APEC – Asia Pacific Economic Cooperation

Group 8 Ankita Handa Kanwardeep Singh Nikhil Gurg Ritu Agarwal Siddharth Paul Vasundhara Surajgaria

Introduction
 APEC has 21 members including most countries with a coastline on Pacific Ocean.  APEC seeks to promote free trade and economic cooperation throughout Asia Pacific region.  The criterion for membership is a separate economy rather than a state. As a result of this criteria, Taiwan and Hong Kong are member of the forum. Hong Kong is a Special Administrative Region of People’s Republic of China.  Members account for 40% of world’s population,54% of world’s GDP and 44% of world trade. APEC GDP, Current USD is 38,722,227.2 millions in 2011.  An annual APEC Economic Leaders Meeting is attended by heads of government of all APEC members except Republic of China by a ministerial-level official.  The location of meeting rotates annually among member economies and until 2011 a famous tradition involved the attending leaders dressing In national costume of host member.
FORE School of Management, New Delhi
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FORE School of Management. Indonesia.  During a meeting in 1994 in Bogor . Australia. This was highly criticized by Japan. New Zealand.  The first APEC Economic Leaders’ Meeting was held in 1993 when US President after discussion with Australian Prime Minister invited the heads of government from member economies to summit on Blake Island.History of APEC  In January 1989. APEC leaders adopted the Bogor goals that aim for free and open trade in Asia Pacific by 2010 for industrialized economies and by 2020 for developing economies. New Delhi 3 . This led to the first meeting of APEC in Canberra . Canada .  Attended by political ministers from 12 countries which concluded with commitments for future annual meetings in Singapore and South Korea.  ASEAN opposed this initially and proposed East Asia Economic Caucus which would exclude non-Asian countries like United States. Australia in November.Australian Prime Minister called for more effective economic cooperation across Pacific Rim region.

 Enhance the positive gains. both for the trade bloc and the world economy.  Reduce barriers to trade in goods and services among participants in a manner consistent with GATT Principles. New Delhi 4 . FORE School of Management.OBJECTIVES Key Objectives at time of Development of APEC Maintain the growth and development of the region for the common good of its peoples. resulting from increasing economic interdependence.  Develop and strengthen the open multilateral trading system in the interest of Asia-Pacific and all other economies.

OBJECTIVES Key objectives of APEC Summit 2012-  Expanding trade and investment liberalization and expanding regional economic integration  Strengthening food security  Establishing reliable supply chains  Fostering innovative growth 8/12/2013 FORE School of Management. New Delhi 5 .

New Delhi 6 .MEMBER ECONOMIES FORE School of Management.

 Its member economies substantially differ in their political systems.8 trillion)  APEC member countries represents a regional bloc of considerable economic and political significance  Fourteen of our top 20 export markets are APEC members. including the three largest economies in the world . 44 percent of global trade ($16.the United States.MEMBER ECONOMIES  APEC currently has 21 member economies together account for: 40 percent of world population (2. social and cultural institutions.8 trillion) and 53 percent of world real GDP in purchasing power parity (PPP) terms ($35. and level of economic development. Japan and China. FORE School of Management. New Delhi 7 .7 billion people).  The APEC region also accounts for around 50 percent of our inward foreign direct investment.

India’s status in APEC  India has requested membership in APEC.  Other countries like Pakistan.  India had been invited to be an observer first time in November 2011. Laos. And received initial support by United States . Costa Rica. Cambodia.  India does not border the pacific Ocean which all current members do.  The decision was made not to admit new members until 2010. Bangladesh. Mongolia. New Delhi 8 . Ecuador . Sri Lanka. Macau. Japan and Australia. Columbia. Panama are also seeking membership in APEC FORE School of Management.

policy frameworks and systems to deal with contemporary issues. the most obvious benefits are the reduction in barriers and impediments to trade across borders. FORE School of Management.  For developing economies.  Developing Economies can also address issues ranging from transparency and governance to financial sector reform and customs procedures. the business community and other parties to attend to issues that impact on the Asia-Pacific region. APEC provides additional benefits in areas such as the development of procedures.Benefits For APEC Block Member  At a multilateral level. New Delhi 9 . APEC brings together the views of 21 member economies.  For businesses from APEC member economies.

S Government has finally started to support FTAAP publically. engaged in Asia. is a proposal to create a free trade agreement among the 21 APEC economies. FORE School of Management.S. and  Keep the U.Free Trade of the Asia Pacific (FTAAP)  The Free Trade Area of the Asia Pacific. U. The FTAAP proposal could help countries individually and collectively move towards greater integration and economic reform.  Chamber focuses on increasing trade and investment flows in the Asia Pacific region. including those that exclude the United States from the region's integration plans. or FTAAP. It could:  Jump start the stalled Doha Development Round talks.  Put a brake on the spread of discriminatory regional and bilateral FTAs in Asia. New Delhi 10 .

EU BILATERAL TRADE AND TRADE WITH THE WORLD India’s rank in imports.15th with 1. it has 12th Rank with 1.5% share.9% share. and Among major trade partners.APEC’s Trade Scenario Source. New Delhi 11 . FORE School of Management.

EU BILATERAL TRADE AND TRADE WITH THE WORLD FORE School of Management.APEC Among Other Partner Region Source. New Delhi 12 .

services. there will always be opportunities to reduce the many costs and risks of trade and investment.  More efficient customs procedures and other practical arrangements to facilitate trade and investment are saving billions of dollars per year.Opportunities and Threats OPPORTUNITIES  Free flow of the goods.  APEC is well placed to position itself alongside and help set the agenda for the G20. people and capital. average tariffs have been reduced from 17 per cent in 1989 to less than 6 per cent while intra-APEC merchandise trade has grown five-fold.  Due to the scope of international commerce continues to evolve. including border barriers. FORE School of Management. have been reduced  Since 1989.  Adopted a mode of voluntary cooperation among rich and emerging economies pioneered by APEC. New Delhi 13 .  Obstacles to trade and investment .

environmental. officials signed a special deal not only to keep all documents secret.”  A recent text leak revealed that U. but to do so for four years after talks end!  Terrorism poses a direct threat to APEC's vision of secure.  Labor.  Most of the policies are framed in a closed door process. New Delhi 14 .S. 8/12/2013 FORE School of Management.  In sustaining the integrity of aviation security systems in APEC economies. open and prosperous economies. family farm and other advocates have demanded a “Fair Deal or No Deal. anti-poverty.  Countries that fail to change their laws to meet these “trade” pact requirements are slammed with indefinite trade sanctions or cash damages.Threats  Trade pacts are dependent on countries domestic policies.  Awareness for food defenses/security.

 The key challenge was to restrain from protectionism and implement free and open trade investment in Asia Pacific Region. Russia On September 7-8.  At the Summit. FORE School of Management.  Russia(host economy) has outlined the agendas for both the official APEC meetings and the APEC CEO Summit.APEC CEO Summit 2012  The APEC Russia 2012 summit was the 24th annual gathering of APEC leaders. met on Russky Island. 2012. New Delhi 15 . business leaders have the opportunity to share their views and search for solutions in an open multilateral dialogue with government leaders. off the coast of Vladivostok.

Innovate to Prosper Trade and investment facilitation. regional economic integration Strengthening food security Establishing reliable supply chains Intensive cooperation to foster innovative growth Strengthening energy security Fighting corruption 8/12/2013 FORE School of Management.Outcomes of the Summit Integrate to Grow. New Delhi 16 .

New Delhi 17 .  Believes in resolution of dispute through non-adversarial and voluntary approaches thus resolving dispute for even environmental concerns which are not in WTO.  Initiation of Dispute Mediation Services in 1994 but was supported only by 6 countries. binding dispute settlement mechanism established.DISPUTE SETTLEMENT  No formal.  Complies with WTO’s process of dispute settlement and accepts it as a primary channel for dispute resolution. FORE School of Management.

September.EU CASE WITH CHINA FOR SOLAR PRODUCTS August. New Delhi 18 . in consideration of potential harm to domestic industry from cut back of tariff and anti-dumping investigation. November. FORE School of Management. both economically and ecologically. 2012  Hence. China files dispute in WTO. 2012  EC started anti-dumping investigation for import of solar panel and its components from China. APEC leaders precisely believed that tariff cut will provide a chance of shared boom. 2012  APEC ministers agreed to cut the tariff of some green products including solar batteries.

8/12/2013 FORE School of Management.Outcome of the Case  Both the parties have accepted the fact that compromise is best possible route for dispute settlement rather than confrontation.  German Chancellor has also shown positive feedback towards removal of investigation while Chinese officials have agreed to look into their export tariff policy for solar batteries. New Delhi 19 .

 Liberalization to dismantle those obstacles to international economic transactions which are imposed as customs barriers. Decisions made within APEC are reached by consensus. New Delhi 20 .  Technical cooperation to share the information and expertise needed to implement proposals for facilitation and to enhance the availability and efficiency of regional infrastructure. 8/12/2013 FORE School of Management.Opinion And Recommendation  APEC should operates on the basis of non-binding commitments and open dialogue.  Facilitation of trade and investment to reduce needless divergences in approaches to domestic policies influencing international commerce. and commitments are undertaken on a voluntary basis.

APEC account for approximately 40% world's population. engaging it in Asia Pacific deliberations. 54% world's GDP and about 44% of world trade.Opinion And Recommendation  Economic policy coordination to reduce uncertainties that add to the costs of international economic transactions.  APEC leaders should adopt the suggestions from several sources to hold regular meetings of the leading APEC economies which are in the G20 together with India. thus it would favour economies to explore new export market opportunities for natural resources such as natural gas and FDI. New Delhi 21 . FORE School of Management.

ru/ http://en.com.org/wiki/Asia-Pacific_Economic_Cooperation 8/12/2013 FORE School of Management.apec.wikipedia.apec2012.References     http://www. New Delhi 22 .org/ http://www.chinadaily.cn http://www.

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