Asia Pacific Economic Co-operation

Introduction

• 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 accounts for nearly half of world trade.

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

History of APEC

• APEC begins as an informal Ministerial-level dialogue group in Canberra, Australia

in1989. 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

• Later the co-operation expanded to China, Taiwan, & Hong Kong in1991 Mexico &

Papua New Guinea in 1993 ,Chile (1994 ) , Russia, Vietnam, Peru in 1998.

• India, Magnolia, Pakistan, Laos, Bangladesh, Costa Rica, Colombia, Panama and

Ecuador are among a dozen countries seeking membership in APEC.

Mission and 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 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.

APEC and India

India tried for membership in APEC. It was initially supported by United States,

Japan

Australia but was denied later.

India would have been had an undue advantage in trade if it is a member of APEC.

Reasons :

o Decision was made not to admit more members until 2010 till Bogor goals are

accomplished.

o India does not border the Pacific Ocean, which all current members do

o There is a concern among Western countries that India's entry might tilt the

balance of

power shifts in favour of India.

APEC structure

APEC Secretariat

• APEC secretariat operates as the core support mechanism for the APEC

process.

• It provides coordination, technical and advisory support as well as information management,

communications and public outreach services.

• It performs a central project management role

• It is based in Singapore

• The APEC Secretariat is headed by an Executive Director and a Deputy

Executive Director

• Muhamad Noor Yacob is the present Executive Director

HOW APEC OPERATES

• APEC operates as a cooperative, multilateral economic and trade forum.

• It is a voluntary association in which participants do not cede powers of regulation or

enforcement to a supra-national institution;

• Every year one of the 21 member economies plays host to APEC

meetings,

– Serves as the APEC Chair

– Chairs the annual economic Leaders meeting & ministerial

Meetings

– Fills Executive Director of the APEC Secretariat.

CONT ..

Member Economies take individual and collective actions to open

their markets and promote economic growth

• Activities are centrally funded by small annual contributions from

member Economies

• Member economies provide considerable resources to assist in

the operations

• APEC’s project database contain all project related information

Annual meetings of the Asia-Pacific Economic CooperationSummit Year Place Summit Year Place

1 1989 Australia 13 2001  People's Republic of China

2 1990  Singapore 14 2002  Mexico

3 1991  Republic of Korea 15 2003  Thailand

4 1992 Thailand 16 2004  Chile

5 1993  United states 17 2005  Republic of Korea

6 1994  Indonesia 18 2006  Vietnam

7 1995  Japan 19 2007  Australia

8 1996  Philippines 20 2008  Peru

9 1997  Canada 21 2009  Singapore

10 1998  Malaysia 22 2010  Japan

11 1999  New Zealand 23 2011  United states

12 2000  Brunei Darussalam  

Strengths of APEC

• A supporter of the of the multilateral trade negotiations, apply

pressure to key countries, suggest visionary initiatives and

monitor compliances.

• APEC has considerable experience in the reform process and

can act as a model or demonstration to the rest of the world.

• APEC is a large group of countries that could be extremely

influential if adopted a common approach and joint bargaining

objectives.

Weaknesses of APEC

• Absence of priorities- The effort in trade reform within APEC has

been diffused across too many areas and there is need for more

focus.

• Shortfalls in member commitments- Many countries have gone no

further than their existing pledges.

• Weak evaluation procedures- there is lack of outside scrutiny of

individual members’ progress in implementing reforms

• Dearth of specific APEC incentives- APEC operates by consensus

and there is no mechanism for enforcing group decisions.

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