Australia And Apec Essays - International Trade, Free Essays

Australia And Apec Essays - International Trade, Free Essays Australia And Apec Economics assignment: APEC When the Asian-Pacific Economic Cooperation (APEC) was established in 1989 in response to the growing interdependence among Asia-Pacific economies, its goal was to advance Asia-Pacific economic dynamism and sense of community. When the cooperation was established, there were 12 founding member economies, namely Australia, Brunei Darussalam, Canada, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Republic of the Philippines, Singapore, Thailand and the United States. Since then there has been more countries/economies joining APEC. APEC has come a long way since 1989. It has built steadily on the efforts of the past and looks forward to further positive progress. The initial years of APEC were focused largely on exchange of views and project based initiatives. As needs of the member economies has evolved into a forum of higher purpose: to build the Asia-Pacific community through achieving economic growth and development through trade and economic cooperation. In the Osaka meeting in 1994, APEC leaders adopted the Osaka Action Agenda, which firmly established three pillars of APEC activities: Trade and investment liberalization, business facilitation and economic-technical cooperation. Its main objective is to develop a region-wide, free trade and investment regime by the year 2000. APEC operates by consensus. In 1991, members committed themselves to conducting their activities and work programs on the basis of open dialogue with equal respect for the views of all participants. The APEC chair, which rotates annually among members, is responsible for hosting the annual ministerial meeting of foreign and economic ministers. At the 1989 Canberra Ministerial Meeting, it was agreed that it would be appropriate that every alternative ministerial meeting be held in an ASEAN economy/country. Senior Official Meeting (SOM) are held regularly prior to every ministerial meeting. APEC senior officials make recommendations to the ministers and carry out their decisions. They oversee and coordinate, with approval from Ministers, the budgets and work programs of the APEC for a. Mr. Fischer, Deputy Prime Minister and Minister for Trade, said Australias IAP (Individual Action Plan) would address the main trade liberalization issues of tariffs, non- tariffs, investment and services, although the 1996 IAP would not pre-judge the outcomes of the existing and previously announced reviews into the passenger motor vehicle, textile clothing and footwear and sugar sectors. Other elements of the IAP deal wit the important trade facilitation issues such as standards and customs procedures, intellectual property rights, competition policy, and mobility of business people and deregulation. Australias plan is fully consistent with the general principals of the Osaka Action Agenda agreed by that leaders in November 1995, including comprehensives, Mr. Fischer said. Australias done a great deal to liberalize our market consistent with APEC goals, and we expect others to match our record. The government will pursue vigorously Australian trade and investment priorities within APEC, Mr. Fischer stated. Australias IAP address the objectives and guidelines of the Osaka Action Plan in a comprehensive manner: Tariffs Australias IAP includes reduction in applied tariffs to the year 2000. Table: Tariff Reductions in the APEC region Simple Average Applied Tariff 1988 1993 1997 Australia * 15.6 7.0 5.3 Brunei 3.9 3.9 2.0 Canada (*) 3.7 2.4 1.3^ Chile 19.9 11 11 China 39.5 37.5 17 Hong Kong 0 0 0 Indonesia 18.1 17 11.7 Japan * 4.3 3.4 4.6 Korea 19.2 11.6 7.9^ Malaysia 13.6 12.8 7.8^ Mexico * 10.5 12.6 9.8^ New Zealand 14.9 8.5 5.2 PNG NA NA 23^ Philippines 27.9 23.5 12.1 Singapore 0.3 0.4 0 Chinese Taipei 12.6 8.9 8.6 Thailand 31.2 37.8 17 United States (*) 4.2 4.2 3.4^ Note: Does not include calculation of non-ad valorum tariffs Indicates trade-weighted advantage ^1996 data Source: aph.gov.au/library/pubs/cib/1998-99/c99cib05.htm Australias applied simple tariff has fallen from 15.6% in 1998 to 6.1% in 1996 and will reduce further to 4.5% by the year 2000. Australia is also hoping to have tariffs reduced to zero in numerous sectors of our economy by the year 2000. Sectors Selected for Early Voluntary Sectoral Liberalism Sector EVSL Proposal Toys Progressive reduction to zero of tariffs on toys, preferably by 2000. Elimination of unjustified non-tariff barriers. Economic and technical cooperation Gems and jewelry Elimination of trade-restrictive measures on these products (phased out by 2005), which include pearls, diamonds, silver, gold, platinum, jewelry, goldsmiths and silversmiths wares. Environmental Goods and Services Elimination of tariffs by 2003 on environmental goods and liberalization of environmental services. Work on non-tariffs barriers. Economic and technical cooperation. Food Further impetus to trade