Asia-Pacific Economic Cooperation

Asia-Pacific Economic Cooperation (APEC)
APEC member economies shown in green.
Headquarters  Singapore
Type Economic meeting

21 members

Peter O'Neill
 Executive Director
Alan Bollard
Establishment 1989

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim member economies[2] that promotes free trade throughout the Asia-Pacific region. It was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world; to defuse fears that highly industrialised Japan (a member of G7) would come to dominate economic activity in the Asia-Pacific region; and to establish new markets for agricultural products and raw materials beyond Europe.[3]

An annual APEC Economic Leaders' Meeting is attended by the heads of government of all APEC members except Republic of China (Taiwan) (which is represented by a ministerial-level official under the name Chinese Taipei as economic leader).[4] The location of the meeting rotates annually among the member economies, and a famous tradition, followed for most (but not all) summits, involves the attending leaders dressing in a national costume of the host country. APEC has three official observers: the Association of Southeast Asian Nations Secretariat, the Pacific Economic Cooperation Council and the Pacific Islands Forum Secretariat.[5] APEC's Host Economy of the Year is considered to be invited in the first place for geographical representation to attend G20 meetings following G20 guidelines.[6][7][8][9]


In January 1989, Australian Prime Minister Bob Hawke called for more effective economic cooperation across the Pacific Rim region. This led to the first meeting of APEC in the Australian capital of Canberra in November, chaired by Australian Foreign Affairs Minister Gareth Evans. Attended by ministers from twelve countries, the meeting concluded with commitments for future annual meetings in Singapore and South Korea.

Countries of the Association of Southeast Asian Nations (ASEAN) opposed the initial proposal, instead proposing the East Asia Economic Caucus which would exclude non-Asian countries such as the United States, Canada, Australia, and New Zealand. This plan was opposed because of the member countries in the America Region, and strongly criticized by Japan and the United States.

The first APEC Economic Leaders' Meeting occurred in 1993 when U.S. President Bill Clinton, after discussions with Australian Prime Minister Paul Keating, invited the heads of government from member economies to a summit on Blake Island.[10] He believed it would help bring the stalled Uruguay Round of trade talks back on track. At the meeting, some leaders called for continued reduction of barriers to trade and investment, envisioning a community in the Asia-Pacific region that might promote prosperity through cooperation. The APEC Secretariat, based in Singapore, was established to coordinate the activities of the organization.

During the meeting in 1994 in Bogor, Indonesia, APEC leaders adopted the Bogor Goals that aim for free and open trade and investment in the Asia-Pacific by 2010 for industrialized economies and by 2020 for developing economies. In 1995, APEC established a business advisory body named the APEC Business Advisory Council (ABAC), composed of three business executives from each member economy.

In April 2001, the APEC, in collaboration with five other international organisations (Eurostat, IEA, OLADE, OPEC and the UNSD) launched the Joint Oil Data Exercise, which in 2005 became the Joint Organisations Data Initiative (JODI).

Meeting locations

The location of the meeting is rotated annually among the members.

Year#DatesCountryCityHost Leader
19891stNovember 6–7 AustraliaCanberraPrime Minister Bob Hawke
19902ndJuly 29–31 SingaporeSingaporePrime Minister Goh Chok Tong
19913rdNovember 12–14 South KoreaSeoulPresident Roh Tae-woo
19924thSeptember 10–11 ThailandBangkokPrime Minister Chuan Leekpai
19935thNovember 19–20 United StatesBlake IslandPresident Bill Clinton
19946thNovember 15–16 IndonesiaBogorPresident Suharto
19957thNovember 18–19 JapanOsakaPrime Minister Tomiichi Murayama
19968thNovember 24–25 PhilippinesSubicPresident Fidel Ramos
19979thNovember 24–25 CanadaVancouverPrime Minister Jean Chretien
199810thNovember 17–18 MalaysiaKuala LumpurPrime Minister Mahathir Mohamad
199911thSeptember 12–13 New ZealandAucklandPrime Minister Jenny Shipley
200012thNovember 15–16 BruneiBandar Seri BegawanSultan Hassanal Bolkiah
200113thOctober 20–21 ChinaShanghaiPresident Jiang Zemin
200214thOctober 26–27 MexicoLos CabosPresident Vicente Fox
200315thOctober 20–21 ThailandBangkokPrime Minister Thaksin Shinawatra
200416thNovember 20–21 ChileSantiagoPresident Ricardo Lagos
200517thNovember 18–19 South KoreaBusanPresident Roh Moo-hyun
200618thNovember 18–19 VietnamHanoiPresident Nguyễn Minh Triết
200719thSeptember 8–9 AustraliaSydneyPrime Minister John Howard
200820thNovember 22–23 PeruLimaPresident Alan Garcia Perez
200921stNovember 14–15 SingaporeSingaporePrime Minister Lee Hsien Loong
201022ndNovember 13–14 JapanYokohamaPrime Minister Naoto Kan
201123rdNovember 12–13 United StatesHonoluluPresident Barack Obama
201224thSeptember 9–10 RussiaVladivostokPresident Vladimir Putin
201325thOctober 5–7 IndonesiaBaliPresident Susilo Bambang Yudhoyono
201426thNovember 10–11 ChinaBeijingPresident Xi Jinping
201527thNovember 18–19 PhilippinesPasayPresident Benigno Aquino III
201628thNovember 19–20 PeruLimaPresident Pedro Pablo Kuczynski
201729thNovember 10–11 VietnamDa NangPresident Trần Đại Quang
201830thNovember 18 Papua New GuineaPort MoresbyPrime Minister Peter O'Neill
201931stTBA ChileTBAPresident Sebastián Piñera
202032ndTBA MalaysiaTBAPrime Minister Mahathir Mohamad
202133rdTBA New ZealandTBA
202234thTBA ThailandTBA
202335thTBA MexicoTBA
202537thTBA South KoreaTBA

Member economies

APEC currently has 21 members, including all countries with a coastline on the Pacific Ocean. However, the criterion for membership is that the member is a separate economy, rather than a state. As a result, APEC uses the term member economies rather than member countries to refer to its members. One result of this criterion is that membership of the forum includes Taiwan (officially the Republic of China, participating under the name "Chinese Taipei") alongside People's Republic of China (see Cross-Strait relations), as well as Hong Kong, which entered APEC as a British colony but it is now a Special Administrative Region of the People's Republic of China. APEC also includes three official observers: ASEAN, the Pacific Islands Forum and the Pacific Economic Cooperation Council.[2]

Member economie(s) Name as used in APEC Date of accession GDP (PPP) in 2017
(Millions of Int$)
 Australia Australia November 1989 1,235,297
 Brunei Brunei Darussalam November 1989 32,958
 Canada Canada November 1989 1,763,785
 Indonesia Indonesia November 1989 3,242,966
 Japan Japan November 1989 5,405,072
 South Korea Republic of Korea November 1989 2,026,651
 Malaysia Malaysia November 1989 926,081
 New Zealand New Zealand November 1989 185,748
 Philippines The Philippines November 1989 874,518
 Singapore Singapore November 1989 513,744
 Thailand Thailand November 1989 1,228,941
 United States The United States November 1989 19,362,129
 Taiwan Chinese Taipei[lower-alpha 1] November 1991 1,175,308
 Hong Kong Hong Kong, China[11] November 1991 453,019
 China People's Republic of China November 1991 23,122,027
 Mexico Mexico November 1993 2,406,087
 Papua New Guinea Papua New Guinea November 1993 30,839
 Chile Chile November 1994 452,095
 Peru Peru November 1998 424,639
 Russia Russia November 1998 4,000,096
 Vietnam Viet Nam November 1998 643,902


Member Leader position State leader
 Australia Prime Minister Scott Morrison
 Brunei Sultan Hassanal Bolkiah
 Canada Prime Minister Justin Trudeau
 Chile President Sebastián Piñera
 People's Republic of China President Xi Jinping
 Republic of China (Taiwan)
(Chinese Taipei)
President/Presidential Envoy Tsai Ing-Wen (represented by James Soong)[lower-alpha 1]
 Hong Kong Chief Executive Carrie Lam
 Indonesia President Joko Widodo
 Japan Prime Minister Shinzō Abe
 South Korea President Moon Jae-in
 Malaysia Prime Minister Mahathir Mohamad
 Mexico President Enrique Peña Nieto
 New Zealand Prime Minister Jacinda Ardern
 Papua New Guinea Prime Minister Peter O'Neill
 Peru President Martín Vizcarra
 Philippines President Rodrigo Duterte
 Russia President Vladimir Putin
 Singapore Prime Minister Lee Hsien Loong
 Thailand Prime Minister Prayut Chan-o-cha
 United States President Donald Trump
 Vietnam President Trần Đại Quang

Possible enlargement

India has requested membership in APEC, and received initial support from the United States, Japan,[12] Australia and Papua New Guinea.[13] Officials have decided not to allow India to join for various reasons, considering that India does not border the Pacific Ocean, which all current members do.[14] However, India was invited to be an observer for the first time in November 2011.[15]

Bangladesh,[16] Pakistan,[16] Sri Lanka,[16] Macau,[16] Mongolia,[16] Laos,[16] Cambodia,[17] Costa Rica,[18] Colombia,[18][19] Panama,[18] and Ecuador,[20] are among a dozen other economies that have applied for membership in APEC. Colombia applied for APEC's membership as early as in 1995, but its bid was halted as the organisation stopped accepting new members from 1993 to 1996,[21] and the moratorium was further prolonged to 2007 due to the 1997 Asian Financial Crisis. Guam has also been actively seeking a separate membership, citing the example of Hong Kong, but the request is opposed by the United States, which currently represents Guam.

Business facilitation

APEC has long been at the forefront of reform efforts in the area of business facilitation. Between 2002 and 2006 the costs of business transactions across the region was reduced by 6%, thanks to the APEC Trade Facilitation Action Plan (TFAPI). Between 2007 and 2010, APEC hopes to achieve an additional 5% reduction in business transaction costs. To this end, a new Trade Facilitation Action Plan has been endorsed. According to a 2008 research brief published by the World Bank as part of its Trade Costs and Facilitation Project, increasing transparency in the region's trading system is critical if APEC is to meet its Bogor Goal targets.[22] The APEC Business Travel Card, a travel document for visa-free business travel within the region is one of the concrete measures to facilitate business. In May 2010 Russia joined the scheme, thus completing the circle.[23]

Proposed FTAAP

APEC first formally started discussing the concept of a Free Trade Area of the Asia-Pacific (FTAAP) at its summit in 2006 in Hanoi. However, the proposal for such an area has been around since at least 1966 and Japanese economist Kiyoshi Kojima's proposal for a Pacific Free Trade agreement proposal. While it gained little traction, the idea led to the formation of Pacific Trade and Development Conference and then the Pacific Economic Cooperation Council in 1980 and then APEC in 1989.

In the wake of the 2006 summit, economist C. Fred Bergsten advocated a Free Trade Agreement of Asia-Pacific, including the United States amongst the proposed parties to any agreement at that time.[24] His ideas convinced the APEC Business Advisory Council to support this concept. Relatedly, ASEAN and existing free trade agreement (FTA) partners are negotiating as Regional Comprehensive Economic Partnership (RCEP), not officially including Russia.[25] The Trans-Pacific Partnership (TPP) without China or Russia involved has become the US-promoted trade negotiation in the region. At the APEC summit in Beijing in 2014, the three plans were all in discussion.[26] President Obama hosted a TPP meeting at the US Embassy in Beijing in advance of the APEC gathering.[27]

The proposal for a FTAAP arose due to the lack of progress in the Doha round of World Trade Organization negotiations, and as a way to overcome the "noodle bowl" effect created by overlapping and conflicting elements of the copious free trade agreements — there were approximately 60 free trade agreements in 2007, with an additional 117 in the process of negotiation in Southeast Asia and the Asia-Pacific region.[28] In 2012, ASEAN+6 countries alone had 339 free trade agreements - many of which were bilateral.[lower-alpha 2]

The FTAAP is more ambitious in scope than the Doha round, which limits itself to reducing trade restrictions. The FTAAP would create a free trade zone that would considerably expand commerce and economic growth in the region.[28][30] The economic expansion and growth in trade could exceed the expectations of other regional free trade areas such as the ASEAN Plus Three (ASEAN + China, South Korea and Japan).[31] Some criticisms include that the diversion of trade within APEC members would create trade imbalances, market conflicts and complications with nations of other regions.[30] The development of the FTAAP is expected to take many years, involving essential studies, evaluations and negotiations between member economies.[28] It is also affected by the absence of political will and popular agitations and lobbying against free trade in domestic politics.[28][32]

At the 2014 APEC summit in Beijing, APEC leaders agreed to launch "a collective strategic study" on the FTAAP and instruct officials to undertake the study, consult stakeholders and report the result by the end of 2016.[33] APEC Executive Director Alan Bollard revealed in the Elite Talk show that FTAAP will be APEC's big goal out into the future.[34]

The Trans-Pacific Partnership includes 12 of the 21 APEC members and has provisions for the accession of other APEC members, five of which have expressed interest in membership.

APEC Study Centre Consortium

In 1993, APEC Leaders decided to establish a network of APEC Study Centres among universities and research institutions in member economies.[35]

Notable centers include:

APEC Business Advisory Council

The APEC Business Advisory Council (ABAC) was created by the APEC Economic Leaders in November 1995 with the aim of providing advice to the APEC Economic Leaders on ways to achieve the Bogor Goals and other specific business sector priorities, and to provide the business perspective on specific areas of cooperation.[44][45]

Each economy nominates up to three members from the private sector to ABAC. These business leaders represent a wide range of industry sectors. ABAC provides an annual report to APEC Economic Leaders containing recommendations to improve the business and investment environment in the Asia-Pacific region, and outlining business views about priority regional issues. ABAC is also the only non-governmental organization that is on the official agenda of the APEC Economic Leader's Meeting.[46]

Annual APEC economic leaders' meetings

Since its formation in 1989, APEC has held annual meetings with representatives from all member economies. The first four annual meetings were attended by ministerial-level officials. Beginning in 1993, the annual meetings are named APEC Economic Leaders' Meetings and are attended by the heads of government from all member economies except Taiwan, which is represented by a ministerial-level official. The annual Leaders' Meetings are not called summits.

Meeting developments

In 1997, the APEC meeting was held in Vancouver. Controversy arose after officers of the Royal Canadian Mounted Police used pepper spray against protesters. The protesters objected to the presence of autocratic leaders such as Indonesian president Suharto.[47][48][49][50][51][52]

At the 2001 Leaders' Meeting in Shanghai, APEC leaders pushed for a new round of trade negotiations and support for a program of trade capacity-building assistance, leading to the launch of the Doha Development Agenda a few weeks later. The meeting also endorsed the Shanghai Accord proposed by the United States, emphasising the implementation of open markets, structural reform, and capacity building. As part of the accord, the meeting committed to develop and implement APEC transparency standards, reduce trade transaction costs in the Asia-Pacific region by 5 percent over 5 years, and pursue trade liberalisation policies relating to information technology goods and services.

In 2003, Jemaah Islamiah leader Riduan Isamuddin had planned to attack the APEC Leaders Meeting to be held in Bangkok in October. He was captured in the city of Ayutthaya, Thailand by Thai police on August 11, 2003, before he could finish planning the attack. Chile became the first South American nation to host the Leaders' Meeting in 2004. The agenda of that year was focused on terrorism and commerce, small and medium enterprise development, and contemplation of free agreements and regional trade agreements.

The 2005 Leaders' Meeting was held in Busan, South Korea. The meeting focused on the Doha round of World Trade Organization (WTO) negotiations, leading up to the WTO Ministerial Conference of 2005 held in Hong Kong in December. Weeks earlier, trade negotiations in Paris were held between several WTO members, including the United States and the European Union, centred on reducing agricultural trade barriers. APEC leaders at the summit urged the European Union to agree to reducing farm subsidies. In a continuation of the climate information sharing initiative established by APEC Climate Network working group, it was decided by the leaders to install the APEC Climate Center in Busan. Peaceful protests against APEC were staged in Busan, but the meeting schedule was not affected.

At the Leaders' Meeting held on November 19, 2006 in Hanoi, APEC leaders called for a new start to global free-trade negotiations while condemning terrorism and other threats to security. APEC also criticised North Korea for conducting a nuclear test and a missile test launch that year, urging the country to take "concrete and effective" steps toward nuclear disarmament. Concerns about nuclear proliferation in the region was discussed in addition to economic topics. The United States and Russia signed an agreement as part of Russia's bid to join the World Trade Organization.

The APEC Australia 2007 Leaders' Meeting was held in Sydney from 2–9 September 2007. The political leaders agreed to an "aspirational goal" of a 25% reduction of energy intensity correlative with economic development.[53] Extreme security measures including airborne sharpshooters and extensive steel-and-concrete barricades were deployed against anticipated protesters and potential terrorists. However, protest activities were peaceful and the security envelope was penetrated with ease by a spoof diplomatic motorcade manned by members of the Australian television program The Chaser, one of whom was dressed to resemble the Al-Qaeda leader Osama bin Laden.

The APEC USA 2011 Leaders' Meeting was held on Honolulu, Hawaii 8–13 November 2011.[54]

APEC leaders' group photo

At the end of the APEC Economic Leaders' Meeting, the leaders in attendance gather for what is officially known as the APEC Leaders' Family Photo. A long-standing tradition for this photo involved the attending leaders dressing in a costume that reflects the culture of the host member. The tradition dates back to the first such meeting in 1993 when then-U.S. President Bill Clinton insisted on informal attire and gave the leaders leather bombardier jackets. However, at the 2010 meeting, Japan opted to have the leaders dress in smart casual rather than the traditional kimono.[55] Similarly, when Honolulu was selected in 2009 as the site for the 2011 APEC meeting, U.S. President Barack Obama joked that he looked forward to seeing the leaders dressed in "flowered shirts and grass skirts". However, after viewing previous photos, and concerned that having the leaders dress in aloha shirts might give the wrong impression during a period of economic austerity, Obama decided that it might be time to end the tradition. Leaders were given a specially designed aloha shirt as a gift but were not required to wear it for the photo.[56] However at the 2013 conference in Bali, Indonesia, leaders wore a Batik outfit.


APEC has been criticised for promoting free trade agreements that would impose restrictions on national and local laws, which regulate and ensure labor rights, environmental protection and safe and affordable access to medicine.[57] According to the organization, it is "the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region" established to "further enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific community".[58] However, whether it has accomplished anything constructive remains debatable, especially from the viewpoints of European countries that cannot take part in APEC[59] and Pacific Island nations that cannot participate but will suffer its consequences.

See also

Other organisations of coastal states


  1. 1 2 Due to the complexities of the relations between it and the People's Republic of China, the Republic of China (ROC or "Taiwan") is not represented under its official name "Republic of China" or as "Taiwan". Instead, it participates in APEC under the name "Chinese Taipei". The President of the Republic of China does not attend the annual APEC Economic Leaders' Meeting in person. Instead, it is generally represented by a ministerial-level official responsible for economic affairs or someone designated by the president. See List of Chinese Taipei Representatives to APEC.
  2. "As of January 2012 ASEAN countries have 186 FTAs implemented, signed, under negotiation or under proposal/study, which is substantial progress since… 1992. The ASEAN+6 countries have a total of 339 FTAs, including between ASEAN countries and the '+6' countries."[29]


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