Asia-Pacific Economic Cooperation
In January 1989, Australian Prime Minister Bob Hawke called for more effective economic cooperation across the Pacific Rim region. This call came after a series of post-ministerial conferences launched by ASEAN in the mid-1980s demonstrated that regular meetings among ministerial-level representatives from both developed and developing economies were feasible. By 1986, these conferences had expanded to include twelve members, comprising the six original ASEAN nations and their six dialogue partners. The growing interdependence of Asia-Pacific economies and the emergence of regional trade blocs elsewhere prompted this new initiative. APEC aimed to establish new markets for agricultural products and raw materials beyond Europe. The first meeting took place in Canberra, Australia, in November 1989. It was chaired by Australian Foreign Affairs Minister Gareth Evans. Twelve countries sent ministers to attend. Ten months later, representatives from twelve Asia-Pacific economies met again in Canberra to officially establish APEC. The organization began as an Australian effort intended to secure greater Japanese engagement in the region.
APEC currently has twenty-one member economies. The criterion for membership requires each participant to be an independent economic entity rather than a sovereign state. Consequently, the forum uses the term member economies instead of member countries. This distinction allows Taiwan, officially the Republic of China, to participate under the name Chinese Taipei alongside the People's Republic of China. Hong Kong also joined as a British colony before becoming a Special Administrative Region of the People's Republic of China. The group includes three official observers: the Association of Southeast Asian Nations Secretariat, the Pacific Economic Cooperation Council, and the Pacific Islands Forum Secretariat. Membership dates vary significantly among members. Australia, Brunei Darussalam, Canada, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, and the United States all joined in November 1989. Chile entered in November 1994. Mexico and Papua New Guinea joined in November 1993. Peru, Russia, and Vietnam became members in November 1998. The nominal GDP of these economies in 2024 ranges from fifteen billion dollars for Brunei to nearly thirty trillion dollars for the United States.
During the 1994 meeting held in Bogor, Indonesia, APEC leaders adopted the Bogor Goals. These goals aimed for free and open trade and investment across the Asia-Pacific region by specific deadlines. Industrialized economies targeted completion by the year 2010. Developing economies set their target for the year 2020. In April 2001, APEC launched the Joint Oil Data Exercise alongside five other international organizations including Eurostat and OPEC. This initiative evolved into the Joint Organisations Data Initiative by 2005. The organization also established the APEC Business Advisory Council in November 1995. This body consists of three business executives nominated from each member country. ABAC provides an annual report containing recommendations to improve the business environment. It is the only non-governmental organization included on the official agenda of the Economic Leaders' Meeting. Trade facilitation efforts have reduced transaction costs by six percent between 2002 and 2006. Projections suggested a further five percent reduction between 2007 and 2010.
The location of the annual meeting rotates among the twenty-one member economies. A famous tradition involves attending leaders dressing in national costumes of the host country. This practice dates back to the first such gathering in 1993 when U.S. President Bill Clinton insisted on informal attire. He gave the leaders leather bomber jackets. At the 2010 meeting in Yokohama, Japan hosted the leaders wearing smart casual clothing instead of traditional kimonos. When Honolulu was selected for the 2011 summit, President Barack Obama joked about seeing leaders in flowered shirts and grass skirts. However, he later decided against requiring aloha shirts due to economic austerity concerns. Leaders received specially designed shirts as gifts but were not expected to wear them for the photo. Participants in Bali wore batik outfits in 2013. Those in China donned Tang suit jackets in 2014. The Philippines saw leaders in barong tagalogs during 2015. Peru introduced vicuña wool shawls in 2016. Vietnamese silk shirts appeared at the 2017 conference. The meeting schedule has occasionally been disrupted by external factors. The 2019 summit originally planned for Chile was cancelled due to ongoing protests over inequality and police repression.
Controversy arose after officers of the Royal Canadian Mounted Police used pepper spray against protesters during the 1997 Vancouver meeting. Protesters objected to the presence of autocratic leaders such as Indonesian president Suharto. In 2003, Jemaah Islamiah leader Riduan Isamuddin planned to attack the APEC Leaders Meeting scheduled for Bangkok. Thai police captured him in Ayutthaya on August 11 before he could finalize his plans. Extreme security measures including airborne sharpshooters and steel-and-concrete barricades were deployed for the 2007 Sydney meeting. Despite these precautions, a spoof diplomatic motorcade manned by members of the Australian television program The Chaser penetrated the security envelope easily. One member dressed to resemble Osama bin Laden. Peaceful protests occurred in Busan during the 2005 meeting but did not affect the schedule. The 2019 Chilean summit cancellation stemmed from civil unrest rather than direct attacks. Security concerns also included nuclear proliferation discussions following North Korea's tests in 2006.
India has requested membership in APEC and received initial support from the United States, South Korea, Australia, and Papua New Guinea. Officials decided not to allow India to join because it does not border the Pacific Ocean. All current members share this geographic characteristic. However, India was invited as an observer for the first time in November 2011. Other economies like Bangladesh, Pakistan, Sri Lanka, Macau, Mongolia, Laos, Cambodia, Costa Rica, Colombia, Panama, and Ecuador have applied for membership. Colombia applied as early as 1995, but its bid halted when the organization stopped accepting new members from 1993 to 1996. The moratorium extended further to 2007 due to the Asian financial crisis. APEC first formally discussed the Free Trade Area of the Asia-Pacific concept at its 2006 Hanoi summit. The proposal existed since at least 1966 through Japanese economist proposals. In 2014, leaders agreed to launch a collective strategic study on FTAAP. They instructed officials to consult stakeholders and report results by the end of 2016. The Trans-Pacific Partnership included twelve of the twenty-one APEC members with provisions for other members' accession.
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Common questions
When was APEC founded and where did the first meeting take place?
The Asia-Pacific Economic Cooperation held its first meeting in Canberra, Australia, in November 1989. The organization officially established itself ten months later when representatives from twelve Asia-Pacific economies met again in Canberra.
How many member economies does APEC have today and what is the membership criterion?
APEC currently has twenty-one member economies that must be independent economic entities rather than sovereign states to qualify for participation. This distinction allows Taiwan to participate under the name Chinese Taipei alongside the People's Republic of China while Hong Kong joined as a British colony before becoming a Special Administrative Region of the People's Republic of China.
What were the Bogor Goals adopted by APEC leaders during the 1994 meeting in Indonesia?
During the 1994 meeting held in Bogor, Indonesia, APEC leaders adopted the Bogor Goals which aimed for free and open trade and investment across the Asia-Pacific region by specific deadlines. Industrialized economies targeted completion by the year 2010 while developing economies set their target for the year 2020.
Why was the 2019 Chilean summit cancelled and what security measures were taken at the 2007 Sydney meeting?
The 2019 summit originally planned for Chile was cancelled due to ongoing protests over inequality and police repression. Extreme security measures including airborne sharpshooters and steel-and-concrete barricades were deployed for the 2007 Sydney meeting despite a spoof diplomatic motorcade penetrating the security envelope easily.
Which countries applied for membership in APEC but were denied or had their bids halted between 1993 and 2007?
Colombia applied as early as 1995 but its bid halted when the organization stopped accepting new members from 1993 to 1996 before the moratorium extended further to 2007 due to the Asian financial crisis. India received initial support from the United States, South Korea, Australia, and Papua New Guinea but officials decided not to allow it to join because it does not border the Pacific Ocean.