Emergence of global production markets and broader access to a range of foreign products for consumers and companies, particularly movement of material and goods between and within national boundaries has led to integration of major regions of the world. International trade and investment are looked as the key factors that can advance the world's social and environmental well-being when managed within a political framework. In the last decade the WTO has failed to achieve its goal and there was no solution. US has shown no interest to solve the WTO issues rather focusing on regionalization. The international trade in manufactured goods increased from $95 billion to more than $12 trillion in the last 50 years. The United States has enjoyed a position of super power among the nations because of its foreign trade, military modernization, educational system, multi cultural ambiance and its ability to harmonize and profit from cultural influence from different parts of the world.
Since APEC's birth in 1989 it has grown to encompass 21 members and represents the most economically dynamic region in the world, accounting for 40.5% of the world's population, 54.1% of world GDP and 43.7% of world trade.
China has gradually replaced the U.S. as the main export market for Southeast Asian countries and now has trade deficits of tens of billions of US dollars with neighboring countries and regions. Japan who is the major dominant player in the Asian region is losing its power to china. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth industry, and technology to rival the United States for the position of leading world power. With the rise of China, Asia pacific region has received growing attention in recent years as a region that is integrating successfully into global economy.
China needs to solve its domestic problems and needs to change its political strategy in the near future to balance its power with US. China should actively participate in various agreements and should bring new ideas to the table making win-win policy for all. To win the power game china should play active role politically, militarily and culturally. It should build strong diplomatic relation with other nations and need to solve its human right problem and need to solve the economic disparity problem in the country.
This paper discusses several issues related to Free Trade and its impact on the global economy and sustainability. The first part gives details about the situation and the achievement of APEC. The second part discusses China's gaining economic integration in the Asian region, while the third part discusses about the role of china in the region followed by the future of APEC.
Key words: FTA, APEC, Global Power, Reform, Trade & Investment, Global Power
APEC is a premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. Since APEC's birth in 1989 it has grown to encompass 21 members spanning four continents, and represents the most economically dynamic region in the world, accounting for approximately 40.5% of the world's population, 54.1% of world GDP and 43.7% of world trade. The forum was created to cooperate on regional trade and investment liberalization and facilitation with the objective to enhance economic growth and prosperity in the region and to strengthen the Asia-Pacific community.
APEC is a unique organization which has been revolving around dialogues with no binding obligation in contrast to the EU and NAFTA. APEC member countries have already had several meetings with no fruitful results. Therefore APEC still faces a bigger task to make matters work at the regional level rather than just mere talks among the nations. Although its...