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Pacific basin work


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A Pasific Basin describe of politics and cultures

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Pacific basin work

  1. 1. <br />TRADE POLICY <br />AND ECONOMIC INTEGRATION <br />PAcIFIC BASIN<br />PAHOLA ESPINOSA ORDOÑEZ<br />JUAN SEBASTIAN QUICENO Calderón<br />JUAN ESTEBAN MARTINEZ<br />LUIS MIGUEL ENCIZO<br />International business <br />Faculty of economics and administrative sciences<br />Universidad CATOLICA POPULAR <br />DEL Risaralda <br />Pereira 2008<br />INTRODUCTION<br />This paper first explains the potential importance or pacific basin accession in the world as a development region, and discusses the recent successful development models and the role of trades in their development. The aim of this paper is to provide an empirical analysis of Intra-Industry, naturally enough, concerned with either the determinants of trade patterns (such as productivity, or R&D), or their consequences (for e.g., employment). Again: nature of man- made trade barriers as an important cause of trade flows, but protectionism as in turn importantly affected by trade patterns that globalization brings in that area of the world <br /> Furthermore talks about the International trade showed as a very nature and general equilibrium phenomenon, and especially on the Pacific Basin. For instance, while searching and analysing all of the production and patterns we found that are both important determinants of the development in that area of the world, and are also importantly determined by its geographic ubication.<br />Those are the states that the region includes: China, Japan, Australia, New Zealand, Guam, Islands Marianas north, Polynesia French, Tokelau, Cook Islands, Fiji, Kiribati, , Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Tonga, Tuvalu, Vanuatu, New Caledonia, Marshall Islands, Solomon Islands, Wallis and Futuna Islands,<br />TRADE POLICY<br />In spite of the fact that the countries that shape the pacific basic historically have supported a socialist regime, at present these regions somehow have been opening your market; which we will want to analyze its current importance and the future trends with the possibilities of development that this region offers for the world and certainly for our region.<br />In an individual way or according to particular characteristics of the regions we will analyze its trade policy.<br />The Chinese constitution was founded and nowadays it continues being a socialist regime, which regulates and controls its market, this region has forecasts of transformation; China has come presenting an economic and cultural process of opening, where all these cultural barriers with the western regions and up to with the oriental ones they are ruined, appearing to the world as a region with a potential high place so much to come to the rest of the world, as in order that the world comes there. <br />Japan, Australia and New Zealand and we include to porcelain that they are very well developed countries. They are countries that have all the advantages of technology, good education, and in the majority of cases a good social development; the islands of Pacific Ocean that are the countries that are less developed suffer social, economic problems (health, education, infrastructure, technology, etc.) <br />Japan has handled political protectionists who have allowed them at moments of crisis to recover and to be competitive before the world, a concealing strategy that they aid to grow as much commits like externally, despite Japan's trade policy continues to be to ensure long-term prosperity and growth by promoting business activities in Japan and the international market.<br />In Japan powerful politicians and bureaucrats have the power, there emperor this one directly related to emperor who is AKIHITO, he supports your throne as a symbol of national unit; An important very important fact is that Japan recovered he become an economic power and an important ally of the USA, after the crisis of Asia and the delay in the economy, Japan still leaves a principal power in Asia and in the world, Japan always it has been characterized for being a country with a commercial policy closed, but reasons exist surfeits to manage to be a part of this included world that every day allows him to be more efficiently and competitively worldwide.<br />New Zealand is a legal constitutional monarchy whose constitution is based on combination of formal documents, common law, and constitutional conventions. On-going reforms have markedly improved New Zealand's macroeconomic performance and made it one of the most open economies in the world. Trade is indispensable to the New Zealand economy to raising living standards of the population. New Zealand and Australia, that are developed countries, they will continue opening to their markets, looking for better policies of commerce, that take them to cohesion with the world and its economies, where every time are more changing tendencies. <br />Australia’s liberal system of government is based on the democratic tradition, which includes religious tolerance and freedom of speech and association; policy is Australia’s activates involvement in the Asia Pacific Economic Cooperation forum (APEC). The great economic performance that you have been shown unilateral Australia in the recent years is due to the trade liberalizations and much it. The trade policy is guide towards increasing economic activity.<br />The islands of the pacific in spite of its huge disadvantages and problems as far as social, geographic and the others; they will continue adopting opening policies, that allow them to surpass their problems of poverty and their minimum development.<br />Other pacific basin challenge is the eradication of carries far poverty and inequality, the insufficient and bad quality in public goods like education, health and others. The governments need to intervene into growth process, good equity and good access to public goods, especially for poor people.<br />In this globalized world, is very feasible that occurs opportunities of political and economic integration, where look to develop specify goals with respect to the social, political, economic and environmental issues; in which the enterprise social responsibility becomes one from the rules general and indispensable for all type of negotiation and international relation. It is very important to guard by the social interests of all region. <br />Top of FormTRADE PATTERNWhit all the forecasts carried out by the main international market trends coincide in the following: Asia and specially Pacific Basin will maintain its growth and dynamism and will carry out so much important contributions Al GDP as the world commerce. Some analysts consider that the deceleration of the economy of US and the zone of the euro would be able to impact negatively in the world commerce. Particularly, the deceleration of US will cause a decrease of their importing, which will affect to the developing countries, especially to the Asians, since these markets constitute the main destinies for their exports. Pacific Asia in the 2007, 1 will grow more than other regions of the world. This behavior will be supported by the strong internal demand and the increment of the flows of the commerce interregional. Of China, it is said that is the second commercial power, the first destiny of the foreign direct investment and the second world consumer of by-products of the petroleum. His high investment of commodity has disturbed the international markets: at present Chinese purchase the 40% of the cement of the world, one fourth of the aluminum and almost a third of the iron ore. For example in China is manufactured between the 60% and the 70% of the world production of toys and bicycles and the 50% of the microwave of the world, besides a third of the television sets and some parts of the Boeing 757. China is also innovating by means of agreements with businesses of software and covenants with large multinationals, to be able to produce hybrid cars and to explore the space with its rockets made in China.The recent entrance of China in the OMC and the lifting of the quotas to the sector textile have raised certain tensions between this and their main commercial associates, United States and the European Union, since it is expected that, for the year 2010, the importing in Chinese textiles suppose a third of the world total, hoarding to the 80% of the importing textiles in U.S., although these two countries already have Measures and have imposed quotas to the importing of certain textiles, since its market is flooded of the products made in China. Mexico and Brazil are some of the countries more affected by the competence of China in the manufacture. Colombia therefore, in spite of not being benefited so much as other Southern countries with the increment of the prices of basic products, neither suffes for the industrial displacement of China. Most of the economy of the pacific islands and countries of this region are based mainly in agriculture, fishing and tourism, however, only a few of these economies are self-sufficient in food and a lot of them have to import it. The manufacturing activities are limited to fruit process and handicraft. The agriculture employing takes most of the working population. Others important items for their economy are tourism and fishing. The potential for a tourist industry exists, but the remote location, a lack of adequate facilities, and limited air connections hinder development. Australia and New Zealand are the main suppliers of tourists and foreign aid for the small pacific islands. These islands have many problems in their economy due to the isolation of the country from foreign markets, the limited size of domestic markets, lack of natural resources, periodic devastation from natural disasters, and inadequate infrastructure.In Australia, the exports are raw materials commodities and transport equipment and their imports are manufactured. These movements in trade make a pay imbalance, because the imports cost more than the exports. This is a problem for the economy and social environment. Most of its merchandise trade has continued to be conducted with Asia-Pacific Economic Cooperation (APEC) partners. New Zealand's main interests in new negotiations include further liberalization of market access for agriculture, non-agricultural goods such as fisheries and forestry, and services; strengthened trade rules to guard against protectionism and unfair trade practices. This country export mainly raw materials like wood and some machinery, but export manufactured products that cost more.A positive tendency for the commerce of the region has been seen, the increase of the bilateral treaties and multilateral, that give a greater access to other markets, has increased the social and economic development of the region from among this the increase of the commerce of goods and services. In 2006 the region 7.7% grew headed by the 10.7% of the growth in China. This has been one of the highest levels of the region in the last 10 years. For the next years a greater growth of the region is foreseen, their new opening and treaties politics have given more facility for the commerce and to improve the deficiencies of their markets.In the following pictures we can observe the commercial behaviour of the pacific basin, taking their economies more important. ANALISIS RANKAs it is observed, the commercial and economic performance of Japan, Australia and New Zealand, which are the developed countries of the zone, was in excellent truth, occupying the first places of the ranking of the GDP world. But even but notable it is the economic boom of China, that even being an emerging or developing country occupies the 4 position, what indicates that has had a great growth and a strong economy that truly itself this developing, but by leaps and bounds. Sadly all is not good and we see that the islands of the pacific basin are in the bottom of the list of the GDP. It’s true that these economies have very low development and very little commerce with the world. Their governments should be dedicated to develop policies to offer better standards of living to their inhabitants. These people live in really bad conditions. In these boards we see the abyss, some countries of the same region in the first places, and other in the last. The countries with poorer performance, they are underneath even of countries of the Africa, like Somalia that have always been catalogued as the poorest of the world. Even some islands of the pacific do not reach to leave in the ranking. A very worrying point for the world is the rapid growth of China, and what this implies. For example Chinese import the 40% of what needs, being the third importer after United States and Japan, this pressuring the rise the prices of the commodities. In the same way its high demand of petroleum, impacts to everyone, especially to the consumers of energy. This demand is owed the consumption of the manufacturing sector, to its growing wealth keeping in mind its geographical and demographic dimensions. As consequence is foretold a pressure in the rise of the price of the petroleum, which can arrive even to $100 by barrel, exactly in this month of October of 2007 has reached the $80 by barrel. This it added to the shortage of this resource has worried to all the governments of the world, especially to those, where its economy is based of this energy resource. The increase in the price of the petroleum, impacts especially in the price of the transportation. Another thing that should be spoken on China, without knowing if is somewhat alarming or not, is that aside from being a great competitor for the world, is an economy, that is absorbing all the know-how that they lack of and which can not have paid. The factories of China work to three shifts and the salaries are very low in reality. These questions so debatable by the world agencies, trying to study the case of social dumping, although up to now have not passed anything with the theme, they comment about it but not more. Continuing with China, in the future is foreseen that the globalization caused even more the decentralization of the western businesses, since the cheap labor, the good quality of production and competitive prices encourage them to transfer its production to this country. These decentralizations go to enlarge years after years in the different sectors of the world economy. This will convert China, in the country that controls the industrial sector of the globalization and pass from the years, and being a little extremist "the Chinese set the prices of almost all the industrial goods. And at the same time, they have the way to conceive new products and world records, whose national and international marketing will control”. It’s so good for China, but not very comforting for the west. A restriction or disadvantage that other countries has with China, at the moment to have relations with it, it is the need to have a local commercial associate. Then every business decentralization in China should do part of a joint venture with local associates that requires having a percentage to seek that the benefits remain and they enrich the country. In China, in spite of being so competitive is found that its labor is not qualified, what has caused the increase of the labor prices and the decrease of corporate benefits; besides doing that the public officials go to the public sectors where the salaries are better. This last has done that the quality of the public utilities deteriorate and promotes the corruption. Speaking about the region in general, is seen that it will decline in the behavior of the commerce, since the economic deceleration of U.S. and Europe, and its importing, they affected directly to these countries, since are some of its main commercial associates. Something that should improve the countries of the pacific basin and Asia in general, is something that is noted so much in the commercial treaties, as in the trade pattern. And we are speaking of the little relation that has these countries with other regions that are not close to these. The globalization was given, so that all the countries have relations with the one that want without importing that so far away or different they are, no one must depend of the neighboring countries or of the region, one must open the barriers to diversity. Another topic to improve in the policies of the region of the pacific basin is the growing corruption of these economies, excluding Australia that has adopted strategies of transparent politics. This impression in the reputation of these economies brings distrust at the moment to do business. Even the own administration recognizes the cases of corrupt officials. In these islands, the number of students is very low, and every day exist more children to educate, the natural disadvantage is smallness and remoteness, where geographic aspects are negative for its development. The smallness does extra difficulties like bigger costs for effective management and businesses in areas such as electronics, textiles or tourism. And the remoteness makes the transport cost higher and the time to arrive the products increase, doing poor business competitiveness.Countries developed in the pacific basin import mainly manufactured goods, but raw materials have an important percentage. This is a big market, where the population grows and grows, that requires more food and equipments to have a good social condition. In china, for example which have the largest population in the world; represent a huge market to offer products and services. To import textiles with the best prices, China is a good option, but only for those countries that do not have a good economy in this sector.The business opportunities continue with the same countries, Japan with China, Australia and the European Union and vice versa. Although the possibilities from other markets increase with the proliferation of trade agreements and the open free market that Asia had being implementing. However the countries need to be very competitive to trade with Asia’s countries.One of the most important aspects of an economy, which determines its productive, capacity and competitive level worldwide is the total national production (GDP), therefore, the most influential regions economically in this region is Japan, small stone, Australia, positioned 2, 4, 15, in the world Rank respectively in the flow of goods and services produced by national these, after The United States that is a country with the most highly index of national output with a GDP of 13201.819 million dollars, Japan has 4340.133, small stone 2669.072 and Australia 768,178 millions of dollars, other regions that are important between the position I number 52 new Zealand (103,873 millions of dollar) and layer that this positioned 180 (223 millions of dollar).TRADE AGREEMENTTraditionally free trade has meant the lowering and eventual elimination of barriers to trade between nations. In the course of debate, those who favor free trade are characterized as internationalistsGoing on back in movement of development, its possible found that was in the 1990s, that there have been an increasing number of regional trade agreements in the world. NAFTA has been quite prominent, but MERCOSUR and the EC/EU have also prompted 2 much debate, especially concerning the consistency between these regional agreements and the WTO. EASE 6, “Regionalism versus Multilateral Trade Arrangements” in 1997 dealt with many of these issues. Until recently, the Asian region has been slow to adopt regional trading arrangements. If any, Asians tended to favor “open regionalism” in that a “most favored nation” clause was activated so that any regional concessions were also applicable to others. However, in the last few years, great interest in regional trade arrangement has been observed in Asia. AFTA (ASEAN free trade agreement) is making progress in eliminating tariffs among ten Southeast Asian countries. Japan has concluded an economic partnership agreement (a free trade agreement plus) with Singapore, and is now negotiating with Korea, the Philippines, andThailand. China has entered negotiations with ASEAN for a free trade agreement. The Asian countries appear to have entered a new stage of their trade relationship among themselves and between them and the rest of the world.South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA)With our large Pacific Island population and our relative geographic proximity, New Zealand offers a potential market for Pacific Island exporters.New Zealand provides duty free and unrestricted access to almost all products originating in Pacific Island Countries under the South Pacific Regional Trade and Economic Cooperation Agreement, SPARTECA.   This agreement, dating from 1980, was designed to provide more certain market access for Pacific Island countries and to stimulate trade, investment and economic growth.   It is now of diminishing relevance, however, because of New Zealand’s declining external tariffs.Forum Island countries have pressed for improvements to the rules of origin applied under SPARTECA.  New Zealand has pointed out that it would be more appropriate to develop new rules of origin as part of a negotiation on a more comprehensive agreement for the future covering trade and economic integration within the region.Pacific Agreement on Closer Economic Relations (PACER)The Pacific Agreement on Closer Economic Relations (PACER) entered into force on 3 October 2002.It is a framework agreement that sets an outline for the future development of trade and economic relations across the Forum region as a whole.It does not contain substantive trade liberalisation provisions; rather it envisages a step-by-step process of trade liberalisation.  This starts with a free trade agreement in goods among Pacific Island countries (PICTA – the Pacific Island Countries Free Trade Agreement), now in the process of implementation and later likely to be extended to services.   PACER provides for programmes of assistance to the island country members with trade facilitation and capacity building.  It also foreshadows future negotiations on Forum-wide reciprocal free trade (including Australia and New Zealand).  For the moment these negotiations are not scheduled until 2011, but they are likely to be brought forward as a consequence of the Pacific Island countries’ negotiation of an Economic Partnership Agreement with the European Union.In May 2005, Forum Trade Ministers decided that there was a need to move beyond SPARTECA towards a more comprehensive framework for trade and economic cooperation between Australia, New Zealand and the FICs, as provided for under PACER, to foster economic growth, investment and employment in the Pacific region.  They called for a study to investigate the potential impacts of a move towards such a comprehensive framework and for an analysis of FIC needs in regard to capacity building, trade promotion and structural reform.  Terms of reference for the study were approved in 2006 and a draft of the study presented to Trade Ministers in 2007.Forum Trade Ministers agreed in August 2007 that an informal meeting should be held in New Zealand in early 2008 to discuss issues related to the way ahead under PACER.  This will provide an opportunity for informal reflection on how the region might move towards an agreement which advances the goal of a single market, while supporting the sustainable development of Forum Island countries and their progressive integration into the world economy.  Negotiations under PACER should also give New Zealand a chance to prevent its exporters being placed at a tariff disadvantage vis a vis third countries in Pacific Island markets.PACER includes a Regional Trade Facilitation Programme to improve the trading capacity of Pacific Island countries.  This provides technical assistance at a regional level through the Pacific Islands Forum, Secretariat of the Pacific Community and Oceania Customs Organisation on a number of key issues in regards to customs facilitation, quarantine procedures and standards and conformance assessment.  New Zealand has committed a total of $1 million so far to support this regional trade facilitation work - an initial $250,000 at the time PACER was concluded and additional $750,000 pledged over three financial years, 2004 to 2007.  Further assistance will depend on the outcome of a review being undertaken of the Programme's management and effectiveness.A key element for improving intra-regional trade will be to improve air services and shipping links in the region, so that goods can be moved more quickly through the region and to other markets.    The Pacific Islands Air Services Agreement (PIASA) which came into force in October 2007 is intended to lead to a single aviation market and bring benefits in terms of increased access to air routes between Pacific Island Countries, more airline alliances and code-sharing arrangements, and cost savings for airlines and travellers.Progress in opening up the aviation market follows success by the region in improving shipping.  In 1977 the Pacific Islands Forum set up the Pacific Forum Line, a regional shipping line with the mandate to function both as a business and means of regional development.  The company, headquartered in Auckland, began trading in 1978.  It struggled in its early years but is now profitable.  The New Zealand Government is a shareholder in the line.  Work is proceeding under the Pacific Plan on options for improving feeder shipping services to a number of small island states.Pacific Island Countries Trade Agreement (PICTA)PICTA, a free trade agreement grouping most of the Forum Island Countries, came into force back in 2003, but   implementation was delayed and the Agreement only became operational from 2007, when a number of island states indicated their readiness to commence preferential trade.  As a result of the delays, the schedule for elimination of tariffs on intra-regional trade now extends out to 2021.New Zealand exporters to the Pacific may gradually find themselves at a tariff disadvantage to competitors based in Forum Island Countries, such as Fiji and Papua New Guinea, as a result of the preferences extended under the agreement.  New Zealand exporters will continue to face Most Favored Nation (MFN) tariffs in the island countries, while competitors will enjoy PICTA concessional rates.  This disadvantage is likely to increase over time, potentially affecting the competitiveness of some New Zealand’s exports to the Pacific in such important sectors as building supplies and processed foods.PICTA goods are defined as those where 40% of the value has been added in PICTA member countries.  Each member’s tariffs on such goods will drop on implementation by five to ten percentage points, and then phase progressively down to zero over an extended period.The objective of PICTA is to foster regional integration and trade development in the island states through creation of a single regional market, as a precursor to their progressive involvement in the wider regional and world economy.  The aim is to encourage their economic and social development and improve living standards.Pacific  Island Trade and Investment Commission (PITIC NZ)The Pacific Island Trade and Investment Commission (PITIC NZ) provides support for the trade, tourism, investment and labour promotion efforts of Pacific Island countries within the New Zealand market.  New Zealand fully funds this branch of the Pacific Islands Forum Secretariat to the tune of close to $1 million per year.  A dedicated Pacific position in Biosecurity New Zealand within the New Zealand Ministry of Agriculture and Forestry, facilitates the consideration of Pacific Island applications for the establishment of quarantine pathways to allow the export of fresh produce to New Zealand.  Aid funding has been drawn on at times to temporarily fund the position and to advance risk analysis of Pacific Islands produce.China has been much more aggressive than either Japan or the United States innegotiating FTAs. Beijing has concluded a partial FTA with ASEAN ahead of Japanand South Korea.42 China has also opened its tropical farm products to Thailand ina partial FTA, and has also agreed to start FTA negotiations with Singapore,Australia, and New Zealand. Moreover, China’s long-term goal may be to form thecenter of an East Asian trade Given that the United States has a limited FTA agenda with Asian countries(FTAs in place with Singapore and Australia and talks contemplated with only SouthKorea), an East Asian trade bloc could have the potential for substantialdiscrimination against U.S. exports. In addition, such a bloc could have adverseeffects on U.S. influence in the region.More than a decade ago, there was concern in the United States that Japan wasan economic threat because its economy was too strong. Subsequently, U.S.policymakers have come to believe that Japan is more of a problem when itseconomy is weak. A lackluster growth position in Japan not only affects U.S.-Japantrade and financial ties adversely, but also undermines growth of the East Asianeconomy. Moreover, an economically strong Japan is needed to serve as acounterweight to a rising ChinaJapan’s trade policy historically has centered on multilateral negotiations anddispute settlement mechanisms. Over the past five years, however, Japan has shiftedcourse somewhat by seeking free trade agreements (FTAs) with a number ofcountries, mostly in Asia. An FTA is an agreement between two countries or regional groupings to eliminate or reduce tariffs and other barriers on trade in goods and services. Non-members find their exports discriminated against. Since Japan launched its first FTA negotiation with Singapore in 2000, progress has been hampered by a defensive agricultural position. While some liberalization has been achieved, the amount so far has been greatly constrained by an inability to offer major reductions in its most protected crops — beef, rice, starches, wheat, and dairy — and to open up its borders to foreign labor. Some critics have argued that Japan, following a course of least resistance, could end up with numerous watereddown FTAs that neither harm nor energize the Japanese economy. According to this view, the FTAs with the largest benefits for Japan, such as Australia, China, and South Korea, are also the most politically challenging and the most likely to fail by freeing up trade in goods and services, Japan hopes to energize its economy, as well as to better compete with China for influence in Asia — objectives that seem to support U.S. interests. However, Japan’s FTA program to date has not been robust enough to have much impact. Constrained by domestic pressures to continue protection of its agricultural sector, the FTA agreements Japan now has implemented with Singapore and Mexico and is scheduled to implement next year with the Philippines, Malaysia, and Thailand are unlikely to have a significant impact on Japan’s economy. Agreements with larger countries where the commercial stakes are greater, such as South Korea, Australia, and China, are either stalled or being shied away from.Three regions- Asia, North America, and Europe — account for 80% of Japan’s total trade. Given that the simple average tariff rates imposed by the United States and the European Union are low (3.6% for the U.S. and 4.1% for the EU) compared to East Asia (10% for China, 14.5% for Malaysia, 16.1% for South Korea, 25.5% for the Philippines, and 37.5% for Indonesia), the Government of Japan (GOJ) placed priority on negotiating FTAs with countries in East Asia.10 Not only do East Asian countries impose the highest trade barriers against Japanese exports, they also account for the highest and most dynamic share of Japan’s trade, thereby providing the greatest additional opportunities for expanding Japan’s economy via cuts in both foreign and domestic trade barriers.Australia has four free trade agreements:The Australia-United States Free Trade Agreement (AUSFTA) has been in place since January 2005 The Thailand-Australia Free Trade Agreement (TAFTA) has been in place since January 2005 The Singapore-Australia Free Trade Agreement (SAFTA) has been in place since July 2003 (ANZCERTA) has been in place since 1983INTERNATIONAL FINANCIAL MARKETSFinancial stability is foretold for which, they are not seen in the short and medium term as in a possible crisis in the Pacific Basin, the financial markets will be maintained solids, the process of fusions and acquisitions will continue being very strong and in tendency the Asian markets will have a favourable behaviour, in last year some of them reached their historic maximums.All indicates that the direct foreign investment in China will continue growing, supported by the stability that offers the high figure of foreign accumulated reserves. That fact implies an change of a fixed type to a currency of flexible type permits Al central government to take control of the internal monetary policies, because the huge entry of capitals , smaller inflationary pressures, more stable interest rates, political and institutional stability and greater opportunity of growth, the new Chinese monetary policies possibly caused the revaluation of other currencies in the region. In the 2007 in financial markets, in Japan the prices in equity and credit markets continued to be firm, showing the good corporate performance, although the rise in stock prices decline, following the global equity market. The long and short-term interest rates rose to temporarily 1.95%, reflecting developments in economic and price indicators. The yen weakened against other currencies in the world. The volatility continued low in the foreign exchange markets and the foreign asset investments increase. The money market transactions continued its increasing trend, and arbitrage transactions, among others, became more active, supporting smooth interest rate developments.Between January and June of the past year, a financial instability has been seen increased, with phenomena as the revaluation of the Australian or of New Zealand dollar. These economies are gotten into debt in large proportions with the outside. To avoid a devaluation and inflation, the government should continue practicing a politics of high interest rate for its treasury notes. The New Zealand dollar has experienced a greater revaluation to the Australian; nevertheless these measures are not an obstacle for the economic growth. The increase of liquidity in these countries has done that the banking system, play with the debts of the families and lower performances they grant them, what has caused precarious works with lower salaries. Then it is considered that the employment rose, but in reality there are not good jobs, because they are conditioned to injustice. In Japan, with their stock exchange, the one in Tokyo, that is one of the most famous and that has more financial movement in the world, it is not so risky to invest, since they have all the money and capacity to respond before the crisis, besides to include the experience of to have revived of the Asian crisis. Besides a factor very attraction of China, is their high international reserve, what becomes a sure place to invest. Australia and New Zealand, in turn, are developed economies, that have presented very good equal financial and economic performanceThe financial market is the only completely globalized element and all the financial operations are carried out to international level, therefore without doubt this crisis affected to everyone and to its economies. It affects them in the way in which this mortgage crisis disturbed chiefly Al sector of the construction, which has been the one that brings more development to the economies. On the other hand we find that the banks withdraw its funds, they generate a lack of liquidated and besides they return but fearful to be lent money among them, what carries to these not to have as much investment in its activities like the consumers or producing. Asian and Pacific region, which is highly dependent on oil, remains vulnerable to any significant increase in oil prices, that could be affect negative the macroeconomic and social environment in the region. The external payment imbalances in other part of the world, caused a risk in Asian and Pacific Region economy, because these imbalances can caused significant exchange rate instability in the currencies of the area; this could make that investors and consumers have more risk and decided to divert more savings in other things.In the pacific islands, the investment is really low. Most of the investments come from the public sector, and this could be great if it will direct to help infrastructure and the society, but lamentably, the investments are driving for the economic growth sectors. Governments have to facilitate private investment, not imposing regulations or excessive taxation. Several Pacific island countries have improved their macroeconomic and fiscal performance but this would not be adequate if other barriers to private investment are not removed. MULTILATERAL ORGANIZACION  OrganizationAsian Productivity Organization The Asian Productivity Organization was created in 1961 to oversee productivity development throughout Asia and the Pacific. Today, the APO serves as the umbrella organization for 18 countries to coordinate and assist their individual productivity activities. These countries, through their respective National Productivity Organizations, work closely together for mutual cooperation, economic progress, and a better quality of life for their peoples.  The Japan Institute of International Affairs (JIIA)The Japan Institute of International Affairs (JIIA) is a private, non-profit, and independent research organization that was founded in 1959 through the initiative of former Prime Minister Shigeru Yoshida.Since its foundation, JIIA's activities have been based on the five basic goals stipulated in its charter. They are: To foster the scientific study of international politics, economics and law. To provide the means for examining and researching international affairs. To promote the exchange of information, knowledge, and views on international affairs. To encourage research of international affairs at universities in Japan. To promote exchanges with universities and research institutes in other countries.  Asia-Pacific Economic Cooperation (APEC)Asia-Pacific Economic Cooperation (APEC) was established in 1989 in response to the growing interdependence among Asia-Pacific economies. Begun as an informal dialogue group, APEC has since become the primary regional vehicle for promoting open trade and practical economic cooperation. Its goal is to advance Asia-Pacific economic dynamism and sense of community.  Asian Development BankADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. Established in 1966, we are now owned by 59 members, mostly from the region.  The Colombo Plan for Co-operative Economic and Social development in Asia and the Pacific  The Colombo Plan, the world’s oldest regional co-operation organisation, promotes development through South-South partnership among the its developing member countries in Asia and the Pacific. Launched 1951 as a co-operative venture in economic and social development by seven Commonwealth countries.  South Asian Association for Regional Cooperation (SAARC)The South Asian Association for Regional Cooperation (SAARC) was established when its Charter was formally adopted on December 8, 1985 by the Heads of State or Government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAARC provides a platform for the peoples of South Asia to work together in a spirit of friendship, trust and understanding. It aims to accelerate the process of economic and social development in Member States.  Secretariat of the Pacific Community (SPC)The Secretariat of the Pacific Community 's role in Pacific Islands development, unlike its structure, membership and home, has not changed significantly since 1947. Its mission has always been to provide technical advice, assistance, training and applied research to its Island member countries and territoriesSouth Pacific Forum SecretariatThe Secretariat's mission is to enhance the economic and social well-being of the people of the South Pacific, in support of the efforts of the national governments. Its particular responsibility is to facilitate, develop and maintain cooperation and consultation between and among its 16 members on issues such as trade, economic development, security, and other related mattersThey have called for a Pacific Plan to strengthen regional cooperation and integration as the main instrument for realising their Pacific Vision. The Plan will form the basis of ongoing strengthening of regional cooperation and integration for the benefit of the people of the Pacific. The Pacific Plan has now been revised in line with its status as a ‘living’ document, responding to the region’s challenges and emerging priorities. The Pacific Forum Leaders meeting in October 2006, and the resultant ‘Nadi Decisions on the Pacific Plan’, prioritised a number of key commitments in order to further strengthen regionalism in the Pacific. This was based on consultative reporting to Leaders throughout the year on progress made in implementing the Plan, the key challenges to be overcome for its effective implementation, and recommendations on a number of key commitments in order to move the Plan forward.United Nations Economic and Social Commission for Asia and the PacificESCAP plays a unique role as the only intergovernmental forum for all the countries of the Asian and Pacific region, in the absence of a regional grouping similar to the Organization of African Unity (OAU) or the Organization of American States (OAS). Indeed it spawned two of the region's vital institutions -- The Asian Development Bank and the Mekong River Commission. ESCAP gives technical support to member Governments for socio-economic development. The assistance comes through direct advisory services to Governments, training and sharing of regional experiences and information through meetings, seminars, publications and inter-country networksThe United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional development arm of the United Nations for the Asia-Pacific region. With a membership of 62 Governments, 58 of which are in the region, and a geographical scope that stretches from Turkey in the west to the Pacific island nation of Kiribati in the east, and from the Russian Federation in the north to New Zealand in the south, ESCAP is the most comprehensive of the United Nations five regional commissions. It is also the largest United Nations body serving the Asia-Pacific region with over 600 staff.Established in 1947 with its headquarters in Bangkok, Thailand, ESCAP seeks to overcome some of the region’s greatest challenges. It carries out work in three main thematic areas:Poverty reduction; Managing globalization; Tackling emerging social issues.Asian and Pacific Center for Transfer of Technology (APCTT)Established on 16 July 1977 pursuant to Economic and Social Commission for Asia and the Pacific The objective of APCTT is to strengthen the technology transfer capabilities in the region and to facilitate import/export of environmentally sound technologies to/from the member countries. " The objectives of the Centre are to assist the members and associate members of ESCAP through strengthening their capabilities to develop and manage national innovation systems; develop, transfer, adapt and apply technology; improve the terms of transfer of technology; and identify and promote the development and transfer of technologies relevant to the region."Research and analysis of trends, conditions and opportunities;Advisory services;Dissemination of information and good practices;Networking and partnership with international organizations and key stakeholdersTraining of national personnel, particularly national scientists and policy analystsAsia Pacific Rim Electricity Cooperation (APREC)The Asia Pacific rim can pull the world economy like a locomotive, an important role in the 21st century that can be realized by the APREC vision. Generally, it is very difficult for a nation to be domestically self-sufficient in energy.On the other hand, energy producing countries can add value by changing export item from raw fuel to electricity, which is favourable for employment and stable foreign income. The countries, through which transmission line pass can also earn foreign money by assessing a transmit fee. So every country involved can benefit economicallyExpensive electricity tariffs are apt to deteriorate manufacturers' competitiveness. Low tariffs may seem good for social welfare and manufacturers, but bad for energy save conscious and reinvestment of facilities. Electricity trade would contribute to the formulation of appropriate international price1. Expanding Electricity Trade Living in the Islands of Japan is easy to discover that electricity trade is expanding worldwide. Last year, our study mission on Asian energy visited countries where rapid economic growth exploded the demand for electricity beyond existing capacity. These countries were seeking Independent Power Producers or Electricity imports. This year's second mission visited countries with hydropower potential. We also witnessed clearly the emergence of electricity trade.Power supply increase is indispensable for economic growth: industrialization and informatization. Ironically however, required huge capital investment may deteriorate economic growth.the reduction of greenhouse gases was decided. However, even if each nation clears its target level of gases, the greenhouse problem will not be resolved, because of the following reason: There is the possibility that each nation's energy saving regulation would shift energy intensive industry overseas. Most likely, a clean energy policy would only change the energy mix within fossil fuel sources (coal ¨ oil ¨ gas), because non fossil energy is constrained by location and cost. However, if this happens, heavy industry in exempted nations may consume the relatively abundant coal, the price of which may decline as demand falls in agenda nations. This would increase not only CO2 but also SOX and NOX and cause acid rainAssociation of Southeast Asian Networks (ASEAN)The Energy Ministers of the ASEAN Member States acknowledged that the development of energy infrastructure, diversification of energy supply, improvement in energy efficiency and the utilization of new and renewable energy technologies would greatly contribute to the region’s energy securityThe integrated trans-ASEAN energy network is the main component of the ASEAN Plan of Action for Energy Cooperation. An ASEAN Interconnection Master Plan Study Working Group has been formed to determine the viability of electricity interconnection projects. The Heads of ASEAN power Utilities/Authorities(HAPUA) are considering the establishment of a joint venture company to provide equity investment in the interconnection projects. Meanwhile, ASEAN expects to complete the Master Plan of the Trans-ASEAN gas Pipeline Project by 2001.IMPACT ON RISARALDA DEVELOPMENTBy its geographic position, Colombia registers of natural way in the River basin of the Pacific, but the single neighbor is not enough to assure an active commercial dynamics. That’s why, that developing of a oriented strategy to stimulate the advance of the commercial relations in this Region, the national government advances actions to get on a better way the bilateral relations with the countries that are part of the region, meanwhile it had to looks for the active participation of the Country in the Regional System of Cooperation, made up of the forums Asia Pacific Economic Cooperation - APEC -, Pacific Economic Cooperation Council - PECC -, Pacific Basin Economic Council - PBEC- and, more recently, the Forum of Cooperation America Latin-Asia of the East - FOCALAE -.Colombia is committed to the Cairns Group and further agricultural liberalization. It is at the forefront of the development of regional trade agreements and groupings such as the Andean Community (with Bolivia, Peru and Ecuador – Venezuela withdrew in 2006) and the G3 (Colombia, Mexico and Venezuela) Venezuela is now away. Colombia is also looking to increase its role in the Asia-Pacific region. In recent decades, Colombia has enjoyed virtually uninterrupted constitutional and institutional stability, with only limited influence from the military. There is a strict separation of powers between the executive, the legislature and the judiciary. Despite of that Colombia's role in the Asia-Pacific has increased in recent years. Colombia is now a full member of the Pacific Basin Economic Council (PBEC) and a member of two APEC working group and that let the work together to pursue free and fair agricultural trade through our joint membership of the Cairns Group because cooperating on a range of international issues including agricultural trade reform, the environment, transnational crime and disarmament would in a non far future disappear. It is though that because the geographical distance, the cultural differences, the unevenness’s of economic development, the existence of other countries of greater interest and the priorities of the business sector impede a narrow relation, but through the years, the economic influence and the globalization, Colombia seeks the way to arrive at these markets.A number of areas, principally in the agriculture, mining and telecommunications sectors, have potential to provide further long-term opportunities for Australian investment in Risaralda (Colombia), although much depends on a successful resolution of the situation with the guerilla groups in Colombia. Right now greater indices of what we bring outdoors are especially in phone system and the automobile part; while we contribute exporting coffee, thinking about using the comparative advantage, knowing that the coffee in Risaralda is the main product to export to the world, what does the department highly produce of coffee an always viable market, it has the support 100% of support of the Committee of Coffee. Then we got too exports of emerald, steel, iron, ferro nickel among others and fits to emphasize that are many businesses that are opening their doors to this world. One of the interests of the foreigners in our region and not only in Pereira but also the coffee axis is the wood and more specifically the bamboo which is being used by the Chinese as potential material and innovator for the elaboration of products for home and attractive constructions and behind this bringing to light the region which this prompting the tourism in our region. It’s not possible to talk about de economics impacts on the region without talking about the tourism because is an important factor of the region, something that has position us as a develop tool, being conscientious of the high importance that the industry of truism has now in the world. Besides if we speak about China and Japan, that have a fast lifestyle, the fact of being in this Colombian territory, that offers them pure air, silence, contact with the nature and interior peace, thing that they enjoy , improved the perspective that has on Colombia in general. It’s important to include in that international china influence on the production and manufacturing in the world on the textile industry, thus the fact of the high producers in this region (Risaralda) and well commerce of this product, that low cost of raw material and manufacturing in china is impeding the improving and constant emerging of local pymes and in the same time is the cause of desasceleration of the economy BUSSINES OPORTuNITYA number of areas, principally in the agriculture, mining and telecommunications sectors, have potential to provide further long-term opportunities for Australian investment in Colombia, although much depends on a successful resolution of the situation with the guerilla groups in Colombia. In addition to its consortium interests in the Cerrejón Norte, Central and Cerro Matoso mines, in April 2006 BHP Billiton acquired exploration and production rights for oil and gas exploration from two offshore blocks in Colombia’s Caribbean sector. BHP Billiton holds a 75 per cent interest in each block and is the designated operator.An Australia Latin America Business Council mining mission to Colombia in November 2007 confirmed the considerable potential to increase trade and investment in the Colombian mining sector. Colombia has the largest coal reserves in Latin America and the Colombian Government is encouraging the development of coal-related infrastructure. Opportunities for Australian business range from infrastructure development, concessions, mine system operation, coal washing and remote mine site catering. Colombia also produces and has significant reserves of gold, silver, platinum and iron ore.Is important to know that Colombia is second only to Brazil as a source of international students to Australia from South America, (3000 students enrolled in studies at educational institutions in Australia in 2006) Australian education fairs in Colombia consistently attract thousands of interested students. Interest in Australia as a quality source of education has grown rapidly since 1996: more than 12,000 Colombian students have studied in Australia during the past decade, including one of President Uribe’s children (who studied in Sydney). To encourage this trend further, some universities in Australia now offer scholarships to Colombian students.While the majority of Colombian students undertake ELICOS courses (English Language Intensive Courses for Overseas Students) in Australia, there is also a large demand for university and vocational education and training placements.There is significant Colombian interest in Australian agribusiness expertise. The agribusiness sector provides potential opportunities for technical cooperation and technology transfer, especially in the sugar cane, dairy, livestock and tropical fruit industries. Bovine genetics offer great potential for Australian breeders of tropical breeds of cattle such as Brahman cattle. Austrade has worked closely with AQIS and the Colombian sanitary body ICA to draft protocols allowing the importation of Australian embryos. Australia hopes to have protocols in place in 2007 to allow for the importation of bovine semen. The 2006 World Brahman Breeder’s Congress held in Medellin Colombia attracted several Australian exhibitors and visitors.Other prospects include telecommunications services and equipment, rail and port infrastructure, and information technology. Colombia has also recently shown interest in defense related technology through contact with a range of Australian companies.Colombia’s tourist industry on the Atlantic Coast is experiencing growth and opportunities may exist for Australian manufactures of ferries, catamarans and leisure craft.Annex 1<br />COUNTRYIMPORT COMMODITIESIMPORTS PARTNERS (%)EXPORT COMMODITIESEXPORTS PARTNERS (%)MAPJAPAN machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materialsChina 20.5%,US 12%,Saudi Arabia 6.4%,UAE 5.5%, Australia 4.8%, South Korea 4.7%,Indonesia 4.2% (2006)transport equipment, motor vehicles, semiconductors, electrical machinery, chemicalsUS 22.8%,China 14.3%, South Korea 7.8%,Taiwan 6.8%, Hong Kong 5.6% (2006)CHINAmachinery and equipment, oil and mineral fuels, plastics, optical and medical equipment, organic chemicals, iron and steelJapan 14.6%, South Korea 11.3%, US 7.5%, Germany 4.8% (2006)machinery and equipment, plastics, optical and medical equipment, iron and steelUS 21%,Hong Kong 16%, Japan 9.5%, South Korea 4.6%,Germany 4.2% (2006)VANUATUmachinery and equipment, foodstuffs, fuelsAustralia 20.4%,Japan 19.6%, Singapore 12%, NZ 8.8%,Fiji 7.6%,China 7.4%, New Caledonia 4.2% (2006)copra, beef, cocoa, timber, kava, coffeeThailand 58.7%,India 16.4%, Japan 11.2% (2006)SOLOMON ISLANDSfood, plant and equipment, manufactured goods, fuels, chemicalsAustralia 25.3%, Singapore 23.4%,Japan 7.8%,NZ 5%,Fiji 4.2%, Papua New Guinea 4.1% (2006)timber, fish, copra, palm oil, cocoaChina 45.5%, South Korea 14%,Japan 8.5%, Thailand 4.4%, Italy 4.2% (2006)TONGAfoodstuffs, machinery and transport equipment, fuels, chemicalsFiji 30.1%,NZ 27.5%,US 8.2%, Australia 7.5%, France 5.7%, UK 4.6% (2006)squash, fish, vanilla beans, root cropsUS 42.5%, Japan 29.7%, NZ 8.8%,Fiji 4.2% (2006)AUSTRALIAmachinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum productsChina 14.4%, US 14.1%, Japan 9.6%, Singapore 6%, Germany 5.1% (2006)coal, gold, meat, wool, alumina, iron ore, wheat, machinery and transport equipmentJapan 19.6%, China 12.3%, South Korea 7.5%,US 6.2%,India 5.5%,NZ 5.5%,UK 5% (2006)MICRONESIAfood, manufactured goods, machinery and equipment, beveragesUS, Japan, Hong Kong (2006)fish, garments, bananas, black pepper, sakau (kava), betel nutJapan,US,Guam (2006)NEW CALCEDONIAmachinery and equipment, fuels, chemicals, foodstuffsFrance 38.7%, Singapore 15.2%, Australia 11.3%,NZ 4.8% (2006)ferronickels, nickel ore, fishJapan 16.5%, France 12.7%, China 10.2%, Spain 8.9%, South Korea 8.4%,Belgium 6.9%, Italy 5.7%, Australia 4.4% (2006)SAMOAmachinery and equipment, industrial supplies, foodstuffsNZ 21.3%,Fiji 14.6%, Singapore 13.1%, Australia 8.6%, Japan 8.5%,US 6.2%, Indonesia 5%, China 4.4% (2006)fish, coconut oil and cream, copra, taro, automotive parts, garments, beerAustralia 42.8%, American Samoa 29.1%, US 3.3% (2006)NEW ZEALANDmachinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plasticsAustralia 20.5%,China 12.3%, US 11.8%, Japan 9.2%, Germany 4.4%, Singapore 4.4% (2006)dairy products, meat, wood and wood products, fish, machineryAustralia 20.5%,US 13.1%, Japan 10.3%, China 5.4%,UK 4.9% (2006)COOK ISLANDSfoodstuffs, textiles, fuels, timber, capital goodsNZ 61%,Fiji 19%,US 9%, Australia 6%, Japan 2% (2006)copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothingAustralia 34%, Japan 27%,NZ 25%,US 8% (2006)PAPUA NEW GUINEAmachinery and transport equipment, manufactured goods, food, fuels, chemicalsAustralia 52.3%, Singapore 12.6%,China 5.9%, Japan 4.4% (2006)oil, gold, copper ore, logs, palm oil, coffee, cocoa, crayfish, prawnsAustralia 30.1%,Japan 8.1%, China 5.7% (2006)NIUEfood, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, drugsNew Zealand mainly, Fiji, Japan, Samoa, Australia, US (2006)canned coconut cream, copra, honey, vanilla, passion fruit products, pawpaws, root crops, limes, footballs, stamps, handicraftsNew Zealand mainly, Fiji, Cook Islands, Australia (2006)FRENCH POLYNESIAfuels, foodstuffs, machinery and equipmentFrance 52.7%, Singapore 14.9%,NZ 6.8%,US 6.6% (2006)cultured pearls, coconut products, mother-of-pearl, vanilla, shark meatFrance 46.3%, Japan 20.8%, Niger 12.8%, US 12.5% (2006)FIJImanufactured goods, machinery and transport equipment, petroleum products, food, chemicalsSingapore 29%, Australia 23.4%,NZ 16.9%, China 4.7% (2006)sugar, garments, gold, timber, fish, molasses, coconut oilUS 15.5%, Australia 12.8%,UK 12.5%, Bermuda 7.9%, Japan 4.9%, Samoa 4.3% (2006)WALLIS AND FUTUNAchemicals, machinery, passenger ships, consumer goodsFrance 97%, Australia 2%, NZ 1% (2006)copra, chemicals, construction materialsItaly 40%, Croatia 15%, US 14%, Denmark 13% (2006)<br />BIBLOGRAFIA<br /><ul><li>Revista Finanzas y Desarrollo. 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