Importance of APEC and UNASUR in Peru
Importance of APEC and UNASUR in Peru
CAREER:
COURSE:
CYCLE: III
SHIFT:
EVENING
ISSUE:
TEACHING:
STUDENT:
TARAPOTO-2023
ASIA PACIFIC
ECONOMIC
COOPERATION FORUM
How and why did APEC start? APEC Participants What does APEC do in relation
• It was established in response to the to companies? How are decisions
In addition to the 21 economies
growing interdependence among made in APEC?
that make up APEC (Australia, • Facilitating the movement of
the economies of the Asia Pacific Brunei, APEC operates by
goods, services and people
and the need to advance economic
Darussalam, Canada, China, Chile, between member economies is consensus
dynamism.
Hong Kong, Indonesia, Japan, APEC’s mandate. building.
• APEC began in 1989 when Australia
Korea, Malaysia,
New Mexico, Members carry out their
convened the first ministerial • the APEC Business Advisory
meeting of foreign and trade Zeeland, Papua New Guinea, Peru, activities and work
Council (ABAC) to serve as a
ministers from 12 Asia-Pacific Philippines, Russia, Singapore, channel for private sector ideas
economies to discuss ways to Taipei programs on a basis of
on areas of interest and
Chinese (Taiwan),Peru
Thailand open dialogue with
United, Vietnam. Russia cooperation between
increase cooperation in the United
and States
Vietnam was the last to join respect
governments
Region (in November 1998). for all points of view.
A free trade agreement (FTA) is a regional
or bilateral trade agreement to expand the market for goods and services
between participating
countries. Basically, it consists of the elimination or
substantial reduction of tariffs on goods between the parties, and
agreements
on services. This agreement is governed by the rules of the World Trade
Organization
(WTO) or by mutual agreement between countries.
COUNTRIES GOALS
FUNCTION IMPORTANCE
THAT MAKE IT
S UP
UNASUR: is
Their efforts
directed towards
are aimed • Build in a
the construction
of a regional at deepening the participatory and
identity
union between consensual manner, a
, supported by
a South American space for
shared history and nations, under integration and union in
under the the recognition
principles of
of regional objectives, the cultural, social,
multilateralism
validity social economic and political
of law in strengths and energy fields among
resources.
international
its
relations.
Small business owners in Peru face significant challenges due to the Free Trade Agreement (FTA) as imports increase because foreign products are often cheaper than domestic options, which can drive local enterprises out of business due to lack of competitiveness. This situation is exacerbated by the inability of these smaller businesses to modernize due to insufficient capital, leading to their closure. As a result, unemployment has risen, particularly among those previously employed by these small businesses, as job losses follow business closures .
UNASUR's goals align with the principles of multilateralism and human rights by focusing on building a regional identity based on shared history and mutual respect for sovereign states. These goals emphasize the development of policies that promote socioeconomic equality, social inclusion, and democratic processes, encapsulating a multilateral approach to problem-solving and governance. This alignment fosters an environment of cooperative governance, where South American nations work collectively to address regional challenges and conflicts, thereby strengthening regional stability and prosperity through democratic means and respect for human rights .
The APEC Business Advisory Council (ABAC) plays a crucial role in fostering cooperation between member economies by serving as the primary channel for private sector ideas and promoting interests among the governments of the APEC economies. This engagement allows businesses to directly influence policy decisions, ensuring that their needs are considered in the crafting of international economic policies. Consequently, ABAC helps create a more seamless environment for businesses to operate, facilitating the movement of goods, services, and capital, which directly benefits the private sector by enhancing trade opportunities and reducing bureaucratic barriers .
Infrastructure development within the scope of UNASUR has significantly contributed to better regional connectivity by prioritizing investments in transport, communication, and energy projects that link member countries more effectively. These infrastructure projects enhance trade routes, reduce travel times, and facilitate better resource allocation and management among the different regions. This improved connectivity aids in harmonizing economic activities, fostering closer political and economic ties, and supporting social inclusion by making remote areas more accessible, therefore promoting comprehensive regional integration .
The Free Trade Agreement (FTA) with Peru addresses the advantages of increased global trade by aiming to eliminate trade barriers, promote fair competition, and increase investment opportunities, which should lead to a boost in exports, job creation, and better access to new technologies. However, it also highlights disadvantages such as increased imports due to cheaper foreign products, leading to the closure of small businesses and unemployment. The FTA therefore attempts to balance these outcomes through measures like protecting intellectual property rights and ensuring worker and environmental protections .
The construction of a regional identity is significant in UNASUR's integration process as it reinforces a sense of belonging and shared destiny among member countries, which is essential for the long-term sustainability of political and economic cooperation. By building on a shared history and cultural interconnectedness, UNASUR underlines common goals that transcend national boundaries, thus facilitating collective responses to regional issues. This shared identity enhances trust and solidarity among member states, promoting a collaborative approach to regional development, infrastructure projects, and conflict resolution, thus strengthening South America's global standing and internally driven development .
APEC's policy of consensus-building influences its decision-making process by requiring unanimous agreement among its members for its policies and initiatives, ensuring that all member economies have a say and their diverse priorities are respected. This approach fosters strong inter-member relationships by promoting open dialogue and collaboration, building trust, and reducing the likelihood of conflict. It ensures that decisions are more representative and can accommodate the diverse economic and political landscapes of its members, which is essential in a region as varied as the Asia-Pacific .
The main objectives of the Asia-Pacific Economic Cooperation (APEC) forum include facilitating economic growth, promoting technical and economic cooperation, trade facilitation and liberalization, and fostering investments within the Asia-Pacific region. These objectives reflect the interdependence among its member economies as they are aimed at reducing economic disparities and fostering sustainable growth amid a region marked by diverse economies. The establishment of APEC was largely due to the need to harness the increasing economic dynamism and the growing interconnections between the Pacific Rim economies, as evidenced by its inception prompted by Australia's initiative in 1989 .
Increased foreign investment in Peru due to the FTA brings multiple positive outcomes, such as enhanced economic growth, job creation in sectors that attract foreign funds, and increased access to global technologies and markets. However, there are also potential drawbacks, such as the possibility of profit repatriation where foreign companies send their profits back to their home countries, reducing the local economic benefits. Additionally, the competition from foreign companies could potentially threaten local businesses, leading to closures and increased unemployment if domestic companies cannot keep pace in modernization and competitivity .
UNASUR has influenced the socio-political landscape in South America by fostering regional integration that emphasizes a shared history and principles of multilateralism, rule of law, human rights, and democratic processes. For Peru, its incorporation into UNASUR represents a drive towards establishing more collaborative political relations to achieve peaceful coexistence and avoid conflict, as well as facilitating economic cooperation and sustainable management of natural resources. Additionally, Peruvian membership in UNASUR supports efforts to eliminate socioeconomic inequality and promote democratic governance and social participation .