Asia Pacific Economic Co-operation Page 1

S.P. MANDALIS
R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS
MATUNGA, MUMBAI-400 019.

A PROJECT REPORT ON
ASIA PACIFIC ECONOMIC COOPERATION (APEC)
SUBMITTED BY
ARPEET KUMUD KANADIA
M.COM (SEM.I): ECONOMICS

SUBMITTED TO
UNIVERSITY OF MUMBAI
2014-2015
PROJECT GUIDE
Prof. SUDARSHANA SAIKIA









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S.P. MANDALIS
R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS
MATUNGA, MUMBAI-400 019.


CERTIFICATE
This is to certify that Mr. Arpeet Kumud Kanadia of M.Com (Accountancy) Semester I
(2014-2015) has successfully completed the project on Asia Pacific Economic Cooperation
under the guidance of Prof. Sudarshana Saikia


Project Guide/Internal Examiner External Examiner
Prof. _______________________ Prof._______________________


Dr. (Mrs) Vinita Pimpale Dr.(Mrs)ShobhnaVasudevan
Course Co-ordinator Principal



Date Seal of the College




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ACKNOWLEDGEMENT

I acknowledge the valuable assistance provided by S. P Mandalis R. A. Podar College of
Commerce & Economics, for two year degree course in M.Com.
I specially thank the Principal Dr.(Mrs) Shobana Vasudevan for allowing us to use the
facilities such as Library, Computer Laboratory, internet etc.
I sincerely thank the M.Com Co-ordinator for guiding us in the right direction to prepare
the project.
I thank my guide Prof. Sudarshana Saikia who has given his/her valuable time,
knowledge and guidance to complete the project successfully in time.
My family and peers were great source of inspiration throughout my project, their support
is deeply acknowledged.

` Signature of the Student

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DECLARATION

I, Arpeet Kanadia of R. A. PODAR COLLEGE OF COMMERCE & ECONOMICS of
M.Com SEMESTER I, hereby declare that I have completed the project on Asia Pacific
Economic Cooperation in the academic year 2014-2015 for the subject Economics.
The information submitted is true and original to the best of my knowledge.
Signature of the Student

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Contents

INTRODUCTION ..................................................................................................................... 9
MISSION STATEMENT ........................................................................................................ 10
PURPOSE AND GOALS ........................................................................................................ 10
HISTORY OF APEC ............................................................................................................... 11
DEVELOPING RELATIONS ................................................................................................. 12
ACCELARATING GROWTH ................................................................................................ 14
INDIA & APEC ....................................................................................................................... 18
THE WAY FORWARD .......................................................................................................... 20
CONCLUSION ........................................................................................................................ 28
















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EXECUTIVE SUMMARY

Our initiatives turn policy goals into concrete results and agreements into tangible benefits.

This is the most important of APECs mission statement at least that is what we believe.
Asia-Pacific Economic Cooperation forum, informally known as APEC, has been a front-
runner for free-trade initiatives across the Pacific Rim geography for 25 years now.

Though limited to 21 countries at this point, APEC has played an indispensable role since its
inception championing free-trade, economic integration, creating sustainable environment for
growth and development, and all of this integrating into a factor of human safety and political
security. This report aims to understand the necessity, formation, development, membership
evaluation and the future of APEC.

The first meeting, in 1989, was called by Bob Hawke (the then Prime Minister of Australia)
foreseeing the need for effective economic cooperation, presumably after recognizing the
precursors presented by the Latin Debt Crisis, the Stock Crisis followed by the Black
Monday of 87 and the precursors of the Savings and Loan Crisis as the deregulation took
wings under the Reagan Administration.

After a few initial upsets and criticism, Clinton administration saw the folly of ASEAN in
demanding lenient membership criteria for APEC and called upon a Leaders Meeting in
1993. This was when APEC gained firm rooting in the world economy and the recognition on
the stage of globalization and free trade which were relatively new concepts at the time.

APEC has 3 practices it lives and swears by:
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1. Trade and Investment Liberalization
2. Business Facilitation
3. Economic and Technical Cooperation

In quantitative terms, APEC has successfully reduced trade barriers across the Pacific Rim
region from 17% to 5.5% over its first decade of functioning. The cost of business was
reduced by over 6% in the first half of second decade of its functioning and has been
estimated to be reduced by further 5% till date.

APEC has been criticized for promoting free trade agreements that would trammel national
and local laws, which regulate and ensure labor rights, environmental protection and safe and
affordable access to medicine. This criticism was the source of an initiative, the Free Trade
Area of the Asia-Pacific, which works towards nullifying the over-lapping redundancies of
more than 500 unilateral and bilateral free trade agreements in the Asian and Asia-Pacific
region.

We also try to predict the future of APEC in terms of its functioning piecing together pieces
from the information known publicly and the progression of politics, economics, defense, and
human interest policies across the world. We also try to address the concern of overlapping
policies, the noodle effect, and what it means when new legal measures, or cooperative
arrangements between government and companies are carried out in ways that erode due
process, rule of law and the protection of innocent citizens' political and civil rights. Cases in
example, Russia-Crimea.


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The report does not support, defend or criticize the APEC and its policies. It is our
interpretation and understanding of these faculties that help us understand the economic
integration of the Pacific Rim better and consider the options for further sustainable
development of this geography.





















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INTRODUCTION

Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating trade,
investment and economic cooperation in the Asia-Pacific region. APEC works to raise living
standards and education levels through sustainable economic growth. Its objective is to foster
a sense of community and an appreciation of shared interests among Asia-Pacific countries.
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.
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 and to establish
new markets. APEC aims to enable ASEAN economies to explore new export market
opportunities, as well as to seek regional economic integration by means of foreign direct
investment.
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MISSION STATEMENT

As per the official website of APEC the mission statement of the forum quotes as under.
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.

PURPOSE AND GOALS

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.
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'.

The Bogor goals are as follows
The strengthening of multilateral trading system
Facilitation and liberalization of trade and investment
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Capacity building operation on LAISR/ANSSR
APEC 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.
HISTORY OF APEC

APEC was established in response to the growing interdependence among Asia-Pacific
economies and to the need to advance Asia-Pacific economic dynamism and sense of
community. 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 when he 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 which was attended by
the minister of 12 different countries and was chaired by Australian Foreign Affairs Minister
Gareth Evans. The meeting concluded with commitment for future annual meetings in
Singapore and 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. In 1993, the United States
held the first annual meeting of APEC Leaders at Blake Island, near Seattle, to give trade
liberalization and economic cooperation further impetus and high level commitment, to
develop a spirit of community in the region and to promote sustainable growth and equitable
development.


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DEVELOPING RELATIONS

APEC currently has 21 members, including most countries with a coastline on the Pacific
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. The list of the member nations is as follows
Serial no Member Economy Date of accessions
1 Australia
November 1989



November 1989
2 Brunei Darussalam
3 Canada
4 Indonesia
5 Japan
6 South Korea
7 Malaysia
8 New Zealand
9 Philippines
10 Singapore
11 Thailand
12 United States of America
13 Chinese Taipei
November 1991 14 Hong Kong
15 Peoples Republic of China
16 Mexico November 1993
17 Papua New Guinea

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Serial Number Member Economies Date of accessions
18 Chile November 1994
19 Peru November 1998
20 Russia November 1994
21 Vietnam November 1998


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ACCELARATING GROWTH

The Asia-Pacific region has consistently been the most economically dynamic region in the
world. APEC member economies together account for: 40% of world population (2.7 billion
people); 44% of global trade ($16.8 trillion) and 53% of world real GDP in purchasing power
parity (PPP) terms ($35.8 trillion).
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% per year,
from $17.2 trillion to $31.9 trillion. This means that APECs share of world real GDP has
increased from 51% in 1989 to 53% in 2010.
APEC's work under its three main pillars of activity
Trade and Investment Liberalization
APEC is the premier forum for trade and investment liberalization in the Asia-Pacific
and has set targets dates for "free and open trade". The Target of free trade was to be
achieved by the industrialized economies no later than 2010 and the developing
economies had to achieve the same goals by 2020. Since APECs formation there has
been a drastic change in the pattern of trade barriers existing in the APEC economies.
The average trade barriers existing in the region saw a fall of around 11% from 16.9%
in 1989 to 5.8% in 2010. Reductions in trade barriers have played an important role in
achieving Bogor Goals.
The intra APEC trading got a boost due to the reduction and it saw a nearly six fold
rise in the merchandise trade i.e. exports and imports. It grew from around $1.7
trillion in 1989 to $9.9 trillion in 2010 which accounts for 67% of APECs total
merchandise trade. Similarly, APECs total trade has increased from $3.1 trillion in
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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.
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 liberalization 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
Organization multilateral trade negotiations over the past 20 years.
Business Facilitation
As a result of the APEC Trade Facilitation Action Plan the cost of business
transactions across the region was reduced by 5% between 2002 and 2006.
A second trade facilitation action plan 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
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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 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 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.

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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 recognized 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
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region by 2015 an ambitious target reaffirmed by Telecommunications
Ministers in Okinawa, Japan in 2010.
o A network of 46 APEC Digital Opportunity Centers now operate in 10
member economies. ADOC's objective is to transform the digital divide into
digital opportunities and the centers act as local information and
communication technology (ICT) resource centers, providing citizens and
businesses of the region with access to ICT technologies, education and
training.
INDIA & APEC

If Indian Prime Minister Modi accepts Chinese President Xis surprise (to the other members
of APEC and to India) invitation to attend the APEC Leaders Meeting in Beijing in
November, it will bring India closer to its twenty-year goal of becoming an APEC member
economy.
Nine years on, the regional trade diplomacy picture has fundamentally changed while APEC
has not. The Doha Rounds continuing comatose state has underpinned a continuing
proliferation of bilateral preferential trade deals and an attempt at an Asia-Pacific regional
trade deal (the Trans-Pacific Partnership) and an ASEAN-based, East Asian one (The
Regional Comprehensive Economic Partnership).
Many hope that these two deals will be struck and then stitched together, under APEC
auspices, into a Free Trade Area of the Asia-Pacific. A circuitous way of achieving APECs
trade and investment Bogor Goals with a few non-APEC members (Laos, Cambodia,
Myanmar and India) thrown in. The APEC Business Advisory Council, the originators of the
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FTAAP idea, have just reiterated the presumed benefits to APEC of pursuing an FTAAP and
recommended that the APEC summit in Beijing agree on an FTAAP road map.
Reflecting the idea that APEC is primarily a trade and investment liberalization forum,
supporters of India into APEC see that APEC membership will enhance trade and investment
liberalization in India while fretting that Indias decidedly patchy trade and investment
liberalization record may slow APECs momentum down further on this front or keep, as it
has for the last two decades, India out of APEC looking in.
Indias membership in APEC could certainly benefit APEC and India but not in these ways.
The birth of the narrower and newer RCEP and TPP processes stem directly from the fact that
APEC has failed as a trade and investment liberalization negotiation forum, a cold hard fact
the drumbeat for an APEC-based FTAAP is deaf to. Indias tough, defensive approach to
trade liberalization and its membership in RCEP will likely mean that India will not join
APEC, if ever invited by a consensus vote of the 21 APEC members, primarily, to further its
trade and investment liberalization agenda.
Rather Indias membership in APEC would enhance two of APECs greatest strengths, one
well known and one overshadowed by the overweening focus on APEC as a trade and
investment liberalization body. The first strength is the annual leaders meeting, the first to
bring together the leaders of the United States, China, Japan, Russia and Indonesia and 16
small and medium powers. The East Asia Summit now brings together all of these major
powers and India and the United States and Japan with strong support from South Korea,
Australia and Singapore, want to turn the East Asia Summit into the premier regional
organisation for strategic matters. The longer India is not at the APEC head table, especially
if India continues to gain economic and strategic importance, the more this favours the East
Asia Summits leaders meetings over APECs.
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APEC greatest understated strength is as a consultation forum bringing together developed
and developing countries to promote a broad trade and investment facilitation agenda, one of
APECs three pillars and its sturdiest by far. No other regional economic forum provides this
opportunity to members and Indias economic reform and development could certainly
benefit from looking East through APEC for more trade and investment facilitation
information, technical support and lessons learned from other APEC economies. The trade
and facilitation benefits that India could garner from APEC would benefit all by making the
Indian market less opaque and labyrinthine.
It is time for APEC to go beyond the Bogor Goals and their focus on trade and investment
liberalization and India joining APEC may help APEC, by hook or by crook, do just this.
THE WAY FORWARD

A number of important policy decisions have been taken at the various meetings of
the leaders and the ministers. These decisions taken by the economies have helped to contain
key tail risks, improve financial market conditions and sustain the recovery. The global
growth is too weak; risks remain titled to the downside. The economic outlook suggests
growth is likely to be slower and less balanced than desired. The importance of a
comprehensive series of structural reforms so to increase productivity, labor force
participation and high quality job creation has been recognized by all the economies. The
APEC intends to work together to achieve stronger and sustainable recovery by, among
others, ensuring fiscal sustainability, building human capacity through education and training,
boosting domestic sources of growth, increasing domestic savings, providing sources of trade
financing and enhancing competitiveness. The goal of APEC has always been working
together to promote common development if the Asia Pacific Region. At the various
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meetings held at different levels, given below are the few important points that have been
discussed and concrete suggestions have been taken from the various member nations
regarding the actions to be taken to attains the basic objectives of APEC and the problems
faced by the member nations.
Attaining Bogor Goals
Attaining the Bogor goals of free and open trade and investment in the Asia Pacific
region by 2020 has always been the priority of the APEC The progress made to
achieve this goals have been welcomed.
Supporting the multilateral trading system
There have been various views and efforts which have been put in and are planned to
be put in to secure and strengthen a multilateral trading system. This initiative of
APEC is even supported by the World Trade Organization and valuable inputs have
been obtained from the WTO to achieve these goals.
There has been a commitment from all the nations to keep markets open and to refrain
from raising new barriers to investment or to trade in goods and services, imposing
new export restrictions, or implementing WTO-inconsistent measures in all areas,
including those that stimulate exports. The leaders have been asked to extend through
the end of 2016 APECs standstill commitment to fight against protectionist measures
and to roll back protectionist and trade distorting measures. It is agreed that the rules
based multilateral trading system will be followed and the WTO will be its
preeminent forum.
The APEC encourages swift conclusion of negotiations to expand product coverage
of the WTO Information Technology Agreement (ITA) before MC9, and it also seeks
to expand membership of the ITA. A final ITA expansion outcome should be
commercially significant, credible, pragmatic, balanced, and reflective of the dynamic
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technological developments in the information technology sector over the last 16
years. Such an outcome would strengthen the multilateral trading system, promote
connectivity, support regional economic integration, and drive economic development
throughout APEC economies and beyond.
It recognizes accession of new members to the WTO on appropriate terms as one of
the priorities for the WTO, which leads to enhanced openness of the markets and thus
increased opportunities for both present members and acceding countries. IT
emphasizes the utmost importance of moving forward negotiations on accessions
towards their finalization as a supportive symbol of credibility and strength of the
WTO as a cornerstone of the multilateral trading system.
Advance trade and investment liberalization
In promoting stronger and deeper regional economic integration and advancing work
in trade and investment liberalization, we will continue to work to achieve
sustainable, balanced, inclusive, and innovative growth in the Asia-Pacific region and
take steps to advance towards achievement of a Free Trade Area of the Asia Pacific.
The member nations were told to make sure that the benefits of liberalization are
shared by all rather than giving preferences to some nations. The member nations
were asked to take more concrete steps towards attaining the Bogor goals. It is
decided that the officials in the coming years would review the steps taken by
providing complete information in the individual action plans. The leaders have
pledged against protectionism and rollback of protectionist and trade-distorting
measures. APEC as a body is happy with the efforts all member nations have put on
non -tariff measures and has instructed the officials to advance their work and address
them on the same. The organization has instructed its officials to further study 2013
the impact of local content requirements on regional integration and economic
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growth, and to discuss trade enhancing ways through which economies can promote
job creation and competitiveness goals.
Promoting Trade in Services
Recognizing the critical contribution of services to global trade, and the importance of
strong, open and competitive service sectors as drivers of economic activity, growth
and job creation APEC welcomes the ongoing work by the members to increase the
transparency of services trade-related regulations as well as to identify good practices
to facilitate services trade and investment and foster the development of open services
markets. It commends the practical, business-oriented work examining regulation,
trade and investment in various services sectors across the APEC region, including in
the areas of financial services, cross-border education, retail services and logistics
services. It intends to expand the APEC Services Trade Access Requirements (STAR)
Database and encouraged the further development of this resource as an important
tool for business in accessing new services export markets. APEC intends improving
statistical data collection on services trade, including implementation of the Action
Plan on Statistics on Trade in Services, recognizing that the importance of services is
not adequately reflected in traditional trade statistics.

Facilitating Investments & Promoting Green Growth
APEC encourages economies to strengthen ways and means to increase investment
flows and maintain economic growth in the Asia-Pacific. To this end, we welcomed
the progress made by economies in implementing the APEC Investment Facilitation
Action Plan (IFAP).
It endorsed the Proposal on Capacity-Building Activities to Assist Implementation of
APECs Environmental Goods Commitments, and instructed officials to focus
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capacity-building where needed as economies implement the APEC Leaders
commitment to reduce tariffs on the 54 products in the APEC List of Environmental
Goods. It has established APEC Public-Private Partnership on Environmental Goods
and Services (PPEGS), and instructed officials to use this new forum as a platform for
enhanced dialogue in this sector. Recognizing the importance of additional work to
explore trade in goods, which contribute to sustainable and inclusive growth through
rural development and poverty alleviation it has instructed officials to carry out a PSU
study on this topic.

Promoting Industrial Dialogues on Automotive, Life Sciences and Chemicals
The APEC intends to make a concrete plan which would help them achieve a proper
set of deliverables and an innovative solution which would contribute to attaining the
Bogor Goals. Automobile sector has been considered as one of the most blooming
sector in recent times and APEC as an organization appreciates the efforts put in by
the members to enhance the participation of small and medium enterprises
(SMEs).It instructed officials to develop ways to facilitate trade and investment in
green automotive technologies. There has been a continuous progress in aligning and
strengthening regulatory procedures for medical products (both drugs and devices)
according to international best practices. This includes steps to promote regulatory
sciences through the establishment of an Innovative Center of Excellence for the
evaluation of multi-regional clinical trials, partnering with the World Health
Organization (WHO) on the development of a Good Review Practices document and
continued progress in implementing the multi-year roadmap on medical product
quality and supply chain integrity.

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Free Trade Area of the Asia-Pacific
APEC commits to achieve a Free Trade Area of the Asia-Pacific, including by
continuing APECs work to provide leadership and intellectual input into the process
of regional economic integration. APEC has an important role to play in coordinating
information sharing, transparency, and capacity building, and will hold a policy
dialogue on regional RTA/FTAs. It agrees to enhance communication among regional
RTAs/FTAs, as well as increase the capacity of APEC economies to engage in
substantive negotiations.

Promoting Connectivity
The APEC has realized the importance of building a community inside the trading
block. Seamless institutional, physical and people-to-people connectivity are some of
the most important pre requisites to achieve the Bogor goals and attain the APEC
community vision. APEC has initiated development of a framework that will guide
the leaders regarding the steps to be taken in the long term to promote connectivity.

Promoting Infrastructure Development and Investments
It was the need of the time to have a well-designed, sustainable and resilient
physical infrastructure to enhance the connectivity of the Asia Pacific Rim, addressing
supply-chain chokepoints, increasing productivity, and providing significant positive
flow-on effects including in access to markets, job creation and economic growth
across sectors. It endorses the multi-year plan on infrastructure development and
investment that aims to assist economies to improve the investment environment,
promote public-private partnerships, and enhance government capacity and
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coordination in preparing and executing infrastructure projects. Improvement in these
areas would increase the supply of commercially viable projects.
Making a study report the APEC advisory committee brought out the point of the
uneven growth across various sectors. In most of the countries the private sector was
booming whereas the public sector saw a level of stagnancy. Private sector plays an
important role in investment, market capitalization and infrastructural development.
All the governments do not have the financial capacity to back the public sector units
to achieve all the objectives. Keeping the same in mind the APEC as an entire body
encourages the public private partnerships. The committee is working on a Public
Private Partnership Guidebook which would help as a tool for all the governments to
facilitate the development and investment in infrastructure through providing a
general view on APEC economies.

Advancing Regulatory Coherence and Cooperation
The APEC economies as of today have taken significant steps strengthen the
implementation of Good Regulatory Practices by ensuring internal coordination of
rule-making, assessing the impact of regulations, and conducting public consultations
on proposed regulations. The aim was to create a high-quality regulatory environment,
and advance regulatory coherence and cooperation, taking into account different
economies' circumstances. The economies are striving hard to explore the possibility
of using additional tools to strengthen their implementation of good regulatory
practices, including single on-line locations for regulatory information, prospective
regulatory planning, including regulatory agendas, and retrospective reviews of
existing regulations.
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The APEC economies have had a vast discussion regarding the structural reforms that
are going to help everyone achieve their targets. The discussions have highlighted
some of the common challenges faced by the members and the opportunities of the
various nations in implementing the APECs new strategy on structural reforms.
APEC commits to make doing business within the APEC region cheaper, faster and
easier. IT encourages economies to explore the possibility of implementing a one stop
shop for online transaction and to provide all the procedures and services to open a
business and other procedures and services required to export and e-commerce across
boundaries to promote the easiness of doing business.

Enhancing Customs Procedure
Noting the importance of enhancing cooperation in efforts to simplify customs
procedures to be in line with international standards, such as those developed by the
World Customs Organization, APEC welcomes the progress in the development of
Single Window Systems in each APEC economy towards the promotion of
interoperability amongst economies Single Window Systems and the work regarding
transit and suggested guidelines to enhance our institutional connectivity. It intends to
form a Virtual Customs Business Working Group in APEC to enhance collaboration
with the private sector on customs-related issues. It has been constantly working on
the Intellectual Property Rights enforcement operation as well as the IPR border
enforcement capacity building activities.




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Sustainable and Inclusive Growth
There is a growing consensus among APEC economies that an inclusive growth
agenda would not only mitigate the adverse impact of the economic crisis on
individuals and families, but would shorten the economic down turn at large,
strengthen recovery and put the global economy on a more sustainable growth path in
the longer term. Inclusive growth is an approach to economic development that is
anti-protectionist, fuelled by market-driven growth and facilitated by government.
It is non-reactive. It does not just respond to immediate macro-economic concerns. It
is a long-term strategy, extending across sectors and strata and focuses on productive
employment rather than just income redistribution.
Ultimately, inclusive growth empowers individuals so that they are better able to reap
the benefits of globalisation and to withstand future economic shocks. It is therefore
critical to poverty reduction as well as to sustainable economic growth.
CONCLUSION

In 2007 many people in the world thought it does more harm than good: Its very existence
creates the illusion that something is being done and so weakens other efforts to reach
meaningful agreements on, for example, climate change and trade.

But this proved out to be a minority view. The progress shown by the APEC economies
counters the above said phrase. The group goes from strength to strength, with an ever-
expanding agenda, and an impressive share of the world economy accounted for by its 21
members: this year, according to APECs literature, 55% of global GDP, 44% of trade and
40% of the people.

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So when one of the 21s leaders, Barack Obama, fails to show up for their annual summit,
held this year in Bali on October 7th and 8th, it is taken as an important symbol of his
administrations failure to live up to the promise implied in its much-touted pivot or
rebalancing to Asia. It certainly is such a symbol; and the damage it has done to Americas
standing and credibility in the region may last rather longer than the memory of any concrete
agreement that comes out of the summit itself.
The incident, however, highlights the main importance of APEC and, especially, of its
leaders meeting: as a symbol of possible co-operation, rather than an example of it in action.
APECs supporters argue with some justification that this is desperately unfair. APEC was
never meant to be a negotiating forum. Its guiding principle is concerted unilateralismie,
it has no power to force its members to do anything; it merely hopes to inspire good policy by
example and co-ordination. And APEC has spawned an industry of technical committees
doing useful work in areas such as trade facilitation. It helps foster habits of consultation and
co-operation. And, at the very least, its leaders meetings provide an opportunity for useful
and sometimes informal bilateral talks.
However, even some of those supporters concede that APEC now faces existential questions.
It is under pressure on at least three fronts. One is to broaden its agenda. In the early years
after its founding in 1989, APEC concentrated very much on trade liberalisation. This was the
centrepiece of its main aims, the Bogor goals, adopted the previous time its leaders met in
Indonesia, in 1994.

In this area, APEC can claim some progress. Average tariffs in the APEC economies have
come down from about 15% in 1994 to about 5% now. But much of that has to do with the
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WTO and bilateral or regional free-trade agreements. APEC helped facilitate all this. But
there is no counterfactual: had there been no APEC, would there have been no liberalisation?
So, with the Doha round of world-trade talks seemingly bogged down forever, APECs
ambitions spread into other areas. This year its motto is resilient Asia-Pacific: Engine of
Global Growth, and its three main themes are the Bogor goals; improving connectivity
(infrastructure, harmonising procedures and making it easier for people to travel); and
sustainable growth with equity. All are areas where it is easier to state vague destinations
than to plot precise routes.
Secondly, on its core interesttrade liberalisationAPEC faces internal pressures. Twelve
of its members (including two of the three biggest economies, America and Japan, but not the
other, China) are pursuing the Trans-Pacific Partnership (TPP), an ambitious 21st-century
free-trade pact, covering areas such as labour, government procurement, state-owned
enterprises, intellectual property and e-commerce, as well as traditional merchandise trade.
Meanwhile, eight TPP members (but not America), along with four other APEC members
(including China) as well as India and three other non-APEC countries are talking about yet
another regional trade group, the Regional Comprehensive Economic Partnership.
APEC can try to co-ordinate these confusing and in some ways competitive processes, in the
hope of bringing it all together in a grand Free Trade Area of the Asia-Pacific. And it can
encourage members to renew efforts to complete a global roundwhich economists concur
is much the best option. But APEC itself is not where the action is.
If the TPP succeeds, for example, it will need its own secretariat. Some of those working in
APECs secretariat in Singapore wonder if this means that, in a few year times, they will be
out of a job.
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Thirdly, the world has changed since 1989. There is now no shortage of forums for leaders to
meet. In Asia there is the East Asia Summit in Brunei on October 10th, at which Mr Obama
is also to be a no-show this year, and the Asia-Europe Meeting. Globally there is the G20 as
well of course as the longer-standing United Nations General Assembly. As for trade, that
is what the WTO is for.




















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BIBLIOGRAPHY

www.wikipedia.com

www.apec.org

www.economist.com

www.bloomberg.com

www.reuters.com

Government websites of various member nations and various blogs.