Asia-Pacific Economic Cooperation

30 Oct 2025

Asia-Pacific Economic Cooperation

Leaders from 21 Pacific Rim economies are convening in Gyeongju, South Korea, for the 32nd  Asia-Pacific Economic Cooperation (APEC) forum.

About Asia-Pacific Economic Cooperation

  • Establishment: Founded in 1989 to promote regional economic integration, trade liberalization, and sustainable growth across the Asia-Pacific.
  • Nature: A regional economic forum (not a treaty-based organization); decisions are non-binding and consensus-driven.
  • Secretariat: Located in Singapore.
  • Membership: Comprises 21 economies across the Pacific Rim, representing – 
    • About 50% of global GDP,
    • Nearly 50% of World’s trade
    • About 40% of the world’s population (2.7 billion people).
    • Major members include the U.S., China, Russia, Japan, South Korea, Australia, Canada, Indonesia.
    • India is currently an Observer, not a full member. 

Evolution of APEC

  • The creation of Asia-Pacific Economic Cooperation was primarily in response to the increasing interdependence of Asia-Pacific economies.
  • Also, the proliferation of regional economic blocs, such as the European Union (EU) and the now defunct North American Free Trade Area (NAFTA), encouraged its formation.
  • Bogor Goals (1994, Indonesia): “Free and open trade and investment in the Asia-Pacific” by 2010 (developed) and 2020 (developing economies).
  • Putrajaya Vision 2040 (adopted 2020, Malaysia): Replaces the Bogor Goals; Envisions an open, dynamic, resilient, and peaceful Asia-Pacific community by 2040, focusing on:
    • Trade and investment liberalization
    • Innovation and digitalization
    • Sustainable and inclusive growth

India and APEC

  • Membership Efforts:
    • India applied for APEC membership in 1993 and again in 2007, but entry was not accepted due to the 1997 moratorium on new members.
    • Some members (e.g., U.S., Japan, Australia) support India’s entry; others remain cautious, citing India’s trade barriers and non-membership in key trade blocs like RCEP.
  • Engagement: India participates as an Observer and collaborates informally with member economies through regional initiatives on connectivity, digital trade, and sustainable development.

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Advantages for India

  • Economic Integration: Strengthens India’s Act East Policy and deepens ties with Asia-Pacific supply chains.
  • Trade Expansion: Opens markets for Indian goods and services across 21 economies.
  • Policy Reforms: Encourages alignment with APEC’s trade facilitation and customs transparency norms.
  • Support for SMEs: Helps India adopt best practices for small business competitiveness and digital readiness.
  • Global Standing: Inclusion would enhance India’s role in regional economic governance and global trade negotiations

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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