Asia Pacific Economic Cooperation (APEC) Forum

Context:

• The 2023 Asia Pacific Economic Cooperation (APEC) leaders’ meeting began in San Francisco (the United States) on November 11. From the Indian side, the Union Minister of Commerce and Industry is to attend the APEC meeting.

Key Highlights of the Asia Pacific Economic Cooperation 2023:

• According to the Reuters report, the US has chosen the theme “Creating a Resilient and Sustainable Future for All” for APEC 2023. 
  • It aims for an “interconnected, innovative, and inclusive” region and “to advance a free, fair, and open economic policy agenda that benefits US workers, businesses, and families.”

What is Asia Pacific Economic Cooperation?                                               

• Asia Pacific Economic Cooperation (APEC) is a regional economic forum that was established in 1989. 
• Aim: To “leverage the growing interdependence of the Asia-Pacific and create greater prosperity for the region’s people through regional economic integration.” 
• Its 21 member economies are home to around 2.95 billion people, representing approximately 62 percent of world GDP and 48 percent of world trade in 2021.
• Function: It operates based on non-binding commitments with decisions reached by consensus and commitments undertaken voluntarily.
• Membership: Australia, Brunei, New Zealand, Papua New Guinea, Hong Kong (as part of China), the Philippines, Indonesia, Malaysia, Vietnam, Singapore, Thailand, Chinese Taipei (Taiwan), China, Japan, South Korea, Russia, Canada, the United States, Mexico, Peru, and Chile.
• India is not a Member.
• The 21 members of Asia Pacific Economic Cooperation are termed “economies” (rather than countries or member states) because trade and economic issues are the focus of the grouping. 
  • For Example: In reflecting the idea, Taiwan and Hong Kong attend APEC meetings as distinct entities, even though China says they are parts of China and not independent entities.

India’s Candidature at the Asia Pacific Economic Cooperation

• India had requested to join the grouping in 1991, which saw the introduction of liberalisation and entirely changed the shape and trajectory of the Indian economy.  
  • While most members favor India’s inclusion, some have opposed it, citing the country’s record on economic reforms and claiming that it has’ protectionist instincts’.
• Another reason India was not included in the grouping was a membership freeze, which was in force since 1997 but was not extended in 2012.

What are the reasons for India to join the Asia Pacific Economic Cooperation?

• Promotion of Closer Economic Relations: Becoming an  Asia Pacific Economic Cooperation member would bring several benefits such as promoting closer economic relations, facilitating trade and investment flows, and opening market access to major economies.
• Boosting Exports and Attracting Foreign Direct Investment: Aligning with APEC by simplifying and harmonizing trade procedures and regulations could boost India’s exports, attract foreign direct investment, and support domestic initiatives like ‘Make in India‘.

News Source: Hindustan Times

DOWNLOAD PDF