APEC Summit 2025

Context

On October 31, 2025, the Asia-Pacific Economic Cooperation (APEC) Summit 2025 was held in Gyeongju, South Korea. This summit made headlines, particularly due to the trade agreement between the United States and China.

What is APEC ?

• Introduction: APEC (Asia-Pacific Economic Cooperation) is a regional organization that promotes free and open trade and economic integration in the Asia-Pacific region.
• Established: Established in 1989 at the suggestion of Australian Prime Minister Bob Hawke.
• First Meeting: Canberra (Australia)
• Headquarters: Singapore
• Nature: Non-binding, operates on a consensus-based approach
• Member States (21 in total): Australia, Brunei, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei (Taiwan), Thailand, United States, Vietnam
• Moratorium Policy: APEC has maintained a moratorium on new membership since 1997.
• Significance: The APEC region accounts for approximately 60% of global GDP, half of trade, and 40% of the population (2.9 billion people).

About APEC Summit 2025

• Location: Gyeongju, South Korea; this historic city hosted an APEC Summit for the first time.
• Theme: ‘Building a Sustainable Tomorrow: Connect, Innovate, Prosper’
• Key Focus: Artificial Intelligence (AI), demographic imbalance, and green technology cooperation

Objectives

• Promote free trade and investment in the Asia-Pacific region
• Strengthen regional cooperation on AI and demographic imbalance
• Accelerate economic integration and innovation-driven growth
• Ensure global supply chain stability

Key Outcomes

• Under the US-China Trade Truce, both countries agreed to reduce tariffs and resume soybean and rare earth trade.
• APEC leaders agreed on the principle of “win-win trade for all.”
• Announcement of a joint action plan on AI cooperation and green energy.
• Special emphasis on global supply chain sustainability.

Significance

• Signal of stability in the global economy
• APEC gains a new dimension in multilateral cooperation
• AI and green technology cooperation promote regional development

India's Perspective

• India is not a member of APEC, but its decisions influence the Indo-Pacific strategy and free trade policy.
• For India, this platform offers opportunities in terms of technology, investment, and supply chain cooperation.

Challenges

• US-China competition challenges APEC unity
• Protectionism and AI-based job crisis
• Policy differences among member countries

Way Forward

• Cooperation focused on digital trade, innovation, and green growth
• Prioritizing AI policy framework and human resource development
• Strengthening partnerships with Indo-Pacific countries
• Emphasis on multilateral dialogue and inclusive policymaking

Conclusions

APEC Summit 2025 made it clear that the future of the Asia-Pacific region will depend on cooperation, innovation, and sustainable development. While the US-China agreement has provided short-term relief, balanced leadership and multilateral partnerships are essential for long-term stability.