APEC Current Affairs - 2020

Asia Pacific Economic Cooperation: Economic Decline of 2.7% expected in the region

The Asia Pacific Economic Cooperation has stated that the APEC region is to face an economic decline of 2.7% in 2020 due to the impact of COVID-19. Also, the region is to face near growth rate. This will be the highest decline for the region since the 2008 financial crisis.

Highlights

The unemployment rate according to the report of APEC was 3.8% in 2019 and it is to increase to 5.4% in 2020. The region is also expected to face an economic rebound in the year 2021. The anticipated growth of the region in the 2021 is 6.3%.

APEC

APEC comprises of Vietnam, US, Thailand, Taiwan, Singapore, Russia, Philippines, Peru, Papua New Guinea, New Zealand, Mexico, Malaysia, Republic of Korea, Japan, Indonesia, Hong Kong, China, Chile, Canada, Brunei and Australia.

It was begun in 1989. The forum was formed to leverage the growing inter dependence of the countries in the region of Asia-Pacific. The region has now been renamed as Indo-Pacific.

The three major observers of APEC include ASEAN, Pacific Economic Cooperation Council and Pacific Islands Forum.

India and APEC

India is not a member of APEC. For the first time, India was invited to be an observer in the association in 2011. India has requested for membership in APEC and had received the support from Japan, US, Papua New Guinea and Australia. There are constraints faced by India to join APEC as India does not border Pacific Ocean.

COP25 cancelled

On October 30, 2019, the Chile Government cancelled the Asia-Pacific Economic Cooperation (APEC) summit and the COP25 conference due to the ongoing protests in the country. The country’s president in a press meet said that the ongoing violent protests have plagued the country for weeks and it is currently not in a situation to hold international conferences.

While the United Nations is searching alternatives to conduct the conferences, Spain has offered to host COP25. This is the second time a country is cancelling to host COP25. In November, 2018, Brazil withdrew from hosting the COP25 citing economic reasons

COP25

The Conference of Parties is the supreme body of the UNFCCC-United Nations Framework Convention on Climate Change. The first COP was held in Berlin, Germany in 1995. The Climate change decisions and solutions of the United Nations revolved around the COP agreements. the last COP 24 was held at Katowice, Poland in May 2019.

APEC

Asia-Pacific Economic Cooperation is an inter-governmental forum for 21 Pacific rim countries. These countries account for nearly 50% of the world’s trade and account to 57% of world GDP. It was established in 1989. India is an observer of APEC since 2011 and has applied for its membership.