Economis ProjectAPECAsia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region.APEC isan intergovernmental groupingthat 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 percentof 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 GoalsAPEC 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 the1994 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 cooperationMission 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 EconomiesAPEC 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 MembersDate of Joining

Australia6-7 Nov 1989

Brunei Darussalam6-7 Nov 1989

Canada6-7 Nov 1989

Chile11-12 Nov 1994

People's Republic of China12-14 Nov 1991

Hong Kong, China12-14 Nov 1991

Indonesia6-7 Nov 1989

Japan6-7 Nov 1989

Republic of Korea6-7 Nov 1989

Malaysia6-7 Nov 1989

Mexico17-19 Nov 1993

New Zealand6-7 Nov 1989

Papua New Guinea17-19 Nov 1993

Peru14-15 Nov 1998

The Philippines6-7 Nov 1989

Russia14-15 Nov 1998

Singapore6-7 Nov 1989

Chinese Taipei12-14 Nov 1991

Thailand6-7 Nov 1989

The United States6-7 Nov 1989

Viet Nam14-15 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 (theBogor 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 itsRegional Economic Integrationagenda. Progress to date includes: Investigating the prospects of and options for a Free Trade Area of the Asia-Pacific. The development of 15 model measures for RTAs/FTAs that serve as a reference for APEC members to achieve comprehensive and high-quality agreements. 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 APECTrade 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: The introduction of electronic/paperless systems by all member economies, covering the payment of duties, and customs and trade-related document processing. TheSingle 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. TheAPEC 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. In 2008, a groundbreakingInvestment Facilitation Action Planwas endorsed; it aims to improve the investment environment in Member Economies. TheAPEC Privacy Frameworkprovides 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. TheAPEC 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. APEC is also removing behind-the-border barriers to trade through itsStructural Reformagenda, 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: In 2000, APEC set a goal of tripling internet usage in the region and that goal has now been achieved, as recognised by the2008 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. 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 AchievementsAPEC has also been able to evolve its agenda to include pressing regional priorities. Examples include: counter-terrorism (The Shanghai Statementin 2001, and theCounter-Terrorism Task Force); human security (Health Working Group); emergency preparedness (Emergency Preparedness Working Group); climate change, energy security and clean development (The Sydney Declarationin 2007 and theAPEC List of Environmental Goodsin 2012); and the global financial crisis (The Vladivostok Statementin 2012).HISTORYThe 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 Milestones2013 - Bali, IndonesiaAPEC 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, RussiaAPEC 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 StatesAPEC 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, JapanAPEC 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 - SingaporeAPEC 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, PeruAPEC 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, AustraliaFor 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 NamAPEC 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, KoreaAPEC 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, ChileAPEC 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, ThailandAPEC 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, MexicoAPEC 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 ChinaAPEC 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 DarussalamAPEC 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 ZealandAPEC 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, MalaysiaAPEC agrees on the first nine sectors for EVSL and seeks an EVSL agreement with non-APEC members at the World Trade Organization.1997 - Vancouver, CanadaAPEC 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 PhilippinesThe 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, JapanAPEC 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, IndonesiaAPEC 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 StatesAPEC Economic Leaders meet for the first time and outline APEC's vision, "stability, security and prosperity for our peoples."1989 - Canberra, AustraliaAPEC begins as an informal Ministerial-level dialogue group with 12 members.

WIKIPEDIA INFORMATIONAsia-Pacific Economic Cooperation(APEC) is a forum for 21Pacific Rimmember economies[1]that seeks to promotefree tradeand economic cooperation throughout theAsia-Pacificregion. It was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regionaltrade blocsin other parts of the world; to fears thathighly industrializedJapan (a member ofG8) 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 raiseliving standardsand education levels through sustainableeconomic growthand to foster a sense of community and an appreciation of shared interests among Asia-Pacific countries. APEC includesnewly industrialized economies, although the agenda offree tradewas a sensitive issue for the developing NIEs at the time APEC founded, and aims to enableASEANeconomies to explore new export market opportunities fornatural resourcessuch asnatural gas, as well as to seek regionaleconomic integration(industrial integration) by means offoreign direct investment. Members account for approximately 40% of the world's population, approximately 54% of the world'sgross domestic productand about 44% of world trade.[3]For APEC Economic Trends Analysis in 2012, see.[4]An annual APEC Economic Leaders' Meeting is attended by theheads of governmentof all APEC members exceptTaiwan(which is represented by aministerial-level officialunder the nameChinese Taipeiaseconomic 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 anational costumeof the host country.

HISTORYIn January 1989,Australian Prime MinisterBob Hawkecalled for more effective economic cooperation across the Pacific Rim region. This led to the first meeting of APEC in theAustraliancapital ofCanberrain November, chaired byAustralian Foreign Affairs MinisterGareth Evans. Attended by ministers from twelve countries, the meeting concluded with commitments for future annual meetings inSingaporeandKorea.Countries of theAssociation of Southeast Asian Nations(ASEAN) opposed the initial proposal, instead proposing theEast Asia Economic Caucuswhich would exclude non-Asian countries such as theUnited States,Canada,Australia, andNew Zealand. This plan was opposed and strongly criticized byJapanand the United States.The first APEC Economic Leaders' Meeting occurred in 1993 whenU.S. PresidentBill Clinton, after discussions with Australian Prime MinisterPaul Keating, invited theheads of governmentfrom member economies to a summit onBlake Island. He believed it would help bring the stalledUruguay Roundof 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 inBogor,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 EconomiesAPEC currently has 21 members, including most countries with a coastline on thePacific Ocean. However, the criterion for membership is that the member is a separateeconomy, rather than a state. As a result, APEC uses the termmember economiesrather thanmember countriesto refer to its members. One result of this criterion is that membership of the forum includesTaiwan(officially the Republic of China, participating under the name "Chinese Taipei") alongsidePeople's Republic of China(seeCross-Strait relations), as well asHong Kong, which entered APEC as a British colony but it is now aSpecial Administrative Region of the People's Republic of China. APEC also includes three official observers:ASEAN, thePacific Islands Forumand thePacific Economic Cooperation Council.[1]Member economy (name as used in APEC)Date of accession

AustraliaNovember 1989

Brunei DarussalamNovember 1989

CanadaNovember 1989

IndonesiaNovember 1989

JapanNovember 1989

South KoreaNovember 1989

MalaysiaNovember 1989

New ZealandNovember 1989

PhilippinesNovember 1989

SingaporeNovember 1989

ThailandNovember 1989

United StatesNovember 1989

Chinese Taipei[6]November 1991

Hong Kong[7]November 1991

People's Republic of ChinaNovember 1991

MexicoNovember 1993

Papua New GuineaNovember 1993

ChileNovember 1994

PeruNovember 1998

RussiaNovember 1998

VietnamNovember 1998

APEC's Three Pillars[edit]To meet the Bogor Goals, APEC carries out work in three main areas:1. Trade and Investment Liberalisation2. Business Facilitation3. Economic and Technical CooperationAPEC 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 newTrade Facilitation Action Planhas been endorsed. According to a 2008 research brief published by theWorld Bankas part of itsTrade Costs and Facilitation Project, increasing transparency in the region's trading system is critical if APEC is to meet its Bogor Goal targets.[20]TheAPEC Business Travel Card, atravel documentfor visa-free business travel within the region is one of the concrete measures to facilitate business. In May2010 Russia joined the scheme, thus completing the circle.[21]ProposedFree 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 economistKiyoshi Kojima(ja)'s proposal for a Pacific Free Trade agreement proposal. While it gained little traction, the idea led to the formation ofPacific Trade and Development Conferenceand then thePacific Economic Cooperation Councilin 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 theDoha roundofWorld Trade Organizationnegotiations, 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 inSoutheast Asiaand theAsia-Pacificregion.[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 November1995 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 theheads of governmentfrom all member economies exceptTaiwan, 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 inVancouver. Controversy arose after officers of theRoyal Canadian Mounted Policeusedpepper sprayagainst protesters. The protesters objected to the presence ofautocraticleaders such asIndonesian presidentSuharto.[36][37][38][39][40][41]At the 2001 Leaders' Meeting inShanghai, 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, andcapacity building. As part of the accord, the meeting committed to develop and implement APEC transparency standards, reduce tradetransaction costsin the Asia-Pacific region by 5 percent over 5 years, and pursuetrade liberalizationpolicies relating to information technology goods and services.In 2003,Jemaah IslamiahleaderRiduan Isamuddinhad planned to attack the APEC Leaders Meeting to be held inBangkokin October. He was captured in the city ofAyutthaya,Thailandby Thai police on August 11, 2003, before he could finish planning the attack.[citation needed]Chilebecame the firstSouth Americannation to host the Leaders' Meeting in 2004. The agenda of that year was focused onterrorismand commerce,small and medium enterprisedevelopment, and contemplation of free trade agreements and regional trade agreements.The 2005 Leaders' Meeting was held inBusan,South Korea. The meeting focused on theDoha roundofWorld Trade Organization(WTO) negotiations, leading up to theWTO Ministerial Conference of 2005held inHong Kongin December. Weeks earlier, trade negotiations inPariswere held between several WTO members, including the United States and theEuropean Union, centered on reducing agriculturaltrade barriers. APEC leaders at the summit urged the European Union to agree to reducingfarm 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 inHanoi, APEC leaders called for a new start to global free-trade negotiations while condemning terrorism and other threats to security. APEC also criticisedNorth Koreafor conducting anuclear testand amissile test launchthat year, urging the country to take "concrete and effective" steps towardnuclear disarmament. Concerns aboutnuclear proliferationin the region was discussed in addition to economic topics. TheUnited StatesandRussiasigned an agreement as part of Russia's bid to join the World Trade Organization.TheAPEC Australia 2007Leaders' Meeting was held inSydneyfrom 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 aspoof diplomatic motorcademanned by members of the Australian television programThe Chaser, one of whom was dressed to resemble theAl-QaedaleaderOsama 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 November1995 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 theheads of governmentfrom all member economies exceptTaiwan, 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 inVancouver. Controversy arose after officers of theRoyal Canadian Mounted Policeusedpepper sprayagainst protesters. The protesters objected to the presence ofautocraticleaders such asIndonesian presidentSuharto.[36][37][38][39][40][41]At the 2001 Leaders' Meeting inShanghai, 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, andcapacity building. As part of the accord, the meeting committed to develop and implement APEC transparency standards, reduce tradetransaction costsin the Asia-Pacific region by 5 percent over 5 years, and pursuetrade liberalizationpolicies relating to information technology goods and services.In 2003,Jemaah IslamiahleaderRiduan Isamuddinhad planned to attack the APEC Leaders Meeting to be held inBangkokin October. He was captured in the city ofAyutthaya,Thailandby Thai police on August 11, 2003, before he could finish planning the attack.[citation needed]Chilebecame the firstSouth Americannation to host the Leaders' Meeting in 2004. The agenda of that year was focused onterrorismand commerce,small and medium enterprisedevelopment, and contemplation of free trade agreements and regional trade agreements.The 2005 Leaders' Meeting was held inBusan,South Korea. The meeting focused on theDoha roundofWorld Trade Organization(WTO) negotiations, leading up to theWTO Ministerial Conference of 2005held inHong Kongin December. Weeks earlier, trade negotiations inPariswere held between several WTO members, including the United States and theEuropean Union, centered on reducing agriculturaltrade barriers. APEC leaders at the summit urged the European Union to agree to reducingfarm 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 inHanoi, APEC leaders called for a new start to global free-trade negotiations while condemning terrorism and other threats to security. APEC also criticisedNorth Koreafor conducting anuclear testand amissile test launchthat year, urging the country to take "concrete and effective" steps towardnuclear disarmament. Concerns aboutnuclear proliferationin the region was discussed in addition to economic topics. TheUnited StatesandRussiasigned an agreement as part of Russia's bid to join the World Trade Organization.TheAPEC Australia 2007Leaders' Meeting was held inSydneyfrom 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 aspoof diplomatic motorcademanned by members of the Australian television programThe Chaser, one of whom was dressed to resemble theAl-QaedaleaderOsama bin Laden.The APEC USA 2011 Leaders' Meeting was held on Honolulu, Hawaii 813 November 2011

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

HIGHLIGHTS

APEC economic recovery is proceeding but at varying speeds Economic recovery in Industrialized and Newly Industrialized Economies (NIEs) in 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. The strengthening pace in APEC Industrialized economies 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. However, activity in other Emerging and Developing APEC economies (EM&Ds) 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 APEC GDP is poised for faster expansion, from 4.2% in 2014 to 4.4% in 2015, up 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. The recovery speed is likely to vary across APEC economies. Investors remain 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. Although investors 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 The 2008-09 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. 4APEC Policy Support Unit April 2014 Additionally, APEC economic performance in the past few years has been more 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. This weaker-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. One of the attributing factors to the subdued APEC economic performance in recent 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%. While it is now more than five years since the 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 Labor productivity in the APEC region enjoyed rapid growth in the years preceding to the 2008-09 GFC. However, on average, output per worker in APEC has been relatively lower than that of the rest of the world. Regional labor productivity masks vast differences across APEC economies, with the United States having the worlds highest output per worker. The productivity gap between the APEC regions lead and developing APEC economies is generally significant. Unfortunately, labor productivity in the APEC region as a whole was impacted by the 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. TFP growth in the APEC region contributed to 0.5 percentage points to APEC GDP 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. In todays tightening fiscal environment, the role of the government to maneuver much of the capital deepening may be restrained. In the short to medium term, APEC 5APEC Policy Support Unit April 2014needs to mobilize private savings into productive capital investment in order to sustain the current momentum of capital input expansion. As capital inputs cannot be added indefinitely, improving the efficiency of capital 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 The GFC has also adversely affected the labor market in the APEC region with 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. The labor market in Industrialized APEC economies has been severely affected. 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. In todays increasingly competitive world, the drive of firms to increase profitability 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. Achieving strong employment growth in an environment of relentlessly pursuing 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. Technological innovation will result in new markets for new products, thereby creating new jobs. However, innovations will alter the structure of labor demand, i.e. favoring skilled workers at the expense of unskilled ones. The success of raising labor productivity while at the same time ensuring robust and 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 APEC governments have increasingly placed emphasis on encouraging innovation as 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. Across 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 6APEC Policy Support Unit April 2014patent 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. Data on Research and Development (R&D) spending shows a similar pattern. The 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. The division seen in R&D spending among high-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 In 2012, APEC established the Policy Partnership on Science, Technology and 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. It is important that APEC devotes attention to encourage enhanced mobility of skilled 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. APEC should also actively address regulatory barriers that impact private investment 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. Other areas that APEC can focus on include ensuring a well-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.