The Asia-Pacific Economic Cooperation (APEC) is a dynamic group of 21 members, established in 1989 with the primary mission of promoting free trade and sustainable development among Pacific Rim economies. This group endeavors to simplify cross-border trade and investment, and its influence spans multiple sectors.
Key Takeaways
- APEC comprises 21 member economies striving for free trade and sustainable growth.
- The group includes the U.S. among other prominent Pacific Rim economies.
- Activities encompass intellectual property rights protection, emergency preparedness, and other micro causes through various sub-groups.
- Tangible achievements include reductions in tariffs, improved customs efficiencies, and narrowing the disparity between developed and developing economies.
Understanding the Asia-Pacific Economic Cooperation (APEC)
APEC aims to ensure seamless movement of goods, services, capital, and labor across borders. This effort includes improving customs efficiency, fostering favorable business climates within member economies, and harmonizing regulations across the region.
The establishment of APEC was a response to heightened economic interdependence among Asia-Pacific countries and mirrored growing numbers of economic blocs in the late 20th century, such as the European Union and NAFTA.
Nations Comprising APEC
Originally, APEC comprised 12 members: Australia, Brunei, Canada, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and the U.S. Eventually, members such as China, Hong Kong, Taiwan, Mexico, Papua New Guinea, Chile, Peru, Russia, and Vietnam joined the coalition.
APEC emphasizes trade and economic issues, using the term “economies” for its members to navigate complex diplomatic sensitivities, like the status of Taiwan and Hong Kong. Currently, three organizations observe APEC’s activities: the Association of Southeast Asian Nations (ASEAN), the Pacific Economic Cooperation Council (PECC), and the Pacific Islands Forum (PIF).
APEC’s Impactful Actions and Lofty Goals
In a landmark 1994 summit, APEC set a visionary goal to establish free trade and investment in the Asia-Pacific by 2010 for developed economies and by 2020 for developing ones. In 1995, APEC launched the Osaka Action Agenda to enhance trade liberalization and foster economic and technical cooperation.
Though the group’s unanimous decision-making approach can slow progress, APEC remains a robust platform for cooperation and regional dialogue. It funds around 100 projects annually, with a budget of approximately USD 15.4 million as of 2018.
APEC’s Sub-Groups Driving Specialized Initiatives
The policy support unit and special working groups of APEC tackle various economic development efforts. Key areas of focus include:
- Gender Issues: APEC promotes the economic integration of women by sponsoring the policy partnership on women and the economy. The region’s labor force comprises an estimated 600 million women.
- Intellectual Property Rights: The Intellectual Property Rights Experts’ Group (IPEG) examines and collaborates on the enforcement of IP rights within the region, supporting the implementation of the WTO’s TRIPS agreement.
- Emergency Preparedness: The Emergency Preparedness Working Group (EPWG) enhances regional resilience to natural and man-made disasters through partnerships and information-sharing, addressing challenges like tsunamis, typhoons, earthquakes, and volcanic eruptions.
By leveraging diverse areas of expertise and collaboration, APEC continues to foster economic growth and stability across the Asia-Pacific region.
Related Terms: NAFTA, EU, ASEAN, WTO.
References
- Asia-Pacific Economic Cooperation. “About APEC”.
- Asia-Pacific Economic Cooperation. “1994 Leaders’ Declaration”.
- Asia-Pacific Economic Cooperation. “Projects - 2020”.
- Asia-Pacific Economic Cooperation. “Action Plans”.
- Asia-Pacific Economic Development. “Policy Support Unit”.
- Asia-Pacific Economic Cooperation. “Policy Partnership on Women and the Economy”.
- Asia-Pacific Economic Cooperation. “Intellectual Property Rights Expert Group”.
- Asia-Pacific Economic Cooperation. “Emergency Preparedness Working Group”.
