INTRODUCTION APEC is dominant in world trade: its share in global exports increased from 38 per
cent in 1989 to 48 per cent in 1997 while its share in imports rose from 37 per cent to 46 per cent during the same period. With the recently enlarged membership to twenty-one countries, APEC’s role in global trade is growing. However, the dynamism of APEC is in part driven by its sub-regional trading arrangements (SRTAs). When APEC was formed, it not only grouped diverse and dynamic individual members; it also grouped together SRTAs. Members that belong to SRTAs have dual commitments, to the broader grouping of APEC as well as to their respective sub-regional groups. There are three SRTAs in APEC1: The ASEAN Free Trade Area (AFTA); The Australia-New Zealand Closer Economic Relation Trade Arrangement (ANZCERTA); and The North American Free Trade Agreement (NAFTA).