THE CONTEMPORARY WORLD

ASIA-PACIFIC
ECONOMIC
COOPERATION
A Report by Group 4
WHAT IS APEC?

-The Asia Pacific Economic Cooperation (APEC) is

a regional economic forum founded in 1989 to
capitalise the Asia-Pacific region's growing
interdependence. APEC members are referred to
as "economies" because the APEC cooperative
process is primarily concerned with trade and
economic issues, with members interacting with
one another as economic entities. It also
facilitates the movement of goods, services,
investment, and people across borders, and it
serves as a cooperative, multilateral economic
and trade forum.
Asia-Pacific Economic Cooperation:
•ITS PRIMARY PURPOSE IS TO PROMOTE SUSTAINABLE
ECONOMIC GROWTH, TRADE AND INVESTMENT, AND
PROSPERITY IN THE ASIA-PACIFIC REGION.

•APEC AIMS TO STRENGTHEN REGIONAL ECONOMIC

INTEGRATION BY REMOVING IMPEDIMENTS TO TRADE AND
INVESTMENT “AT THE BORDER”, ENHANCING SUPPLY CHAIN
CONNECTIVITY "ACROSS THE BORDER" AND IMPROVING THE
BUSINESS ENVIRONMENT "BEHIND THE BORDER."

•THE GOAL IS TO IMPROVE THE OPERATING ENVIRONMENT FOR

BUSINESS BY CUTTING RED TAPE AND OTHER BARRIERS.

•APEC ALSO HELPS MEMBER ECONOMIES BUILD THE

INSTITUTIONAL CAPACITY TO IMPLEMENT AND TAKE
ADVANTAGE OF THE BENEFITS OF TRADE AND INVESTMENT
REFORM.

•APEC SUPPORTS THE MULTILATERAL TRADE NEGOTIATIONS

UNDERWAY IN THE WORLD TRADE ORGANIZATION AND
COMPLEMENTS THE GOALS OF THE G20.
HOW APEC WAS
FORMED?
THE FORMATION OF THE ASIA-PACIFIC ECONOMIC COOPERATION (APEC) BEGAN WITH
A PROPOSAL FROM AUSTRALIAN PRIME MINISTER BOB HAWKE IN 1989 TO HOLD A
MEETING OF ASIA-PACIFIC LEADERS TO DISCUSS ECONOMIC ISSUES AND
COOPERATION IN THE REGION. THE PROPOSAL WAS ACCEPTED BY THE ORIGINAL APEC
MEMBERS INCLUDING AUSTRALIA, BRUNEI, CANADA, INDONESIA, JAPAN, SOUTH
KOREA, MALAYSIA, NEW ZEALAND, THE PHILIPPINES, SINGAPORE, AND THAILAND.

THE FIRST APEC ECONOMIC LEADERS' MEETING WAS HELD IN CANBERRA, AUSTRALIA
IN NOVEMBER 1989. DURING THIS MEETING, THE LEADERS IDENTIFIED THE MAIN GOAL
OF APEC TO STRENGTHEN THE ECONOMIC CONNECTION BETWEEN COUNTRIES IN THE
REGION, INCREASE TRADE AND INVESTMENT, AND CONTRIBUTE TO THE DEVELOPMENT
OF THE REGIONAL ECONOMY. THE CREATION OF APEC WAS DRIVEN BY THE
IMPORTANCE OF STRENGTHENING THE REGIONAL ECONOMY AND IMPROVING CROSS-
BORDER TRADE TO IMPROVE THE WELFARE OF COUNTRIES IN THE REGION.

SINCE THEN, APEC HAS GROWN WITH AN INCREASING NUMBER OF MEMBERS AND HAS
CONTINUED TO IMPLEMENT PROGRAMS AND PROJECTS TO FURTHER STRENGTHEN
ECONOMIC COOPERATION IN THE REGION. APEC CONTINUES TO PROVIDE A PLATFORM
FOR REGIONAL ECONOMIES TO HAVE A DIALOGUE AND COOPERATE TO FURTHER
STRENGTHEN THEIR ECONOMY AND IMPROVE THE LIVELIHOODS OF PEOPLE IN THE
REGION.
 INVESTMENT AND TRADE OPENING, BUSINESS FACILITATION,
AND ECONOMIC AND TECHNICAL COOPERATION ARE THE
THREE MAIN SECTORS ON WHICH APEC FOCUSES ITS WORKS. BY
PROMOTING BALANCED, INCLUSIVE, SUSTAINABLE,
INNOVATIVE, SECURE GROWTH AND DEVELOPING REGIONAL
ECONOMIC INTEGRATION, IT SEEKS TO INCREASE POSTERITY
FOR THE PEOPLE. THE ONLY GOVERNMENTAL ORGANIZATION IN
THE WORLD WHERE MEMBERS ARE NOT OBLIGATED BY
TREATY DUTIES IS APEC. IT FUNCTIONS ON THE PRINCIPLES OF
OPEN COMMUNICATION, NON-BINDING AGREEMENTS,
AND EQUAL REGARD FOR THE OPINIONS OF EACH MEMBER.
EVERY DECISION MADE BY APEC IS THE RESULT OF
CONSENSUS AMONG THE PARTICIPANTS AND VOLUNTARY
COMMITMENTS. ITS MAIN GOAL IS TO SUPPORT TRADE,
INVESTMENT, AND SUSTAINABLE ECONOMIC GROWTH IN THE
ASIA-PACIFIC AREA.
APEC IN THE PHILIPPINES
The Asia-Pacific Economic Cooperation (APEC) meetings were conducted in the Philippines for a full
month year in 2015, with the APEC Economic Leaders' Meeting taking place in Pasay, Metro Manila, on
November 18–19. The summit was held in the Philippines for the second time; the previous time was in
1996. Meetings took place despite simmering tensions between China and a number of countries,
including the Philippines, Japan, Vietnam, and Malaysia due to the former's aggressive policy of claiming
several uninhabited islands in the South China Sea. However, the Philippines decided to temporarily set
the issue aside in order to fulfill its hosting responsibilities.

The topic of APEC 2015, which focuses on supporting and expanding equal growth in the Asia-Pacific
region, serves as an example of the goals of the Philippines' hosting of the event. Three phases make up
this objective of encouraging inclusive growth: domestic/national, regional, and macro levels. Four
additional priorities have been established for APEC 2015:
-Investing in Human Capital Development
-Fostering Small and Medium Enterprises’ (SMEs) Participation in Regional and Global Markets
-Building Sustainable and Resilient Communities
-Enhancing the Regional Economic Integration Agenda
NATURE OF APEC
WHAT ARE THE MAIN OBJECTIVES OF
APEC?
TO SUSTAIN THE GROWTH AND DEVELOPMENT OF THE REGION FOR THE COMMON
GOOD ITS PEOPLES 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,
INCLUDING BY 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.

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
UNDERSTANDING THE ASIA-PACIFIC ECONOMIC
COOPERATION (APEC):

MAKING ENSURING THAT COMMODITIES, SERVICES, CAPITAL,

AND LABOR CAN TRAVEL FREELY ACROSS BORDERS IS APEC'S
MAIN OBJECTIVE. THIS INCLUDE IMPROVING BORDER CUSTOMS
EFFICIENCY, FOSTERING ADVANTAGEOUS BUSINESS
ENVIRONMENTS INSIDE MEMBER ECONOMIES, AND
HARMONIZING RULES AND REGULATIONS THROUGHOUT THE
AREA.
THE THREE PILLARS OF APEC'S AGENDA
FOCUS ON:
TRADE AND INVESTMENT LIBERALIZATION.

BUSINESS FACILITATION.

ECONOMIC AND TECHNICAL COOPERATION (ECOTECH)

 About APEC

APEC WAS FORMED TO ENCOURAGE A GROWING

AND PROSPEROUS REGIONAL ECONOMY THROUGH:

TRADE AND INVESTMENT LIBERALIZATION AND FACILITATION AT

THE BORDER, ACROSS THE BORDER AND BEHIND THE BORDER

REDUCED COSTS OF CROSS-BORDER TRADE TO ASSIST

BUSINESSES

ECONOMIC AND TECHNICAL COOPERATION

ADVANTAGES
AND
DISADVANTAGES:
ADVANTAGES

APEC was formed to encourage a growing and prosperous

regional economy through: trade and investment
liberalisation and facilitation – at the border, across the
border and behind the border. reduced costs of cross-border
trade to assist businesses. economic and technical
cooperation.

DISADVANTAGES

APEC's problems stem from three principal weaknesses: a

lack of consensus among members over its objectives and
how these might best be realized; the absence of a body
that has the capacity to be a dynamo for the grouping;
and a failure to engage with civil society.
SOURCES:
https://www.apec.org/about-us/about-apec

https://www.apec.org/about-us/about-apec/history

• https://en.wikipedia.org/wiki/APEC_Philippines_2015

• https://pcw.gov.ph/asia-pacific-economic-
participation/#:~:text=APEC's%20work%20focuses%20on%20th
ree,and%20advancing%20regional%20economic%20integration

• https://www.international.gc.ca/world-monde/international_relations-
relations_internationales/apec/index.aspx?lang=eng

https://www.dfat.gov.au/trade/organisations/apec/asia-
pacific-economic-cooperation-
apec#:~:text=APEC%20was%20formed%20to%20encourage
,economic%20and%20technical%20cooperation

•https://www.apec.org/about-us/about-
apec#:~:text=APEC%20ensures%20that%20goods%2C%20services,and%20standard
s%20across%20the%20region

https://www.tandfonline.com/doi/abs/10.1080/095127400363613?
journalCode=rpre20#:~:text=APEC's%20problems%20stem%20from%20three,to%2
0engage%20with%20civil%20society

https://www.dfat.gov.au/trade/organisations/apec/asia-pacific-economic-cooperation-apec

https://www.investopedia.com/terms/a/asiapacific-economic-cooperation-apec.asp