Asia-Pacific Economic Cooperation or APEC
APEC started as an informal discussion group in 1989 and has evolved into a leading forum for promoting economic growth, cooperation, trade, and investment in the Asia-Pacific region.
In 1993, an APEC Secretariat was set up in Singapore to help with the forum’s activities.
The “Bogor Goals” are essential for achieving APEC’s vision of free and open trade and investment in the Asia-Pacific region by 2010 for developed economies and by 2020 for developing ones. These goals were set by APEC leaders in 1994 in Bogor, Indonesia.
To reach these goals, APEC member countries created a plan in 1995 in Osaka, Japan. This plan focuses on three main areas, known as the ‘Three Pillars’ of APEC: Trade and Investment Liberalisation, Business Facilitation, and Economic and Technical Cooperation.
APEC has 21 members, known as ‘member economies.’ This term is used because APEC focuses mainly on trade and economic issues, and the members interact as economic entities.APEC’s 21 member economies are Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; and Viet Nam.
APEC and the WTO work together towards the shared aim of promoting free and open trade and investment globally.APEC operates on principles of non-binding commitments, open discussions, and mutual respect for all members’ perspectives. Unlike the WTO and other multilateral trade organizations, APEC does not impose treaty obligations on its participants. Decisions in APEC are made through consensus, and commitments are voluntary.
APEC functions with the approval of the Economic Leaders and Ministers from its member economies, who gather throughout the year to shape the future of trade and investment cooperation in the Asia-Pacific region. At the highest level, these leaders oversee and safeguard the APEC process. During the APEC Economic Leaders’ Meeting, held annually at the year’s end, a declaration is issued that sets the priorities for APEC for the upcoming year. Ministers from different sectors, Senior Officials, and members of various APEC forums convene throughout the year to initiate new projects, monitor the progress of current programs, and implement directives from the leaders.
APEC offers various benefits to its member economies. It unites the perspectives of 21 member economies and the business community to address regional issues, fostering idea exchange and future planning. For developing economies, APEC helps create policy frameworks and systems to tackle contemporary challenges like transparency and governance. It also allows these economies to contribute to setting APEC’s agenda. Businesses benefit from reduced trade barriers and smoother cross-border trade.
APEC Host Countries details from 2021-2023 and 2024
2021 – New Zealand
2022 – Thailand
2023 – United States of America
2024 – Peru
Source of Information: www.apec.org