Open Doors and Unity: The Future of Asia-Pacific Cooperation
The Asia-Pacific Economic Cooperation (APEC) forum has long been a beacon of regional collaboration, fostering innovation and addressing the evolving challenges faced by the Asia-Pacific region. This week, leaders from APEC economies are gathering in Peru for the third time, under the theme “Empower, Include, Grow.” Their focus is on promoting sustainability and inclusivity to achieve broader economic integration across the region.
APEC’s significance cannot be overstated. The region accounts for 40 percent of the world’s population, nearly half of global trade, and 60 percent of the world’s GDP. It encompasses the two largest global economies and some of the most dynamic developing economies. Over the past three decades, the real GDP of APEC economies has soared from \$19 trillion in 1989 to over \$64 trillion in 2023. Simultaneously, average tariffs have plummeted from 17 percent to 5.3 percent, highlighting the region’s commitment to openness.
These remarkable achievements are a testament to the dedication of APEC member economies to openness and the so-called “APEC family spirit.” Over the past 30 years, markets within the region have become increasingly accessible. Trade and investment barriers have been significantly reduced, non-tariff barriers gradually eliminated, and market transparency improved.
Though APEC operates on voluntary, non-binding cooperation, it has been instrumental in inspiring free trade agreements at both sub-regional and plurilateral levels. While it may not be a rule-making organization, APEC has deepened adherence to multilateralism and encouraged further free trade initiatives.
Regular APEC Economic Leaders’ Meetings have fostered a positive atmosphere for international interaction and integration. As stated during their inaugural meeting in 1993, “the spirit of openness and partnership deepens, enabling us to find cooperative solutions to the challenges of our rapidly changing regional and global economy.” This sentiment remains as relevant today as it was then.
However, the Asia-Pacific region now faces unprecedented challenges. Accelerating global changes, great power competition, geopolitical conflicts, and bloc confrontations hinder international cooperation and mutual trust. Economic issues are increasingly politicized and securitized, with unilateral sanctions and technological barriers exacerbating the fragile global economy. A zero-sum mentality and confrontations have led to beggar-thy-neighbor policies and a “small yard, high fence” approach, negatively impacting Asia-Pacific cooperation.
In these times, openness and inclusiveness are more crucial than ever. The Asia-Pacific region must continue to champion these values to navigate the complex landscape and foster sustainable growth and shared prosperity. By upholding the “APEC family spirit” and embracing collaboration, the region can overcome challenges and build a brighter future for all its people.
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Openness and inclusiveness are key to future Asia-Pacific cooperation
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