The Role and Significance of the Asia-Pacific Economic Cooperation (APEC) in the Modern Asia-Pacific Region

Abstract

Thirty-three years after its establishment in 1989, the Asia-Pacific Economic Cooperation (APEC) remains one of the main economic forums in the Asia-Pacific. However, we argue that the APEC is becoming obsolete for two main reasons. First, at the ideational level, the regional lexicon has shifted to the Indo-Pacific, making the term "Asia-Pacific" rather outdated, which causes the APEC to lose momentum. The proliferation of bilateral and megaregional FTAs also means that, in terms of economic ideas, the APEC is no longer the primary model for the region. Second, the APEC deliberately distances itself from politics and security issues, making it "economically exclusive". This is an outdated approach since the Asia-Pacific is witnessing a shift in the regional discourse that links trade and economics to security issues. The 2022 Russia-Ukraine war will also test the limit of the APEC's economic exclusivist approach, having in mind Russia's role in the war and its membership in the APEC. In sum, present-day APEC fails to adapt to changes within the global and regional landscape, making its role and significance less prominent in the contemporary Asia-Pacific.