Learn More about the Asia-Pacific Economic Cooperation (APEC)


What is APEC?

 

Asia-Pacific Economic Cooperation (or APEC) is a 21-member association of Pacific Rim “economies” that work together to advance economic growth through free trade, investment liberalization, and economic cooperation throughout the Asia Pacific region.  It was established in 1989 in response to the growing connectedness of Asia Pacific economies.  Since then, APEC has grown from its original 12 members to its current 21-member economies: Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States, and Vietnam.

 

APEC refers to its members as “economies” rather than countries because this allows Taiwan, which has a vibrant economy, to participate without offending the People’s Republic of China, whose government does not recognize Taiwan as autonomous.  It also allows Hong Kong to be treated as a separate member.

 

Today, APEC economies represent approximately 40 percent of the world’s population (or about 2.8 billion people) across four continents and account for 55 percent of global GDP, 43 percent of world trade, 58 percent of US goods exports, and about 60 percent of world energy demand.  Seven of America’s top 15 trade partners are APEC members.

 

Decisions are reached through consensus, and APEC, unlike the World Trade Organization or other multilateral trade bodies, operates on the basis of non-binding commitments and voluntary compliance instead of treaty obligations.  Therefore, critics wonder how APEC can be effective without enforceable agreements, but supporters say by bringing economic and political leaders together, APEC creates a forum for an ongoing and collaborative process that in the end establishes positive norms across the region.

 

Public interest in APEC is being generated by the recent meeting of the 21 leaders of APEC economies in Honolulu, Hawaii for the APEC Leaders Week this November.  Thousands of international government officials, corporate executives, and media also visited Honolulu for the week-long APEC meetings.

 

Find out more about APEC and APEC member economies in the links below:

 

  • The United States hosted the APEC process in 2011.  Learn more at the APEC USA 2011 website.
  • Honolulu was the site of the APEC Leaders Week.  Learn about Hawaii’s role in the APEC summit at the APEC Hawaii 2011 website.
  • Download the APEC’s PDF sourcebook “APEC at a Glance 2011” and also check out the APEC website.
  • Hawaii professors and students at the University of Hawaii’s Economic Research Office (UHERO) have created an exciting and well-rounded “APEC Project” filled with analysis, blog posts, and useful materials for students and teachers that want to learn more about economic relations in the region.  You can also download an “APEC Economies Brief” prepared by University of Hawaii economics students.
  • Hawaii Public Radio (HPR) has collected its radio reports in “News and Information from APEC 2011.”  Among these are Bill Dorman’s ”APEC Profiles” with one report dedicated to each of the APEC member economies.
  • Also, check out the East-West Center’s inaugural “Open Channels” online classroom exchange exploring international trade and other APEC-themed topics.