Asia Pacific Economic Cooperation (APEC) and the 2008 Meetings in Lima, Peru

Congress and the Executive Branch have historically identified the Asia Pacific Economic Cooperation (APEC) as an important organization to help promote the U.S. goal of liberalizing international trade and investment in Asia, and possibly the rest of the world. APEC's commitment to the goal of trade and investment liberalization is embodied in its Bogor Goals, in which APEC members pledged to free and open trade and investment in the Asia-Pacific by 2010 for industrialized economies and 2020 for developing economies. However, several alternative avenues for the promotion of trade integration in Asia have emerged, challenging the past U.S. focus on APEC. The Association of Southeast Asian Nations (ASEAN) is promoting the creation of various forms of an all-Asian free trade association that would exclude the United States. In addition, during its last few months, the Bush Administration indicated its intention to enter into negotiations with the Trans-Pacific Strategic Economic Partnership Agreement (TPP), an existing free trade agreement between Brunei Darussalam, Chile, New Zealand, and Singapore. The 111th Congress has an opportunity to reexamine U.S. policy towards APEC. It has already increased APEC-related funding in FY2009, in part to provide for the preparations for the 2011 APEC meetings to be held in the United States. In addition, there are other actions Congress may chose to take with respect to APEC, depending on its determination of APEC's role for trade promotion initiatives in Asia. Congressional attitudes and actions may also be influenced by the Obama Administration's trade policies in Asia--and the role APEC plays in those policies. This report will be updated as circumstances warrant.