Apec Schools: Import - Why it's important

If you ever play PlayStation, travel in a Toyota, wear Stussy clothes, eat Burger King, surf the Internet, buy Red Hot Chili Peppers CDs or use medicines, decisions made by Apec will affect you. By Paul Ford and Georgina Cousins.

That's because they are among the products that are imported into New Zealand from other countries around the globe and, in particular, around the Pacific.

Stimulating trade between countries - and making products cheaper and easier to get - is one of the main aims of Apec.

The Asia-Pacific Economic Cooperation forum was established in 1989 as countries in the region became aware of their increasing reliance on each other as trade partners. Through Apec, members strive to increase the welfare and prosperity of their countries.

It's New Zealand's turn to host the Apec economic leaders' meeting and that is what all the fuss is about.

World leaders representing the 21 Apec economies - including the President of the United States of America, Bill Clinton - will meet to plan Apec's agenda for the next 12 months.

Apec calls its members "economies" to reflect the special relationship between China, Chinese Taipei and Hong Kong, China.

Together the Apec economies account for half the world's population, half the world's economy and half the world's international trade.

Apec is important to New Zealand because we are a small economy heavily dependent on trade with the Asia-Pacific region. Apec economies account for about 70 per cent of our exports and imports, 70 per cent of our tourists, and 80 per cent of our overseas investment.

Free trade and economic cooperation in the region is what Apec is working for.
Open trade and investment makes it easier for member nations to exchange goods and services. Apec economies hope to eliminate all trade tariffs by 2020.

Apec has already produced results in cutting through the red tape that makes it difficult to get products into overseas markets. Hong Kong will relax import controls on meat and poultry next year, which will be good for New Zealand farmers.

Apec's role in world trade has become more prominent in the wake of financial problems in Asia. Up until 1997, many people in Asian countries had jobs and money to spend so economies were expanding.

But the bubble burst as investors pulled their money out of the region. This resulted in companies folding, unemployment increasing, uncertain leadership and doubts over the reliability of some banks.

The "Asian crisis" meant many Asian economies shrank in 1998. This affects New
Zealand (and other countries) because tourist numbers drop and exports are less likely to be wanted by the Asian countries.

At the Apec meetings in New Zealand, a key challenge for the leaders of the 21
economies will be to work together to combat the problems caused by the crisis. Achieving sustainable economic and employment growth in member economies is the main aim.

Other international bodies such as Asean (Association of South-east Asian Nations), the Pecc (Pacific Economic Cooperation Council) and the South Pacific Forum are also involved in Apec but as observers rather than full members.

Prime Minister Jenny Shipley says she is looking forward to hosting 20 of the world's most powerful leaders.

"We will be ready to knock their socks off," she says. "New Zealand has some of the best scenery, food, culture, products and business in the world, and Apec will be an unparalleled opportunity for us to showcase our corner of the world."

*Paul Ford and Georgina Cousins are journalism students of the Auckland Institute of Journalism.