The Asia Pacific Economic Cooperation (APEC) summit of 2023, which took place in San Francisco on the 16th and 17th of November, was a pivotal diplomatic event. This was primarily because it witnessed the resumption of dialogues between China and the U.S., following a hiatus that lasted almost a year.
Key Takeaways From APEC 2023 Summit
- Summit Theme: The prime focus of APEC 2023 was “Creating a Resilient and Sustainable Future for All”.
- Trade Commitments: Member countries underlined their commitment to free, open, and fair trade. They also endorsed sustainable and inclusive growth.
- Golden Gate Declaration: The summit led to the adoption of the Golden Gate Declaration. This aims to build resilience and sustainability across member economies.
- Goals Outlined: The Golden Gate Statement set forth various goals. One of these includes creating a fully functional WTO dispute settlement system by 2024. The pursuit of a Free Trade Area in the Asia-Pacific was another key aim.
- Action on Climate Change: They endorsed the APEC Action Agenda on Climate Change and Energy Security. This outlines specific actions and targets to deal with the climate crisis. It also focuses on ensuring energy security through improved cooperation and coordination.
- U.S. Strategy: The U.S. highlighted its strategy of diversifying and de-risking from China. However, total decoupling was not an objective.
- Taiwan’s Stance: Taiwan expressed interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
APEC Membership: India’s Potential Role
- Investment Opportunities: India has ambitious development plans in the pipeline. Over $1 trillion investment is expected in the next 10 years. APEC countries can benefit from this growth. It’s a chance to contribute to India’s infrastructure boom during times of slow growth.
- Economic Changes: India has made considerable economic changes since 1991. It’s embracing global economic trends. These changes make India a better fit with APEC’s free-market values.
- Population Advantage: India has a significant youthful population. This can balance out the impact of ageing populations in some APEC countries. India’s demographic advantage can offer a potential workforce and customer base, promoting regional economic growth.
- Strategic Balance: India can bring a strategic balance to APEC. It has a past of non-alignment. This can reassure smaller members, as it implies a diplomatic approach that doesn’t favour any particular power bloc.
- Policy Alignment: India’s participation fits with the recent Indo-Pacific policy of the United States. This could encourage more cooperation between APEC and India, creating synergies in handling regional and global challenges.
How APEC Membership Could Benefit India
- Enhanced ASEAN Collaboration: India has a partnership with ASEAN. Being a part of APEC could fortify this relationship further.
- Economic Reforms Facilitation: APEC membership can make economic reforms easier in India. It can expose India to APEC’s economic principles, enhancing competitiveness. This membership can provide a platform for sharing and learning best practices from other members, which can assist in India’s economic growth.
- Readiness for Future Trade Deals: Joining APEC can also prepare India to become a part of emerging trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Access to these agreements can increase trade opportunities and promote India’s economic integration with the Asia-Pacific region.
- Strengthening Ties with the USA: APEC membership can solidify the strategic partnership between India and the USA. It can provide a shared platform for collaboration on economic matters, deepening ties in trade and strategic cooperation.
- Economic Growth and Increased Global Presence: Being part of APEC can boost India’s economy by extending its reach in foreign markets. It provides access to APEC markets and value chains, accelerating India’s integration into the global economy, especially in the manufacturing sector.
The Roadblocks In India’s Path To APEC Membership
Let’s break down the reasons why India hasn’t been able to secure APEC membership since 1993
- Geographical Limitations: India does not border the Pacific Ocean, a major requirement for APEC members which are primarily Pacific-rim countries. This geographical barrier poses a significant challenge to India’s APEC membership.
- Concerns of Changing Priorities: APEC members fear that India’s entry could shift the organization’s focus from the Pacific Rim. This indicates a worry that India’s involvement could disrupt APEC’s existing priorities and dynamics.
- Economic Policies: India’s economic policies are seen as protective and inward-focused. This is in contrast to the liberal and free-market principles that APEC stands for. The difference in economic policies results in doubts about India’s compatibility with APEC’s core economic beliefs.
- Trade Negotiation Record: India’s performance in trade negotiations, in bilateral deals and at the WTO, triggers scepticism. There are concerns that India’s trade negotiation style could impede APEC’s efficiency and momentum.
About APEC
- Established in 1989, the regional economic forum aims to capitalise on the increasing interdependence of the Asia-Pacific region.
- The primary objective is to foster enhanced well-being among the population of the region through the promotion of balanced, inclusive, and sustainable economic growth.
- APEC’s 21 member economies are: Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; and Viet Nam.
- Within APEC, every member holds an equal voice, and decisions are made through consensus. This inclusive approach ensures that all members have an equal say in the decision-making process.
- There are no binding commitments or treaty obligations.
- Members voluntarily undertake commitments, and capacity building projects aid in the implementation of APEC initiatives.
- Central to APEC’s vision are the renowned “Bogor Goals,” which emphasize the significance of unfettered trade and investment in the Asia-Pacific region.
- Its permanent secretariat is based in Singapore.