CHANGES in trade relation patterns among the 21 member-countries of the Asia Pacific Economic Cooperation (Apec) may emerge as a preponderant issue in their summit meeting in Singapore this week.

The possibility of a labor shortage---“from nurses to welders”---may confront the member-nations and hamper their “business competitiveness and economic growth.”

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Results of a research commissioned by the Apec Business Advisory Council said most free trade deals within the grouping looked at easing travel for businessmen.

However, the same reportedly ignored the movement of skilled and lower-skilled workers that are needed in large numbers to fill these labor shortages and skill gaps.

The Asia-Pacific economies that include the United States and Japan actually face critical labor shortages if Apec would not allow soon the easier movement of temporary workers.

Shortfalls

The study undertaken by the University of Southern California’s Marshall School of Business thus brought about the imperative need for some sort of policy framework among the Apec members “to facilitate the movement of temporary laborers.”

The study cited South Korea as potentially facing a shortfall of 4.8 million workers by 2020, while Canada needs one million workers on the same year.

By 2010, the “global shortage of skilled welders alone may exceed 200,000 and the world wide shortage for skilled manufacturing workers could top 14 million by 2020.”

The US is projected to potentially need an additional 35 million workers by 2030, and Japan 17 million by 2050.

Japan alone “would need 40,000 additional nurses” this year, and the shortage “is likely to surge to 550,000 by 2014.”

Models

A notable parallel development is the relocation of Chinese-owned manufacturing firms to Egypt, and what used to carry the “Made in China” tag now shows a “Made in Egypt” imprint.

An example is the Nile Textile Group.

Drawn to Egypt’s cheap labor, investment incentives and unrestricted exports, it has set up its firm in the Port Said free zone that overlooks the north entrance to the Suez Canal.

About 950 Chinese companies have reportedly set up operations in Egyptian free zones, representing a total investment of nearly $300 million.

This economic investment condition can very well be some kind of model for the Apec member-nations in the face of potential future challenges.

The reality of labor shortages among the Apec community is an eye-opener.

It’s not about easing travel for businessmen alone but is also about travel for temporary workers.