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Asia-Pacific Trade and Investment Report 2011

Post-Crisis Trade and Investment Opportunities

image of Asia-Pacific Trade and Investment Report 2011

This report identifies the challenges and opportunities for trade and investment in the Asia-Pacific region concluding that with the right policies and strengthened regional cooperation, the region will be able to continue strong trade- and investment-led growth. With the continued stalling of the international Doha Round of negotiations, regional trade agreements remain an important approach to controlling protectionism. A fresh look at the rules under these agreements is recommended. The report emphasizes that governments need to step up efforts to improve the environment for business and investment.

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Recent trends in foreign direct investment in the region

With the start of the global economic crisis, world foreign direct investment (FDI) inflows decreased by 16% in 2008, then dropped sharply by 37% in 2009 and gained a marginal 1% increase in 2010 (UNCTAD, 2011a). The decrease was relatively more pronounced in the developed countries. For the first time, developing countries are expected to have absorbed more than half of global FDI flows in 2010.

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