(2011-11-15)
Expert Peter Petri cautioned that the entry of Japan, a big, complicated economy with hyper-sensitive politics and a protected agriculture industry, would make the negotiations especially difficult.
"But the resulting agreement will be more representative of the region's varied economy and that should make it easier for other countries to join," Petri, an expert on the pact from the East-West Center think-tank, told AFP.
... Petri said it was very important that China join eventually as its participation would bring "the biggest potential gains, both economically and in guaranteeing a prosperous, peaceful world.
"The process of building an Asia-Pacific trading system will play out slowly over many years, and that should give time for convergence in economic structures and rules that countries accept," he said.
"We'll see competition in the short run, but the economics strongly argues for cooperation in the long run."
... While the obstacles are large, the TPP is "a big deal now, and potentially central to the world trading system," Petri said.
"APEC is a 'natural' economic zone that already trades a lot with itself and consists of generally open, market-oriented economies. If this process takes off, it might even restart Doha."
... "No one is even thinking of regional institutions or free movement of people or a common currency, or general efforts to harmonize national regulations," said Petri.
-- Also appears in: Economic Times, Manila Times, SBS