Asia Pacific Economic Cooperation

(APEC):

Activities and Future Goals

Odesola, Victoria O.

Outline of Report I. APEC Back-study

A. History

B. Member Economies

C. Key Milestones

D. Mission/Vision Statement

II. APEC Future Plans

A. Enlargement

B. Bogor Goals

1. Trade and Investment liberalizations

2. Business Facilitation

3. Economic and Technical Cooperation

4. The 14 Bogor Scope Areas

D. APEC CEO Summit 2014

E. Economic Leaders’ Meeting 2014

III. Problems and Criticisms Faced

APEC Forum

APEC is the premier forum for facilitating economic

growth, cooperation, trade and investment in the Asia-

Pacific region.

It is an inter-governmental forum, which operates on the

basis of non binding commitment and open dialog.

No treaty obligations

APEC has 21 member economies with a population of over

2.6 billion which accounts for more than 40% of the

world’s population.

APEC countries have a combined GDP of 21 trillion US

dollars which is more than half of world GDP.

APEC accounts for nearly half of world trade.

History

APEC began as an informal Ministerial-level dialogue group in

Canberra, Australia in 1989. It is a 21 member economic

forum at present.

Founding members are:

Australia, New Zealand

6 ASEAN economies

Japan and South Korea

Canada and the United States

Member Economies

* Australia * Malaysia

* Brunei Darussalam * Mexico

* Canada * New Zealand

* Chile * Papua New Guinea

* People's Republic of China * Peru

* The Republic of the Philippines * Hong Kong, China

* The Russian Federation * Japan

* United States of America * Indonesia

* Chinese Taipei * Singapore

* Republic of Korea * Viet Nam

*Thailand

Key Milestones

1993- In the United States the Economic Leaders meet for the first time in

Blake Island, Washington and outline APEC’s vision, “stability, security, and

prosperity for our peoples”.

1994- In Indonesia APEC sets the Bogor Goals of “free and open trade

investment in the Asia Pacific by 2010 for developed countries and 2020 for

developing countries.

1995- In Japan the framework for meeting the Bogor goals through trade and

investment liberalization, business facilitation and sectorial activities,

underpinned by policy dialogues and finally, economic and technical

cooperation.

1996- In the Philippines, the Manila Action Plan for APEC (MAPA) is adopted,

outlining the trade and investment liberalization and facilitation measures to

reach the Bogor goals.

1999- In New Zealand, APEC commits to paperless trading by 2005 in

developed economies and 2010 in developing economies.

Key Milestones

2001- In People’s Republic of China, APEC adopts the Shanghai Accord,

which focuses on broadening the APEC vision, clarifying the roadmap to

Bogor and strengthening the implementation mechanism.

2005- In Korea, APEC adopts the Busan Roadmap, completes the mid-term

Stocktake, which gauges that APEC is well on its way to meeting the

Bogor Goals.

2007- In Australia, for the first time APEC member economies issue a

Declaration on Climate Change, Energy Security, and Open Development.

2013- In Indonesia, the Bali Package is concluded. The target is then set

for a yearly enrolment of one million students in the intra-APEC

university by 2020. The first joint APEC ministerial meeting on Women

and SMEs issues especially to protect women entrepreneurship.

Mission/Vision

To support sustainable economic growth and prosperity in Asia-Pacific region

To build a dynamic and harmonious Asia-Pacific community

Decrease number of obstacles in trade and also reduce tariffs across APEC nations

Set it’s eye on achieving ‘Bogor goals’ by the year 2010

To encourage the flow of goods, services, capital, and technology

To develop and strengthen the multilateral trading system;

APEC Relations----ASEAN and APEC

ASEAN has been at APEC's core from the very beginning and is doing its part to advance

APEC's purposes and is consistent with APEC goals.

ASEAN Free Trade Area (AFTA) can be said to be a building block for the fulfillment of

the goals that APEC set for eventual free trade among its members.

It can be said that the two organizations could be seen as complementing, and not

competing with each other.

----NAFTA and APEC

Accomplishment of Bogor goals and free trade among APEC member economies leads

to significant trade diversion from western countries to APEC member economies.

Western economies trying to maintain balance of power between east and west in

APEC decisions by restricting Asian countries into economic co-operation.

Future Plans for Enlargement

India has requested membership in

APEC and received initial support from

the United States, Japan and

Australia. However officials did not

allow India to join for various reasons.

Interested Economies

Pakistan

Bangladesh

Sri Lanka

Macau

Mongolia

Laos

Cambodia

Costa Rica

Colombia

Panama

Ecuador

Bogor Goals

Free and open trade and investment in the Asia-Pacific

by 2010 for developed economies

by 2020 for developing economies

Bogor Goals & 3 Pillars

Three specific areas crucial to achieving the Bogor Goals:

Trade and investment liberalization

Business facilitation

Economic and technical cooperation

Trade and Investment liberalization

Reducing and eliminating tariff among member

countries

Reducing and eliminating non-tariff barriers to trade

and investment

Opening of markets

Business facilitation

Reducing the costs of business transactions

Improving access to trade information

Bringing into line policy and business strategies to

facilitate growth

Free and open trade

Economic and Technical Cooperation

ECOTECH is dedicated to providing training and cooperation

to build capacities in all APEC Member Economies to take

advantage of global trade.

This area builds capacity at the institutional and personal

level to assist APEC Member Economies and its people gain

the necessary skills to meet their economic potential.

The 14 ‘Bogor Areas’

Tariffs

Non-Tariff Measures

Services

Investment

Standards & Conformance

Customs Procedures

Intellectual Property Right

Competition Policy

Government Procurement

Deregulation/ Regulatory

Reform

Transparency

Dispute Mediation

Mobility of Business People

RTA/FTAs (Regional and

Free Trade Agreements)

APEC CEO Summit 2014

This most important event in APEC Leaders’ Week took place on

November 8-10, 2014 in Beijing, China with the theme:

“New Vision for Asia Pacific: Creativity, Connectivity,

Integration, Prosperity”

This included discussions on the global economic outlook, regional

integration, innovation, infrastructure and finance.

APEC CEO Summit 2014

A total of 43 influential speakers from companies like,

Microsoft, Blackberry, World Trade Organization, Johnson & Johnson, etc

Global Economy Today

Outlook for regional economic integration

Economic Reforms for Sustaining Competitiveness

Building the Innovative Economy

Looking beyond Business as Usual

Securing the Future of Global Finance

Accelerating Regional Connectivity

Global Inequality

APEC Economic Leaders’ Meeting

Held annually since 1993

1993, Blake Island, Seattle, US

Suggested by the then US

President Bill Clinton

APEC Economic Leaders’ Meeting 2014

The proposed achievement as laid down by this year’s host

economy’s president, China’s Xi Jinping:

1. The launch of the Free Trade Area of the Asia-Pacific

2. Issuance of a statement for the 25th anniversary of APEC

3. The meeting will promote innovation, reforms and growth to

seek new momentum for long-term development of the Asia-Pacific

4. A blueprint will be made to lay a solid foundation for all-round

connectivity in the Asia-Pacific.

APEC Economic Leaders’ Meeting 2014

In this year’s meeting the leaders adopted two very

important documents:

The 22nd APEC Economic Leaders’ Declaration: Beijing Agenda for an

Integrated, Innovative, and Interconnected Asia Pacific.

Statement on the 25th Anniversary of APEC: Shaping the Future

through Asia-Pacific Partnership

Problems and Criticism Faced

Border Barriers

The still high cost of international commerce

Little to no collaboration on other issues

It’s being said that APEC is too large, too diverse

Has no identity and its goal too abstract

Processes are slow and cumbersome

No attention to cultural aspect of cooperation

References

www.apec.org

en.Wikipedia.org/wiki/Asia-Pacific_Economic_Cooperation

www.apec-china.org

www.trademinister.gov.au

www.economywatch.com