Why APEC Matters to Americans

In 1989 when former President George Bush was President of the United States the Asia-Pacific Economic Cooperation (APEC) forum was established to promote economic integration around the Pacific Rim and to sustain economic growth. APEC currently has 21 members: 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; Republic of the Philippines; Russia; Singapore; Chinese Taipei; Thailand; USA; Vietnam.

The United States, recognizing the value of top-level meetings to advance the work of creating a Pacific community, invited member economies' leaders to Blake Island, Washington, to meet informally to discuss major issues in the APEC region. This gathering of economic leaders has become the single most important institution in the Asia Pacific region. It brings top level attention to APEC's vision of free trade and investment as well as providing a forum for Leaders to meet on a regular basis both as a group and bilaterally to discuss current issues and resolve disputes.

The economic health of the APEC region is vitally important to America's continued prosperity. Economic growth across the APEC region waned this year, largely in response to the slowing US economy and the weakening global demand for many of the Asian members' exports (particularly electronics). Many members have lowered their 2001 growth projections in light of poor performance during the first half of the year, although most will still post positive results.

APEC is home to our biggest customers in the world, with a total of $500 billion in exports in 2000. APEC remained a powerful trading group accounting for about half of the world exports and imports. We in turn have played a critical role in Asian recovery, providing a market that bought nearly $700 billion worth of goods and services from other APEC economies last year.

APEC has played an important role in promoting trade and investment liberalization in the region. As a result of these efforts, APEC markets are considerably more open today than they were ten years ago, creating new opportunities for American business and creating new employment for American workers.

The challenge posed by the higher profile APEC launched at Blake Island was also widely seen as galvanizing a successful conclusion of the Uruguay Round Table negotiation by demonstrating an alternative path to liberalizing trade talks if global talks were to fail.

APEC has also played a complementary role to the International Monetary Fund and other international financial institutions in fostering a rapid Asian economic recovery. APEC encourages its members to pursue appropriate macroeconomic policies that stimulate domestic demand, and microeconomic polices to promote financial and corporate restructuring and attract investment.

APEC is promoting increased transparency, openness and predictability based on the rule of law. APEC seeks to eliminate impediments to trade and investment by encouraging member economies to reduce barriers, adopt transparent, market-oriented policies and address such issues as unequal labor productivity, restricted mobility of business persons and outdated telecommunications regulatory practices.

APEC can serve a crucial role in advancing long-term projects and initiatives that will assist its members to reform their economies and implement the policy changes that will sustain the economic recovery. It also can help foster development of the physical and human capital necessary to sustain growth in the 21st century.

APEC also promotes discussion among Leaders and undertakes programs to assure that the social infrastructure exists to allow APEC economies to take advantage of trade and investment opportunities and that economic growth translates into real social progress. For example, APEC works to advance environmental and labor standards, improve basic education, fight disease, promote the growth and development of small business, and integrate women into economic life.

APEC works directly with the private sector to produce results with broad benefits. Public-private collaboration on customs projects is becoming a model for the benefits that the public sector can derive from partnership with business constituents. Other public-private partnerships this year in APEC focuses on developing e-commerce and region-wide information technology training programs.

A revived Asia-Pacific region means more exports from and investments by U.S. companies, more jobs for Americans and more U.S. economic growth. APEC's motto could be "prosper thy neighbor." The United States is committed to ensuring APEC plays that constructive role.