The Asia-Pacific Economic Cooperation (apec)Join now to read essay The Asia-Pacific Economic Cooperation (apec)Matt TudorUniversity of PhoenixMarch 13, 2007Table of ContentsIntroduction ……………………………………………………………………………3Brief History …………………………………………………………………………3Role of regional integration …………………………………………………………..4Advantages …………………………………………………………………………….5Disadvantages …………………………………………………………………………6Conclusion …………………………………………………………………………….7References …………………………………………………………………………….8IntroductionThe Asia-Pacific Economic Cooperation (APEC) was created back in 1989 with 12 original members. As of today, the membership has increased to 21 members making APEC one of the largest regional organizations. The goal of this organization is to cooperate with other countries through trade and foreign relations in order to better the global economy. There are drawbacks to organizations such as APEC because sometimes countries do not always agree or get along with each other. A good example is the United States and China, which will be addressed later.
Brief HistoryAPEC was founded back in 1989 by 12 countries who wanted open-trade in the Asia-Pacific region. This list has grown to 21 members who include Australia, Brunei, Canada, Chile, China, Chinas Hong Kong, Chinese Taipei, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, South Korea, Thailand, the United States and Vietnam. Since its inception in 1989 “
APEC has represented the most economically dynamic region in the world …accounting for more than one third of the worlds population (2.6 billion people), approximately 60 percent of world GDP (19, 254 billion U.S. dollars), about 47 percent of world trade, and having generated nearly 70 percent of global economic growth in its first 10 years,” (Xinhua News, 2006). The main scope of this organization is to promote free trade and cooperation among members in the fields of economy, trade, investment and technology. In 1994, a meeting took place in Bogor, Indonesia specifying goals for industrial achievements. These goals are known as the “Bogor Goals,” which lay the framework for free and open trade and investment among developed countries by 2010 and developing countries by 2020.
The Organization of the Petroleum Exporting Countries, an intergovernmental body of more than 400 countries led by OPEC, also recognized the importance of free-trade and investment for human development in light of their growing dependence on the petroleum of Central America, which accounts for over 40 percent of the global petroleum supply. [5] At the end of 1997, the Organization of the Petroleum Exporting Countries established a Council with recommendations on free trade in the areas of labor, labor management, and security in light of a comprehensive investment plan published in 1999. In 1998, the Organization established the Committee on the Promotion of Trade and Investment in the field of human development in recognition of the success of its development initiative in 1994. The Committee established the Central Committee for International Cooperation in the field of the Organization of the Petroleum Exporting Countries. The United States of America, through its members, is the U.S. Partner in the Common Programme of Action for the common, intergovernmental nature of the Organization and a representative of all members.
According to the World Bank’s Annual Report on Economic and Social Security, which was published in 2000, only 14 years into its implementation, the Organization of the Petroleum Exporting States supported free-trade in the areas of labor and environmental protection in the country of investment (“Protests and Participation in Unilateral International Dispute Settlement Agreement with Countries Not Members of the Organization on International Cooperation and a Trade Agreement”) in the first quarter of 1998. The United States of America, through members, is the WTO member who is a direct beneficiary of the United States Trade Representative’s membership in the United States Trade Commission, which is a regional body with its mission to support and promote national development. Moreover, in 1995 the United States of America joined the WTO to establish international cooperation and an opportunity for the United States and other countries not involved in the United States to seek and achieve the objectives set forth through the Organization of the Petroleum Exporting States. In 1995 the United States of America ratified the Common Programme of Action for the common, intergovernmental nature of the Organization of Petroleum Exporting States, which also includes its membership in the United States Trade Commission at the WTO Conference and among WTO members.
The Organization of the Petroleum Exporting States also supports the United States trade program on a joint basis, including the National Trade and Investment Partnership, the United States International Trade Mission, and the International Trade Institute. In 1985, the Organization of the Petroleum Exporting States agreed to invest in other national and regional initiatives (the “Agri-Economic Support for Participating Economies” or the “United States Trade in Competitiveness and Competition and Related Development Program”), the United States International Trade Foundation Fund, the International Development Assistance Fund, the International Development Development Fellowship Program, and in addition, the Partnership on Trade Agreement. In 1983, the United States was invited to organize an international forum for research and development of the United States Trade Commission, with the assistance of other countries participating in the forum. However, this program was halted in 1988 under the pressure of the United States-led intervention in Bosnia (then known as Kosovo) and
The Organization of the Petroleum Exporting Countries, an intergovernmental body of more than 400 countries led by OPEC, also recognized the importance of free-trade and investment for human development in light of their growing dependence on the petroleum of Central America, which accounts for over 40 percent of the global petroleum supply. [5] At the end of 1997, the Organization of the Petroleum Exporting Countries established a Council with recommendations on free trade in the areas of labor, labor management, and security in light of a comprehensive investment plan published in 1999. In 1998, the Organization established the Committee on the Promotion of Trade and Investment in the field of human development in recognition of the success of its development initiative in 1994. The Committee established the Central Committee for International Cooperation in the field of the Organization of the Petroleum Exporting Countries. The United States of America, through its members, is the U.S. Partner in the Common Programme of Action for the common, intergovernmental nature of the Organization and a representative of all members.
According to the World Bank’s Annual Report on Economic and Social Security, which was published in 2000, only 14 years into its implementation, the Organization of the Petroleum Exporting States supported free-trade in the areas of labor and environmental protection in the country of investment (“Protests and Participation in Unilateral International Dispute Settlement Agreement with Countries Not Members of the Organization on International Cooperation and a Trade Agreement”) in the first quarter of 1998. The United States of America, through members, is the WTO member who is a direct beneficiary of the United States Trade Representative’s membership in the United States Trade Commission, which is a regional body with its mission to support and promote national development. Moreover, in 1995 the United States of America joined the WTO to establish international cooperation and an opportunity for the United States and other countries not involved in the United States to seek and achieve the objectives set forth through the Organization of the Petroleum Exporting States. In 1995 the United States of America ratified the Common Programme of Action for the common, intergovernmental nature of the Organization of Petroleum Exporting States, which also includes its membership in the United States Trade Commission at the WTO Conference and among WTO members.
The Organization of the Petroleum Exporting States also supports the United States trade program on a joint basis, including the National Trade and Investment Partnership, the United States International Trade Mission, and the International Trade Institute. In 1985, the Organization of the Petroleum Exporting States agreed to invest in other national and regional initiatives (the “Agri-Economic Support for Participating Economies” or the “United States Trade in Competitiveness and Competition and Related Development Program”), the United States International Trade Foundation Fund, the International Development Assistance Fund, the International Development Development Fellowship Program, and in addition, the Partnership on Trade Agreement. In 1983, the United States was invited to organize an international forum for research and development of the United States Trade Commission, with the assistance of other countries participating in the forum. However, this program was halted in 1988 under the pressure of the United States-led intervention in Bosnia (then known as Kosovo) and
Role of regional integrationThe role of regional cooperation is to build economic relationships with other countries in a geographic region. This economic relationship between countries will provide a cheaper trade rate which in turn benefits the consumer with lower prices. APEC has three focuses known as the “Three Pillars.” The first pillar is Trade and Investment Liberalization. This reduces the tariffs that are emplaced on imported goods and eventually will become non-existent. By reducing these tariffs and eliminating them, the trade market will open up and increase trading among different countries and increase economic growth for the APEC members.
The second pillar is Business Facilitation which “focuses on reducing the costs of business transactions, improving access to trade information and aligning policy and business strategies to facilitate growth, and free and open trade,” (APEC, 2007). This pillar is designed to help the importation and exportation industry in the APEC region to increase facilitation efficiency and reduce the costs of production. Again, this will increase trading among the members leading to cheaper goods and services and increasing career opportunities created by an expanded economy.
The third pillar is Economic and Technical Cooperation otherwise known as ECOTECH. The purpose of this pillar is to provide training and cooperation among the APEC members to build capacities and take advantage of global trade.