Asia-Pacific Economic Cooperation (APEC)

International Finance

Asia-Pacific Economic Cooperation (APEC)

08 Dec 2023 Zinkpot 165

The Asia-Pacific Economic Cooperation (APEC) is a regional intergovernmental forum that promotes economic cooperation and facilitates trade and investment in the Asia-Pacific region.
Foundation and Establishment: APEC was established in 1989 in response to the growing economic interdependence among Asia-Pacific economies. The idea was to create a forum for open dialogue and cooperation to promote economic growth and prosperity in the region.
Member Economies: The grouping's current members are Australia, Brunei, Hong Kong (which the APEC website refers to as Hong Kong, China), New Zealand, Papua New Guinea, the Philippines, Indonesia, China, Japan, South Korea, Russia, Canada, the United States, Mexico, Peru, Chile, Malaysia, Vietnam, Singapore, Thailand and Chinese Taipei (Taiwan).
Principles: APEC operates based on principles of consensus, non-binding commitments, and voluntary cooperation. Decisions are made through consultation and mutual agreement, and APEC does not create legally binding obligations.
Goals and Objectives: APEC's primary goals include promoting free and open trade and investment, economic integration, and sustainable development in the Asia-Pacific region.
It aims to reduce trade barriers, enhance economic efficiency, and foster cooperation among member economies.
Leaders' Meetings: APEC holds annual Leaders' Meetings where heads of state or government from member economies gather to discuss economic issues, regional challenges, and cooperation initiatives. These meetings provide an opportunity for leaders to engage in dialogue and make high-level commitments.
Ministerial Meetings: APEC also holds ministerial-level meetings covering various sectors such as trade, finance, and foreign affairs. These meetings focus on policy discussions and coordination among member economies.
Working Groups: APEC has numerous working groups and committees that address specific areas of economic cooperation, including trade and investment, finance, energy, and sustainable development.
Free Trade and Regional Economic Integration: APEC promotes the concept of free and open trade, aiming to achieve the Bogor Goals, which include the goal of free and open trade and investment in the Asia-Pacific region by 2020 for developed economies and 2025 for developing economies.
Individual Action Plans: Member economies develop Individual Action Plans (IAPs) outlining their strategies and commitments to achieving APEC's goals.
Subsidiary Forums: APEC engages in various subsidiary forums and activities, involving businesses, academics, and other stakeholders to contribute to its objectives.
APEC aims to achieve free and open trade and investment in the Asia-Pacific region, and it has contributed to the reduction of tariffs and other trade barriers, leading to the expansion of economic growth and international trade.
India is not a part of the Asia-Pacific Economic Cooperation (APEC). Although India has been seeking to join APEC since the late 1990s, it remains an observer in the organization.