vietnam President Truong Tan Sang said.

The Vietnamese leader noted that there were “destabilizing factors” affecting global, regional and domestic economies alike, such as the global economic slowdown as well as development issues like poverty, climate change, natural disasters, and energy, food and water security.

For Sang, one strategy to boost the domestic economy was to participate in freer trade, hence Vietnam is actively pursuing FTAs.

Sang urged other Apec governments and the private sector in the region to forge closer cooperation in climate change mitigation, disaster preparedness, infrastructure development and connectivity, adding that public-private partnership is critical and important in pursuing these endeavors.

With a gross domestic product seen growing more than 6 percent this year, Vietnam was also restructuring its economy for it to become more driven by knowledge, innovation and technology than capital, Sang said.

Multilateral cooperation in infrastructure development would also be key to supporting growth in the region, according to Asia Society president Josette Sheeran.