Introduction - What is APEC?

APEC stands for the Asia-Pacific Economic Cooperation.

One of the main roles of APEC is to assist member countries with trade. APEC aims to promote free trade (making trade easier between countries) by reducing trade barriers (something we will look at in future lessons).

APEC Member Countries and Goals of APEC

Click on the images above to enlarge them.

What are the Goals of APEC?
At the 1994 leaders meeting in Bogor (an indonesian city) the following goals known as the 'three pillars' were developed:
- Trade and investment liberalisation (free and open trade between APEC countries)
- Co-opertation between countries
- Business Facilitation (Assisting businesses with trade amongst other things)

Why is APEC Important?

APEC is important because its member countries make up:

1. More than one-third (33%) of the world’s population
2. Over half of all the goods and services produced in the world are made in APEC countries
3. 40% of all world trade is between APEC countries

Why is APEC Important to Australia?

In terms of trade, APEC is extremely important to Australia .

1. Because it contains some of the largest and fastest-growing countries in the world. (These countries are really good places for Australia to export to)
2. APEC member countries make-up about 70% of Australia’s trade.
3. 4 out of the top 5 import markets are in the Asia Pacific Region
4. 4 out of the top 5 import markets are in the Asia Pacific Region

What Does APEC Cover? What is the Leaders Meeting?

APEC covers a variety of issues important to the Asia-Pacific Region including: education, the environment, tourism and of course trade.

The leaders meeting is where the heads of the Asia–Pacific Countries (Prime Ministers, Presidents etc.) meet and come up with goals and make decisions about these things.

APEC Conferences
APEC meetings are held in different countries, in 2007 Australia held the APEC meeting in Sydney (this is when the 'Chaser' TV show performed the now infamous Osama Bin Laden prank). Over the years it has become a tradition to dress up in the host countries traditional dress for a photo at the conclusion of the meeting.

The WTO a Brief Overview

The WTO is the World Trade Organisation. Trade patterns (who countries trade with) are shaped by the government and the WTO who set the rules and regulations that influence how countries trade.

The WTO aims to promote free and fair trade between nations. Member countries discuss issues and settle disputes that relate to world trade. The WTO also assists countries in developing trade agreements. There are two main types of trade agreements: Bilateral and Multilateral.

A bilateral free trade agreement is an agreement between TWO countries eg. Australia and the USA (AUSFTA). A multilateral free trade agreement is an agreement between MORE THAN TWO countries.

Australia's Current Free Trade Agreements:
Australia and New Zealand (ANZCERTA)
Singapore and Australia (SAFTA)
Thailand and Australia (TAFTA)
Australia and USA (AUSFTA)