Contents show
Asia-Pacific Economic Cooperation (APEC)
- The Asia-Pacific Economic Cooperation is a regional economic forum and was formed in 1989.
- Aim of the grouping – “leverage the growing interdependence of the Asia-Pacific and create greater prosperity for the people of the region through regional economic integration”.
- The focus of APEC has been on trade and economic issues and hence, it terms the countries as “economies”.
- It has been operating on the basis of non-binding commitments with decisions taken through commitments and consensus undertaken on a voluntary basis.
Member Countries:
- Currently, APEC has 21 members.
- The criterion for membership, however, is that each member must be an independent economic entity, rather than a sovereign state.
- The grouping’s current members are Australia, Brunei, Hong Kong, 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 Taiwan.
Significance of APEC
- Since its formation, the grouping championed the lowering of trade tariffs, free trade, and economic liberalisation.
- As per the US State Department, during its first five years of operation, APEC established its core objectives.
- In the Seoul Declaration (1991), APEC member economies proclaimed the creation of a liberalised free trade area around the Pacific Rim as the principal objective of the organisation.
- APEC accounts for nearly 62 per cent of global GDP and nearly half of global trade.