Economis ProjectAPECAsia-Pacific Economic Cooperation, or APEC,
is the premier forum for facilitating economic growth, cooperation,
trade and investment in the Asia-Pacific region.APEC isan
intergovernmental groupingthat operates on the basis of non-binding
commitments, open dialogue and equal respect for the views of all
participants. Unlike the WTO or other multilateral trade bodies,
APEC has no treaty obligations required of its participants.
Decisions made within APEC are reached by consensus and commitments
are undertaken on a voluntary basis.APEC has 21 members - referred
to as "member economies" - which account for approximately 40
percent of the world's population, approximately 55 percent of
world GDP and about 44 percentof world trade.APEC's 21 Member
Economies are Australia; Brunei Darussalam; Canada; Chile; People's
Republic of China; Hong Kong, China; Indonesia; Japan; Republic of
Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The
Republic of the Philippines; The Russian Federation; Singapore;
Chinese Taipei; Thailand; United States of America; Viet
Nam.Purpose and GoalsAPEC was established in 1989 to further
enhance economic growth and prosperity for the region and to
strengthen the Asia-Pacific community.Since its inception, APEC has
worked to reduce tariffs and other trade barriers across the
Asia-Pacific region, creating efficient domestic economies and
dramatically increasing exports. Key to achieving APEC's vision are
what are referred to as the 'Bogor Goals'of free and open trade and
investment in the Asia-Pacific by 2010 for industrialised economies
and 2020 for developing economies. These goals were adopted by
Leaders at their 1994 meeting in Bogor, Indonesia.Learn more about
the Bogor Goals in the1994 Leaders' Declaration.Free and open trade
and investment helps economies to grow, creates jobs and provides
greater opportunities for international trade and investment. In
contrast, protectionism keeps prices high and fosters
inefficiencies in certain industries. Free and open trade helps to
lower the costs of production and thus reduces the prices of goods
and services - a direct benefit to all.APEC also works to create an
environment for the safe and efficient movement of goods, services
and people across borders in the region through policy alignment
and economic and technical cooperationMission Statement.APEC is the
premier Asia-Pacific economic forum. Our primary goal is to support
sustainable economic growth and prosperity in the Asia-Pacific
region.We are united in our drive to build a dynamic and harmonious
Asia-Pacific community by championing free and open trade and
investment, promoting and accelerating regional economic
integration, encouraging economic and technical cooperation,
enhancing human security, and facilitating a favorable and
sustainable business environment. Our initiatives turn policy goals
into concrete results and agreements into tangible benefits.
Member EconomiesAPEC has 21 members. The word 'economies' is
used to describe APEC members because the APEC cooperative process
is predominantly concerned with trade and economic issues, with
members engaging with one another as economic entities.APEC
MembersDate of Joining
Australia6-7 Nov 1989
Brunei Darussalam6-7 Nov 1989
Canada6-7 Nov 1989
Chile11-12 Nov 1994
People's Republic of China12-14 Nov 1991
Hong Kong, China12-14 Nov 1991
Indonesia6-7 Nov 1989
Japan6-7 Nov 1989
Republic of Korea6-7 Nov 1989
Malaysia6-7 Nov 1989
Mexico17-19 Nov 1993
New Zealand6-7 Nov 1989
Papua New Guinea17-19 Nov 1993
Peru14-15 Nov 1998
The Philippines6-7 Nov 1989
Russia14-15 Nov 1998
Singapore6-7 Nov 1989
Chinese Taipei12-14 Nov 1991
Thailand6-7 Nov 1989
The United States6-7 Nov 1989
Viet Nam14-15 Nov 1998
Achievements and Benefits
The Asia-Pacific region has consistently been the most
economically dynamic region in the world. APEC member economies
together account for: 40 percent of world population (2.7 billion
people); 44 percent of global trade ($16.8 trillion) and 53 percent
of world real GDP in purchasing power parity (PPP) terms ($35.8
trillion).[1]The regions real GDP (PPP) has also doubled from $17.7
trillion in 1989 to $35.8 trillion in 2010. By comparison, real GDP
(PPP) in the rest of the world has only grown at 3 percent per
year, from $17.2 trillion to $31.9 trillion. This means that APECs
share of world real GDP has increased from 51 percent in 1989 to 53
percent in 2010.APEC's work under its three main pillars of
activity, Trade and Investment Liberalisation, Business
Facilitation and Economic and Technical Cooperation, has helped
drive this economic growth and improve employment opportunities and
standards of living for the citizens of the region.Trade and
Investment Liberalisation APEC is the premier forum for trade and
investment liberalisation in the Asia-Pacific and has set targets
dates for "free and open trade": no later than the year 2010 for
industrialized economies, and 2020 for developing economies
(theBogor Goals). When APEC was established in 1989 average trade
barriers in the region stood at 16.9%; by 2010 barriers had been
reduced to 5.8%.[2] As a consequence, intra-APEC merchandise trade
(exports and imports) has grown from $1.7 trillion in 1989 to $9.9
trillion in 2010, nearly a six-fold increase; now accounting for 67
percent of APECs total merchandise trade. Similarly, APECs total
trade (goods & services) has increased from $3.1 trillion in
1989 to $16.8 trillion in 2010, over a fivefold increase. In the
same period, total trade by the rest of the world has gone from
$4.6 trillion to $21.1 trillion (a multiple of 4.6 times). By June
2011, 48 FTAs had been signed between APEC members; there are
currently 42 FTAs in force between APEC member economies. APEC is
also pursuing trade and investment liberalisation through
itsRegional Economic Integrationagenda. Progress to date includes:
Investigating the prospects of and options for a Free Trade Area of
the Asia-Pacific. The development of 15 model measures for
RTAs/FTAs that serve as a reference for APEC members to achieve
comprehensive and high-quality agreements. APEC has also acted as a
catalyst in the advancement of World Trade Organisation
multilateral trade negotiations over the past 20 years.Business
Facilitation As a result of the APECTrade Facilitation Action Plan
(TFAP I)the cost of business transactions across the region was
reduced by 5% between 2002 and 2006. A second trade facilitation
action plan (TFAP II) reduced transaction costs by a further 5% in
real terms between 2007 and 2010, representing total savings for
business of $58.7biillon APEC initiatives that help facilitate
trade include: The introduction of electronic/paperless systems by
all member economies, covering the payment of duties, and customs
and trade-related document processing. TheSingle Window Strategic
Plan, adopted in 2007, provides a framework for the development of
Single Window systems which will allow importers and exporters to
submit information to government once, instead of to multiple
government agencies, through a single entry point. TheAPEC webpage
on Tariffs and ROOs ("WebTR")launched in November 2010 provides
users with easy access to APEC member economies' tariff and Rules
of Origin information. In 2008, a groundbreakingInvestment
Facilitation Action Planwas endorsed; it aims to improve the
investment environment in Member Economies. TheAPEC Privacy
Frameworkprovides guidance and direction to both APEC member
economies and businesses on implementing information privacy
protection policies and procedures. By facilitating information
flows it will facilitate trade and e-commerce. TheAPEC Business
Travel Card(ABTC) provides substantial time and cost savings to
business people and facilitates their travel in the region, by
allowing visa free travel and express lane transit at airports in
participating economies. APEC is also removing behind-the-border
barriers to trade through itsStructural Reformagenda, which focuses
on reforming domestic policies and institutions that adversely
affect the operation of markets, and the capacity of businesses to
access markets and to operate efficiently.Economic and Technical
Cooperation APEC's Economic and Technical Cooperation (ECOTECH)
activities are designed to build capacity and skills in APEC member
economies at both the individual and institutional level, to enable
them to participate more fully in the regional economy. Since APEC
first began to undertake capacity building work in 1993, around
1600 projects have been initiated; at any moment in time, up to 170
projects may be in implementation. APEC contributes funding to
around 100-150 projects each year, with a total value of over $23
million committed by APEC to projects in 2010-2011. A particular
focus has been reducing the digital divide between industrialized
and developing economies: In 2000, APEC set a goal of tripling
internet usage in the region and that goal has now been achieved,
as recognised by the2008 APEC Ministerial Meeting on the
Telecommunications and Information Industry. APEC is now focusing
efforts on achieving the goal of universal access to broadband in
the APEC region by 2015 an ambitious target reaffirmed by
Telecommunications Ministers in Okinawa, Japan in 2010. A network
of 46 APEC Digital Opportunity Centers (ADOC) now operate in 10
member economies. ADOC's objective is to transform the digital
divide into digital opportunities and the centres act as local
information and communication technology (ICT) resource centres,
providing citizens and businesses of the region with access to ICT
technologies, education and training.Other AchievementsAPEC has
also been able to evolve its agenda to include pressing regional
priorities. Examples include: counter-terrorism (The Shanghai
Statementin 2001, and theCounter-Terrorism Task Force); human
security (Health Working Group); emergency preparedness (Emergency
Preparedness Working Group); climate change, energy security and
clean development (The Sydney Declarationin 2007 and theAPEC List
of Environmental Goodsin 2012); and the global financial crisis
(The Vladivostok Statementin 2012).HISTORYThe idea of APEC was
firstly publicly broached by former Prime Minister of Australia, Mr
Bob Hawke, during a speech in Seoul, Korea in January 1989. Later
that year, 12 Asia-Pacific economies met in Canberra, Australia to
establish APEC. The founding members were: Australia, Brunei
Darussalam, Canada, Indonesia, Japan, Korea, Malaysia, New Zealand,
the Philippines, Singapore, Thailand and the United States.China,
Hong Kong, China and Chinese Taipei joined in 1991. Mexico and
Papua New Guinea followed in 1993. Chile acceded in 1994. And in
1998, Peru, Russia and Viet Nam joined, taking the full membership
to 21.Between 1989 and 1992, APEC met as an informal senior
official and Ministerial level dialogue. In 1993, former United
States President, Mr Bill Clinton, established the practice of an
annual APEC Economic Leaders' Meeting.Key APEC Milestones2013 -
Bali, IndonesiaAPEC Leaders reaffirm their commitment to the
rules-based multilateral trading system and achieving the
successful Doha Round outcome at the World Trade Organization (WTO)
9th Ministerial Conference. APEC Leaders endorse a multi-year plan
on infrastructure development and investment. As a first step under
this plan, a Public Private Partnership Centre in Indonesia will be
established. To encourage people-to-people connectivity, APEC seeks
to promote cross-border cooperation with the target of 1 million
intra-APEC university students per year by 2020. APEC holds its
first joint Ministerial Meeting on Women and SMEs to promote women
entrepreneurship.2012 - Vladivostok, RussiaAPEC Leaders issue the
Vladivostok Declaration stating their commitments to: Trade and
Investment Liberalization, Regional Economic Integration;
Strengthening Food Security; Establishing Reliable Supply Chains;
and Intensive Cooperation to Foster Innovative Growth.
Significantly, Leaders endorse an APEC List of Environmental Goods
that directly and positively contribute to green growth and
sustainable development objectives. APEC seeks to address
transparency as a new next generation trade and investment issue,
and Leaders endorse the APEC Model Chapter on Transparency for
RTAs/FTAs to be used as a guide by APEC economies.2011 - Honolulu,
United StatesAPEC Leaders issue the Honolulu Declaration in which
they commit to taking concrete steps toward a seamless regional
economy; addressing shared green growth objectives; and advancing
regulatory cooperation and convergence. To reach these goals, APEC
resolves to reduce, by the end of 2015, applied tariff rates of
environmental goods to 5 percent or less, taking into account
economies' economic circumstances, without prejudice to APEC
economies' positions in the WTO. APEC sets the goal to reduce
aggregate energy intensity by 45 percent by 2035. And APEC commits
to take specific steps by 2013 to implement good regulatory
practices by ensuring internal coordination of regulatory work;
assessing regulatory impacts; and conducting public
consultation.2010 - Yokohama, JapanAPEC Leaders issue the Yokohama
Vision to provide a roadmap for members to realize an
economically-integrated, robust and secure APEC community. This
includes the formulation of a comprehensive, long-term growth
strategy . APEC completes an assessment of the progress towards the
Bogor Goals and finds significant gains in the areas of
liberalizing trade in goods, services and investment, as well as
trade facilitation. APEC formulates the APEC Strategy for
Investment and endorses the APEC New Strategy for Structural
Reform. APEC holds its first-ever APEC Ministerial Meeting on Food
Security.2009 - SingaporeAPEC resolves to pursue balanced,
inclusive and sustainable growth, while Leaders agree to extend
their standstill commitment on protectionism until 2010. The
first-ever joint meetings of APEC senior trade and finance
officials are held to address the economic crisis. APEC launches
the Supply-Chain Connectivity Framework and the Ease of Doing
Business Action Plan to make doing business in the region 25
percent cheaper, faster and easier by 2015. Member economies also
commence work on an APEC Services Action Plan and an Environmental
Goods and Services Work Program.2008 - Lima, PeruAPEC focused on
the social dimensions of trade and on reducing the gap between
developing and developed members, in accordance with the 2008
theme, "A New Commitment to Asia-Pacific Development". Leaders also
addressed the global financial crisis in the Lima APEC Leaders'
Statement on the Global Economy. They committed to take all
necessary economic and financial measures to restore stability and
growth, to reject protectionism and to intensify efforts to advance
WTO Doha Development Agenda negotiations.2007 - Sydney,
AustraliaFor the first time, APEC Member Economies issue a
Declaration on Climate Change, Energy Security and Clean
Development outlining future action in support of a new
international climate change arrangement and announcing a forward
program of practical, cooperative actions and initiatives. Leaders
also adopted a major report on closer Regional Economic
Integration, including structural reform initiatives, and welcomed
the new APEC Trade Facilitation Action Plan which will reduce trade
transaction costs by a further five per cent by 2010.2006 - Ha Noi,
Viet NamAPEC Economic Leaders endorsed the Ha Noi Action Plan which
identifies specific actions and milestones to implement the Bogor
Goals and support capacity-building measures to help APEC
economies. They also issued a statement on the WTO Doha Development
Agenda calling for ambitious and balanced outcomes. To prioritize
its agenda, APEC takes a strategic approach to reform working
groups and strengthen the Secretariat.2005 - Busan, KoreaAPEC
adopts the Busan Roadmap, completes the Mid-Term Stocktake which
has found that APEC is well on its way to meeting the Bogor Goals,
and the APEC Privacy Framework. Leaders issue a stand-alone
statement in support of a successful conclusion to the WTO's 6th
Ministerial Meeting in Hong Kong, China and agree to confront
pandemic health threats and continue to fight against terrorism
which could cause deep economic insecurity for the region.2004 -
Santiago, ChileAPEC issues a strong statement of support for
progress in the WTO Doha Development Agenda and sets a target date
for achieving a breakthrough in negotiations: December 2005, the
convening of the Sixth WTO Ministerial Conference. APEC adopts Best
Practices for RTAs and FTAs, the Santiago Initiative for Expanded
Trade and a Data Privacy Framework. APEC reiterates its
"unmistakable resolve" to confront the threat of terrorism, and
takes further action in this regard by identifying key elements of
effective export control systems; establishing guidelines on the
control of man-portable air defense systems (MANPADS), and
continuing to implement the STAR initiative. APEC makes a political
commitment to fight corruption and ensure transparency, and
endorses a specific Course of Action towards this end.2003 -
Bangkok, ThailandAPEC agrees to re-energize the WTO Doha
Development Agenda negotiations and stresses the complementary aims
of bilateral and regional trade agreements, the Bogor Goals and the
multilateral trading system under the WTO. APEC dedicates itself
not only to promoting the prosperity of member economies, but also
to improving the security of the peoples of the Asia-Pacific
region. APEC pledges to take specific actions to dismantle
terrorist groups, eliminate the danger of weapons of mass
destruction and confront other security threats. Members sign up to
the APEC Action Plan on SARS and the Health Security Initiative to
further protect personal security. APEC also strengthens its
efforts to build knowledge-based economies, promote sound and
efficient financial systems and accelerate regional structural
reform.2002 - Los Cabos, MexicoAPEC adopts a Trade Facilitation
Action Plan, Policies on Trade and the Digital Economy and
Transparency Standards. APEC's second Counter-Terrorism Statement
is delivered, along with the adoption of the Secure Trade in the
APEC Region (STAR) Initiative.2001 - Shanghai, People's Republic of
ChinaAPEC adopts the Shanghai Accord, which focuses on Broadening
the APEC Vision, Clarifying the Roadmap to Bogor and Strengthening
the Implementation Mechanism. The e-APEC Strategy is adopted, which
sets out an agenda to strengthen market structures and
institutions, facilitate infrastructure investment and technology
for on-line transactions and promote entrepreneurship and human
capacity building. APEC's first Counter-Terrorism Statement is
issued.2000 - Bandar Seri Begawan, Brunei DarussalamAPEC
establishes an electronic Individual Action Plan (e-IAP) system,
providing IAPs online and commits to the Action Plan for the New
Economy, which, amongst other objectives, aims to triple Internet
access throughout APEC region by 2005.1999 - Auckland, New
ZealandAPEC commits to paperless trading by 2005 in developed
economies and 2010 in developing economies. APEC Business Travel
Card scheme is approved and a Mutual Recognition Arrangement on
Electrical Equipment and a Framework for the Integration of Women
in APEC is endorsed.1998 - Kuala Lumpur, MalaysiaAPEC agrees on the
first nine sectors for EVSL and seeks an EVSL agreement with
non-APEC members at the World Trade Organization.1997 - Vancouver,
CanadaAPEC endorses a proposal for Early Voluntary Sectoral
Liberalization (EVSL) in 15 sectors and decides that Individual
Action Plans should be updated annually.1996 - Manila, The
PhilippinesThe Manila Action Plan for APEC (MAPA) is adopted,
outlining the trade and investment liberalisation and facilitation
measures to reach the Bogor Goals and the first Collective and
Individual Action Plans are compiled, outlining how economies will
achieve the free trade goals.1995 - Osaka, JapanAPEC adopts the
Osaka Action Agenda (OAA) which provides a framework for meeting
the Bogor Goals through trade and investment liberalisation,
business facilitation and sectoral activities, underpinned by
policy dialogues, economic and technical cooperation.1994 - Bogor,
IndonesiaAPEC sets the Bogor Goals of, "free and open trade and
investment in the Asia-Pacific by 2010 for developed economies and
2020 for developing economies."1993 - Blake Island, United
StatesAPEC Economic Leaders meet for the first time and outline
APEC's vision, "stability, security and prosperity for our
peoples."1989 - Canberra, AustraliaAPEC begins as an informal
Ministerial-level dialogue group with 12 members.
WIKIPEDIA INFORMATIONAsia-Pacific Economic Cooperation(APEC) is
a forum for 21Pacific Rimmember economies[1]that seeks to
promotefree tradeand economic cooperation throughout
theAsia-Pacificregion. It was established in 1989 in response to
the growing interdependence of Asia-Pacific economies and the
advent of regionaltrade blocsin other parts of the world; to fears
thathighly industrializedJapan (a member ofG8) would come to
dominate economic activity in the Asia-Pacific region; and to
establish new markets for agricultural products and raw materials
beyond Europe (where demand had been declining).[2]APEC works to
raiseliving standardsand education levels through
sustainableeconomic growthand to foster a sense of community and an
appreciation of shared interests among Asia-Pacific countries. APEC
includesnewly industrialized economies, although the agenda offree
tradewas a sensitive issue for the developing NIEs at the time APEC
founded, and aims to enableASEANeconomies to explore new export
market opportunities fornatural resourcessuch asnatural gas, as
well as to seek regionaleconomic integration(industrial
integration) by means offoreign direct investment. Members account
for approximately 40% of the world's population, approximately 54%
of the world'sgross domestic productand about 44% of world
trade.[3]For APEC Economic Trends Analysis in 2012, see.[4]An
annual APEC Economic Leaders' Meeting is attended by theheads of
governmentof all APEC members exceptTaiwan(which is represented by
aministerial-level officialunder the nameChinese Taipeiaseconomic
leader[5]). The location of the meeting rotates annually among the
member economies, and a famous tradition, followed for most (but
not all) summits, involves the attending leaders dressing in
anational costumeof the host country.
HISTORYIn January 1989,Australian Prime MinisterBob Hawkecalled
for more effective economic cooperation across the Pacific Rim
region. This led to the first meeting of APEC in
theAustraliancapital ofCanberrain November, chaired byAustralian
Foreign Affairs MinisterGareth Evans. Attended by ministers from
twelve countries, the meeting concluded with commitments for future
annual meetings inSingaporeandKorea.Countries of theAssociation of
Southeast Asian Nations(ASEAN) opposed the initial proposal,
instead proposing theEast Asia Economic Caucuswhich would exclude
non-Asian countries such as theUnited States,Canada,Australia,
andNew Zealand. This plan was opposed and strongly criticized
byJapanand the United States.The first APEC Economic Leaders'
Meeting occurred in 1993 whenU.S. PresidentBill Clinton, after
discussions with Australian Prime MinisterPaul Keating, invited
theheads of governmentfrom member economies to a summit onBlake
Island. He believed it would help bring the stalledUruguay Roundof
trade talks back on track. At the meeting, some leaders called for
continued reduction of barriers to trade and investment,
envisioning a community in the Asia-Pacific region that might
promote prosperity through cooperation. The APEC Secretariat, based
in Singapore, was established to coordinate the activities of the
organization.During the meeting in 1994 inBogor,Indonesia, APEC
leaders adopted the Bogor Goals that aim for free and open trade
and investment in the Asia-Pacific by 2010 for industrialized
economies and by 2020 for developing economies. In 1995, APEC
established a business advisory body named the APEC Business
Advisory Council (ABAC), composed of three business executives from
each member economy.
Member EconomiesAPEC currently has 21 members, including most
countries with a coastline on thePacific Ocean. However, the
criterion for membership is that the member is a separateeconomy,
rather than a state. As a result, APEC uses the termmember
economiesrather thanmember countriesto refer to its members. One
result of this criterion is that membership of the forum
includesTaiwan(officially the Republic of China, participating
under the name "Chinese Taipei") alongsidePeople's Republic of
China(seeCross-Strait relations), as well asHong Kong, which
entered APEC as a British colony but it is now aSpecial
Administrative Region of the People's Republic of China. APEC also
includes three official observers:ASEAN, thePacific Islands
Forumand thePacific Economic Cooperation Council.[1]Member economy
(name as used in APEC)Date of accession
AustraliaNovember 1989
Brunei DarussalamNovember 1989
CanadaNovember 1989
IndonesiaNovember 1989
JapanNovember 1989
South KoreaNovember 1989
MalaysiaNovember 1989
New ZealandNovember 1989
PhilippinesNovember 1989
SingaporeNovember 1989
ThailandNovember 1989
United StatesNovember 1989
Chinese Taipei[6]November 1991
Hong Kong[7]November 1991
People's Republic of ChinaNovember 1991
MexicoNovember 1993
Papua New GuineaNovember 1993
ChileNovember 1994
PeruNovember 1998
RussiaNovember 1998
VietnamNovember 1998
APEC's Three Pillars[edit]To meet the Bogor Goals, APEC carries
out work in three main areas:1. Trade and Investment
Liberalisation2. Business Facilitation3. Economic and Technical
CooperationAPEC and Trade Liberalisation[edit]According to the
organization itself, when APEC was established in 1989 average
trade barriers in the region stood at 16.9 percent, but had been
reduced to 5.5% in 2004.[19]APEC's Business Facilitation
Efforts[edit]APEC has long been at the forefront of reform efforts
in the area of business facilitation. Between 2002 and 2006 the
costs of business transactions across the region was reduced by 6%,
thanks to the APEC Trade Facilitation Action Plan (TFAPI). Between
2007 and 2010, APEC hopes to achieve an additional 5% reduction in
business transaction costs. To this end, a newTrade Facilitation
Action Planhas been endorsed. According to a 2008 research brief
published by theWorld Bankas part of itsTrade Costs and
Facilitation Project, increasing transparency in the region's
trading system is critical if APEC is to meet its Bogor Goal
targets.[20]TheAPEC Business Travel Card, atravel documentfor
visa-free business travel within the region is one of the concrete
measures to facilitate business. In May2010 Russia joined the
scheme, thus completing the circle.[21]ProposedFree Trade Area of
the Asia-Pacific[edit]APEC first formally started discussing the
concept of a Free Trade Area of the Asia-Pacific at its summit in
2006 in Hanoi. However, the proposal for such an area has been
around since at least 1966 and Japanese economistKiyoshi
Kojima(ja)'s proposal for a Pacific Free Trade agreement proposal.
While it gained little traction, the idea led to the formation
ofPacific Trade and Development Conferenceand then thePacific
Economic Cooperation Councilin 1980 and then APEC in 1989.In more
recent times, economist C. Fred Bergsten has been the foremost
advocate of a Free Trade Agreement of Asia-Pacific. His ideas
convinced the APEC Business Advisory Council to support this
concept.The proposal for a FTAAP arose due to the lack of progress
in theDoha roundofWorld Trade Organizationnegotiations, and as a
way to overcome the "noodle bowl" effect created by overlapping and
conflicting elements of the copious free trade agreements there
were approximately 60 free trade agreements in 2007, with an
additional 117 in the process of negotiation inSoutheast Asiaand
theAsia-Pacificregion.[22]In 2012, ASEAN+6 countries alone had 339
free trade agreements - many of which were bilateral.[23]The FTAAP
is more ambitious in scope than the Doha round, which limits itself
to reducing trade restrictions. The FTAAP would create a free trade
zone that would considerably expand commerce and economic growth in
the region.[22][24]The economic expansion and growth in trade could
exceed the expectations of other regional free trade areas such as
theASEAN Plus Three(ASEAN+China,Japan, and South Korea).[25]Some
criticisms include that the diversion of trade within APEC members
would create trade imbalances, market conflicts and complications
with nations of other regions.[24]The development of the FTAAP is
expected to take many years, involving essential studies,
evaluations and negotiations between member economies.[22]It is
also affected by the absence of political will and popular
agitations and lobbying against free trade in domestic
politics.
APEC Business Advisory Council[edit]The APEC Business Advisory
Council (ABAC) was created by the APEC Economic Leaders in
November1995 with the aim of providing advice to the APEC Economic
Leaders on ways to achieve the Bogor Goals and other specific
business sector priorities, and to provide the business perspective
on specific areas of cooperation.Each economy nominates up to three
members from the private sector to ABAC. These business leaders
represent a wide range of industry sectors. ABAC provides an annual
report to APEC Economic Leaders containing recommendations to
improve the business and investment environment in the Asia-Pacific
region, and outlining business views about priority regional
issues. ABAC is also the only non-governmental organisation that is
on the official agenda of the APEC Economic Leaders Meeting.Annual
APEC Economic Leaders' Meetings[edit]Since its formation in 1989,
APEC has held annual meetings with representatives from all member
economies. The first four annual meetings were attended by
ministerial-level officials. Beginning in 1993, the annual meetings
are named APEC Economic Leaders' Meetings and are attended by
theheads of governmentfrom all member economies exceptTaiwan, which
is represented by a ministerial-level official. The annual Leaders'
Meetings are not called summits.Meeting developments[edit]In 1997,
the APEC meeting was held inVancouver. Controversy arose after
officers of theRoyal Canadian Mounted Policeusedpepper sprayagainst
protesters. The protesters objected to the presence
ofautocraticleaders such asIndonesian
presidentSuharto.[36][37][38][39][40][41]At the 2001 Leaders'
Meeting inShanghai, APEC leaders pushed for a new round of trade
negotiations and support for a program of trade capacity-building
assistance, leading to the launch of the Doha Development Agenda a
few weeks later. The meeting also endorsed the Shanghai Accord
proposed by the United States, emphasising the implementation of
open markets, structural reform, andcapacity building. As part of
the accord, the meeting committed to develop and implement APEC
transparency standards, reduce tradetransaction costsin the
Asia-Pacific region by 5 percent over 5 years, and pursuetrade
liberalizationpolicies relating to information technology goods and
services.In 2003,Jemaah IslamiahleaderRiduan Isamuddinhad planned
to attack the APEC Leaders Meeting to be held inBangkokin October.
He was captured in the city ofAyutthaya,Thailandby Thai police on
August 11, 2003, before he could finish planning the
attack.[citation needed]Chilebecame the firstSouth Americannation
to host the Leaders' Meeting in 2004. The agenda of that year was
focused onterrorismand commerce,small and medium
enterprisedevelopment, and contemplation of free trade agreements
and regional trade agreements.The 2005 Leaders' Meeting was held
inBusan,South Korea. The meeting focused on theDoha roundofWorld
Trade Organization(WTO) negotiations, leading up to theWTO
Ministerial Conference of 2005held inHong Kongin December. Weeks
earlier, trade negotiations inPariswere held between several WTO
members, including the United States and theEuropean Union,
centered on reducing agriculturaltrade barriers. APEC leaders at
the summit urged the European Union to agree to reducingfarm
subsidies. Peaceful protests against APEC were staged in Busan, but
the meeting schedule was not affected.At the Leaders' Meeting held
on November 19, 2006 inHanoi, APEC leaders called for a new start
to global free-trade negotiations while condemning terrorism and
other threats to security. APEC also criticisedNorth Koreafor
conducting anuclear testand amissile test launchthat year, urging
the country to take "concrete and effective" steps towardnuclear
disarmament. Concerns aboutnuclear proliferationin the region was
discussed in addition to economic topics. TheUnited
StatesandRussiasigned an agreement as part of Russia's bid to join
the World Trade Organization.TheAPEC Australia 2007Leaders' Meeting
was held inSydneyfrom 29 September 2007. The political leaders
agreed to an "aspirational goal" of a 25% reduction of energy
intensity correlative with economic development.[42]Extreme
security measures including airborne sharpshooters and extensive
steel-and-concrete barricades were deployed against anticipated
protesters and potential terrorists. However, protest activities
were peaceful and the security envelope was penetrated with ease by
aspoof diplomatic motorcademanned by members of the Australian
television programThe Chaser, one of whom was dressed to resemble
theAl-QaedaleaderOsama bin Laden.The APEC USA 2011 Leaders' Meeting
was held on Honolulu, Hawaii 813 November 2011
APEC Business Advisory Council[edit]The APEC Business Advisory
Council (ABAC) was created by the APEC Economic Leaders in
November1995 with the aim of providing advice to the APEC Economic
Leaders on ways to achieve the Bogor Goals and other specific
business sector priorities, and to provide the business perspective
on specific areas of cooperation.Each economy nominates up to three
members from the private sector to ABAC. These business leaders
represent a wide range of industry sectors. ABAC provides an annual
report to APEC Economic Leaders containing recommendations to
improve the business and investment environment in the Asia-Pacific
region, and outlining business views about priority regional
issues. ABAC is also the only non-governmental organisation that is
on the official agenda of the APEC Economic Leaders Meeting.Annual
APEC Economic Leaders' Meetings[edit]Since its formation in 1989,
APEC has held annual meetings with representatives from all member
economies. The first four annual meetings were attended by
ministerial-level officials. Beginning in 1993, the annual meetings
are named APEC Economic Leaders' Meetings and are attended by
theheads of governmentfrom all member economies exceptTaiwan, which
is represented by a ministerial-level official. The annual Leaders'
Meetings are not called summits.Meeting developments[edit]In 1997,
the APEC meeting was held inVancouver. Controversy arose after
officers of theRoyal Canadian Mounted Policeusedpepper sprayagainst
protesters. The protesters objected to the presence
ofautocraticleaders such asIndonesian
presidentSuharto.[36][37][38][39][40][41]At the 2001 Leaders'
Meeting inShanghai, APEC leaders pushed for a new round of trade
negotiations and support for a program of trade capacity-building
assistance, leading to the launch of the Doha Development Agenda a
few weeks later. The meeting also endorsed the Shanghai Accord
proposed by the United States, emphasising the implementation of
open markets, structural reform, andcapacity building. As part of
the accord, the meeting committed to develop and implement APEC
transparency standards, reduce tradetransaction costsin the
Asia-Pacific region by 5 percent over 5 years, and pursuetrade
liberalizationpolicies relating to information technology goods and
services.In 2003,Jemaah IslamiahleaderRiduan Isamuddinhad planned
to attack the APEC Leaders Meeting to be held inBangkokin October.
He was captured in the city ofAyutthaya,Thailandby Thai police on
August 11, 2003, before he could finish planning the
attack.[citation needed]Chilebecame the firstSouth Americannation
to host the Leaders' Meeting in 2004. The agenda of that year was
focused onterrorismand commerce,small and medium
enterprisedevelopment, and contemplation of free trade agreements
and regional trade agreements.The 2005 Leaders' Meeting was held
inBusan,South Korea. The meeting focused on theDoha roundofWorld
Trade Organization(WTO) negotiations, leading up to theWTO
Ministerial Conference of 2005held inHong Kongin December. Weeks
earlier, trade negotiations inPariswere held between several WTO
members, including the United States and theEuropean Union,
centered on reducing agriculturaltrade barriers. APEC leaders at
the summit urged the European Union to agree to reducingfarm
subsidies. Peaceful protests against APEC were staged in Busan, but
the meeting schedule was not affected.At the Leaders' Meeting held
on November 19, 2006 inHanoi, APEC leaders called for a new start
to global free-trade negotiations while condemning terrorism and
other threats to security. APEC also criticisedNorth Koreafor
conducting anuclear testand amissile test launchthat year, urging
the country to take "concrete and effective" steps towardnuclear
disarmament. Concerns aboutnuclear proliferationin the region was
discussed in addition to economic topics. TheUnited
StatesandRussiasigned an agreement as part of Russia's bid to join
the World Trade Organization.TheAPEC Australia 2007Leaders' Meeting
was held inSydneyfrom 29 September 2007. The political leaders
agreed to an "aspirational goal" of a 25% reduction of energy
intensity correlative with economic development.[42]Extreme
security measures including airborne sharpshooters and extensive
steel-and-concrete barricades were deployed against anticipated
protesters and potential terrorists. However, protest activities
were peaceful and the security envelope was penetrated with ease by
aspoof diplomatic motorcademanned by members of the Australian
television programThe Chaser, one of whom was dressed to resemble
theAl-QaedaleaderOsama bin Laden.The APEC USA 2011 Leaders' Meeting
was held on Honolulu, Hawaii 813 November 2011
APEC Economic Trends Analysis Report (April 2014)Purpose:
InformationSubmitted by: PSU, APEC Secretariat
HIGHLIGHTS
APEC economic recovery is proceeding but at varying speeds
Economic recovery in Industrialized and Newly Industrialized
Economies (NIEs) in the APEC region has started to gain traction
since the second half of 2013. Collectively, GDP growth in
Industrialized APEC economies advanced from 1.1% (yo-y) in Q1 2013
to 2.6% in Q4 2013. At the same time, APEC NIEs saw growth shifting
from 1.5% in Q1 2013 to a 3.7% in the last quarter of 2013. The
strengthening pace in APEC Industrialized economies and NIEs has
helped to tone up APEC growth. After registering a soft growth of
3.4% in Q1 2013, APEC growth has gradually accelerated in
subsequent quarters and ended the year with a 4.1% growth. The
regional economic improvement was also aided by the solid
advancement of Chinas economy which grew by 7.7% last year.
However, activity in other Emerging and Developing APEC economies
(EM&Ds) was held back on the difficult backdrop of rising
financial tensions and slower trade. In some economies, domestic
demand, which has been the main engine of growth in the past few
years, has faltered. Economic growth is expected to accelerate in
2014 and 2015 APEC GDP is poised for faster expansion, from 4.2% in
2014 to 4.4% in 2015, up from 3.7% in 2013. Despite the recurrent
financial turmoil in the first few months of this year, APEC
Industrialized and NIEs started 2014 on a relatively firm footing.
The spill-over impact was more noticeable among developing APEC
economies but economic activities in these economies have also
started to stabilize. The recovery speed is likely to vary across
APEC economies. Investors remain sensitive to movements in the
direction and the scale of large economies monetary policy changes.
The growth gap between developing and advanced economies is
expected to lessen as the latter group consolidates. A narrowing of
the growth gap and interest rate differentials will inevitably
result in some degree of portfolio investment reallocation.
Although investors appear to scrutinize economies with weaker
fundamentals, in the absence of any policy responses, there is
likely to be some degree of contagion. The weaker-than-expected
performance in the past few years places APEC growth on a lower
projected growth path The 2008-09 Global Financial Crisis (GFC) and
its legacy has had a tremendous impact on APEC growth. Over the
six-year period between 2008 and 2013, APEC GDP expanded at an
average rate of 3.4% per annum, 1.3 percentage points lower than
the 4.7% average annual growth rate seen in the six-year period
immediately prior to the crisis. 4APEC Policy Support Unit April
2014 Additionally, APEC economic performance in the past few years
has been more subdued than expected. In early 2013, it was forecast
that APEC would achieve a 2013 economic growth rate of 4.1%.
However, APEC output actually expanded by 3.7%, producing USD 90
billion less than the amount of output that had been originally
expected. This weaker-than-expected economic performance has
effectively placed APEC growth on a lower medium-term growth path.
The latest forecasts for the APEC region have a projection of 4.4%
annual average growth rate between 2014 and 2018, a marked downward
shift from a 4.9% per annum average growth rate for the same period
being forecast in the IMF April 2013 WEO report. This indicates
that in the absence of any policy measures the APEC region will see
roughly USD 4,000 billion less output over the period between 2014
and 2018 than the amount earlier projected. One of the attributing
factors to the subdued APEC economic performance in recent years
has been the uneven recovery of APEC exports. The 2008-09 GFC
created an overreaching structural condition of global demand
shortage. APEC exports contracted by 20.8% in 2008 and its recovery
has been halted since late 2011. In 2013, the values of APEC
merchandise goods exports contracted 1.9%. While it is now more
than five years since the GFC, the contribution of exports to the
regional economy is still below the pre-crisis peak. In 2013,
exports accounted for 20.2% of APEC GDP, lower than the ratio of
21.4% of GDP in 2008. While global trade is expected to pick up,
the pace is likely to remain unsteady. Enhancing competitiveness to
pave the way towards a higher path of prosperity Labor productivity
in the APEC region enjoyed rapid growth in the years preceding to
the 2008-09 GFC. However, on average, output per worker in APEC has
been relatively lower than that of the rest of the world. Regional
labor productivity masks vast differences across APEC economies,
with the United States having the worlds highest output per worker.
The productivity gap between the APEC regions lead and developing
APEC economies is generally significant. Unfortunately, labor
productivity in the APEC region as a whole was impacted by the
2008-09 GFC. Most the APEC slowdown in labor productivity growth
can be attributed to the sharp drop of Total Factor Productivity
(TFP) growth an indicator of technology advances. TFP growth in the
APEC region contributed to 0.5 percentage points to APEC GDP growth
in the 6-years post 2008-09 GFC. In comparison, between 2002 and
2007, TFP growth contributed to a significant 1.8 percentage points
to the average growth rate seen in this period. Increased
investment in capital, both in Information and Communication
Technology (ICT) and other non-ICT capital, has helped to avert the
slowdown in output per worker growth. In todays tightening fiscal
environment, the role of the government to maneuver much of the
capital deepening may be restrained. In the short to medium term,
APEC 5APEC Policy Support Unit April 2014needs to mobilize private
savings into productive capital investment in order to sustain the
current momentum of capital input expansion. As capital inputs
cannot be added indefinitely, improving the efficiency of capital
resources through the advancement of technological progress is
vitally important to sustainably improve APEC labor productivity
and output. Policies need to be carefully crafted to achieve
healthy employment growth and strong labor productivity growth The
GFC has also adversely affected the labor market in the APEC region
with employment growth coming to a virtual standstill in the middle
of the crisis. Although the pace has since picked up, employment is
still growing at a much reduced rate compared to the way it was in
any year between 1980 and 2007. The labor market in Industrialized
APEC economies has been severely affected. Collectively, there were
7.35 million jobs lost in these economies from 2007 to 2010. The
labor markets in Emerging and Developing APEC economies weathered
the GFC relatively better. During the most recent downturn, there
was a tendency for firms in APEC NIEs and developing economies to
sacrifice some productivity and profitability while companies in
industrialized APEC economies responded by laying off workers. In
todays increasingly competitive world, the drive of firms to
increase profitability and efficiency often comes at the expense of
employment. Some job losses are likely to be permanent as during
the process of restructuring operations, many companies automate
tasks or redesign processes towards fewer labor inputs. Achieving
strong employment growth in an environment of relentlessly pursuing
efficiency is only possible if governments succeed in creating an
environment in which firms are incentivized to pursue innovation as
an integral part of enhancing productivity. Technological
innovation will result in new markets for new products, thereby
creating new jobs. However, innovations will alter the structure of
labor demand, i.e. favoring skilled workers at the expense of
unskilled ones. The success of raising labor productivity while at
the same time ensuring robust and sustainable job creation depends
critically on the ability to design a flexible labor market as well
a comprehensive strategy to develop a workforce of tomorrow.
Innovate for a better APEC future with sustainable growth APEC
governments have increasingly placed emphasis on encouraging
innovation as a means to promote increased productivity and higher
standards of living. As host of APEC 2014, China has specified
promoting innovative development, economic reform and growth as one
of the three top priorities for APEC work agenda this year. Across
APEC, there are economies that lead global innovation efforts while
others have performed less well. Over the 10-year period from 2002
to 2011, 76.7% of 6APEC Policy Support Unit April 2014patent
registrations in APEC were filed in high-income APEC economies.
Among developing APEC economies, China has seen significant
increases in the numbers of patent registrations, surpassing the
United States in 2011. However, patent applications per 10,000
population in developing APEC economies are generally fewer than
that of high-income APEC economies. Data on Research and
Development (R&D) spending shows a similar pattern. The APEC
region accounted for roughly 60% of the worlds total R&D
spending in 2011. However, investments in developing economies
captured only a small portion (an equivalent of 16%) of the regions
total R&D expenditure. Among developing APEC economies, the
spurt in Chinas R&D investment was most notable.
Notwithstanding this improvement, Chinas R&D to GDP ratio,
which was 1.84% in 2011, is still lower than the average R&D to
GDP ratio in high-income economies. The division seen in R&D
spending among high-income and developing APEC economies broadly
mirrors the global trend. From 1996 to 2011, high-income economies
contributed to 87.4% of global R&D expenditure. The GFC,
however, caused a sharp slowdown in R&D investments in these
economies. While there have been increased efforts in developing
economies, there is an urgent need to prompt up the appetite for
R&D in developed economies. At the same time, there is still
room for developing economies to strengthen their innovative
capacity. The role for APEC In 2012, APEC established the Policy
Partnership on Science, Technology and Innovation (PPSTI) to
support the development of science and technology cooperation and
effective innovation policy in APEC economies. A recent focus of
the PPSTI has been on reinforcing policy measures to develop and
secure human resources which aim to support science and
technological innovation. It is important that APEC devotes
attention to encourage enhanced mobility of skilled workers across
borders. Concurrently, economies need to strengthen the
environments to train and nurture scientists in order to prevent
the loss of local talents to foreign innovation centers. APEC
should also actively address regulatory barriers that impact
private investment in R&D, including the removal of
administrative burdens on start-up firms as well as broader
barriers to competition. These priorities fit well with the work
agenda of the Economic Committee whose aim is to remove structural
and regulatory obstacles that inhibit cross-border trade and
investment and create behind-the-border barriers to doing business.
Other areas that APEC can focus on include ensuring a
well-functioning intellectual property rights system that provides
for effective legal protection for inventions. Capacity building on
the role of fiscal and taxation instruments to private R&D is
also imperative.