APEC Trade Transparency Worth $148 Bln-World Bank

Removing bribes and hidden trade barriers in APEC member economies could add about $148 billion to the economies of Asia-Pacific region.

Removing bribes and hidden trade barriers in APEC member economies could add about $148 billion to the economies of the fast-growing Asia-Pacific region, a World Bank report published on Monday said.

The report, issued ahead of this week's Asia Pacific Economic Cooperation summit, called for more transparent and predictable trade regulations among the 21-member group.

"APEC member economies perform relatively well with regard to transparency," the report said. "Empirical analysis suggests however that reform in areas such as 'hidden' trade barriers and unofficial payments has considerable potential to raise intra-regional trade."

APEC's economies -- which include the United States, Japan, China and Russia -- account for nearly half of global trade and 56 percent of the world's gross domestic product.

Making trade policy more predictable would include moving toward flatter tariff structures, making import and export delays less variable, lowering uncertainties surrounding bribes, and reducing favouritism in administrative decision-making.

Paying bribes can often be part of the negotiations between an exporter or importer and a customs agent, the report said.

"Regular traders may need to engage in such negotiations repeatedly, with a variety of different personnel," the report said.

This was even after payment of official duties and taxes.

The report described hidden trade barriers as obstacles "which are not easily perceivable by traders due to a lack of transparency by the authorities, or due to their complexity".

Such barriers, including overly complex national technical standards, had the effect of "surprising" traders as to the true level of the trade costs they face, the report said.

Harmonising technical standards across the region would add great value to intra-regional trade, it said.

"Greater transparency and predictability boost trade and reduce costs to business and ultimately to the consumer," said Australian Trade Minister Warren Truss, who released the report.