Frequently-Asked Questions About APEC

What does APEC stand for?

APEC stands for Asia-Pacific Economic Cooperation.

How and why did APEC start? When did Canada join?

APEC was established in response to the growing interdependence among Asia-Pacific economies and to the need to advance Asia-Pacific economic dynamism and sense of community.

APEC began in 1989, when Australia hosted the first annual Ministerial meeting of Foreign and Trade Ministers from 12 Asia-Pacific economies to discuss ways to increase cooperation in this fast-expanding region of the world. Canada was a founding member of the APEC forum, along with Australia, Brunei Darussalam, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Republic of the Philippines, Singapore, Thailand and the United States.

In 1993, the United States held the first annual meeting of APEC Leaders in Blake Island, near

Seattle, to give trade liberalization and economic cooperation further impetus and high level commitment, to develop a spirit of community in the region and to promote sustainable growth and equitable development.

Between its establishment in 1989 and the first annual meeting of APEC Leaders in 1993, APEC accepted six new members. In November 1991, three new members were welcome in the organization: the People's Republic of China, Hong Kong and Chinese Taipei. In November 1993, APEC accepted Mexico and Papua New Guinea while deciding that Chile would become a full member in November 1994.

Who else participates in APEC?

Besides Canada, APEC's current includes: Australia, Brunei Darussalam, Chile, People's Republic of China, Hong Kong, Indonesia, Japan, Republic of South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Republic of the Philippines, Russia, Singapore, Chinese Taipei (Taiwan), Thailand, the United States, and Vietnam. Peru, Russia and Vietnam were the latest countries to join in November 1998.

There are three official observers: the Association of Southeast Asian Nations (ASEAN) Secretariat, the Pacific Economic Cooperation Council (PECC), and the South Pacific Forum (SPF).

What does APEC do for business?

Easing the movement of goods, services and people across borders is at the heart of APEC's mandate. In 1995, APEC Leaders established a permanent body, the APEC Business Advisory Council (ABAC), to be the channel for private-sector ideas on key areas for attention and cooperation among governments. Brunei chairs the ABAC throughout 2000. There are many examples of APEC's commitment to integrating business concerns into its work, particularly by providing access to accurate business information such as tariff levels, making business environments more predictable, and increasing opportunities for networking through trade fairs and expositions. Canada is ensuring that the needs of small and medium businesses are given special attention. Small business operators have identified areas of trade facilitation as a useful focus for APEC's work, particularly as these actions have the potential to significantly reduce the time and expense involved in expanding into new markets by cutting out administrative "red tape". Their recommendations for further activities include streamlining customs procedures, aligning national and international product and professional standards to ease the flow of goods and people, and increasing knowledge of and responses to intellectual property issues of concern to business. For greater detail, go to our Business Page.

What does APEC do for broader societal interests?

Being part of APEC affords Canada an opportunity not only to create economic opportunities for businesses, but also to ensure that growth proceeds with full consideration of environment and other sustainable development aspects such as human resources development. To get a better sense of what APEC should do and to increase understanding of APEC's activities, there is a need to consult with other interested sectors of society to ensure a variety of sources of input to APEC. The Canadian government recognizes that reaching out to the range of interested groups and organizations is essential to making good policy. The academics and non-governmental communities, as well as the broader Canadian public all have a legitimate and necessary role in the development of foreign policy, and Canada is working with APEC colleagues, as we have done in the past, to promote broader input as a means to enrich the policy development process. For the first time ever at their Vancouver meetings in 1997, Ministers and Leaders discussed the need for APEC to work with all stakeholders in pursuing its twin goals of sustainable growth and equitable development. Please visit our Social, Environment and Developmental Issues Page for more details.

How does APEC help advance Canadian foreign policy interests, like more jobs and growth, security, democratic governance and the environment?

APEC is an important foreign policy tool for Canada. As the premier forum in the region on trade and economic issues, APEC offers another means for Canada to expand its influence and activity in the fastest-growing region of the world. By providing a forum for engaging other countries on the elements of growth and prosperity, APEC opens up new markets for goods and

services in the region. Considering that every $1 billion in exports creates or sustain 11,000 jobs for Canadians, it is clear that the Asia-Pacific Region presents important opportunities for Canadian companies. Dialogue within APEC also supports the goals of peace and security through cooperation in achieving sustainable growth and enhancing social development and empowerment. Strengthening markets has become an important theme for APEC economies over the course of the past year, as the worst effects of the financial crisis have been overcome.

Is APEC a free trade agreement for Asia-Pacific?

APEC is not a free trade agreement, and there are no plans to change this arrangement. Since the beginning, APEC members have agreed that they will make commitments on a most-favoured nation (MFN) basis, meaning that commitments are not preferential to members of the APEC forum only. APEC is not a negotiating body. It operates by consultation and consensus, recognizing the different stages of economic development and priorities of members.

If commitments are voluntary, how can APEC work?

The fact that APEC comprises members from a wide range of cultural and social histories is one of its most significant characteristics, and one that allows for creativity and innovation in developing collective and individual commitments. The annual meeting of Leaders, inaugurated in 1993, is a key driving force behind the trade and investment liberalization agenda and the

priorities for economic and technical cooperation. Leaders give instructions to their governments, and expect results to be delivered by the next year's meeting. That is how APEC has moved from the general commitment to trade and economic cooperation, to a clear set of individual plans for trade and investment liberalization measures and joint action programs that advance agreed priorities for economic and technical cooperation, such as human resources development and technology-sharing, to name only two.

If Canada is a member of the World Trade Organization (WTO), why do we need APEC?

The WTO provides a framework for the global trading system, using a rules-based approach. APEC assists with regional implementation of this goal by helping to bring key members into the global trading system through consensus to advance global negotiations. APEC has held seminars aimed at prompt and complete implementation of the Uruguay Round agreements reached in Marrakech in April 1994. An example of the way in which APEC can be used as a regional vehicle for advancing global trade discussions occurred in November 1996, when APEC Leaders endorsed the development of a WTO agreement to substantially eliminate tariffs on information technology products by the year 2000. Less than two weeks later, at the first WTO Ministerial Review Conference in Singapore, WTO members agreed to the Information Technology Agreement (ITA). APEC Trade Ministers met in Montreal on May 9-10 1997 and agreed that APEC needed to continue to play this type of catalytic role, by virtue of the increasing importance and influence of the region in the global context. In the context of the most recent APEC meetings in Auckland in September of 1999, APEC leaders reached consensus on a whole range of issues, including the need to have industrial tariffs and the eventual elimination of agricultural export subsidies as key elements of any new WTO trade negotiations.

How are decisions made within APEC?

APEC operates by consensus. Members conduct their activities and work programs on the basis of open dialogue with equal respect for the views of all participants.

Where can I get the trade statistics of APEC member economies?

You can get trade statistics of APEC member economies by visiting our Overview of APEC markets and economies section from our Business page.

Where can I get the meetings' documents?

Please visit the Past APEC Summits page for the relevant year from our Brief History of APEC page. You will find for each summit the Leaders' Declaration and the Ministerial Statement, as well as some key documents.

Where Could I Find A Copy of a Speech Given on APEC by a Canadian Cabinet Minister?

You can find speeches and key documents of the Canadian government by visiting our News and Press Releases page.

How can I participate in the APEC activities?

All the APEC activities are open to all APEC member economies. Non-member economies, regional/international organizations as well as others can participate, as guests, in some of the activities, subject to approval/agreement of APEC. For more details, please refer to the APEC Secretariat's Non-Member Participation Section.