Asia Pacific Economic Cooperation (APEC), Free Trade, and the 2003 Summit in Bangkok, Thailand

Publication Date: August 2003

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Trade

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Abstract:

On October 20-21, 2003, the Eleventh APEC Leader's Meeting (informal summit) is to be held in Bangkok, Thailand. It is to be preceded by meetings of senior officials from member countries, a CEO summit of business leaders, and the APEC Business Advisory Council meeting. The APEC summit is usually attended by the President, Secretary of State, U.S. Trade Representative, and sometimes the Secretary of Commerce. The theme for APEC 2003 is "A World of Differences: Partnership for the Future" which is intended to bring together the best potential of all APEC economies to confront the challenges of the future, particularly in achieving the APEC goal of free and open trade and investment for developed APEC economies. This central theme is amplified by a series of five sub-themes that are designed to guide APEC's Working Groups and Forums in achieving their goals.

On October 26-27, 2002, at the Tenth APEC Leaders' Meeting in Mexico, despite the theme of expanding the benefits of cooperation for economic growth and development and enabling the APEC vision to be implemented, the meetings focused on terrorism following attacks in Indonesia, Russia, and the Philippines. President Bush pursued two policy themes: the pending U.N. vote on Iraqi disarmament and the North Korean nuclear program. The leaders agreed to toughen security for air and water transport, halt terrorist financing, and increase vigilance in customs, telecommunications, and energy. They also pledged to reduce transaction costs for trade by 5% by 2006.

APEC is an association of 21 economies bordering the Pacific Ocean who are working cooperatively to reduce barriers to trade and investment; ease the exchange of goods, services, resources, and technical know-how; and strengthen economic and technical cooperation. The members include the United States, Canada, Mexico, Chile, Peru, Japan, South Korea, China, Taiwan, Hong Kong, Indonesia, Brunei, Malaysia, Singapore, Thailand, the Philippines, Vietnam, Australia, New Zealand, Papua New Guinea, and Russia. In the 1994 Bogor Declaration, the leaders of APEC declared their intention to establish free trade and investment in the region by the year 2010 for industrialized members and 2020 for the others. This goal has been reaffirmed at the Leader's Meeting each subsequent year.

For the United States, APEC raises fundamental questions that are of special interest to Congress. One is whether consensus can be achieved on the APEC vision of free trade and investment in the Asia Pacific or whether future trade liberalization will be confined primarily to bilateral free-trade agreements or multilateral trade negotiations under the World Trade Organization. In the 108th Congress, APECrelated legislation included bills to establish free trade agreements with Singapore and Chile. U.S. financial support for APEC in the State Department's budget has been $601,000 per year. This report will be updated as circumstances warrant.