Asia-Pacific Economic Coo

Asia-Pacific Economic Cooperation (APEC): What’s on the Table for Trade Unions?

APEC Ocean: 40 % of world population54 % of global GDP

APEC member countries (21):

1989 -- Australia, Brunei, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States

1991 -- Taiwan, Hong Kong, China1993 – Mexico, Papua New Guinea1994 – Chile1998 -- Peru, Russia, Vietnam

More joining?

Understanding APEC Initiated by Australia & US to promote trans-

Pacific trade thru economic integration – trade gravity seen shifting from Atlantic to the Pacific

Initially opposed by Malaysia, which was in favor of East-Asia Caucus (ASEAN, Japan, SK & China)

But US leadership decisive in pushing for APEC Launched as an “economic forum” on trade &

investment facilitation through trade & investment liberalization between & among APEC countries

Understanding APEC & Economic IntegrationIntegration is seen as outcome of economic

liberalization -- freer flow of goods, capital, services-- deeper integration of economies (borderless)

Facilitated in Asia-Pacific thru free trade economics (also called neo-liberal

or Washington Consensus economics) & promoted by

IMF-WB, ADB Tangle of bilateral, regional & multi-lateral

“free trade” agreements (FTAs)

Economic Liberalization Routes

Unilateralism ---- Countries lowering trade barriers and opening up economies Examples:

• US & UK launching Reaganite/Thatcherite privatization programs in the 1980s

• Indebted Asian/Latin American countries adopting WB-prescribed “structural adjustment program” or SAP (privatization , deregulation , trade & investment liberalization)in on

Multilateralism -- formation in 1995 of World Trade Organization (WTO) requiring liberalization in industry (NAMA), agriculture (AoA), services (GATS) but protection in technology (TRIPS)

But most confusing liberalization route:–Bilateralism/Regionalism or FTAs

Since the 1990s, proliferation of bilateral free trade agreements, e.g., US-Singapore FTAregional free trade agreements, e.g., North-American Free Trade Agreement (NAFTA)

Growth in FTAs boosted by collapse/lack of progress in “new” liberalization agreements in WTO since 1999 (Seattle Revolt), Doha Minesterial (2001), Cancun Ministerial (2003), HK Ministerial (2005), etc.

ASEAN Maze --ASEAN (10 countries) + 3 (China, Japan, SK)ASEAN + 3 + 3 (Australia-NZ, EU, India)ASEAN TIFAs (w/ US) PLUS each ASEAN country has bilats w/ same & other countries , e.g., Japan has regional/bilateral EPAs

Multi-Level Liberalization AgreementsMultilateral WTO

Regional (e.g., ASEAN, Mercosur)

Bilateral(e.g., Singapore-US, Singapore-Chile

Unilateral(e.g., SAP commitments of indebted countries to WB)

APEC-open regionalism-non-binding

Non-preferential

Some Bilateral/Regional FTA DevelopmentsASEAN member countriesConcluding 128 bilateral/regional FTAs (as of 2008)

ARCO (Latin American Pacific Arc)-- involved in Economic Cooperation Agreements ECAs)

linking Carribean & Latin America-- also Bilaterals w/ one another & with Asian countries

IPPAs (Investment Promotion & Protection Agreements) – 1,150 in APEC area

ADB plotting ASEAN integration:Asian noodle bowl (also called spaghetti bowl)

ASEAN+3+3 +…

ASEAN+1

NAFTACanada

Mexico

China

Japan

India

ASEAN+1 ASEAN

+1ASEAN

+1

ASEAN+1

U.S.

ChileP4

ROK

Australia

NZ

Brunei

Singapore

Thailand

Malaysia

Hubs and Spokes in Asia Pacific

As seen by APEC

ASEAN

Original Japanese Integration Program: Flying Geese Model

New emerging Asia-Pac realities

Rise of China as World’s Number 2

Rise of BRIC (China + Russia, India & Brazil)

Continuing success of South KoreaLatin-American economic surge

Re-configurations/re-alignments will continue to be dynamic & even somewhat confusing

New View: Intermeshing Integration Programs in Asia-Pacific (Economic + Security + Photo-Ops)

However, some old realities have remainedand hardly being addressed

Liberalization/globalization

has benefited the TNCs w/ global reach & some elite workers

but has not benefited the many, especially the informals (65 % in Asia) & the informalized (those whose jobs are being casualized)

has weakened unionism/collective bargaining almost everywhere due to “race to the bottom”(sacrificing labor, environmental & even human right standards)

Moreover, GFC has bared unsustainable realitiesGlobal financial & economic crisis -- rooted in global, regional race to the bottom (overproduction vs. underconsumption aggravated by speculation)

Development gaps between & among countriese.g., in ASEAN, Cambodia-Laos-Burma per capita of $500 or less while Brunei-Singapore per capita of $30,000

And yet, G20 ignoring -- issues of assymetry (race to the bottom)-- issues of balanced dev’t among countries -- issues of new global financial/eco architecture as propounded by UNI, UNI Apro

Back to APEC1994 – Bogor Conference targetted full liberalization 2010 among developed countries, 2020 among developing economies

1996 – Manila Conference adopted concrete liberalization targets via individual country commitments (Manila Action Program)

1995 – Asia-Pacific Business Advisory Council formed & accredited as dialogue partner

Trade Unions Seeking Voice in APECLabor issues – Missing or reduced to so-called “HR” issues, e.g., skills, labor market monitoring, etc.

1995 – Asia-Pacific Labor Network (APLN) formed as counterweight to ABAC & give workers’ voice in APEC processes

Slow but growing impact – Despite weak representation in APEC, APLN’s impact can be seen in new agenda of APEC emphasizing the need to also address social dimensions of integration, globalization

Challenge to TUs in APLN:Reversing global/regional race 2 d bottom Setting aside one-size-fit-all neo-liberal framework of

mindless liberalization in favor of social-economic-environmental policy coherence.

Upgrading and enforcement of social-economic-environmental standards for all, especially labor standards and social protection for all

Race to the Top in Union-Management relations(beyond minimalism, social dialogue, upward flexibility)

TU Agenda…Fair and balanced trade. Balanced role of state and

market, home and export markets, SDT for all countries

Green new deal: Agreement on carbon cuts Agreement on shift to clean energy Agreement on forest renewal Agreement on green/greener economy

GETTING A SEAT ON THE APEC TABLE!