Syllabus: GS2/International Relation; Global Grouping
Context
- Recently, the Asia-Pacific Economic Cooperation (APEC) Summit (2025), held in Gyeongju, South Korea, concluded with the adoption of APEC Leaders’ Gyeongju Declaration (2025), the APEC Artificial Intelligence Initiative, and the APEC Framework for Cooperation on Population Structure Changes.
Key Highlights APEC Summit (2025)
- Adoption of Leaders’ Declaration (Gyeongju Declaration): APEC leaders endorsed a joint declaration reaffirming their commitment to:
- Free and open trade across the Asia-Pacific region;
- Strengthening supply chain resilience;
- Promoting inclusive and sustainable economic growth;
- Advancing digital transformation and climate action.
- US – China Engagement: It signaled a thaw in bilateral tensions, with both leaders agreeing to resume trade dialogue and reduce tariffs on select goods.
- Climate and Sustainability Focus: The declaration included commitments to:
- Accelerate clean energy transitions;
- Support climate-resilient infrastructure;
- Enhance cooperation on carbon markets and green financing.
- Digital Trade and Innovation: Countries emphasized the need to:
- Harmonize digital trade standards;
- Promote cross-border data flows;
- Support small and medium enterprises (SMEs) in accessing digital tools;
About Asia-Pacific Economic Cooperation (APEC)
- It is a regional economic forum established in 1989 to strengthen the interdependence of economies across the Asia-Pacific region.
- It uses the term ‘economies’ instead of ‘countries or nations’ to emphasize its focus on economic and trade collaboration rather than political or territorial representation.
- It operates through cooperation and consensus, emphasizing voluntary participation rather than binding treaties.
- All member economies have an equal voice, and decisions are made collectively through dialogue.
- Member Economies (21 Members): Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Philippines; The Russian Federation; Singapore (APEC Secretariat & Headquarter); Chinese Taipei; Thailand; United States of America; and Viet Nam.
What Does APEC Do?
- APEC works to ensure that goods, services, investments, and people move easily across borders. Its main objectives are:
- Trade Facilitation: Simplifying customs procedures and reducing barriers to cross-border movement.
- Regulatory Alignment: Harmonizing regulations and standards to make exporting and importing more efficient.
- Economic Integration: Promoting freer trade and investment through cooperation and innovation.
| India’s Interest in APEC – India has consistently expressed interest in joining APEC, viewing it as a gateway to enhanced trade, investment, and regional cooperation. – India’s MEA has hosted discussions and published reports like ‘APEC and India: An Appraisal’, emphasizing India’s potential contributions to the group’s goals of inclusive and sustainable growth. Why Isn’t India a Member Yet? – APEC’s consensus-based decision-making, which requires unanimous support from existing members. – Concerns over India’s trade liberalization pace and regulatory environment. – Geopolitical balancing, especially amid US–China tensions. Strategic Implications – It limits India’s direct influence in shaping Asia-Pacific trade norms. – It affects India’s positioning in regional blocs like the Indo-Pacific Economic Framework (IPEF), where APEC members play a dominant role. |
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