rkets. Aggressive and frequently unfair trading practices by economic superpowers such as the United States and Japan create additional problems and barriers for mid-level economies such as that in Australia.
The Asia-Pacific Economic Cooperation (APEC) forum, which held its first meeting in November 1993, represents an attempt to extend freer trade throughout the Pacific Basin area. The APEC meeting occurred largely at the urging of Australia, because the Australian government recognizes that mid-level economies such as that of Australia must have relatively free access to international markets. Freer trade on such a broad scale, however, may be difficult to attain if GATT is considered as an example. While efforts at increased regional economic integration continues, the member countries of GATT remain unable to settle their differences. A case in point is the statement by former President Bush to the Australian parliament. The President told the Australians that the United States had no intention of abandoning its agricultural subsidies, or of relaxing import restrictions on Australian beef. The President made this statement on a stop-over on his way to Japan, where he intended to berate the Japanese for their import restrictions against American products. That the two conflicting actions made American trade policy fulfilled the requirements for an oxymoron appears to have been lost on President Bush. European and Japanese attitudes are as self-contradictory as are those of the Americans. A continuation of such policies and positions will, indeed, bring about a compartmentalized economic world by 2000.
The basic model of international trade is structured around the concept of comparative advantage. The theory of comparative advantage holds that mutually advantageous trade between countries will always be available, because trade patter
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