Asia-Pacific Economic Cooperation

Asia-Pacific Economic Cooperation (APEC), organization of 20 nations and one administrative region dedicated to promoting regional economic integration and global free trade among countries bordering the Pacific Ocean. APEC was founded in 1989 at the prompting of the government of Australia. The APEC secretariat, the organization's administrative office, was established in 1992 in Singapore. Its members include Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, South Korea, Taiwan, Thailand, and the United States. Peru, Russia, and Vietnam joined the organization in 1998.

Foreign ministers and trade officials from each country have met yearly since APEC's inception. The heads of state met for the first time in 1993, while trade officials began annual meetings in 1994. At these meetings, members have discussed such issues as regional security, financing for infrastructure development, reduction of tariffs and other trade barriers, and development of global free trade. In 1994 APEC members with industrialized economies pledged to eliminate trade barriers by 2010, while those with developing economies agreed to follow by 2020. To promote global free trade, members were encouraged to reduce trade barriers to non-APEC nations as well. No legally binding agreement was signed. The group has also agreed to strive to standardize customs and international trade documentation. In 1998 APEC leaders pledged to pursue a cooperative economic growth strategy in response to economic instability in many Asian nations. Members pledged to strengthen social safety nets, financial systems, trade and investment flows, and scientific and technological infrastructure within their nations.