Understanding APEC: India’s Absence and Its Significance Discussed as Xi-Biden Hold Talks, NDTV Reports

Union Minister Piyush Goyal is currently attending the Asia-Pacific Economic Cooperation (APEC) meeting in the United States. This meeting is significant as it marks the second in-person dialogue between US President Joe Biden and Chinese President Xi Jinping since Biden took office in 2021. The meeting takes place amidst tensions and a trust deficit between the two countries.

The meeting between the leaders of the world’s two largest economies and military powers holds importance given the ongoing conflicts between Israel and Hamas, as well as Russia and Ukraine. The relationship between the US and China has been strained due to various factors, including the Taiwan issue, trade tensions, and sanctions.

The Asia-Pacific Economic Cooperation grouping, formed in 1989, consists of 21 members. However, India is not one of them. India had expressed its desire to join the group in 1991, a year that witnessed significant economic reforms and transformed the Indian economy. While most members are in favor of India’s inclusion, some oppose it, citing concerns about the country’s economic reforms and alleged protectionist tendencies.

Another reason for India’s exclusion from the grouping was a membership freeze that was in place from 1997 but was not extended in 2012. The current members of APEC include Australia, Brunei, Hong Kong (referred to as Hong Kong, China), New Zealand, Papua New Guinea, the Philippines, Indonesia, China, Japan, South Korea, Russia, Canada, the United States, Mexico, Peru, Chile, Malaysia, Vietnam, Singapore, Thailand, and Chinese Taipei (Taiwan). Notably, Hong Kong and Taiwan participate separately from China due to the focus on economies rather than countries.

APEC accounts for approximately 62% of global GDP and nearly half of global trade. It operates on the basis of non-binding commitments and decisions made by consensus. This year, the APEC Economic Leaders’ Week is being held in San Francisco, with the theme “Creating a Resilient and Sustainable Future for All.” The US aims to promote an interconnected, innovative, and inclusive region and advance a free, fair, and open economic policy agenda.

As of 2021, APEC members accounted for seven of the United States’ top ten overall trading partners. The US is expected to highlight the relative strength of its economy compared to China’s challenges after years of rapid growth. President Biden expressed his desire to establish a normal course of communication and cooperation with President Xi, especially during times of crisis.

Other key leaders attending the APEC meeting include Canadian Prime Minister Justin Trudeau, Japanese Prime Minister Fumio Kishida, and Indonesian President Joko Widodo. Russia will be represented by Deputy Prime Minister Alexei Overchuk.