APEC stands for Asia-Pacific Economic Cooperation. It is an organisation of economies in the Asia-Pacific region formed to foster economic cooperation and trade among them with a view of enhancing international trade. Its members work together to reduce trade barrier, open investment opportunities, ease the exchange of goods, services, resources and technical know-how, and strengthen economic and technical cooperation among them.
APEC member-economies include the major economies of the region and the most Dynamic and fastest-growing economies in the world. The 21 economies together constitute more than half of the world's annual output and almost half of the world's total merchandise trade.
APEC officially started in 1989 when trade and economic ministers of 12 countries in the Asia-Pacific region met in Canberra, Australia on 6-7 November to advance the process of economic cooperation among countries in the region. Former Australian Prime Minister Bob Hawke suggested the creation of APEC following various attempts to create an economic cooperation group in the region.
The founding members of APEC are; Australia, Brunei Darussalam, Canada, Indonesia, Japan, Republic Of Korea, Malaysia, New Zealand, The Philippines, Singapore, Thailand, and The United States.
APEC was formed because of the following factors: fear over the possibe collapse of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), which could result in increased protectionism and the emergence of new restrictive trade blocs; and sweeping political and economic changes in the Soviet Union and Europe.
The following are the objectives of APEC, as outlined in the 1991 Seoul APEC Declaration:
to sustain the growth and development of the region for the common good of its people and, in this way, to contribute to the growth and development of the world economy;
>to enhance the positive gains, both for the region and the world economy, resulting from increasing economic interdependence, to include encouraging the flow of goods, services, capital and technology;
>to develop and strengthen the open multilateral trading system in the interest of Asia-Pacific and all other economies;and to reduce barriers to trade in goods and services and investment among participants in a manner consistent with GATT principles, where applicable, and without detriment to other economies.
Is APEC a trade bloc?
No, since the beginning, the APEC member-economies agreed not to make APEC a trade bloc. The reason behind this resolve is that trade blocs tend to be inward-looking and exclude non-members. "Every economy represented in Canberra relies heavily on a strong and open multilateral trading system, and none believes that Asia-Pacific Economic Cooperation should be directed to the information of a trading bloc." the founders declared.
The APEC members have resolved to "purse free and open trade and investment in the Asia-Pacific in a manner that will encourage and strengthen trade and investment liberalization in the world as a whole. Thus, the outcome of trade and investment liberalization in the Asia-Pacific will not only be the actual reduction of barriers among
APEC economies but also between APEC economies and non-APEC economies.
What is the nature of APEC cooperation?
APEC is a consultation, not a negotiation forum. All commitments made by APEC member economies are voluntary; depends on what an economy is willing to give on the basis of its economic status. The association operates by consensus.
Who heads APEC? How often do the leaders meet?
The chairmanship of APEC rotates yearly among the leaders of its member economies, with the specific chair chosen in advance by consensus. Recognizing ASEAN's importance in APEC, there is a special provision that the chairmanship be held every other year by an ASEAN member country. As is the tradition, the APEC chair hosts the APEC leaders summit and the consultative meetings among senior trade and foreign affairs officials. The first leaders summit was held in Blake Island near Seattle in the United States in 1993.
Senior officials of the member-economies hold a series of consultative meetings in between the APEC leaders summit, which is usually held in November.
The APEC leaders' summit, which is attended by the heads of government of most member-economies, is the culminating activity in the yearly APEC meetings.
During the summit, the leaders discuss the different proposals by senior officials for pursuing economic cooperation and agree on a common stand.
The ultimate results of the year-long series of consultative activities are contained in the APEC leader's declaration.
>to enhance the positive gains, both for the region and the world economy, resulting from increasing economic interdependence, to include encouraging the flow of goods, services, capital and technology;
>to develop and strengthen the open multilateral trading system in the interest of Asia-Pacific and all other economies;and to reduce barriers to trade in goods and services and investment among participants in a manner consistent with GATT principles, where applicable, and without detriment to other economies.
Is APEC a trade bloc?
No, since the beginning, the APEC member-economies agreed not to make APEC a trade bloc. The reason behind this resolve is that trade blocs tend to be inward-looking and exclude non-members. "Every economy represented in Canberra relies heavily on a strong and open multilateral trading system, and none believes that Asia-Pacific Economic Cooperation should be directed to the information of a trading bloc." the founders declared.
The APEC members have resolved to "purse free and open trade and investment in the Asia-Pacific in a manner that will encourage and strengthen trade and investment liberalization in the world as a whole. Thus, the outcome of trade and investment liberalization in the Asia-Pacific will not only be the actual reduction of barriers among
APEC economies but also between APEC economies and non-APEC economies.
What is the nature of APEC cooperation?
APEC is a consultation, not a negotiation forum. All commitments made by APEC member economies are voluntary; depends on what an economy is willing to give on the basis of its economic status. The association operates by consensus.
Who heads APEC? How often do the leaders meet?
The chairmanship of APEC rotates yearly among the leaders of its member economies, with the specific chair chosen in advance by consensus. Recognizing ASEAN's importance in APEC, there is a special provision that the chairmanship be held every other year by an ASEAN member country. As is the tradition, the APEC chair hosts the APEC leaders summit and the consultative meetings among senior trade and foreign affairs officials. The first leaders summit was held in Blake Island near Seattle in the United States in 1993.
Senior officials of the member-economies hold a series of consultative meetings in between the APEC leaders summit, which is usually held in November.
The APEC leaders' summit, which is attended by the heads of government of most member-economies, is the culminating activity in the yearly APEC meetings.
During the summit, the leaders discuss the different proposals by senior officials for pursuing economic cooperation and agree on a common stand.
The ultimate results of the year-long series of consultative activities are contained in the APEC leader's declaration.
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