DFA Makes Strong Pitch for Services Sector in APEC Business Advisory Council Dialogue

PASAY CITY 15 October 2021 — DFA Undersecretary for Multilateral Affairs and International Economic Relations and Philippines and APEC Senior Official Lourdes Yparraguirre made a strong pitch for the services sector on the  first day of the APEC Business Advisory Council (ABAC) Public-Private Dialogue on Services with the theme “Driving Services for an Inclusive and Resilient Economy” on 12 October 2021 via virtual platform.

Co-organized by the Asia Pacific Services Coalition (APSC) and the APEC Business Advisory Council (ABAC), the dialogue was also mounted with the help of ABAC Philippines and Globe, together with the Institute for International Trade at the University of Adelaide and the Australian Department of Foreign Affairs and Trade.

The Dialogue focused on services as a key driver of economic recovery which complements the work of ABAC's Regional Economic Integration Working Group, particularly the Taskforce on Services, as well as the ABAC Report for the mid-term review of the APEC Services Competitiveness Roadmap.

Progress by APEC economies was noted in reducing restrictions, while the region’s average services share of GDP has now exceeded the global average. However, in pandemic times, APEC needs to recalibrate its targets with the decline in global commercial services exports and growth rates in services.

The Undersecretary joined other distinguished speakers including Trade and Industry Secretary Ramon Lopez, ABAC Philippines Chair Tomas Alcantara, ABAC Services Task Force Convenor Tom Harley, ERIA Economist Fukunari Kimura, among others.

Undersecretary Yparraguire noted that services have been the fastest growing sector of international trade, growing three times the rate of export goods despite being a fifth of the total global trade in the past decade. However, the exponential growth has been severely disrupted, particularly in developing economies, by the COVID-19 pandemic and ensuing economic crisis.

Undersecretary Yparraguirre stressed that services trade and services policies will be critical to economic recovery and development strategies in a post-pandemic environment.

She noted that an innovative, resilient, and inclusive services sector, aided by digital enablers and provided with universal healthcare, will help developing economies like the Philippines to rapidly build back better in the aftermath of COVID-19.

APSC was established in 2015 during the APEC chairmanship of the Philippines, to help develop and promote a new services agenda, and eventually contribute to implementation of the APEC Services Competitiveness Roadmap. The ABAC was created by the APEC Economic Leaders in November 1995 to provide advice on specific business sector priorities, and to respond when the various APEC fora request information about business-related issues and business perspective on specific areas of cooperation. END