Part I of this report assesses trends and developments in regional trade and investment flows and policies in an attempt to provide the insights and information necessary to separate the cyclical from the structural aspects. Part II analyses the participation of Asia-Pacific economies in global and regional value chains. By observing how economies at different levels of development have integrated into supply chains at different speeds and to varying extents, we can cast light on those policies that influence and shape value chain participation, and hence influence future patterns of trade and investment. The particular features of participation in value chains also have an impact on the ability of countries to access foreign technology and build innovative capacity, which in turn influences structural change and future development options.