This paper overviews recent efforts for and experiences from trade liberalization in the World Trade Organization (WTO) and Asia-Pacific Economic Cooperation (APEC), with an emphasis on sectoral approach of APEC's Early Voluntary Sectoral Liberalization (EVSL). Based on the analysis of international trade and potential welfare growth, we can draw some points to be considered for further trade liberalization activities in APEC.

With the premise of open regionalism, APEC has contributed to the integration of global economy as well as its Asia-Pacific member economies. The trial of EVSL in 1997 was a breakthrough for trade liberalization. However, EVSL failed to reach an agreement on the implementation of 9 priority sectors among the 15 sectors agreed to in 1997. The failure has been regarded as a credibility crisis for APEC. Currently, EVSL follows a three-track approach to liberalization: market opening measures, trade facilitation activities, and economic and technical cooperation initiatives. APEC members decided to transfer the tariff element of EVSL to the WTO in the name of Accelerated Tariff Liberalization (ATL) and to focus on non-tariff measures, facilitation, and economic and technical cooperation components of the sectoral initiatives.
The sectoral approach is an efficient way to further trade liberalization after achieving overall reduction of tariff barriers under GATT and WTO multilateral trade negotiations. For further trade liberalization in APEC, we should consider the environment and experiences of APEC trade liberalization and also consider the relationship between the WTO and APEC as well as trade liberalization efforts in these bodies. Some examples are as follows.

First, the APEC goals of trade liberalization mentioned in the Bogor Declaration are to be reexamined and redefined in detail. Second, as far as trade liberalization aspects of APEC are concerned, its relationship with the WTO as the multilateral trade negotiation process should be clearly defined. Third, if the Bogor goals of APEC trade liberalization are not totally changed, voluntary IAPs will not be enough to achieve the goals in consideration of the concessions in previous IAPs. Fourth, subgroupings within APEC should not undermine the multilateral efforts for trade liberalization but contribute to creating a liberalizing climate by fostering trade. Fifth, mutual cooperative complementary roles among the three pillars of the APEC process such as trade liberalization, facilitation and ECOTECH are to be strengthened. Sixth, trade liberalization and facilitation should concentrate on a few common interested sectors in the beginning to create momentum and to enhance the credibility of the APEC trade liberalization process. Besides, APEC should place priority on reducing the gap between members since it consists of diverse members in terms of economic development. In practice, the best ECOTECH policy that DC member economies can offer LDC member economies is to allow more market access for goods in which both DCs and LDCs have relatively large intraindustry trade in practice and potentially. The most appropriate commodities are especially from traditional manufacturing sectors such as processed food, textiles and apparel, parts and intermediate goods for industrial sectors, consumer electronics and others. Other sectors having relatively large differences in trade barriers among member economies should be considered and concentrated on ECOTECH prior to trade liberalization.

I. Introduction

II. Global Trade and Multilateral Trade Liberalization
1. Global Trade and Trade Institutions2. Multilateral Tariff Reduction 3. The
WTO: Before and After Productivity Growth and Structural Change

III. APEC and Sectoral Approaches
1. APEC: An Overview
2. Sectoral Approaches to Trade Liberalization
3. Recent Development in EVSL
4. Reflections on EVSL

IV. APEC Trade Liberalization after EVSL
1. APEC Trade Liberalization Environment
2. Directions for APEC Trade Liberalization

V. Summary and Conclusion