What is the Asia-Pacific Economic Cooperation?

The first ministerial meeting held in Canberra, Australia on Nov. 7, 1989 (right). US President Bill Clinton established the practice of an annual APEC Economic Leaders’ Meeting in 1993 (left).

MANILA, Philippines – Established in 1989, the Asia-Pacific Economic Cooperation (APEC) was founded by 12 members – Australia, Brunei Darussalam, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Canada, and the United States – with the mission “to build a dynamic and harmonious Asia-Pacific community by championing free and open trade and investment, promoting and accelerating regional economic integration, encouraging economic and technical cooperation, enhancing human security, and facilitating a favorable and sustainable business environment.”

They were later joined by China, Hong Kong, Chinese Taipei, Mexico, Papua New Guinea, Chile, Peru, Russia, and Viet Nam, bringing the number of members to 21, referred to as member economies to highlight the organization’s concentration on trade and economic issues.

The practice of an annual APEC Economic Leaders’ Meeting was started in 1993 “to provide greater strategic vision and direction to cooperation in the region.”

APEC aims primarily to provide a venue for creating and maintaining sustainable economic growth and prosperity in the region. They are guided by their “Three Pillars”  – trade and investment liberalization; business facilitation, which aims to reduce business and trade transaction costs; and economic and technical cooperation that provides training and cooperation through capacity-building projects.

APEC’s success has been notable, with the Asia-Pacific becoming more economically dynamic since its establishment. In 2012, the member economies comprised 40 percent of the world population and their economies combined make up 47 percent of world trade. Together, their share of global GDP is 57 percent.

Moving forward, the APEC 2015 meeting hosted by the Philippines has the theme “Building Inclusive Economies, Building a Better World.”

This year’s APEC meeting prioritizes investing in Human Capital Development; fostering small and medium enterprises’ participation in regional and global markets; building sustainable and resilient communities; and enhancing the regional economic integration agenda.

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