An analysis of the effects of tariffs and non-tariff barriers to trade: The case of the Asia Pacific Economic Cooperation (APEC).

Abstract

The past years, has witnessed regional integration emerging as a common phenomenon amongst both developed and developing societies. The Asia Pacific Economic Cooperation (APEC) has been a result of this quest for regional integration. The aim of the bloc is mainly to ensure that the economies of its member are vibrant and achieve greater economic growth. However in APEC‟s quest to realise this goal, several challenges have confronted it and among these has been the prevalence of Tariffs and Non-Tariff Barriers (NTBs) to trade. The study therefore sought to analyse the effects of tariffs and NTBs to international trade with reference to APEC. The primary objective was to identify the factors hampering trade within the APEC member economies. The study adopted a case study approach based on APEC with documentary research and interviews being utilised to gather data from respondents and key informants respectively. Findings of the study indicate that the though tariffs and NTBs have declined in their use, they continue to affect trade between the member economies of APEC. This has largely been attributed to the fact that there is an asymmetrical relationship between the developed and developing member states in APEC. However, there seems to be a continued use of tariffs and NTBs in the APEC region showing that there is no adherence to agreed policies. Hence, it is the full implementation of these policies and strategies for the promotion of trade within the APEC region that have remained poor. The results also indicate that there has been a great degree of reduction in the use of tariffs while there the use of NTBs has been on the increase. There is need for coordination between governments and the private sector in the preparation and formulation of economic policies. This will broaden the scope of the policies and will help to promote private sector participation. There is also need to realise that, regional economic integration should not be based on rhetoric, but relies on the implementation of the agreed upon policies.