Why in the news?

• Leaders from 21 Asia-Pacific Rim nations concluded their annual summit with a joint declaration emphasizing the importance of regional economic cooperation and integration.

Asia-Pacific Economic Cooperation (APEC)

• Establishment: Established in 1989, in response to the growing interdependence among Asia-Pacific economies.
• Founding Aim: To promote free and open trade and investment across the Asia-Pacific region.
• Nature: A regional economic forum, not a treaty-based organization — decisions are non-binding and reached by consensus.
• Membership:
  • 21 economies, including the USA, China, Japan, Russia, Australia, Canada, South Korea, Indonesia, Malaysia, Thailand, Philippines, Singapore, Vietnam, Brunei, Hong Kong, Papua New Guinea, Peru, Mexico, Chile, New Zealand, and Chinese Taipei (Taiwan).
  • India is not a member of the APEC.
• Objectives:
  • Promote regional economic integration through trade and investment liberalisation and encourage sustainable and inclusive growth.
  • Facilitate technological and economic cooperation.
  • Enhance supply-chain connectivity and digital trade and build resilient and secure regional economies.
• India and APEC:
  • Application for Membership: Filed in 1991, but deferred due to membership freeze and concerns over geographic definition and economic integration readiness.
  • Present Status: India is an observer in the grouping.
• Significance of APEC:
  • Represents nearly 60% of world GDP and 48% of global trade.
  • Acts as a bridge between developed and developing economies of the Pacific Rim.
  • Platform for soft regionalism promoting voluntary cooperation instead of binding commitments.
  • Encourages innovation, entrepreneurship, and climate-resilient growth in the Asia-Pacific.
• Strategic Relevance for India:
  • Strengthen Act East Policy and Indo-Pacific engagement.
  • Expand trade and supply-chain integration with major economies.
  • Enhance role in digital economy and sustainable growth frameworks.