The Bogor Declaration of APEC leaders, on 15 November, 1994, is an important milestone in the evolution of economic co‐operation in the Asia‐Pacific. To be effective, implementation will need to go well beyond the elimination of ‘traditional’ barriers to trade, such as tariffs and quotas, which are no longer the most strategic obstacles to international economic transactions. It will also be essential to accelerate efforts to reduce the transaction costs imposed by divergent approaches to standards, commercial legislation and administrative procedures, as well as to develop an effective approach to dispute settlement. The pragmatic way forward is to retain APEC's commitment to open regionalism, promoting the integration of the Asian‐Pacific region while avoiding needless discrimination against the rest of the world. An early start is possible only if APEC continues to reject an unnecessary diversion of effort to turn APEC into a preferential trading ar