Lesson 28 — Activity 1: What Is APEC?
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Lesson 28 — Activity 1: What Is APEC?
Warm Up
In 1989, an organization called the Asia-Pacific Economic Cooperation (APEC) was formed to promote trade between North America, Oceania, and Asia.
In this activity, you will learn all about APEC.
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Besides Canada, APEC's members include the following countries: Australia, Brunei Darussalam, Chile, People's Republic of China, Hong Kong, Indonesia, Japan, Republic of South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Republic of the Philippines, Russia, Singapore, Chinese Taipei (Taiwan), Thailand, the United States, and Vietnam.
Peru, Russia, and Vietnam were the latest countries to join in November, 1998. Since it started, APEC has grown in importance, and the heads of government of its members hold regular meetings. The location of these meetings rotates among the members so that there is support and unity.
The APEC agreement not only promotes trade development among its members, but it also promotes new investments within each country. By increasing the investments within a country, it works to increase job production and therefore increase the overall economy of the country.
Many of the clothes we wear or the items we have in our homes are from the Pacific Rim countries. These countries are strong exporters of textiles. These textiles have an assortment of uses and are especially used for clothing and containers, such as bags and baskets. In the household, they are used in carpeting, upholstered furnishings, window shades, and towel veering for tables, beds, and other flat surfaces. They also provide technical textiles that are used in automobiles.
APEC has three main committees: the Committee on Trade and Investment, the Economic Committee, and the Budget and Management Committee. APEC also has groups that focus on the following areas: energy, fisheries, human resources development, industrial science and technology, marine resources conservation, telecommunications, trade promotion, transportation, and tourism.
The Trade and Investment Committee's focus is to reduce the additional costs that businesses would have to spend when doing business in another country. It also provides measures to develop financial support within the private sector. This approach will allow businesses in specific areas to more easily open offices in other countries. It will also allow for businesses to be involved in free trade, where duty taxes do not apply. For example, if an Alberta oil company wanted to start an operation in one of the Pacific Rim countries, the Trade and Investment Committee would help.
The Economic Committee works with senior government officials developing rules and policies. These policies aim to reduce tariffs and obstacles that will prevent cross-border trade and investment among governments.
The Budget and Management Committee focuses on advising the senior officials about budgets and administrative and management issues. Its key responsibility is to prepare budgets for upcoming projects that member governments are involved in. For example, the Budget and Management Committee might prepare a budget for a major event like the Olympics that will affect several countries financially.
Self-check!
Try This!
Answer the following questions about APEC.
1. What year was APEC organized?
2. Who are APEC meetings attended by?
3. What is the major purpose of the APEC agreement?
4. Where was the APEC agreement designed to promote trade between?