Asia Pacific Economic Cooperation (Apec), Free Trade, and the 2001 Summit in Shanghai

There is apparent agreement between Congress and the Bush Administration that the Asia Pacific Economic Cooperation (APEC) is a potential vehicle for advancing U.S. economic, trade, diplomatic, and security interests both globally and regionally. In particular, APEC offers the United States an organizational counterpoint to other proposed regional associations in Asia. However, the organization’s approach and perspective on these issues may pose problems for the United States. By design, APEC operates on the basis of consensus, under which its members voluntarily liberalize their economic and trade policies. As a result, APEC lacks enforcement mechanisms commonly seen in other multilateral organizations.