APEC: In the mediaObama and Noda met in Hawaii with other national leaders

What is APEC?

• Asia-Pacific Economic Cooperation• 21 member countries• Started in 1989• From all sides of the Pacific Ocean• Goal: To build strong regional economy• Prevent economic conflicts

APEC dates

• Monday, Nov. 7 -- Sunday, Nov. 13• Top political leaders, like prime ministers, do not

stay for the full event. • They arrive at the end.

• Ministers and top staff members do most work.

In the past

• APEC has not been as useful as hoped.• Difficult to find solutions.• Countries with largest populations: China, India,

USA, Indonesia, Russia, Pakistan, Japan.• Developed nations (USA, Japan, Singapore).• Developing nations (China, India, Vietnam).

Many bilateral meetings

Host Nation: USA

• Obama chose his home state of Hawai’i.• Events in Waikiki hotels and convention center.• Luau at the Hale Koa Hotel.• It is owned by the U.S. military and sits on a

patch of government-owned land in Waikiki. • Nice place! Lots of space around it.

A few photos

• Take a look.

Convention Center

Waikiki

We once lived there

Obama’s toast

• Here is a video of his opening remarks.

TPP

• Trans-Pacific Partnership agreement• Big story in Japanese media.• Nine nations have agreed to join.• Japan not sure, but Noda will join negotiations.• Some key issues for Japan-USA: • Quality of American beef.• Lower tariffs for Japanese car & electronics.• Lower tariffs on food produced outside of Japan. • Address Chinese trade pressure.

What is a tariff?

• A required fee paid by outside company that sells goods in another country.

• Japan’s car-makers pay a 2.5% tariff in the USA. • USA farmers pay high tariffs to sell food in

Japan.

The nine nations

• Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, United States, and Vietnam. • USA recently made free-trade deal with

South Korea. • South Korea car-makers = no tariff in USA.

What is a trade agreement?

• Sets rules and removes fees for selling goods in another member country.

• Creates winners and losers within each country. • Some industries gain better profits. Others can’t compete.

• Are they always good deals?• In principle, free trade improves conditions.• Lower prices for consumers.

• In reality, some people suffer from losses. • Situation now, without TPP, also is political.

The end -- Mahalo