Why is India not a member of APEC?
Recently, 30th Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting concluded in San Francisco.
For the first time since 2011, USA hosted annual APEC summit. Theme: Creating a Resilient and Sustainable Future for All. However India is not a member of APFC but India attend Summit as an Observer.
Do you know why is India Not a Member of APEC? Read full article.
About APEC
- Formed in 1989 with 12 members. Now, it 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; The Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; and Viet Nam.
- Grouping of economies around Pacific Ocean aiming to promote trade, investment, and economic development in region.
- Accounts for nearly 62% of global GDP, half of global trade and covers 38% of global population.
- Operates on basis of non-binding commitments with decisions reached by consensus.
- India is an observer since 2011.
Why is India not a member of APEC?
- Reservations about India’s “protectionist instincts”, and its unsatisfactory records on economic reforms and WTO engagement.
- Membership in APEC group froze in 1997.
- India’s lack of a Pacific coastline has worked against its membership.
Significance of APEC for India
- Reducing trade barriers, promoting free flow of goods, services and capital among APEC economies.
- Improve physical infrastructure linkages, people mobility and institutional ties across Asia-Pacific.
- Boost India’s exports, attract investment and support initiatives like Make in India.
- Facilitate “technology transfer” in IT, pharmaceuticals, renewable energy etc.