Asia-Pacific Economic Co-operation.BY:UDO OMONOSIFONWANG ALICIAYONGHUA GUO

OUTLINE.Introduction.Regions/Countries Involved.Goals of APEC.Effects of APEC Trade Agreement.Impact of APEC on Canada.Recent events concerning APEC Trade Agreement.

Reference.

INTRODUCTION• APEC: Asia-Pacific Economic Cooperation.• Established November 5th 1989 in Australia.• Made up of 21 member economies (12 as at

1989).• Headquarters in Indonesia.• The highest level intergovernmental economic

cooperation mechanism in the Asia-Pacific region.• Voluntary participation; No agreement.

CROSS SECTION OF APEC ECONOMIES.

PURPOSE AND COUNTRIES INVOLVED.• APEC was established to strengthen the Asia-Pacific

community and enhance economic growth through out the region. 

• It’s main achievements include: Increase in value of exports, reduction of tariff, creation of efficient and domestic economies.

• Members of APEC include China, Japan, Vietnam, Russia, USA, Canada, Mexico, Papua New Guinea, Malaysia, Singapore, Peru, Chinese-Taipei, Thailand, Indonesia, Brunei, New Zealand, Australia, Hong-Kong, Republic of Korea, Philippines and Chile.

APEC'S THREE PILLARS.• To meet the Bogor Goals, APEC carries out work in

three main areas:

Trade and Investment Liberalization.Business Facilitation. Economic and Technical Cooperation.

• Method of Operation: Trade liberalization for developed members. Economic Cooperation for developing members.

ANNUAL SUMMITS• There are different meetings which include

Senior Officials Committee Meeting, Informal Meeting, Thematic Working Groups meeting. • Each meeting is held in a member country

every year. • The summit for 2013 will be held in Indonesia.

GOALS OF APEC.• APEC’s primary goal is to support sustainable economic

growth and prosperity in the Asia-Pacific region. Other goals include:Championing Free and Open Trade and Investment.Promoting and Accelerating Regional Economic

Integration.Encouraging Economic and Technical Cooperation.Enhancing Human Security.Facilitating a Favorable and Sustainable Business

Environment.

PREVIOUS AND INCOMING SUMMITS.

APECINDONESIA2013

APEC

EFFECTS OF TRADE AGREEMENT.• The Asia-Pacific region has consistently been the

most economically dynamic region in the world as Real GDP has increased on the average as a result of protectionist measures.

• Measures taken by APEC include tariff-reduction, standards harmonization of customs, intellectual property rights, competition policy, deregulation, government procurement and free-trade treaty agreements.

• By June 2011, 48 FTA’s had been signed between APEC members; there are currently 42 FTA’s in force between APEC member economies.

OTHER EFFECTS OF TRADE AGREEMENT.• APEC aims to strengthen regional economic

integration by removing impediments to trade and investment “at the border.”

• Enhancing supply chain connectivity "across the border" and improving the business environment.

• Improving operating environment for business by reducing the cost of cross-border trade among member countries.

• Improving access to trade information and simplifying regulatory and administrative processes.

CHALLENGES OF APECTRADE AGREEMENT.

• The diversity of APEC members to provide cooperation premise leading to agreement.• Lack of economic and technological

cooperation.• Member countries are gradually diverting their

concentration to sub-regional agreements.• Lack of sufficient funds to start cooperation

projects.

FACTS ON AGREEMENTBENEFITS.• U.S.A’s goods exports to APEC economies in 2010

were $774 billion, up 25.3% ($156.5 billion) from 2009. U.S. exports to APEC economies account for 60.6% of overall U.S. exports in 2010.• APEC member economies together account for 44

percent of global trade ($16.8 trillion) .1989

• Tariff was reduced by 16.9%

2010

• Tariff was reduced by 5.8%

2012

• Tariff was reduced by 3.4%

APEC member economies together account for 53% of world real GDP in Purchasing Power Parity (PPP) terms ($35.8 trillion).

FACTS (BAR GRAPH)

1989 2011 2012$0.00

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Bar Graph showing Revenue Trend between 1989 and 2012 after Tariff reductions.

STATISTICS (LINE GRAPH)Va

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2010 2011 2012$0

$100

$200

$300

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$500

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USACanadaChina

Year

IMPACT OF APEC ON CANADA.• It is easier for Canadians to learn about the

opportunities of investment in South-East Asia and carry out business in Asian countries.

• To make some agreement which is beneficial for Canada with Asian countries, and slowly become interdependent and not rely much on America.

• Has attracted investors from overseas to help expand the market.

• Canada’s furniture industry has had an increase in value as a result of the combination of NAFTA and APEC trade agreements.

THE ROLE OF CANADA IN APEC.

Canada plays a major role in the following issues:• Health Working Group.• Fisheries Working Group.• Agricultural Technical Cooperation Working

Group.• Canada is also the Lead Shepherd for the APEC

Transportation Working Group both within the organization and in the region as a whole.

APEC’S PLAN FORCANADA.• Based on the non-binding commitments and

open dialogue, APEC plans to provide a platform for community involvement in terms of domestic businesses.

• APEC plans to work on other key issues such as security, health, energy and agriculture.

• This trade agreement will enhance Canada's International status and influence, as well as promote Economic Development.

ARTICLE 1APEC ECONOMIC LEADERS HOLD THE SECOND DAY OF 2012 MEETING.

The APEC Economic Leaders have held the second day of their meeting as part of the APEC-2012 Leaders' Week in Vladivostok, Russia.

• Food security problems

• Cooperation in innovation growth

• Priorities for Russia's APEC-2012 chairmanship

ARTICLE 2APEC RUSSIA 2012 OUTCOME: INTEGRATE TO GROW, INNOVATE TO PROSPER.

• To make the trade and investment more convenient, integrate regional economic.

• Strengthening food security.

• Strengthening cooperation and promoting economic growth.

• Establishing reliable supply chains.

2012 APEC Summit in Russia

ARTICLE 3APEC economies to play active role in developing Russia’s auto industry.

• The growth of Russia’s auto industry.

• The market of Asia’s car sales.

• China's auto sales market potential.

REFERENCES• http://www.ustr.gov/trade-agreements/other-

initiatives/asia-pacific-economic-cooperation-apec/us-apec-trade-facts• http://www.apec.org/About-Us/About-APEC/

Achievements-and-Benefits.aspx• http://www.chinaapec.org/en/about_apec/

content_5.shtml• http://www.dfat.gov.au/publications/trade/APEC-

2010-Bogor-Goals.html• http://www.state.gov/p/eap/regional/apec/• http://www.apec.org.au/docs/koreapapers1/SIII-LS-

Paper.pdf