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APEC WTO EAGA By: KARL QUIPANES. Asia-Pacific Economic Cooperation ( APEC ).
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APEC WTO EAGA By: KARL QUIPANES
Asia-Pacific Economic Cooperation ( APEC ) • APEC officially started in 1989 when trade and economic minister of 12 countries in the Asia-Pacific region met in Canberra, Australia. The founding members of APEC are; Australia, Brunei Darussalam, Canada, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand Philippines, Singapore, Thailand, and The United States. • It is an organization of economies in the Asia-Pacific region formed to foster economic cooperation & Trade among them with a view of enhancing international trade. Its members work together to reduce trade barrier, open investment opportunities, ease the exchange of goods, services, resources & technical know-how, & strengthen economic & technical cooperation among them.
APEC member-economic include the major economies of the region & the most dynamic & fastest-growing economies in the world. The 21 economies together constitute more than half of the world’s annual output & almost half of the world’s total merchandise trade. APEC was formed because of the Following Factors: • Fear over the possible collapse of the Uruguay Round of the General Agreement on Tariffs and Trade ( GATT ), Which could result in increased protectionism and the emergence of new restrictive trade blocs. • Sweeping political and economic changes in the Soviet Union & Europe.
The following are the objectives of APEC: • To sustain the growth and development of the region for the common good of its people and, in this way, to contribute to the growth and development of the world economy; • To enhance the positive gains, both for the region and the world economy, resulting from increasing economic interdependence, to include encouraging the flow of goods, services, capital and technology • To develop and strengthen the open multilateral trading system in the interest of Asia-Pacific and all other economies • To reduce barriers to trade in goods and services and investment among participants in a manner consistent with GATT principles, where applicable, and without detriment to other countries
The APEC member-economies agreed not to make APEC a trade bloc. The reason behind this resolve is that trade blocs tend to be inward-looking and exclude non-members. “Every economy represented in Canberra relies heavily on a strong and open multilateral trading system, and none believes that APEC should be directed to the information of a trading bloc.” Members have resolved to “Purse free and open trade and investment in the Asia-Pacific in a manner that will encourage and strengthen trade and investment liberalization in the world as a whole. Thus, the outcome of trade and investment liberalization in the Asia-Pacific will not only be the actual reduction of barriers among APEC economies but also between APEC economies and non-APEC economies.” • The chairmanship of APEC rotates yearly among the leaders of its member economies, with the specific chair chosen in advance by consensus. Recognizing ASEAN’s importance in APEC, there is a special provision that the chairmanship be held every other year by ASEAN member country.
APEC Observer • Asia-Pacific Economic Cooperation (APEC) has three Official Observers: These observers participate in APEC meetings and have full access to documents and information related to these meetings. The observer groups provide partnership, expertise and insight that assist APEC to attain its goals and implement its initiatives. • Association of Southeast Asian Nations (ASEAN) Secretariat • Pacific Economic Cooperation Council (PECC) • Pacific Islands Forum (PIF) Secretariat
APEC’s three main Pillars of Activities • Trade and Investment Liberalization • Business Facilitation • Economic & Technical Cooperation
World Trade Organization • The world Trade Organization was formed in January 1995. It was the outcome of the lengthy GATT negotiations. The WTO was essentially an extension of GATT. The WTO by contrast is a fully pledged institution ( GATT also was, at least formally. Only an agreement between contracting parties and had no independent existence of its own while the WTO is a corporate body recognizes under international law). Whereas GATT had mainly dealt with trade in goods, the WTO its agreement now cover trade in services, and in traded inventions, creation & designs ( Intellectual Right )
WTO deals with the rules of trade between nations at a near-global level; its responsible for negotiating and implementing new trade agreements and is in charge of policing members countries adherence to all the WTO agreements. • WTO has 153 members, which represents more than 95% of total world trade. The WTO is governed by a Ministerial Conference, which meets every two years and its headquarters is located in Geneva Switzerland.
Principles of WTO • Trade without Discrimination • Freer Trade • Predictability through Binding • Promoting Fair Competition • Encouraging Development and Economic Reform Basic Functions of WTO • Administering WTO Trade Agreement • Forum for trade negotiations • Handling trade dispute
Monitoring National trade Policies • Technical Assistance and Training for developing Countries. • Cooperation with other international organization. 10 Benefits of WTO • Systems help to keep the Peace • Disputes • Rules • Cost of living • Choices
6. Incomes 7. Growth and Jobs • Efficiency • Lobbying • Good Government
EAST-ASEAN GROWTH AREA (EAGA) • Owing to the success of the growth area concept in several sub-regions in asia, the head of state of Brunie Darussalem, Indonesia, Malaysia and the Philippines met in 1992 to discuss the adoption of the concept through an economic cooperation scheme involving the four countries. • Two years after the initial discussions, the Brunei Darrussalem, Indonesia, Malaysia, Philippines – East ASEAN Growth Area (BIMP – EAGA) was officially launched conciding the inaugural Señior Official and Ministerial Meeting on March 24-26 1994 in Davao City.
Immediately after its creation, the Asian development Bank (ADB) conducted an exhaustive investigative study on the growth potentials of the sub-region that initially identified 13 areas of cooperation.