Economis Project

APEC
Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating economic growth, cooperation,
trade and investment in the Asia-Pacific region.
APEC is an intergovernmental grouping that operates on the basis of non-binding commitments, open dialogue and
equal respect for the views of all participants. Unlike the WTO or other multilateral trade bodies, APEC has no treaty
obligations required of its participants. Decisions made within APEC are reached by consensus and commitments are
undertaken on a voluntary basis.
APEC has 21 members - referred to as "member economies" - which account for approximately 40 percent of the
world's population, approximately 55 percent of world GDP and about 44 percent of world trade.
APEC's 21 Member Economies are Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong
Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The
Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America;
Viet Nam.
Purpose and Goals
APEC was established in 1989 to further enhance economic growth and prosperity for the region and to strengthen
the Asia-Pacific community.
Since its inception, APEC has worked to reduce tariffs and other trade barriers across the Asia-Pacific region,
creating efficient domestic economies and dramatically increasing exports. Key to achieving APEC's vision are what
are referred to as the 'Bogor Goals' of free and open trade and investment in the Asia-Pacific by 2010 for
industrialised economies and 2020 for developing economies. These goals were adopted by Leaders at their 1994
meeting in Bogor, Indonesia.
Learn more about the Bogor Goals in the 1994 Leaders' Declaration.
Free and open trade and investment helps economies to grow, creates jobs and provides greater opportunities for
international trade and investment. In contrast, protectionism keeps prices high and fosters inefficiencies in certain
industries. Free and open trade helps to lower the costs of production and thus reduces the prices of goods and
services - a direct benefit to all.
APEC also works to create an environment for the safe and efficient movement of goods, services and people across
borders in the region through policy alignment and economic and technical cooperation
Mission Statement.
APEC is the premier Asia-Pacific economic forum. Our primary goal is to support sustainable economic growth and
prosperity in the Asia-Pacific region.
We are united in our drive to build a dynamic and harmonious Asia-Pacific community by championing free and open
trade and investment, promoting and accelerating regional economic integration, encouraging economic and
technical cooperation, enhancing human security, and facilitating a favorable and sustainable business environment.
Our initiatives turn policy goals into concrete results and agreements into tangible benefits.

Member Economies
APEC has 21 members. The word 'economies' is used to describe APEC members because the APEC cooperative
process is predominantly concerned with trade and economic issues, with members engaging with one another as
economic entities.
APEC Members Date of Joining
Australia 6-7 Nov 1989
Brunei Darussalam 6-7 Nov 1989
Canada 6-7 Nov 1989
Chile 11-12 Nov 1994
People's Republic of China 12-14 Nov 1991
Hong Kong, China 12-14 Nov 1991
Indonesia 6-7 Nov 1989
Japan 6-7 Nov 1989
Republic of Korea 6-7 Nov 1989
Malaysia 6-7 Nov 1989
Mexico 17-19 Nov 1993
New Zealand 6-7 Nov 1989
Papua New Guinea 17-19 Nov 1993
Peru 14-15 Nov 1998
The Philippines 6-7 Nov 1989
Russia 14-15 Nov 1998
Singapore 6-7 Nov 1989
Chinese Taipei 12-14 Nov 1991
Thailand 6-7 Nov 1989
The United States 6-7 Nov 1989
Viet Nam 14-15 Nov 1998












Achievements and Benefits

The Asia-Pacific region has consistently been the most economically dynamic region in the world. APEC member
economies together account for: 40 percent of world population (2.7 billion people); 44 percent of global trade ($16.8
trillion) and 53 percent of world real GDP in purchasing power parity (PPP) terms ($35.8 trillion).[1]
The regions real GDP (PPP) has also doubled from $17.7 trillion in 1989 to $35.8 trillion in 2010. By comparison, real
GDP (PPP) in the rest of the world has only grown at 3 percent per year, from $17.2 trillion to $31.9 trillion. This
means that APECs share of world real GDP has increased from 51 percent in 1989 to 53 percent in 2010.
APEC's work under its three main pillars of activity, Trade and Investment Liberalisation, Business Facilitation and
Economic and Technical Cooperation, has helped drive this economic growth and improve employment opportunities
and standards of living for the citizens of the region.
Trade and Investment Liberalisation
APEC is the premier forum for trade and investment liberalisation in the Asia-Pacific and has set targets dates for
"free and open trade": no later than the year 2010 for industrialized economies, and 2020 for developing economies
(the Bogor Goals).
When APEC was established in 1989 average trade barriers in the region stood at 16.9%; by 2010 barriers had been
reduced to 5.8%.[2]
As a consequence, intra-APEC merchandise trade (exports and imports) has grown from $1.7 trillion in 1989 to $9.9
trillion in 2010, nearly a six-fold increase; now accounting for 67 percent of APECs total merchandise trade.
Similarly, APECs total trade (goods & services) has increased from $3.1 trillion in 1989 to $16.8 trillion in 2010, over
a fivefold increase. In the same period, total trade by the rest of the world has gone from $4.6 trillion to $21.1 trillion
(a multiple of 4.6 times).
By June 2011, 48 FTAs had been signed between APEC members; there are currently 42 FTAs in force between
APEC member economies.
APEC is also pursuing trade and investment liberalisation through its Regional Economic Integration agenda.
Progress to date includes:
o Investigating the prospects of and options for a Free Trade Area of the Asia-Pacific.
o The development of 15 model measures for RTAs/FTAs that serve as a reference for APEC members to achieve
comprehensive and high-quality agreements.
o APEC has also acted as a catalyst in the advancement of World Trade Organisation multilateral trade negotiations
over the past 20 years.
Business Facilitation
As a result of the APEC Trade Facilitation Action Plan (TFAP I) the cost of business transactions across the region
was reduced by 5% between 2002 and 2006.
A second trade facilitation action plan (TFAP II) reduced transaction costs by a further 5% in real terms between 2007
and 2010, representing total savings for business of $58.7biillon
APEC initiatives that help facilitate trade include:
o The introduction of electronic/paperless systems by all member economies, covering the payment of duties, and
customs and trade-related document processing.
o The Single Window Strategic Plan, adopted in 2007, provides a framework for the development of Single Window
systems which will allow importers and exporters to submit information to government once, instead of to multiple
government agencies, through a single entry point.
o The APEC webpage on Tariffs and ROOs ("WebTR") launched in November 2010 provides users with easy access
to APEC member economies' tariff and Rules of Origin information.
o In 2008, a groundbreaking Investment Facilitation Action Plan was endorsed; it aims to improve the investment
environment in Member Economies.
o The APEC Privacy Framework provides guidance and direction to both APEC member economies and businesses on
implementing information privacy protection policies and procedures. By facilitating information flows it will facilitate
trade and e-commerce.
o The APEC Business Travel Card (ABTC) provides substantial time and cost savings to business people and
facilitates their travel in the region, by allowing visa free travel and express lane transit at airports in participating
economies.
o APEC is also removing behind-the-border barriers to trade through its Structural Reform agenda, which focuses on
reforming domestic policies and institutions that adversely affect the operation of markets, and the capacity of
businesses to access markets and to operate efficiently.
Economic and Technical Cooperation
APEC's Economic and Technical Cooperation (ECOTECH) activities are designed to build capacity and skills in
APEC member economies at both the individual and institutional level, to enable them to participate more fully in the
regional economy.
Since APEC first began to undertake capacity building work in 1993, around 1600 projects have been initiated; at any
moment in time, up to 170 projects may be in implementation. APEC contributes funding to around 100-150 projects
each year, with a total value of over $23 million committed by APEC to projects in 2010-2011.
A particular focus has been reducing the digital divide between industrialized and developing economies:
o In 2000, APEC set a goal of tripling internet usage in the region and that goal has now been achieved, as recognised
by the 2008 APEC Ministerial Meeting on the Telecommunications and Information Industry. APEC is now focusing
efforts on achieving the goal of universal access to broadband in the APEC region by 2015 an ambitious target
reaffirmed by Telecommunications Ministers in Okinawa, Japan in 2010.
o A network of 46 APEC Digital Opportunity Centers (ADOC) now operate in 10 member economies. ADOC's objective
is to transform the digital divide into digital opportunities and the centres act as local information and communication
technology (ICT) resource centres, providing citizens and businesses of the region with access to ICT technologies,
education and training.
Other Achievements
APEC has also been able to evolve its agenda to include pressing regional priorities. Examples include: counter-
terrorism (The Shanghai Statement in 2001, and the Counter-Terrorism Task Force); human security (Health Working
Group); emergency preparedness (Emergency Preparedness Working Group); climate change, energy security and
clean development (The Sydney Declaration in 2007 and the APEC List of Environmental Goods in 2012); and the
global financial crisis (The Vladivostok Statement in 2012).
HISTORY
The idea of APEC was firstly publicly broached by former Prime Minister of Australia, Mr Bob Hawke, during a speech
in Seoul, Korea in January 1989. Later that year, 12 Asia-Pacific economies met in Canberra, Australia to establish
APEC. The founding members were: Australia, Brunei Darussalam, Canada, Indonesia, Japan, Korea, Malaysia,
New Zealand, the Philippines, Singapore, Thailand and the United States.
China, Hong Kong, China and Chinese Taipei joined in 1991. Mexico and Papua New Guinea followed in 1993. Chile
acceded in 1994. And in 1998, Peru, Russia and Viet Nam joined, taking the full membership to 21.
Between 1989 and 1992, APEC met as an informal senior official and Ministerial level dialogue. In 1993, former
United States President, Mr Bill Clinton, established the practice of an annual APEC Economic Leaders' Meeting.
Key APEC Milestones
2013 - Bali, Indonesia
APEC Leaders reaffirm their commitment to the rules-based multilateral trading system and achieving the successful
Doha Round outcome at the World Trade Organization (WTO) 9th Ministerial Conference. APEC Leaders endorse a
multi-year plan on infrastructure development and investment. As a first step under this plan, a Public Private
Partnership Centre in Indonesia will be established. To encourage people-to-people connectivity, APEC seeks to
promote cross-border cooperation with the target of 1 million intra-APEC university students per year by 2020. APEC
holds its first joint Ministerial Meeting on Women and SMEs to promote women entrepreneurship.
2012 - Vladivostok, Russia
APEC Leaders issue the Vladivostok Declaration stating their commitments to: Trade and Investment Liberalization,
Regional Economic Integration; Strengthening Food Security; Establishing Reliable Supply Chains; and Intensive
Cooperation to Foster Innovative Growth. Significantly, Leaders endorse an APEC List of Environmental Goods that
directly and positively contribute to green growth and sustainable development objectives. APEC seeks to address
transparency as a new next generation trade and investment issue, and Leaders endorse the APEC Model Chapter
on Transparency for RTAs/FTAs to be used as a guide by APEC economies.
2011 - Honolulu, United States
APEC Leaders issue the Honolulu Declaration in which they commit to taking concrete steps toward a seamless
regional economy; addressing shared green growth objectives; and advancing regulatory cooperation and
convergence. To reach these goals, APEC resolves to reduce, by the end of 2015, applied tariff rates of
environmental goods to 5 percent or less, taking into account economies' economic circumstances, without prejudice
to APEC economies' positions in the WTO. APEC sets the goal to reduce aggregate energy intensity by 45 percent
by 2035. And APEC commits to take specific steps by 2013 to implement good regulatory practices by ensuring
internal coordination of regulatory work; assessing regulatory impacts; and conducting public consultation.
2010 - Yokohama, Japan
APEC Leaders issue the Yokohama Vision to provide a roadmap for members to realize an economically-integrated,
robust and secure APEC community. This includes the formulation of a comprehensive, long-term growth strategy .
APEC completes an assessment of the progress towards the Bogor Goals and finds significant gains in the areas of
liberalizing trade in goods, services and investment, as well as trade facilitation. APEC formulates the APEC Strategy
for Investment and endorses the APEC New Strategy for Structural Reform. APEC holds its first-ever APEC
Ministerial Meeting on Food Security.
2009 - Singapore
APEC resolves to pursue balanced, inclusive and sustainable growth, while Leaders agree to extend their standstill
commitment on protectionism until 2010. The first-ever joint meetings of APEC senior trade and finance officials are
held to address the economic crisis. APEC launches the Supply-Chain Connectivity Framework and the Ease of
Doing Business Action Plan to make doing business in the region 25 percent cheaper, faster and easier by 2015.
Member economies also commence work on an APEC Services Action Plan and an Environmental Goods and
Services Work Program.
2008 - Lima, Peru
APEC focused on the social dimensions of trade and on reducing the gap between developing and developed
members, in accordance with the 2008 theme, "A New Commitment to Asia-Pacific Development". Leaders also
addressed the global financial crisis in the Lima APEC Leaders' Statement on the Global Economy. They committed
to take all necessary economic and financial measures to restore stability and growth, to reject protectionism and to
intensify efforts to advance WTO Doha Development Agenda negotiations.
2007 - Sydney, Australia
For the first time, APEC Member Economies issue a Declaration on Climate Change, Energy Security and Clean
Development outlining future action in support of a new international climate change arrangement and announcing a
forward program of practical, cooperative actions and initiatives. Leaders also adopted a major report on closer
Regional Economic Integration, including structural reform initiatives, and welcomed the new APEC Trade Facilitation
Action Plan which will reduce trade transaction costs by a further five per cent by 2010.
2006 - Ha Noi, Viet Nam
APEC Economic Leaders endorsed the Ha Noi Action Plan which identifies specific actions and milestones to
implement the Bogor Goals and support capacity-building measures to help APEC economies. They also issued a
statement on the WTO Doha Development Agenda calling for ambitious and balanced outcomes. To prioritize its
agenda, APEC takes a strategic approach to reform working groups and strengthen the Secretariat.
2005 - Busan, Korea
APEC adopts the Busan Roadmap, completes the Mid-Term Stocktake which has found that APEC is well on its way
to meeting the Bogor Goals, and the APEC Privacy Framework. Leaders issue a stand-alone statement in support of
a successful conclusion to the WTO's 6th Ministerial Meeting in Hong Kong, China and agree to confront pandemic
health threats and continue to fight against terrorism which could cause deep economic insecurity for the region.
2004 - Santiago, Chile
APEC issues a strong statement of support for progress in the WTO Doha Development Agenda and sets a target
date for achieving a breakthrough in negotiations: December 2005, the convening of the Sixth WTO Ministerial
Conference. APEC adopts Best Practices for RTAs and FTAs, the Santiago Initiative for Expanded Trade and a Data
Privacy Framework. APEC reiterates its "unmistakable resolve" to confront the threat of terrorism, and takes further
action in this regard by identifying key elements of effective export control systems; establishing guidelines on the
control of man-portable air defense systems (MANPADS), and continuing to implement the STAR initiative. APEC
makes a political commitment to fight corruption and ensure transparency, and endorses a specific Course of Action
towards this end.
2003 - Bangkok, Thailand
APEC agrees to re-energize the WTO Doha Development Agenda negotiations and stresses the complementary
aims of bilateral and regional trade agreements, the Bogor Goals and the multilateral trading system under the WTO.
APEC dedicates itself not only to promoting the prosperity of member economies, but also to improving the security
of the peoples of the Asia-Pacific region. APEC pledges to take specific actions to dismantle terrorist groups,
eliminate the danger of weapons of mass destruction and confront other security threats. Members sign up to the
APEC Action Plan on SARS and the Health Security Initiative to further protect personal security. APEC also
strengthens its efforts to build knowledge-based economies, promote sound and efficient financial systems and
accelerate regional structural reform.
2002 - Los Cabos, Mexico
APEC adopts a Trade Facilitation Action Plan, Policies on Trade and the Digital Economy and Transparency
Standards. APEC's second Counter-Terrorism Statement is delivered, along with the adoption of the Secure Trade in
the APEC Region (STAR) Initiative.
2001 - Shanghai, 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. The e-APEC Strategy is adopted, which sets out an agenda to
strengthen market structures and institutions, facilitate infrastructure investment and technology for on-line
transactions and promote entrepreneurship and human capacity building. APEC's first Counter-Terrorism Statement
is issued.
2000 - Bandar Seri Begawan, Brunei Darussalam
APEC establishes an electronic Individual Action Plan (e-IAP) system, providing IAPs online and commits to the
Action Plan for the New Economy, which, amongst other objectives, aims to triple Internet access throughout APEC
region by 2005.
1999 - Auckland, New Zealand
APEC commits to paperless trading by 2005 in developed economies and 2010 in developing economies. APEC
Business Travel Card scheme is approved and a Mutual Recognition Arrangement on Electrical Equipment and a
Framework for the Integration of Women in APEC is endorsed.
1998 - Kuala Lumpur, Malaysia
APEC agrees on the first nine sectors for EVSL and seeks an EVSL agreement with non-APEC members at the
World Trade Organization.
1997 - Vancouver, Canada
APEC endorses a proposal for Early Voluntary Sectoral Liberalization (EVSL) in 15 sectors and decides that
Individual Action Plans should be updated annually.
1996 - Manila, The Philippines
The Manila Action Plan for APEC (MAPA) is adopted, outlining the trade and investment liberalisation and facilitation
measures to reach the Bogor Goals and the first Collective and Individual Action Plans are compiled, outlining how
economies will achieve the free trade goals.
1995 - Osaka, Japan
APEC adopts the Osaka Action Agenda (OAA) which provides a framework for meeting the Bogor Goals through
trade and investment liberalisation, business facilitation and sectoral activities, underpinned by policy dialogues,
economic and technical cooperation.
1994 - Bogor, Indonesia
APEC sets the Bogor Goals of, "free and open trade and investment in the Asia-Pacific by 2010 for developed
economies and 2020 for developing economies."
1993 - Blake Island, United States
APEC Economic Leaders meet for the first time and outline APEC's vision, "stability, security and prosperity for our
peoples."
1989 - Canberra, Australia
APEC begins as an informal Ministerial-level dialogue group with 12 members.





WIKIPEDIA INFORMATION
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rimmember
economies
[1]
that seeks to promote free trade and economic cooperation throughout the Asia-
Pacific region. It was established in 1989 in response to the growing interdependence of Asia-Pacific
economies and the advent of regional trade blocs in other parts of the world; to fears that highly
industrialized Japan (a member of G8) would come to dominate economic activity in the Asia-Pacific
region; and to establish new markets for agricultural products and raw materials beyond Europe
(where demand had been declining).
[2]
APEC works to raise living standards and education levels
through sustainable economic growth and to foster a sense of community and an appreciation of
shared interests among Asia-Pacific countries. APEC includesnewly industrialized economies,
although the agenda of free trade was a sensitive issue for the developing NIEs at the time APEC
founded, and aims to enable ASEAN economies to explore new export market opportunities
fornatural resources such as natural gas, as well as to seek regional economic integration (industrial
integration) by means of foreign direct investment. Members account for approximately 40% of the
world's population, approximately 54% of the world's gross domestic product and about 44% of
world trade.
[3]
For APEC Economic Trends Analysis in 2012, see.
[4]

An annual APEC Economic Leaders' Meeting is attended by the heads of government of all APEC
members except Taiwan (which is represented by aministerial-level official under the name Chinese
Taipei as economic leader
[5]
). The location of the meeting rotates annually among the member
economies, and a famous tradition, followed for most (but not all) summits, involves the attending
leaders dressing in a national costume of the host country.

HISTORY
In January 1989, Australian Prime Minister Bob Hawke called for more effective economic
cooperation across the Pacific Rim region. This led to the first meeting of APEC in
the Australian capital of Canberra in November, chaired by Australian Foreign Affairs
Minister Gareth Evans. Attended by ministers from twelve countries, the meeting concluded with
commitments for future annual meetings in Singaporeand Korea.
Countries of the Association of Southeast Asian Nations (ASEAN) opposed the initial proposal,
instead proposing the East Asia Economic Caucus which would exclude non-Asian countries such
as the United States, Canada, Australia, and New Zealand. This plan was opposed and strongly
criticized by Japan and the United States.
The first APEC Economic Leaders' Meeting occurred in 1993 when U.S. President Bill Clinton, after
discussions with Australian Prime Minister Paul Keating, invited the heads of government from
member economies to a summit on Blake Island. He believed it would help bring the stalled Uruguay
Round of trade talks back on track. At the meeting, some leaders called for continued reduction of
barriers to trade and investment, envisioning a community in the Asia-Pacific region that might
promote prosperity through cooperation. The APEC Secretariat, based in Singapore, was
established to coordinate the activities of the organization.
During the meeting in 1994 in Bogor, Indonesia, APEC leaders adopted the Bogor Goals that aim for
free and open trade and investment in the Asia-Pacific by 2010 for industrialized economies and by
2020 for developing economies. In 1995, APEC established a business advisory body named the
APEC Business Advisory Council (ABAC), composed of three business executives from each
member economy.

Member Economies
APEC currently has 21 members, including most countries with a coastline on thePacific Ocean.
However, the criterion for membership is that the member is a separate economy, rather than a
state. As a result, APEC uses the term member economies rather than member countries to refer
to its members. One result of this criterion is that membership of the forum
includes Taiwan (officially the Republic of China, participating under the name "Chinese
Taipei") alongside People's Republic of China (see Cross-Strait relations), as well as Hong Kong,
which entered APEC as a British colony but it is now a Special Administrative Region of the
People's Republic of China. APEC also includes three official observers: ASEAN, the Pacific
Islands Forum and the Pacific Economic Cooperation Council.
[1]

Member economy (name as used in APEC) Date of accession
Australia November 1989
Brunei Darussalam November 1989
Canada November 1989
Indonesia November 1989
Japan November 1989
South Korea November 1989
Member economy (name as used in APEC) Date of accession
Malaysia November 1989
New Zealand November 1989
Philippines November 1989
Singapore November 1989
Thailand November 1989
United States November 1989
Chinese Taipei
[6]
November 1991
Hong Kong
[7]
November 1991
People's Republic of China November 1991
Mexico November 1993
Papua New Guinea November 1993
Chile November 1994
Peru November 1998
Member economy (name as used in APEC) Date of accession
Russia November 1998
Vietnam
November 1998


APEC's Three Pillars[edit]
To meet the Bogor Goals, APEC carries out work in three main areas:
1. Trade and Investment Liberalisation
2. Business Facilitation
3. Economic and Technical Cooperation
APEC and Trade Liberalisation[edit]
According to the organization itself, when APEC was established in 1989 average trade
barriers in the region stood at 16.9 percent, but had been reduced to 5.5% in 2004.
[19]

APEC's Business Facilitation Efforts[edit]
APEC has long been at the forefront of reform efforts in the area of business facilitation.
Between 2002 and 2006 the costs of business transactions across the region was
reduced by 6%, thanks to the APEC Trade Facilitation Action Plan (TFAPI). Between
2007 and 2010, APEC hopes to achieve an additional 5% reduction in business
transaction costs. To this end, a new Trade Facilitation Action Plan has been endorsed.
According to a 2008 research brief published by the World Bankas part of its Trade
Costs and Facilitation Project, increasing transparency in the region's trading system is
critical if APEC is to meet its Bogor Goal targets.
[20]
The APEC Business Travel Card,
a travel document for visa-free business travel within the region is one of the concrete
measures to facilitate business. In May 2010 Russia joined the scheme, thus completing
the circle.
[21]

Proposed Free Trade Area of the Asia-Pacific[edit]
APEC first formally started discussing the concept of a Free Trade Area of the Asia-
Pacific at its summit in 2006 in Hanoi. However, the proposal for such an area has been
around since at least 1966 and Japanese economist Kiyoshi Kojima (ja)'s proposal for a
Pacific Free Trade agreement proposal. While it gained little traction, the idea led to the
formation of Pacific Trade and Development Conference and then the Pacific Economic
Cooperation Council in 1980 and then APEC in 1989.
In more recent times, economist C. Fred Bergsten has been the foremost advocate of a
Free Trade Agreement of Asia-Pacific. His ideas convinced the APEC Business
Advisory Council to support this concept.
The proposal for a FTAAP arose due to the lack of progress in the Doha round of World
Trade Organization negotiations, and as a way to overcome the "noodle bowl" effect
created by overlapping and conflicting elements of the copious free trade agreements
there were approximately 60 free trade agreements in 2007, with an additional 117 in
the process of negotiation in Southeast Asia and the Asia-Pacific region.
[22]
In 2012,
ASEAN+6 countries alone had 339 free trade agreements - many of which were
bilateral.
[23]

The FTAAP is more ambitious in scope than the Doha round, which limits itself to
reducing trade restrictions. The FTAAP would create a free trade zone that would
considerably expand commerce and economic growth in the region.
[22][24]
The economic
expansion and growth in trade could exceed the expectations of other regional free
trade areas such as theASEAN Plus Three (ASEAN + China, Japan, and South
Korea).
[25]
Some criticisms include that the diversion of trade within APEC members
would create trade imbalances, market conflicts and complications with nations of other
regions.
[24]
The development of the FTAAP is expected to take many years, involving
essential studies, evaluations and negotiations between member economies.
[22]
It is also
affected by the absence of political will and popular agitations and lobbying against free
trade in domestic politics.

APEC Business Advisory Council[edit]
The APEC Business Advisory Council (ABAC) was created by the APEC Economic Leaders in
November 1995 with the aim of providing advice to the APEC Economic Leaders on ways to achieve
the Bogor Goals and other specific business sector priorities, and to provide the business
perspective on specific areas of cooperation.
Each economy nominates up to three members from the private sector to ABAC. These business
leaders represent a wide range of industry sectors. ABAC provides an annual report to APEC
Economic Leaders containing recommendations to improve the business and investment
environment in the Asia-Pacific region, and outlining business views about priority regional issues.
ABAC is also the only non-governmental organisation that is on the official agenda of the APEC
Economic Leaders Meeting.
Annual APEC Economic Leaders' Meetings[edit]
Since its formation in 1989, APEC has held annual meetings with representatives from all member
economies. The first four annual meetings were attended by ministerial-level officials. Beginning in
1993, the annual meetings are named APEC Economic Leaders' Meetings and are attended by
the heads of government from all member economies except Taiwan, which is represented by a
ministerial-level official. The annual Leaders' Meetings are not called summits.
Meeting developments[edit]
In 1997, the APEC meeting was held in Vancouver. Controversy arose after officers of the Royal
Canadian Mounted Policeused pepper spray against protesters. The protesters objected to the
presence of autocratic leaders such as Indonesian president Suharto.
[36][37][38][39][40][41]

At the 2001 Leaders' Meeting in Shanghai, APEC leaders pushed for a new round of trade
negotiations and support for a program of trade capacity-building assistance, leading to the launch of
the Doha Development Agenda a few weeks later. The meeting also endorsed the Shanghai Accord
proposed by the United States, emphasising the implementation of open markets, structural reform,
and capacity building. As part of the accord, the meeting committed to develop and implement APEC
transparency standards, reduce trade transaction costs in the Asia-Pacific region by 5 percent over 5
years, and pursue trade liberalization policies relating to information technology goods and services.
In 2003, Jemaah Islamiah leader Riduan Isamuddin had planned to attack the APEC Leaders
Meeting to be held in Bangkokin October. He was captured in the city of Ayutthaya, Thailand by Thai
police on August 11, 2003, before he could finish planning the attack.
[citation needed]
Chile became the
first South American nation to host the Leaders' Meeting in 2004. The agenda of that year was
focused on terrorism and commerce, small and medium enterprise development, and contemplation
of free trade agreements and regional trade agreements.
The 2005 Leaders' Meeting was held in Busan, South Korea. The meeting focused on the Doha
round of World Trade Organization (WTO) negotiations, leading up to the WTO Ministerial
Conference of 2005 held in Hong Kong in December. Weeks earlier, trade negotiations in Paris were
held between several WTO members, including the United States and theEuropean Union, centered
on reducing agricultural trade barriers. APEC leaders at the summit urged the European Union to
agree to reducing farm subsidies. Peaceful protests against APEC were staged in Busan, but the
meeting schedule was not affected.
At the Leaders' Meeting held on November 19, 2006 in Hanoi, APEC leaders called for a new start to
global free-trade negotiations while condemning terrorism and other threats to security. APEC also
criticised North Korea for conducting anuclear test and a missile test launch that year, urging the
country to take "concrete and effective" steps toward nuclear disarmament. Concerns about nuclear
proliferation in the region was discussed in addition to economic topics. The United
States and Russia signed an agreement as part of Russia's bid to join the World Trade Organization.
The APEC Australia 2007 Leaders' Meeting was held in Sydney from 29 September 2007. The
political leaders agreed to an "aspirational goal" of a 25% reduction of energy intensity correlative
with economic development.
[42]
Extreme security measures including airborne sharpshooters and
extensive steel-and-concrete barricades were deployed against anticipated protesters and potential
terrorists. However, protest activities were peaceful and the security envelope was penetrated with
ease by a spoof diplomatic motorcade manned by members of the Australian television program The
Chaser, one of whom was dressed to resemble the Al-Qaeda leader Osama bin Laden.
The APEC USA 2011 Leaders' Meeting was held on Honolulu, Hawaii 813 November 2011






















APEC Business Advisory Council[edit]
The APEC Business Advisory Council (ABAC) was created by the APEC Economic Leaders in
November 1995 with the aim of providing advice to the APEC Economic Leaders on ways to achieve
the Bogor Goals and other specific business sector priorities, and to provide the business
perspective on specific areas of cooperation.
Each economy nominates up to three members from the private sector to ABAC. These business
leaders represent a wide range of industry sectors. ABAC provides an annual report to APEC
Economic Leaders containing recommendations to improve the business and investment
environment in the Asia-Pacific region, and outlining business views about priority regional issues.
ABAC is also the only non-governmental organisation that is on the official agenda of the APEC
Economic Leaders Meeting.
Annual APEC Economic Leaders' Meetings[edit]
Since its formation in 1989, APEC has held annual meetings with representatives from all member
economies. The first four annual meetings were attended by ministerial-level officials. Beginning in
1993, the annual meetings are named APEC Economic Leaders' Meetings and are attended by
the heads of government from all member economies except Taiwan, which is represented by a
ministerial-level official. The annual Leaders' Meetings are not called summits.
Meeting developments[edit]
In 1997, the APEC meeting was held in Vancouver. Controversy arose after officers of the Royal
Canadian Mounted Policeused pepper spray against protesters. The protesters objected to the
presence of autocratic leaders such as Indonesian president Suharto.
[36][37][38][39][40][41]

At the 2001 Leaders' Meeting in Shanghai, APEC leaders pushed for a new round of trade
negotiations and support for a program of trade capacity-building assistance, leading to the launch of
the Doha Development Agenda a few weeks later. The meeting also endorsed the Shanghai Accord
proposed by the United States, emphasising the implementation of open markets, structural reform,
and capacity building. As part of the accord, the meeting committed to develop and implement APEC
transparency standards, reduce trade transaction costs in the Asia-Pacific region by 5 percent over 5
years, and pursue trade liberalization policies relating to information technology goods and services.
In 2003, Jemaah Islamiah leader Riduan Isamuddin had planned to attack the APEC Leaders
Meeting to be held in Bangkokin October. He was captured in the city of Ayutthaya, Thailand by Thai
police on August 11, 2003, before he could finish planning the attack.
[citation needed]
Chile became the
first South American nation to host the Leaders' Meeting in 2004. The agenda of that year was
focused on terrorism and commerce, small and medium enterprise development, and contemplation
of free trade agreements and regional trade agreements.
The 2005 Leaders' Meeting was held in Busan, South Korea. The meeting focused on the Doha
round of World Trade Organization (WTO) negotiations, leading up to the WTO Ministerial
Conference of 2005 held in Hong Kong in December. Weeks earlier, trade negotiations in Paris were
held between several WTO members, including the United States and theEuropean Union, centered
on reducing agricultural trade barriers. APEC leaders at the summit urged the European Union to
agree to reducing farm subsidies. Peaceful protests against APEC were staged in Busan, but the
meeting schedule was not affected.
At the Leaders' Meeting held on November 19, 2006 in Hanoi, APEC leaders called for a new start to
global free-trade negotiations while condemning terrorism and other threats to security. APEC also
criticised North Korea for conducting anuclear test and a missile test launch that year, urging the
country to take "concrete and effective" steps toward nuclear disarmament. Concerns about nuclear
proliferation in the region was discussed in addition to economic topics. The United
States and Russia signed an agreement as part of Russia's bid to join the World Trade Organization.
The APEC Australia 2007 Leaders' Meeting was held in Sydney from 29 September 2007. The
political leaders agreed to an "aspirational goal" of a 25% reduction of energy intensity correlative
with economic development.
[42]
Extreme security measures including airborne sharpshooters and
extensive steel-and-concrete barricades were deployed against anticipated protesters and potential
terrorists. However, protest activities were peaceful and the security envelope was penetrated with
ease by a spoof diplomatic motorcade manned by members of the Australian television program The
Chaser, one of whom was dressed to resemble the Al-Qaeda leader Osama bin Laden.
The APEC USA 2011 Leaders' Meeting was held on Honolulu, Hawaii 813 November 2011












APEC Economic Trends Analysis Report (April 2014)
Purpose: Information
Submitted by: PSU, APEC Secretariat

HIGHLIGHTS

APEC economic recovery is proceeding but at varying speeds

the APEC region has started to gain traction since the second half of 2013.
Collectively, GDP growth in Industrialized APEC economies advanced from 1.1% (yo-y) in Q1 2013 to
2.6% in Q4 2013. At the same time, APEC NIEs saw growth
shifting from 1.5% in Q1 2013 to a 3.7% in the last quarter of 2013.
conomies and NIEs has helped to
tone up APEC growth. After registering a soft growth of 3.4% in Q1 2013, APEC
growth has gradually accelerated in subsequent quarters and ended the year with a
4.1% growth. The regional economic improvement was also aided by the solid
advancement of Chinas economy which grew by 7.7% last year.

was held back on the difficult backdrop of rising financial tensions and slower trade.
In some economies, domestic demand, which has been the main engine of growth in
the past few years, has faltered.
Economic growth is expected to accelerate in 2014 and 2015

from 3.7% in 2013. Despite the recurrent financial turmoil in the first few months of
this year, APEC Industrialized and NIEs started 2014 on a relatively firm footing.
The spill-over impact was more noticeable among developing APEC economies but
economic activities in these economies have also started to stabilize.

sensitive to movements in the direction and the scale of large economies monetary
policy changes. The growth gap between developing and advanced economies is
expected to lessen as the latter group consolidates. A narrowing of the growth gap
and interest rate differentials will inevitably result in some degree of portfolio
investment reallocation.
appear to scrutinize economies with weaker fundamentals, in the
absence of any policy responses, there is likely to be some degree of contagion.
The weaker-than-expected performance in the past few years
places APEC growth on a lower projected growth path
-09 Global Financial Crisis (GFC) and its legacy has had a tremendous
impact on APEC growth. Over the six-year period between 2008 and 2013, APEC
GDP expanded at an average rate of 3.4% per annum, 1.3 percentage points lower
than the 4.7% average annual growth rate seen in the six-year period immediately
prior to the crisis. 4
APEC Policy Support Unit
April 2014

subdued than expected. In early 2013, it was forecast that APEC would achieve a
2013 economic growth rate of 4.1%. However, APEC output actually expanded by
3.7%, producing USD 90 billion less than the amount of output that had been
originally expected.
-than-expected economic performance has effectively placed APEC
growth on a lower medium-term growth path. The latest forecasts for the APEC
region have a projection of 4.4% annual average growth rate between 2014 and 2018,
a marked downward shift from a 4.9% per annum average growth rate for the same
period being forecast in the IMF April 2013 WEO report. This indicates that in the
absence of any policy measures the APEC region will see roughly USD 4,000 billion
less output over the period between 2014 and 2018 than the amount earlier projected.

years has been the uneven recovery of APEC exports. The 2008-09 GFC created an
overreaching structural condition of global demand shortage. APEC exports
contracted by 20.8% in 2008 and its recovery has been halted since late 2011. In
2013, the values of APEC merchandise goods exports contracted 1.9%.
GFC, the contribution of exports to the
regional economy is still below the pre-crisis peak. In 2013, exports accounted for
20.2% of APEC GDP, lower than the ratio of 21.4% of GDP in 2008. While global
trade is expected to pick up, the pace is likely to remain unsteady.
Enhancing competitiveness to pave the way towards a higher path
of prosperity

the 2008-09 GFC. However, on average, output per worker in APEC has been
relatively lower than that of the rest of the world.

United States having the worlds highest output per worker. The productivity gap
between the APEC regions lead and developing APEC economies is generally
significant.

2008-09 GFC. Most the APEC slowdown in labor productivity growth can be
attributed to the sharp drop of Total Factor Productivity (TFP) growth an indicator
of technology advances.

growth in the 6-years post 2008-09 GFC. In comparison, between 2002 and 2007,
TFP growth contributed to a significant 1.8 percentage points to the average growth
rate seen in this period. Increased investment in capital, both in Information and
Communication Technology (ICT) and other non-ICT capital, has helped to avert the
slowdown in output per worker growth.

much of the capital deepening may be restrained. In the short to medium term, APEC 5
APEC Policy Support Unit
April 2014
needs to mobilize private savings into productive capital investment in order to
sustain the current momentum of capital input expansion.

resources through the advancement of technological progress is vitally important to
sustainably improve APEC labor productivity and output.
Policies need to be carefully crafted to achieve healthy employment
growth and strong labor productivity growth

employment growth coming to a virtual standstill in the middle of the crisis.
Although the pace has since picked up, employment is still growing at a much
reduced rate compared to the way it was in any year between 1980 and 2007.

Collectively, there were 7.35 million jobs lost in these economies from 2007 to 2010.
The labor markets in Emerging and Developing APEC economies weathered the GFC
relatively better. During the most recent downturn, there was a tendency for firms in
APEC NIEs and developing economies to sacrifice some productivity and
profitability while companies in industrialized APEC economies responded by laying
off workers.

and efficiency often comes at the expense of employment. Some job losses are likely
to be permanent as during the process of restructuring operations, many companies
automate tasks or redesign processes towards fewer labor inputs.

efficiency is only possible if governments succeed in creating an environment in
which firms are incentivized to pursue innovation as an integral part of enhancing
productivity.

creating new jobs. However, innovations will alter the structure of labor demand, i.e.
favoring skilled workers at the expense of unskilled ones.

sustainable job creation depends critically on the ability to design a flexible labor
market as well a comprehensive strategy to develop a workforce of tomorrow.
Innovate for a better APEC future with sustainable growth

a means to promote increased productivity and higher standards of living. As host of
APEC 2014, China has specified promoting innovative development, economic
reform and growth as one of the three top priorities for APEC work agenda this
year.
ross APEC, there are economies that lead global innovation efforts while others
have performed less well. Over the 10-year period from 2002 to 2011, 76.7% of 6
APEC Policy Support Unit
April 2014
patent registrations in APEC were filed in high-income APEC economies. Among
developing APEC economies, China has seen significant increases in the numbers of
patent registrations, surpassing the United States in 2011. However, patent
applications per 10,000 population in developing APEC economies are generally
fewer than that of high-income APEC economies.

APEC region accounted for roughly 60% of the worlds total R&D spending in 2011.
However, investments in developing economies captured only a small portion (an
equivalent of 16%) of the regions total R&D expenditure. Among developing APEC
economies, the spurt in Chinas R&D investment was most notable. Notwithstanding
this improvement, Chinas R&D to GDP ratio, which was 1.84% in 2011, is still
lower than the average R&D to GDP ratio in high-income economies.
-income and developing APEC
economies broadly mirrors the global trend. From 1996 to 2011, high-income
economies contributed to 87.4% of global R&D expenditure. The GFC, however,
caused a sharp slowdown in R&D investments in these economies. While there have
been increased efforts in developing economies, there is an urgent need to prompt up
the appetite for R&D in developed economies. At the same time, there is still room
for developing economies to strengthen their innovative capacity.
The role for APEC

Innovation (PPSTI) to support the development of science and technology
cooperation and effective innovation policy in APEC economies. A recent focus of
the PPSTI has been on reinforcing policy measures to develop and secure human
resources which aim to support science and technological innovation.

workers across borders. Concurrently, economies need to strengthen the
environments to train and nurture scientists in order to prevent the loss of local talents
to foreign innovation centers.

in R&D, including the removal of administrative burdens on start-up firms as well as
broader barriers to competition. These priorities fit well with the work agenda of the
Economic Committee whose aim is to remove structural and regulatory obstacles that
inhibit cross-border trade and investment and create behind-the-border barriers to
doing business.
-functioning intellectual
property rights system that provides for effective legal protection for inventions.
Capacity building on the role of fiscal and taxation instruments to private R&D is also
imperative.