The participation of Australia in Asia-Pacific Economic Cooperation (APEC) has long been discussed. It definitely has its gains and losses; this is why it is vitally important to decide what is really important for Australia regarding its future as a significant economic agent at the world market. APEC itself presents rather significant organization in the world. According to World Bank figures, the eighteen members of APEC, accounted for 56 per cent of world GDP and 47 per cent of world trade in 1997, with most of this share of GDP accounted for by the United States (27.5 per cent) and Japan (14.9 per cent).
China with 2.9 per cent of world output was the third largest economy in APEC. Australia is the 7th largest APEC economy with 1.4 per cent of world GDP in 1997. The economic crisis which began in South East Asia in mid-1997 has had a major impact on many APEC economies’ short-to-medium term growth prospects.
The outlook for East Asia in particular is uncertain. While there is expected to be some recovery in growth in the nearest future, this will depend on a number of domestic and external factors. At the domestic level, the ability of these economies to recapture foreign investor confidence by addressing structural deficiencies in their economies will be important. Substantial non-performing bank loans, which are currently preventing a resumption of credit provision to the corporate sector and lack of investor and consumer confidence, remain constraints on recovery in the East Asian economies. Furthermore, relatively high trade barriers in the region are continuing to constrain adjustment processes which would benefit the affected economies. International developments will also be crucial to the region’s prospects. Economic conditions in Japan, the United States and the EU are critical to stability and recovery as the EU and United States have accounted for much of the growth in East Asia’s exports over the past year.
The Essay on International Trade World Apec Open
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In addition, there are some statistical data concerning the performance of APEC that would be of interest to any country. The organizations share in the world GDP is 56%, whilst occupying 47% of the world trade. The general outlook for the development and prosperity of Asian economies recently tends to be positive. Moreover, 71 per cent of APEC exports destined for other APEC members. APEC in many ways is a unique regional grouping. Unlike the majority of regional groups and international organizations the Asia Pacific Economic Cooperation lacks the formal bureaucratic structure which is very typical for such organizations.
It also does not have the power of enforcement, like the famous World Trade Organization (WTO), and reflects the lack of formal structure. The membership of APEC includes a varied number of economiesstarting from the highly developed U.S. and Japanese economies, including a number of mid-level transition-type economies such as Korea and Chinese Taipei, and finishing with those economies whose development is at the initial stage. Nevertheless, there are some doubts that APEC is a perspective organization. There are fears that there will be detrimental effects which may outweigh the benefits of APEC. Alternatively, a number of sectoral effects, which will be difficult to resolve politically, may be present.
There are also serious warnings that the very diversity of economies present as APEC members may make it impossible for the whole organization to succeed. The recent financial crisis in Asia originated a great number of doubts whether Australia is worth being a part of Asian economy, whether a close economic bond with Asia will benefit or harm the countrys economic interests. It is important to note at the outset that one of APECs key decisions has been to ensure that changes introduced through the group are WTO consistent – i.e. that the activities of APEC will supplement the activities of the WTO and not compete with or undermine them. Thorough examination of the integration process in APEC must outline the major advantages of the process and weigh them against the cost that will be accrued regarding this integration. The current economic conditions must be key criteria for such examination. Among the gains from the Australia APEC integration are the trade and investment liberalization. According to the goals set at Bogor, by 2020 the duty free access to the APEC economies which in 1996/97 accounted for 71% of Australias total trade must be achieved.
The Essay on Australia Trade Australians See Themselves As Asia
... the areas of trade and its active role in the regional trade organization – APEC. Despite its location, Australia can hardly be ... to emphasize internal trade, Asia becomes Australia's single most promising opportunity. And now, Australia is eager to be Asian. Trade (See overhead ... East Asia being the fastest growing economy, and the development of regional trade blocs in their traditional trading ...
As a member of APEC Australia may expect the growing opportunities of growth, taking into account that Australia has already made significant strides toward the liberalization of its protective trade regime. According to the report made by the Bureau of Industry Economics in 1995, Australia possesses many potential gain opportunities in APEC. For Australia, the APEC process provides a significant opportunity to ensure that its largest trading partners will continue the trend towards deregulation and internationally oriented policies which has been crucial for the growing prosperity of the APEC region. Thus, the barriers to the Australian exports will be reduced and the uncertainties about the future market access will be lowered. This can also result in new export opportunities, such as exports of services. Another report, made by the Department of Foreign Affairs and Trade (DFAT), observed that trade liberalization was only positive and beneficial for Australia, despite the short term adjustment costs. Because of tariff reductions the average Australian family had an annual $1,000 gain in the past decade.
Similarly, more gentle investment regulations of the economies of APEC will improve the opportunities for the investors to compete for various projects. While some of these projects may well be cancelled or delayed because of the current financial crisis, there will still be immense opportunities for Australian investors if foreign investment regimes in the region can be progressively harmonized and derestricted. Trade facilitation is another positive outcome of Australia being a member of APEC. The program of trade facilitation among the members of APEC is aimed to reduce the transaction costs. It covers a diverse range of subjects including Customs Procedures, Standards and Conformance, Mobility of Business People, Services, Intellectual Property, Government Procurement and Electronic Commerce..
The Essay on Apec Trade Members Web
Asia-Pacific Economic Cooperation (APEC) began in 1989 in reaction to the developing interdependence among Asia-Pacific economies. At first this organization was a group that met unofficially. APEC now has become the crucial provincial conduit for encouraging open trade and realistic economic cooperation. It's objective is to progress Asia-Pacific economic vitality and the essence of the people. ...
