The 21-member Asia-Pacific Economic Cooperation (APEC) forum recently held a virtual meeting, hosted by Malaysia due to the ongoing pandemic. New Zealand has been slated to host next year’s meetings virtually as well. The primary focus of this year’s APEC forum was on speeding up economic recovery in the wake of an anticipated 2.7% decline in growth in the Asia-Pacific region.
The Key Discussions and Plans
Among the chief points of discussion were the expected downfall from 3.6% growth in 2019 to a considerable decrease by 2.7% this year. Focus Areas of the meeting included Trade and Investment, Digital Economy and Technology, Structural Reform, Economic and Technical Cooperation, and Thematic and institutional matters.
To steer its future trajectory, APEC adopted the Putrajaya Vision 2040, replacing the Bogor Goals established in 1994 to advocate for free and open trade and investment. The new vision signifies a strategic plan for the next two decades.
Moving Towards Predictable Trade and Investment Environment
The leaders highlighted the need for a predictable and transparent environment for trade and investment as a significant driver for economic recovery in these challenging times. Key topics such as the APEC Internet and Digital Economy Roadmap (AIDER) agenda and the Free Trade Area of the Asia-Pacific (FTAAP) were discussed.
China’s Standpoint and Influence in the Forum
Notably, China has emerged as the major force within the APEC after the USA started retreating from multilateral bodies due to Trump’s presidency. Despite his lack of involvement since 2017, Trump made the sudden decision to participate in this year’s event.
China reiterated its commitment to maintain its “super-sized” open economy and cautioned against protectionism, a significant concern given the ongoing global pandemic. This commitment comes in the wake of Trump’s “America First” policy, which has strained relations with multiple trading partners.
Australia’s Trade Restrictions
An instance of this straining relationship has been the restriction China has placed on Australian exports of beef, wine, and barley. This goes contrary to China’s promotion of openness in trade, particularly as Australia represents one of their biggest markets.
India’s Relationship with APEC
Although not a member of APEC, India has expressed interest in joining and received initial support from countries such as the USA, Japan, Australia, and Papua New Guinea. Despite this, officials have decided against India’s membership since it does not border the Pacific Ocean, unlike current members.
India was invited to observe the APEC meeting for the first time in November 2011. The country’s integration into the forum could potentially strengthen ties with the global economy and other Asia-Pacific nations while providing an alternate market for labor, consumers, and investments to APEC.
This development might also help APEC foster an ‘Indo-Pacific’ concept, attributing it renewed purpose in the present century.
