Purpose/Activities of APEC
The purpose of the inception of APEC was to further enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific community. APEC has worked to reduce tariffs and other trade barriers across the Asia-Pacific region, creating efficient domestic economies and dramatically increasing exports. APEC also works to create an environment for the safe and efficient movement of goods, services and people across borders in the region through policy alignment and economic and technical cooperation. The vision of APEC was adopted by leaders at a meeting in Bogor, Indonesia, referred to as the “‘Bogor goals’ of free and open trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020 for developing economies.”
APEC focuses on three key areas known as the “Three Pillars”: Trade and Investment Liberalisation, Business Facilitation, and Economic and Technical Cooperation. The purpose and outcome of these three areas is to pool resources within a member’s region to achieve greater efficiency, and deliver numerous benefits to the consumers in that region. Benefits include increased training and employment opportunities, greater choices in the marketplace, cheaper goods and services and improved access to international markets.
First of all, protectionism is expensive for a country because it increases the prices of goods and services. Therefore, trade and investment liberalisation reduces and will eventually eliminate tariff and non-tariff barriers. This key area focuses on opening markets and increasing trade and investments among members economies resulting in increased economic growth and standard of living. Secondly, efficiency in conducting business with importers and exporters in Asia Pacific is improved by business facilitation by reducing costs of business transactions, improving access to trade information and aligning policy and business strategies to facilitate growth, and free and open...