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    APEC Asia Pacific Economic


    Group 8

    Ankita HandaKanwardeep Singh

    Nikhil GurgRitu Agarwal

    Siddharth PaulVasundhara Surajgaria

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    APEC has 21 members including most countries with a coastline on Pacific Ocean.

    APEC seeks to promote free trade and economic cooperation throughout Asia Pacificregion.

    The criterion for membership is a separate economy rather than a state. As a result of this criteria, Taiwan and Hong Kong are member of the forum. Hong Kong is a SpecialAdministrative Region of Peoples Republic of China.

    Members account for 40% of worlds population,54% of worlds GDP and 44% of worldtrade. APEC GDP, Current USD is 38,722,227.2 millions in 2011.

    An annual APEC Economic Leaders Meeting is attended by heads of governmentof all APEC members except Republic of China by a ministerial-level official.

    The location of meeting rotates annually among member economiesand until 2011 a famous tradition involved the attending leaders dressingIn national costume of host member.

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    History of APEC

    In January 1989,Australian Prime Minister called for more effective economiccooperation across Pacific Rim region. This led to the first meeting of APEC inCanberra , Australia in November.Attended by political ministers from 12 countries which concluded withcommitments for future annual meetings in Singapore and South Korea.ASEAN opposed this initially and proposed East Asia Economic Caucus whichwould exclude non-Asian countries like United States, Canada , New Zealand,Australia. This was highly criticized by Japan.The first APEC Economic Leaders Meeting was held in 1993 when USPresident after discussion with Australian Prime Minister invited the heads of

    government from member economies to summit on Blake Island.During a meeting in 1994 in Bogor , Indonesia, APEC leaders adopted theBogor goals that aim for free and open trade in Asia Pacific by 2010 forindustrialized economies and by 2020 for developing economies.

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    Key Objectives at time of Development of APEC-

    Maintain the growth and development of the region for the common good of its peoples.Enhance the positive gains, both for the trade bloc and the world economy,resulting from increasing economic interdependence.Develop and strengthen the open multilateral trading system in the interest of Asia-Pacific and all other economies.

    Reduce barriers to trade in goods and services among participants in a mannerconsistent with GATT Principles.

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    Key objectives of APEC Summit 2012-

    Expanding trade and investment liberalization and expandingregional economic integrationStrengthening food securityEstablishing reliable supply chains

    Fostering innovative growth



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    APEC currently has 21 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)

    APEC member countries represents a regional bloc of considerable economicand political significanceFourteen of our top 20 export markets are APEC members, including the threelargest economies in the world - the United States, Japan and China.The APEC region also accounts for around 50 percent of our inward foreigndirect investment.Its member economies substantially differ in their political systems, social andcultural institutions, and level of economic development.

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    Indias status in APEC

    India has requested membership in APEC. And received initial support byUnited States , Japan and Australia.

    The decision was made not to admit new members until 2010.

    India does not border the pacific Ocean which all current members do.

    India had been invited to be an observer first time in November 2011.

    Other countries like Pakistan, Bangladesh, Sri Lanka, Macau, Mongolia,Laos, Cambodia, Costa Rica, Columbia, Ecuador , Panama are also seekingmembership in APEC

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    Benefits ForAPEC Block Member

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    At a multilateral level, APEC brings together the views of 21 membereconomies, the business community and other parties to attend to issues thatimpact on the Asia-Pacific region.

    For developing economies, APEC provides additional benefits in areas such asthe development of procedures, policy frameworks and systems to deal withcontemporary issues.

    Developing Economies can also address issues ranging from transparency and

    governance to financial sector reform and customs procedures.

    For businesses from APEC member economies, the most obvious benefits arethe reduction in barriers and impediments to trade across borders.

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    Free Trade of the Asia Pacific(FTAAP)

    The Free Trade Area of the Asia Pacific, or FTAAP, is a proposal to create a freetrade agreement among the 21 APEC economies. U.S Government has finallystarted to support FTAAP publically.

    Chamber focuses on increasing trade and investment flows in the Asia Pacificregion. The FTAAP proposal could help countries individually and collectivelymove towards greater integration and economic reform. It could:

    Jump start the stalled Doha Development Round talks;

    Put a brake on the spread of discriminatory regional and bilateralFTAs in Asia, including those that exclude the United States from theregion's integration plans; andKeep the U.S. engaged in Asia.

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    APECs Trade Scenario

    Indias rank in imports - 15 th with 1.5% share, and Among major trade partners,

    it has 12 th Rank with 1.9% share.

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    APEC AmongOther Partner Region

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    Opportunities and Threats

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    OPPORTUNITIESFree flow of the goods, services, people and capital.Obstacles to trade and investment , including border barriers, have beenreducedSince 1989, average tariffs have been reduced from 17 per cent in 1989 to lessthan 6 per cent while intra-APEC merchandise trade has grown five-fold.More efficient customs procedures and other practical arrangements tofacilitate trade and investment are saving billions of dollars per year.Adopted a mode of voluntary cooperation among rich and emergingeconomies pioneered by APEC.APEC is well placed to position itself alongside and help set the agenda for theG20.Due to the scope of international commerce continues to evolve, there willalways be opportunities to reduce the many costs and risks of trade andinvestment.

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    Trade pacts are dependent on countries domestic policies.Most of the policies are framed in a closed door process. Countries that fail to change their laws to meet these trade pact

    requirements are slammed with indefinite trade sanctions or cashdamages.

    Labor, environmental, anti-poverty, family farm and other advocateshave demanded a Fair Deal or No Deal. A recent text leak revealed that U.S. officials signed a special deal not

    only to keep all documents secret, but to do so for four years after talksend!

    Terrorism poses a direct threat to APEC's vision of secure, open andprosperous economies.

    Awareness for food defenses/security.In sustaining the integrity of aviation security systems in APEC


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    APEC CEO Summit 2012

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    The APEC Russia 2012 summit was the 24th annual gathering of APEC leaders;met on Russky Island, off the coast of Vladivostok, Russia On September 7-8,2012.

    Russia(host economy) has outlined the agendas for both the official APECmeetings and the APEC CEO Summit.

    At the Summit, business leaders have the opportunity to share their views andsearch for solutions in an open multilateral dialogue with government leaders.

    The key challenge was to restrain from protectionism and implement free andopen trade investment in Asia Pacific Region.

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    Integrate to Grow, Innovate to Prosper

    Trade and investment facilitation, regional economic integration

    Strengthening food security

    Establishing reliable supply chains

    Intensive cooperation to foster innovative growth

    Strengthening energy security

    Fighting corruption

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    Outcomes of the Summit

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    No formal, binding dispute settlement mechanism established.

    Complies with WTOs process of dispute settlement and accepts it as a primarychannel for dispute resolution.

    Believes in resolution of dispute through non-adversarial and voluntaryapproaches thus resolving dispute for even environmental concerns which arenot in WTO.

    Initiation of Dispute Mediation Services in 1994 but was supported only by 6countries.

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    August, 2012

    APEC ministers agreed to cut the tariff of some green products includingsolar batteries.

    September, 2012 EC started anti-dumping investigation for import of solar panel and itscomponents from China.

    November, 2012

    Hence, in consideration of potential harm to domestic industry from cutback of tariff and anti-dumping investigation, China files dispute in WTO.

    APEC leaders precisely believed that tariff cut will provide a chance of shared boom, both economically and ecologically.

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    Outcome of the Case

    Both the parties have accepted the fact that compromise isbest possible route for dispute settlement rather thanconfrontation.German Chancellor has also shown positive feedback towardsremoval of investigation while Chinese officials have agreedto look into their export tariff policy for solar batteries.


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    Opinion And Recommendation

    APEC should operates on the basis of non-binding commitments and opendialogue . Decisions made within APEC are reached by consensus, andcommitments are undertaken on a voluntary basis.

    Liberalization to dismantle those obstacles to international economic

    transactions which are imposed as customs barriers.

    Facilitation of trade and investment to reduce needless divergences inapproaches to domestic policies influencing international commerce.

    Technical cooperation to share the information and expertise needed toimplement proposals for facilitation and to enhance the availability andefficiency of regional infrastructure.

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    Opinion And Recommendation

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    Economic policy coordination to reduce uncertainties that add to the costsof international economic transactions.

    APEC account for approximately 40% world's population, 54% world's GDPand about 44% of world trade, thus it would favour economies to explorenew export market opportunities for natural resources such as natural gasand FDI.

    APEC leaders should adopt the suggestions from several sources to holdregular meetings of the leading APEC economies which are in the G20together with India, engaging it in Asia Pacific deliberations.

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    http://www.chinadaily.com.cn http://www.apec.org/ http://www.apec2012.ru/ http://en.wikipedia.org/wiki/Asia-Pacific_Economic_Cooperation

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    Thank You