Apec Regional Integration Analyses

APEC Regional Integration Analyses

Carrie Rainbolt

MGT/448

Smita Poddar

May 30, 2011

APEC Regional Integration for and Against Articles

APEC or the Asia Pacific Economic Co-operation is an inter-governmental forum established in 1989 to promote economic growth and regional relationships between member countries. The 21 member countries include the United States, Australia, China, Canada, Hong Kong, Japan, Brunei, Indonesia, Korea, Mexico, New Zealand, Chile, Chinese Taipei, the Russian Federation, Singapore, Vietnam and Peru. These member countries account for about 41% of the world’s population, 55% of the worlds GDP and 49% of world trade.

Role in regional integration

APEC intends to work at creating efficient domestic economies through the reduction of tariffs and other trade barriers, thereby increasing exports. In fact APEC’s vision, also known as Bogor Goals of free and open trade and investment in Asia Pacific by 2010 for industrialized economies and 2020 for developing economies, were adopted by the leaders in their 1994 meeting in Bogor, Indonesia. APEC believes that free and open trade is the secret of economic growth, new jobs and more opportunities for international trade and investment. Free trade would actually lower the costs of production and keep prices down. These benefits would be shared by all parties involved. APEC tries to create an environment for the efficient and safe movement of goods, services and people across borders through technical cooperation and policy alignment (APEC, 2011).

One major difference between APEC and other trade agreements such as WTO is that APEC does not require its members to be part of any sort of treaty obligations, the decisions made by the members are voluntary and based on consensus

Advantages and disadvantages:

The advantages and the disadvantages of being a part of APEC can be seen in the achievements and the benefits the member countries receive....