Aligning ambitions of economic integration in Asia-Pacific

Most cherry trees in China are dormant in the winter due to the cold. Yet supermarkets across the country are stocked with boxes of glossy, wine-colored cherries during the season.

The luscious fruit is imported in large quantities from Chile, about 20,000 kilometers away in South America, to fill the seasonal supply gap and drive down prices at that time of the year. The huge supply and relatively affordable prices make cherries a popular treat in China around the Spring Festival holiday.

The popularity of Chilean cherries in China is thanks to their bilateral free trade agreement, under which most goods enjoy zero-tariff treatment.

The journey of Chilean cherries across the Pacific reflects the vitality of free trade and economic integration in the Asia-Pacific. Interestingly, though China and Chile enjoy a high-standard bilateral free trade relationship, they are signatories to different regional trade agreements.

China is a member of the Regional Comprehensive Economic Partnership, while Chile is part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

RCEP and CPTPP are two major pillars of the Asia-Pacific's economic and trade architecture. Many regional economies are part of either one or both agreements.

Within each trade pact, member economies have seen their tariffs slashed and the cost of cross-border trade and business reduced.

But the two trade agreements cover different regional economies and have distinct rule frameworks.

To promote a free flow of resources across the Asia-Pacific, it is necessary to integrate their rules and work toward a unified free trade area that covers more regional economies.

This has long been a goal of the Asia-Pacific Economic Cooperation forum.

An important milestone was reached in 2014, when APEC members adopted a road map for the realization of the Free Trade Area of the Asia-Pacific, or FTAAP, at the meeting of economic leaders in Beijing, turning the long-term vision into a concrete action plan.

Two years later, APEC members endorsed the Collective Strategic Study on Issues Related to the Realization of the FTAAP.

Since then, economies have committed to bringing CPTPP and RCEP into force, while APEC has encouraged the two regional deals to remain open, transparent and inclusive, draw on each other's strengths, and jointly lay the groundwork for the eventual realization of the FTAAP.

In recent years, however, progress toward building the free trade area has faced growing challenges. Protectionism and unilateralism are on the rise, while geopolitical tensions have intensified.

For many enterprises, market access and operational efficiency are no longer the only concerns. The security and resilience of industry chains have become more important than ever. All these have slowed the progress toward the FTAAP, and delayed discussions on a potential negotiating framework.

Yet the evolving environment has only made the FTAAP all the more relevant. A unified Asia-Pacific market will help address the fragmentation of rules caused by overlapping free trade arrangements, help regional economies withstand trade protectionism and strengthen the regional supply chain. Its establishment will not only boost regional trade but also contribute to global growth.

It will take gradual and steady efforts to advance the FTAAP, which is faced with multiple hurdles. Geopolitical competition and significant development gaps among APEC member economies are some of the biggest obstacles.

The Asia-Pacific comprises both developed economies and a large number of developing economies. CPTPP's rules are of a higher standard, whereas RCEP emphasizes inclusiveness, flexibility and incrementalism.

Given that APEC members are at different stages of development, it is unrealistic to expect all economies to implement identical trading rules immediately.

APEC therefore needs to build a consensus among members and help them with capacity-building to speed up the economic integration of the region.

The forum can also facilitate dialogue and coordination between RCEP and CPTPP members to make relevant institutions more open, compatible and inclusive. This would lay a solid foundation for the future free trade area.

Efforts to align the two trade agreements should not begin with the most contentious issues, such as tariff concessions. Instead, priority should be given to harmonizing rules and standards for the digital economy, green and low-carbon trade and cross-border data flows.

Since the regulatory frameworks for these emerging sectors are still evolving, there is greater scope for developing unified norms.

China has actively contributed to this process. The country hosted a dialogue between members of RCEP and CPTPP during the APEC Ministers Responsible for Trade Meeting held in Suzhou, Jiangsu province, in May.

Representatives from 18 of the 20 economies participating in the two mega trade agreements attended the dialogue. Participants engaged in informal discussions on several issues, including regional economic integration.

In July, a Chinese business delegation hosted the third APEC Business Advisory Council meeting in 2026.

At the meeting convened in Bangkok, representatives discussed regional economic integration and other topics, and adopted a report to APEC economic leaders and other outcome documents.

Going forward, only by upholding the principles of pragmatic cooperation, inclusiveness and mutual learning, while continuing to improve institutional coordination and align interests, can Asia-Pacific economies build a truly unified, open and prosperous regional market.

The author is the deputy director of the Department of Emerging Economies of the National Institute of International Strategy, the Chinese Academy of Social Sciences.

The views don't necessarily reflect those of China Daily.

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