The “Asia-Pacific Economic Cooperation” (APEC) was established in 1989, and holds 21 so called member economies, all located on the Pacific Rim. Each member represents a particular economic region rather than individual states which is illustrated in Exhibit 1. APEC’s main goal is promoting “sustainable economic growth and prosperity in the Asia-Pacific region” (Achievements and Benefits, 2016). This is supposed to be reached primarily by the establishment of the Free Trade Area of the Asia-Pacific (FTAAP). However, APEC is working on many different topics and various alliances have been formed in order to enable free trade and investment, good cooperation among members, regional economic integration, enhancing human security and facilitating a favorable sustainable business environment in the Asia-Pacific.
The organization works as a cooperative and multilateral economic trade forum. A defining characteristic of APEC is that it is the only international intergovernmental bundling in the world aiming to reduce trade barriers to trade and investment without postulating legal binding contracts and therefore encourages participation and structural flexibility.
APEC has enjoyed great success as an international forum for discussion among the world’s leaders in politics, business and academia. However it has made limited progress in regional integration and cooperation in areas such as financial infrastructure with a slow response time to emerging world trends.
Table of Contents
Introduction
APEC’s Mission
Exhibit 2 Structural Reform Areas, Source: APEC website
APEC’s Organizational Structure
Comparing APEC to other Pacific Multilateral Organizations
APEC
TPP
ASEAN
Analysis of APEC’s Strength and Weaknesses
Pillar One: Business Facilitation
Pillar Two: Trade and Investment Liberalization and Facilitation
Pillar Three: Economic and Technical Co-operation
Conclusion: APEC Going Forward
Works Cited
Research Objective and Core Topics
This report examines the structure, mission, and effectiveness of the Asia-Pacific Economic Cooperation (APEC), evaluating its role as a multilateral trade forum and comparing it with other regional entities like the TPP and ASEAN to assess its impact on sustainable economic growth.
- Analysis of APEC’s three pillars of cooperation
- Evaluation of APEC’s voluntary, non-binding organizational structure
- Comparison of APEC, TPP, and ASEAN trade strategies
- Assessment of the proposed Free Trade Area of the Asia-Pacific (FTAAP)
- Identification of strengths and weaknesses in achieving regional economic integration
Excerpt from the Book
APEC’s Organizational Structure
APEC is set apart from others international economic trade forums as it is the only international organization in the world that attempts to reduce trade barriers and promote economic coordination between countries without legally binding agreements (How APEC Operates, 2016). In a globalized world dominated by Free Trade Agreements (FTA) it is a rarity to find such a characteristic in a multinational body as it does not provide much protection for emerging economies. This is especially important given the diversity among its members in terms of size, economic level and even culture in some cases however this is remedied by its organizational structure.
APEC has a bottom-top organizational structure which is illustrated in Exhibit 3. The top comprises of meetings that APEC hosts for setting policy through member discussion since APEC operates on a voluntary and cooperative basis (Asia-Pacific Economic Cooperation (APEC), 2016). The Economic Leaders’ Meeting (ELM) is held annually and is supported with Ministerial Meetings and Senior Officials Meetings which are held multiple times a year to discuss budgets, goals, and reports etc. that are then used as supporting material during the ELM.
Summary of Chapters
Introduction: Provides an overview of APEC’s establishment in 1989 and its primary goal of promoting sustainable economic growth through non-binding, voluntary cooperation.
APEC’s Mission: Details the Bogor Goals and the three strategic pillars established to reduce trade barriers and harmonize economic policies among member economies.
APEC’s Organizational Structure: Explains the unique bottom-top approach of APEC and the function of meetings ranging from the Economic Leaders’ Meeting to various working groups.
Comparing APEC to other Pacific Multilateral Organizations: Analyzes the interplay and differences between APEC, the TPP, and ASEAN in the context of regional influence and trade agreements.
Analysis of APEC’s Strength and Weaknesses: Critically evaluates the effectiveness of APEC’s three pillars, noting successes in information exchange and failures in implementing concrete, large-scale infrastructure projects.
Conclusion: APEC Going Forward: Discusses the future challenges for APEC, particularly the need to maintain relevance amidst the competition between the FTAAP and the TPP.
Keywords
APEC, Asia-Pacific, Multilateralism, Free Trade, Bogor Goals, FTAAP, TPP, ASEAN, Economic Integration, Business Facilitation, Structural Reform, ECOTECH, Regional Cooperation, Trade Barriers, Global Economy
Frequently Asked Questions
What is the primary focus of this report?
This report focuses on analyzing the functionality and effectiveness of the Asia-Pacific Economic Cooperation (APEC) as an international forum for trade and economic development.
What are the core thematic areas discussed?
The central themes include the organization's mission, its three pillars of economic cooperation, its organizational structure, and its relationship with other regional organizations like TPP and ASEAN.
What is APEC's main objective?
APEC's main goal is to promote sustainable economic growth and prosperity in the Asia-Pacific region through the reduction of trade barriers and regional integration.
Which methodology is used to evaluate APEC?
The report utilizes a descriptive and comparative analysis of APEC's three pillars to determine its strengths and weaknesses in implementing regional economic policies.
What does the main body of the work cover?
The main body covers the history and mission of APEC, the mechanisms of its pillars, an organizational breakdown, and a comparative study against other Pacific trade entities.
Which keywords best describe the work?
The work is characterized by terms such as APEC, multilateralism, economic integration, trade facilitation, and regional cooperation.
How does APEC's non-binding nature affect its progress?
The non-binding nature encourages participation but also leads to slow progress and difficulties in enforcing standardized, long-term regional infrastructure or policy projects.
What is the significance of the FTAAP in the context of APEC?
The Free Trade Area of the Asia-Pacific (FTAAP) is the ultimate project of the Bogor Goals, aimed at consolidating regional trade, though its progress is currently complicated by the emergence of the TPP.
How do the TPP and APEC differ in their approach?
Unlike APEC, which is a voluntary and non-binding forum, the TPP acts as a more traditional, strategic, and binding trade agreement led by the US to consolidate regional economic influence.
- Citation du texte
- Tristan Lizardo (Auteur), 2016, The Asia-Pacific Economic Cooperation APEC and Pacific Multilateralism, Munich, GRIN Verlag, https://www.grin.com/document/441369
