Instruction: Choose a partner from your classmates to do this activity.

I. Look for one international economic organization or company. (20pts)

Asia-Pacific Economic Cooperation

a. Research the origin and history.

The Asia-Pacific Economic Cooperation (APEC) forum, established in 1989, has become the

pre-eminent economic forum in the Asia-Pacific region. Its primary purpose is to promote

sustainable economic growth and prosperity in the Asia-Pacific region.

The idea of APEC was firstly publicly broached by former Prime Minister of Australia Bob

Hawke during a speech in Seoul, Korea, on 31 January 1989. Ten months later, 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 US President Bill Clinton established the practice of an annual APEC Economic

Leaders' Meeting to provide greater strategic vision and direction for cooperation in the region.

Milestones

2019 • Santiago, Chile

The APEC Chair releases the Host Economy Leader’s Statement, which commemorates the

30th year of APEC and echoes the APEC 2019 theme “Connecting People, Building the
Future.” The chair lays out the year’s achievements, notably in putting people at the center of

the forum’s agenda, as well as issues important to people, such as inclusivity and the

environment. The La Serena Roadmap for Women and Inclusive Growth is finalized this year,

which acknowledges the urgent need to lift the role of women in the economy. Two significant

ocean-related roadmaps are developed, for addressing Marine Debris and Combatting Illegal,

Unreported and Unregulated Fishing. The chair recognizes that, working together, economies

strengthen each other and rules-based international trade. The chair recognizes that the needs

of people in the Asia-Pacific are evolving, and encourages inclusive and sustainable solutions

for future work.

2018 • Port Moresby, Papua New Guinea

The APEC Chair releases the Era Kone Statement, reflecting the work of member economies

throughout 2018. It states that Leaders reaffirm the importance of trade liberalization and

facilitation in achieving sustainable economic growth and in creating jobs, and recognize the

contributions in achieving this of the rules-based multilateral trading system. APEC Leaders

commit to advancing inclusive growth through innovation, such as the use of digital

technologies. They recognize that digital technologies are changing the way businesses and

government operate, and although they come with challenges, they have the potential to

provide significant widespread gains. To further APEC’s ability to meet these challenges, they

endorse the Action Agenda for the Digital Economy which lays out clear commitments to meet

the digital future.

2017 • Da Nang, Viet Nam

Leaders underline APEC’s crucial role in supporting a rules-based, free, open, fair, transparent

and inclusive multilateral trading system. APEC commits to strengthening the ability of micro

and small enterprises to compete in international markets and endorsed a strategy to create an
environment that enables them to go green and sustainable. The forum aims to meet the

potential of the internet and digital economy through regulation and policy and seeks to prepare

workers—especially those in vulnerable groups—for the changing world of work through human

resource development. To ensure food security in and beyond the Asia-Pacific region,

particularly in the context of climate change and rural-urban development, the forum adopts the

Food Security and Climate Change Multi-Year Action Plan 2018-2020. And through the creation

of the APEC Vision Group, Leaders show their commitment to a strategic and ambitious post-

2020 vision that will position APEC to aim for 21st Century opportunities after the Bogor Goals

are met.

2016 • Lima, Peru

APEC Leaders reaffirm the member economies’ confidence in international trade as a

mechanism for achieving positive economic and social change. This is after throwing their

support behind an agenda that pursues inclusive growth as the Asia-Pacific region takes strides

to achieve a free and open trade area. Specifically, they express support for advancing the

regional economic integration and growth agenda; developing human capital; modernizing

micro, small, and medium business; and enhancing regional food systems. In line with these

priorities, APEC put forward policy commitments for members toward sustainable economic

integration in the region.

2015 • Manila, Philippines

APEC Leaders unite behind the opportunity to build inclusive economies in a bid to make

economic growth felt broadly by more sectors in society. Acknowledging uneven global growth

and the presence of risks and uncertainties in the global economy, the Leaders agree to set

forth policy enablers for integration of micro, small and medium enterprises in regional and

global markets; for building sustainable, and resilient communities; developing human capital;
and enhancing the regional economic integration agenda. They also express support for the

achievement of quality growth, and endorse a network on services cooperation, recognizing that

the services sector represents a significant percentage of businesses in the region.

2014 • Beijing, China

APEC Leaders commit to taking a concrete step towards greater regional economic integration

by endorsing a roadmap to translate the vision of the Free Trade Area of the Asia-Pacific

(FTAAP) into a reality. Members implement the first-ever APEC Connectivity Blueprint to

achieve targets for better physical, institutional and people-to-people linkages across the region

by 2025. In order to capture higher value-added growth, policies to promote innovation, human

resource development and sustainability are part of the new APEC Accord on Innovative

Development, Economic Reform and Growth. Recognizing the importance of promoting

diversified energy supplies, APEC economies agree to work toward doubling the share of

renewables by 2030 in the region’s energy mix, including in power generation.

2013 • Bali, Indonesia

APEC 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, Russia

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 States

APEC Leaders 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 five per cent or less, taking into account economies'

circumstances, without prejudice to APEC members’ positions in the WTO. APEC sets the goal

to reduce aggregate energy intensity by 45 per cent by 2035. In addition, 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, Japan

APEC Leaders 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 its 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 APEC Ministerial Meeting on

Food Security.

2009 • Singapore
APEC 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 per cent 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, Peru

APEC Economic Leaders address the global financial crisis in the Lima Statement on the Global

Economy, in which they commit to take all necessary economic and financial measures to

restore stability and growth, to reject protectionism and to intensify efforts to advance the WTO’s

Doha Development Agenda negotiations. APEC focuses on the social dimensions of trade,

reducing the gap between developing and developed members and Corporate Social

Responsibility. Leaders welcome the APEC Investment Facilitation Action Plan aimed at

improving the investment environment in the region.

2007 • Sydney, Australia

For 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 adopt a major report on closer regional economic integration, including

structural reform initiatives, and welcome the second APEC Trade Facilitation Action Plan which

aims to reduce trade transaction costs by a further five per cent by 2010.

2006 • Ha Noi, Viet Nam

milestones to implement the Bogor Goals. Leaders conclude that the APEC Trade Facilitation

Action Plan has achieved its target of a five per cent reduction in trade transaction costs in the

region between 2002 and 2006. APEC takes a strategic approach to reform fora and strengthen

the Secretariat.

2005 • Busan, Korea

APEC completes the Mid-Term Stock-take of Progress towards the Bogor Goals. The stock-

take finds that average tariffs in the APEC region have been reduced to 5.5 per cent, down from

16.9 per cent when APEC was established in 1989, and that APEC is on schedule to meet the

Bogor Goals. It also outlines the Busan Roadmap to the Bogor Goals. The APEC Privacy

Framework is launched.

2004 • Santiago, Chile

APEC adopts Best Practices for RTAs and FTAs, a reference guide for APEC members

undertaking RTA/FTA negotiations. The Leaders’ Agenda to Implement Structural Reform

(LAISR) is launched. It addresses five priority areas: regulatory reform; corporate governance;

public governance; competition policy; and strengthening economic legal infrastructure. Leaders

endorse the Santiago Commitment to Fight Corruption and Ensure Transparency.

2003 • Bangkok, Thailand

Members undertake to implement the APEC Action Plan on SARS and the Health Security

Initiative to help the region prevent and respond to health threats. Leaders pledge to strengthen

regional efforts to promote sound and efficient financial systems and encourage the

development of domestic and regional bond markets.

2002 • Los Cabos, Mexico

on Trade and the Digital Economy. The Secure Trade in the APEC Region (STAR) initiative is

launched and a Statement to Implement APEC Transparency Standards is endorsed.

2001 • Shanghai, People’s Republic of China

Leaders issue APEC’s first Statement on Counter-Terrorism and pledge to enhance counter-

terrorism cooperation. Leaders also adopt the Shanghai Accord which focuses on: broadening

the APEC vision to reflect changes resulting from the digital economy; clarifying the roadmap to

reach the Bogor Goals; and strengthening the IAP Peer Review Process and capacity building

activities. An e-APEC Strategy identifying the necessary policy environment and specifying

appropriate goals and actions to maximize the benefits of the digital economy is also endorsed.

2000 • Bandar Seri Begawan, Brunei Darussalam

APEC commits to the Action Agenda for the New Economy. Leaders set the goals of tripling

internet access throughout the APEC region by 2005, and achieving universal access by 2010.

1999 • Auckland, New Zealand

APEC Leaders endorse the APEC Principles to Enhance Competition and Regulatory Reform

aimed at addressing the structural and regulatory weaknesses that contributed to the Asian

financial crisis. APEC commits to paperless trading by 2005 in developed economies and 2010

in developing economies. The 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 are endorsed.

1998 • Kuala Lumpur, Malaysia

commitment to paperless trading by 2005 in developed economies and by 2010 in developing

economies.

1997 • Vancouver, Canada

APEC endorses a proposal for early voluntary sectoral liberalization in 15 sectors and decides

that Individual Action Plans should be updated annually.

1996 • Manila, Philippines

The Manila Action Plan for APEC is adopted, outlining the trade and investment liberalization

and facilitation measures required to reach the Bogor Goals. The first Collective and Individual

Action Plans are compiled, outlining how economies will achieve the free trade goals.

1995 • Osaka, Japan

APEC adopts the Osaka Action Agenda which provides a framework for meeting the Bogor

Goals through trade and investment liberalization, business facilitation and sectoral activities,

underpinned by policy dialogues and economic and technical cooperation. The APEC Business

Advisory Council is established to inject a business perspective into APEC deliberations and to

give advice on business sector priorities.

1994 • Bogor, Indonesia

APEC sets the Bogor Goals of “free and open trade and investment in the Asia-Pacific by 2010

for industrialized economies and 2020 for developing economies.” The Uruguay Round of

multilateral trade negotiations conducted under the General Agreement on Tariffs and Trade is

concluded. APEC is widely considered to have been a significant force in bringing the Uruguay

Round to a conclusion.
1993 • Blake Island, United States

APEC Economic Leaders meet for the first time and outline APEC’s vision of “stability, security

and prosperity for our peoples.”

1989 • Canberra, Australia

APEC begins as an informal ministerial-level dialogue group with 12 founding members.

b. Map the international connection it has created.

Promoting infrastructure investment through public-private partnerships

Public-private partnerships (PPP) are effective at addressing the issue of capital shortages for

infrastructure construction in the region. The Action Agenda on Promoting Infrastructure

Investment through PPP was endorsed by the APEC Leaders in 2014 and includes

implementing demonstrative infrastructure PPP projects, advancing the work of the PPP

Experts Advisory Panel and strengthening capacity building of Indonesia’s Pilot PPP Centre.

APEC has also developed the Implementation Roadmap to Develop Successful Infrastructure

PPP Projects to guide APEC’s future work in this area, and a PPP Centre in China will be

established as a centre of excellence.

Increasing broadband internet access

APEC economies have achieved the goal of tripling internet access in the region, originally set

in the 2000 APEC Leaders' Declaration and had largely achieved universal internet access by

2010. Therefore, member economies are currently working to establish access to next

generation high speed broadband by 2020 in the APEC region.

c. Identify the major country-leaders of this company.

 Australia
 Brunei Darussalam
 Canada
 Chile
 Chinese Taipei
 Hong Kong, China
 Indonesia
 Japan
 Malaysia
 Mexico
 New Zealand
 Papua New Guinea
 People's Republic of China
 Peru
 Republic of Korea
 The Republic of the Philippines
 The Russian Federation
 Singapore
 Thailand
 United States of America
 Vietnam.

d. Locate the Philippines in this Map of interconnections.

The Philippines, one of the twelve founding members of APEC, has since gained

advantage of the freer markets in the region, advancing the country through major growth

drivers, such as the boom of business process outsourcing (BPO) industry.

Total Philippine exports to APEC comprise 82 percent of total exports worldwide. Total

imports from APEC economies make up 85 percent of total imports from our trading partners.

About 64 percent of foreign direct investment (FDI) into the Philippines come from APEC.

II. Answer the following questions:

1.How does this institution influence global economic activity? (5pts)

important regional forums in the Asia-Pacific. Its 21 member economies are home to around 2.9

billion people and represent approximately 60 percent of world GDP and 48 percent of world

trade in 2018. As a result of APEC’s work, growth has soared in the region, with real GDP

increasing from USD 19 trillion in 1989 to USD 46.9 trillion in 2018. Meanwhile, residents of the

Asia-Pacific saw their per capita income rise by 74 percent, lifting millions out of poverty and

creating a growing middle class in less than three decades.

Bringing the region closer together, reducing trade barriers, and smoothing out

differences in regulations have boosted trade which, in turn, has led to this dramatic increase in

prosperity. Average tariffs fell from 17 percent in 1989 to 5.3 per cent in 2018. During that same

time period, the APEC region’s total trade increased over seven times outpacing the rest of the

world with two-thirds of this trade occurring between member economies. APEC implements a

wide variety of initiatives to help integrate the region’s economies and promote trade while

addressing sustainability and social equity.

2.How does it affect the economics in the Philippines? (5pts)

The initiatives put forward in APEC help the Philippines stimulate and improve the

competitiveness of domestic producers and sectors. It is to the economy's advantage to utilize

these initiatives, backed with the upgrading of domestic facilities to meet global standards and

the aligning of domestic regulations.