Explained: What is APEC group and why is India not a member
The attention of the world has been drawn to the meeting between US President Joe Biden and his Chinese counterpart Xi Jinping during the Asia Pacific Economic Co-operation (APEC) forum in San Francisco amid efforts by Washington and Beijing to deescalate the geo-economic tensions between them.
This was the second in-person dialogue of Biden with Xi since the US president assumed office in 2021. India's Union Minister Piyush Goyal will also be attending the Asia-Pacific Economic Co-operation meeting in the United States.
Other leaders who are attending the summit are Japan’s Prime Minister Fumio Kishida, Canada’s Prime Minister Justin Trudeau, and Indonesia’s President Joko Widodo. Since Russia invaded Ukraine in February 2022, President Vladimir Putin has not participated in any major international summits and here also he is being represented by Deputy Prime Minister Alexei Overchuk, against whom no sanctions have been issued by the US.
When was APEC formed and who are its members?
The Asia-Pacific Economic Co-operation (APEC) is a regional economic forum and was formed in 1989. It has 21 members in its groups, however, India is not one of them.
The grouping stated that its aim was to “leverage the growing interdependence of the Asia-Pacific and create greater prosperity for the people of the region through regional economic integration”.
The grouping's current members are Australia, Brunei, Hong Kong (which the APEC website refers to as Hong Kong, China), New Zealand, Papua New Guinea, the Philippines, Indonesia, China, Japan, South Korea, Russia, Canada, the United States, Mexico, Peru, Chile, Malaysia, Vietnam, Singapore, Thailand and Chinese Taipei (Taiwan).
The focus of APEC has been on trade and economic issues and hence, it terms the countries as “economies”. Taiwan and Hong Kong, which China has continued to claim as its own, take part separately in the grouping.
As per a report published by Reuters, APEC accounts for nearly 62 per cent of global GDP and nearly half of global trade. It has been operating on the basis of non-binding commitments with decisions taken through commitments and consensus undertaken on a voluntary basis.
WATCH |APEC Summit: What is APEC? What to expect from the summit
Why is India not a part of the APEC grouping?
In 1991, India made a request to become a part of the grouping. It was the same year when liberalisation was introduced in the Indian economy which changed its trajectory in entirety.
Although many members have been in favour of the inclusion of India, some even opposed the idea citing the economic reforms which took place in the country and claiming that it has 'protectionist instincts'.
Another reason for not making India part of the grouping was a membership freeze which came into force in 1997 but was not extended in 2012.
What role has APEC played so far?
Since its formation, the grouping championed the lowering of trade tariffs, free trade, and economic liberalisation. As per the US State Department, “During its first five years of operation, APEC established its core objectives. In the 1991 Seoul Declaration, APEC member economies proclaimed the creation of a liberalised free trade area around the Pacific Rim as the principle objective of the organisation.”
The experts at the think tank Centre for Strategic and International Studies (CSIS), in an article, stated, “The dynamic growth attributable to APEC initiatives contributed significantly to the development of a growing middle class in the developing Asia-Pacific region. APEC economies’ 2.9 billion citizens make up roughly 60 per cent of global GDP. As of 2018, they represented 48 per cent of global trade.”
What is the aim of the APEC summit this year?
The APEC Economic Leaders' Week is being held this year in San Francisco. According to a report by Reuters, the United States has chosen the theme "Creating a Resilient and Sustainable Future for All" for APEC 2023.
It stated that the summit 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."
Till 2021, APEC members have been seven of the top 10 overall trading partners of the United States and Washington is likely to increase the relative strength of its economy in tough times.
While speaking about what he aims to achieve in his dialogue with Jinping ahead of the meeting, Biden had said he wanted "to get back on a normal course of corresponding; being able to pick up the phone and talk to one another if there's a crisis; being able to make sure our (militaries) still have contact with one another."
(With inputs from agencies)