Asia-Pacific Economic Cooperation:
US President Joe Biden and Chinese counterpart Xi Jinping recently warned of turbulent times ahead, in remarks at an Asia-Pacific economic summit in Lima overshadowed by Donald Trump’s impending return to the White House.
- Asia-Pacific Economic Cooperation (APEC) is a regional economic forum established in 1989 with the purpose of promoting free trade and investment and enhancing cooperation in social and development areas to advance prosperity, sustainable, and inclusive economic growth in the region.
- APEC ensures that goods, services, investments, and people move easily across borders.
- Members facilitate this trade through faster customs procedures at borders, more favorable business climates behind the border, and aligning regulations and standards across the region.
- APEC has contributed to the reduction of barriers to trade in the region over time, leading to the expansion of economic growth and international trade.
- Currently, APEC has 21 members. The 21 members are not necessarily 21 countries.
- Each member is considered an “economy” since APEC is primarily concerned with trade and economic dealings.
- 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.
- The 21 APEC member economies account for nearly 40 percent of the global population, almost half of the global trade, and approximately 60 percent of global GDP.
- APEC holds annually the APEC Economic Leaders Meeting, attended by the heads of government of all APEC members.
- Decisions made within APEC are reached by consensus, and commitments are undertaken on a voluntary basis.
- APEC’s activities are coordinated by the APEC Secretariat located in Singapore.
