Question

Find out the goals of the agreement, the date established, the countries participating, and summarize principal points of the agreement regarding tariffs, intellectual property, foreign direct investment, and rules regulating environmental, health and safety, minimum wages, and child labor.

Research two of the following examples of regional economic cooperation. In 3 paragraphs

• TPP (Trans Pacific Partnership)
• APEC (Asia-Pacific Economic Cooperation)
• Mercosur (Southern Common Market)
• ASEAN (Association of Southeast Asian Nations)

Answer 1

APEC (Asia-Pacific Economic Cooperation):

Goal: To usher economic growth & prosperity in Asia-Pacific region, reduce tariffs and trade barriers, promote open trade & investment, increase exports, promote economic policy alignment, cooperation and develop efficient domestic economies in Asia-Pacific region.

Date established: November, 1989

Countries participating: Russia, People’s Republic of China, Vietnam, Thailand, Malaysia, Singapore, Korea, Japan, Chinese Taipei, Hong Kong, Philippines, Brunei Darussalam, Papua New Guinea, Indonesia, Australia, New Zealand, Canada, USA, Mexico, Peru and Chile

Agreement regarding tariffs: Focus on tariff reduction with prime focus on environmental goods (2012 APEC meeting decision) and tariff elimination on wide range of information technology products (1996 & 2011 APEC meeting decision) in the region to improve trade activity and market access conditions for goods & services,

Agreement regarding intellectual property: APEC has Intellectual Property Expert Group to work on intellectual property rights issues. APEC further protection, enforcement and commercialization of intellectual property rights by developing intellectual property rights service centers across each member countries.

Agreement regarding foreign direct investment: Concentrated in sectors such as manufacturing, finance, insurance and non-banking holding companies.

Rules regulating environment: APEC cuts tariffs in environmental goods in order to improve accessibility to fight climate change.

Rules regulating health & safety: APEC establish Health Task Force to address health risk originating from infectious diseases, and promote inclusive growth & security in the region. Countries in region can collaborate with international health bodies in prevention & control of communicable & non-communicable diseases.

Rules regulating minimum wage: APEC comply with minimum wage mandate as per International Labor Organization policy guidelines. The participating countries are required to ensure minimum wage in order to support basic minimum standard of living. Minimum wage is observed to be minimum living wage and is to be revised keeping in view the actual conditions of the domestic & global economy.

Rules regulating child labor: APEC countries shall not promote child labor and make it a criminal offense. No child labor shall be observed in life-threatening industries.

-------------------------------------------------------------------------------------------------------------------------------------------------------------

ASEAN (Association of South-East Asian Nations):

Goal: To usher economic growth, prosperity, societal progress, regional peace, stability, justice and cultural development & integration in the region by promoting partnership and communal behaviors

Date established: 8 August, 1967

Countries participating: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam

Agreement regarding tariffs: Complying with ASEAN Free Trade Agreement, participating countries are expected to reduce tariffs particularly in sensitive agricultural goods, improve competitive edge and give effect to common effective preferential tariff scheme, whereby the member country is expected to impose tariff on goods entering from outside of ASEAN.

Agreement regarding intellectual property: ASEAN promote intellectual property rights so that the region becomes highly competitive & innovative. By protecting intellectual property rights, fair environment is provided to economic agents.

Agreement regarding foreign direct investment: ASEAN calls for preferential foreign direct investment among member countries to develop economic & social infrastructure, capabilities and technological breakthroughs and for promotion of wholesale & retail trade

Rules regulating environment: ASEAN environment regulation calls for environment protection, environment preservation and environment promotion. It calls for highly taxing polluting industries and promotion of environment-friendly innovations and technological advancements, thereby promoting sustainable development in the region.

Rules regulating health & safety: ASEAN calls for elimination of technical barriers for traditional medicines & health supplements and promotion of their harmonization across participating member states.

Rules regulating minimum wage: ASEAN calls for institutionalization of minimum wage in order to keep pace with rising cost of living index so that labors enjoy basic minimum welfare standards. ASEAN conceptualized daily & monthly minimum wage norms with exception for Brunei and Singapore which does not have mandatory minimum wage.

Rules regulating child labor: ASEAN countries shall not promote child labor and make it a criminal offense. No child labor shall be observed in life-threatening industries. Child labor is considered a violence against the child in the form of exploitation and trafficking