The New Millennium: APEC and Emerging China
NEW DEVELOPMENTS IN MACROECONOMICS RESEARCH, Lawrence Z. Pelzer, ed., Nova Science Publishers, 2006
Posted: 28 Aug 2007
The Asia-Pacific Economic Cooperation (APEC) has been universally acknowledged as the major regional economic cooperation organization for the liberalization and facilitation of trade and investment (TILF) in the Asia-Pacific region. However, APEC's role as leader in the Asia-Pacific region is being challenged. In 2004, an emerging China entered into a landmark agreement with ASEAN, which is the 2004 ASEAN-China accord that portends to establish the world's largest free trade area by the year 2010. As a result, the fate of APEC largely became intertwined with the fate of China. APEC was formed in 1989, and evolved from a regional economic consultative body, into an organization explicitly addressing political concerns in the region. APEC is the byproduct of evolving international political economy concerns, from the post-Cold War, post-East Asian financial crisis, to post-9/11 and global threats of mega-terrorism. APEC has suffered a crisis in lack of credibility since the East Asian financial crisis; many perceive that APEC failed to adequately respond to the crisis. However, APEC's credibility has been more harmed by a perceived inability to accomplish the Bogor goals. In 1994, APEC member economies signed the Bogor Declaration, and developed economies pledged to eliminate trade and investment barriers by 2010, while developing economies pledged to eliminate trade and investment barriers by 2020. Some critiques link accomplishing the Bogor goals to APEC's survival and relevancy in the new millennium. A critique of APEC based solely on the Bogor goals results in a denial of other equally important relevancies, serving as harbingers for survivability and continuing relevancy. In the new millennium, APEC's survival and continuing relevancy will lie in its historical commitment to TILF. However, historical relevancies must also allow for adjustments reflecting new international political economy concerns, such as, global threats of mega-terrorism, the 2004 ASEAN-China accord, termination of the WTO Multi-Fibre Agreement (MFA) of 1974, and what is being dubbed "JACIK," a prospective free trade super mega zone, comprising ASEAN, China, Japan, India and the Republic of Korea. Moreover, survival for APEC in the new millennium means encompassing an explicit economic agenda, in conjunction with an explicit international relations (political) agenda. APEC will survive in the new millennium by incorporating the latter relevancies, which reflect both historical relevancies, and evolving relevancies from changing and dynamic international political economy environments.
Keywords: APEC, Asia, macroeconomics, trade, WTO, regionalism, international economic law, international economic integration
JEL Classification: K33, B22, F02
Suggested Citation: Suggested Citation