Apec Schools: Goals

By Mandy Kaye and Jenni Rutherford

Now that they are coming to Auckland, just what do they hope to achieve Down Under?

Like any major project, Apec in Auckland has set goals and priorities for the leaders.

Prime Minister Jenny Shipley, who will chair the gathering, says Apec's key objective in Auckland is to build greater prosperity and economic security for all its member economies and their people.

In order to do this, New Zealand has adopted the following key areas for the agenda for this year's conference:

* Advancing free and open trade and investment by improving trade rules and regulations and breaking down trade barriers.

* Constructing a credible and collective response to the Asian economic crisis.

* Strengthening companies and their employees in the Asia-Pacific so they are able to deal with economic challenges.

* Gaining wider support from the community; in New Zealand's case, women, Maori, business and non-Government organisations.

The meeting will also work towards achieving Apec's long-term goal - free trade in 2010 for developed economies and 2020 for the developing economies as set in the Osaka Action Plan from the 1995 Apec conference in Japan.

Apec countries account for about half the world economy and global trade. For New Zealand they account for about 70 per cent of our two-way trade and include 10 of our top 12 export markets.

As a member of Apec, New Zealand has a lot to gain if Apec achieves significant advances in free trade. Being a small country means we rely heavily on export revenue.

In the 1970s, when our major trading partner, Britain, joined the European Economic Community, New Zealand was forced to look to other countries to buy its goods. Over the years, Asia and Pacific-rim nations like Chile became profitable destinations for Kiwi exports.

An example of the possible benefits of removing barriers to free trade can be found in the forestry and fisheries sectors, which are among New Zealand's main exporters. They bring a combined profit of $3.3 billion into the country a year. If tariffs are removed as Apec proposes, these profits could increase by $130 million annually.

Apec participation and commitment is voluntary, with decisions and policies needed by consensus.

In Auckland, one of the big motivations for the leaders will be to have a smooth, consensus meeting and not the rocky ride encountered last year in Kuala Lumpur, Malaysia.

There, Apec ran into disagreement. The major vehicle for achieving free and open trade and investment, the Early Voluntary Sector Liberalisation programme (EVSL) wasn't accepted by the majority of members.

This meant the meeting did not deliver on key free-trade commitments and the responsibilities were passed on to the World Trade Organisation. Some members were also disappointed in Apec's ability to deliver early solutions to the Asian financial crisis.

The Auckland meeting falls just two months before a big summit of the World Trade Organisation in Seattle, the United States. Apec leaders hope to come up with a united front on some of the trade issues which will follow in Seattle.

* By Mandy Kaye and Jenni Rutherford are journalism students at the Auckland Institute of Technology.