The Asia-Pacific Economic Cooperation (APEC) is a regional economic forum established in 1989 comprising 21 member economies that aims to promote sustainable economic growth and prosperity. APEC members have a combined GDP of $21 trillion and account for nearly half of global trade. Key goals of APEC include facilitating the free flow of goods, services, investment and people across borders through initiatives like faster customs procedures and aligned regulations.

1. ASIA PACIFIC
ECONOMIC
COOPERATION

3. APEC
 The Asia-Pacific Economic Cooperation (APEC) is a regional economic forum
established in 1989 to leverage the growing interdependence of the Asia-Pacific
 APEC's 21 members aim to create greater prosperity for the people of the region by
promoting balanced, inclusive, sustainable, innovative and secure growth and by
accelerating regional economic integration
 APEC has 21 member economies with a population of over 2.6 billion which accounts
for more than 40% of the world’s population.
 APEC countries have a combined GDP of 21 trillion US dollars which is more than half
of world GDP.
 APEC accounts for nearly half of world trade.

4. MEMBER ECONOMIES
* Australia * Malaysia
* Brunei Darussalam * Mexico
* Canada * New Zealand
* Chile * Papua New Guinea
* People's Republic of China * Peru
* The Republic of the Philippines * Hong Kong, China
* The Russian Federation * Japan
* United States of America * Indonesia
* Chinese Taipei * Singapore
* Republic of Korea * Viet Nam

5. WHAT DOES APEC DO?
Ensures that goods, services,
investment and people move easily
across borders
Faster customs procedures at
borders
Favorable business climates
behind the border
Aligning regulations and
standards across the region
For example, apec's initiatives to
synchronize regulatory systems is
a key step to integrating the asia-
pacific economy

6. HISTORY OF APEC
• APEC begins as an informal Ministerial-level dialogue group in Canberra, Australia in
1989. It is a 21 member economic forum at present.
• Founding members are
• Australia, New Zealand
• 6 ASEAN economies
• Japan and South Korea
• Canada and the United States
• Later the co-operation expanded to China, Taiwan, & Hong Kong in1991 Mexico & Papua
New Guinea in 1993 ,Chile (1994 ) , Russia, Vietnam, Peru in 1998.
• India, Mangolia, Pakistan, Laos, Bangladesh, Costa Rica, Colombia, Panama and Ecuador
are among a dozen countries seeking membership in APEC.

7. MISSION & VISION
 To support sustainable economic growth and prosperity in
Asia-Pacific region
 To build a dynamic and harmonious Asia-Pacific
community
 Decrease number of obstacles in trade and also reduce tariffs
across APEC nations
 Set it’s eye on achieving ‘Bogor goals’ by the year 2010
 To encourage the flow of goods, services, capital, and
technology
 To develop and strengthen the multilateral trading

8. APEC Relations
ASEAN and APEC
• ASEAN has been at APEC's core from the very beginning and is doing its part to advance APEC's
purposes and is consistent with APEC goals.
• ASEAN Free Trade Area (AFTA) can be said to be a building block for the fulfillment of the goals that
APEC set for eventual free trade among its members.
• It can be said that the two organizations could be seen as complementing, and not competing with
each other.
NAFTA and APEC
• Accomplishment of Bogor goals and free trade among APEC member economies leads to significant
trade diversion from western countries to APEC member economies.
• Western economies trying to maintain balance of power between east and west in APEC
decisions by restricting Asian countries into economic co-operation.

9. APEC and India
 India tried for membership in APEC. It was initially supported by United States, Japan
Australia but was denied later.
 India would have been had an undue advantage in trade if it is a member of APEC.
Reasons :
o Decision was made not to admit more members until 2010 till Bogor goals are accomplished.
o India does not border the Pacific Ocean, which all current members do
o There is a concern among Western countries that India's entry might tilt the balance of
power shifts in favour of India.

10. APEC Secretariat
• APEC secretariat operates as the core support mechanism for the APEC process.
• It provides coordination, technical and advisory support as well as information
management, communications and public outreach services.
• It performs a central project management role
• It is based in Singapore
• The APEC Secretariat is headed by an Executive Director and a Deputy Executive Director
• Muhamad Noor Yacob is the present Executive Director

11. HOW APEC OPERATES
• APEC operates as a cooperative, multilateral economic and trade forum.
• It is a voluntary association in which participants do not cede powers of regulation or
enforcement to a supra-national institution;
• Every year one of the 21 member economies plays host to APEC meetings,
• Serves as the APEC Chair
• Chairs the annual economic Leaders meeting & ministerial Meetings
• Fills Executive Director of the APEC Secretariat.

12. CONT ..
 Member Economies take individual and collective actions to open their markets and
promote economic growth
• Activities are centrally funded by small annual contributions from member Economies
• Member economies provide considerable resources to assist in the operations
• APEC’s project database contain all project related information

13. STRENGTHS OF APEC
• A supporter of the of the multilateral trade negotiations, apply pressure to key
countries, suggest visionary initiatives and monitor compliances.
• APEC has considerable experience in the reform process and can act as a model
or demonstration to the rest of the world.
• APEC is a large group of countries that could be extremely influential if adopted
a common approach and joint bargaining objectives.

14. WEAKNESSES OF APEC
• Absence of priorities- The effort in trade reform within APEC has been
diffused across too many areas and there is need for more focus.
• Shortfalls in member commitments- Many countries have gone no further
than their existing pledges.
• Weak evaluation procedures- there is lack of outside scrutiny of individual
members’ progress in implementing reforms
• Dearth of specific APEC incentives- APEC operates by consensus and there is
no mechanism for enforcing group decisions.