Diverse Pacific Rim economies formed APEC in Canberra in November 1989 to promote trade and economic cooperation in the region, just ten months after Australia Prime Minister Bob Hawke publicly launched the idea in a speech in Seoul.In 1993, United States President Bill Clinton established the practice of an annual APEC Economic Leaders' Meeting beginning on Blake Island, outside Seattle. A year later, in Bogor, Indonesia, they committed APEC economies to jointly work towards free and open trade and investment by 2020 and build community to tackle the economic and social challenges of development--also known as the Bogor Goals.APEC's 21 member economies account for around 40 percent of the world's population, half of global trade and 60 percent of total gross domestic product. Increases in trade, investment and economic growth since 1989, facilitated by the lowering of barriers at, across and behind borders, and improved market integration, have translated into a significant rise in per capita gross domestic product within the region.Average tariffs in the APEC region dropped from nearly 17 percent in 1989 to 5.7 percent in 2012. The rate for automobiles alone was slashed from 40-70 percent to below 5 percent during this period, improving market access, buoying revenue amid the effects of the global financial crisis, and now contributing to renewed profit and job creation within the sector as demand picks up.The APEC Business Travel Card was introduced in 1997 and allows business travelers pre-cleared, facilitated border entry to APEC economies. The program reduces card users' cross-border business travel costs in the region by about 40 percent and is being expanded and improved to meet steadily rising demand.All APEC economies have adopted electronic customs processing systems that will reduce the average time needed for goods to clear customs in the region. As a result of measures like these, trade transaction costs in the region dropped by 10 percent between 2002 and 2010. Reductions during the 2007-2010 period alone saved businesses nearly US$60 billion.Collaboration within APEC has helped make trading across borders significantly more cost effective. In 2011, the average cost to export a container in the APEC region was US$835, about 45 percent cheaper than the US$1,486 amount for the rest of the world. To import a container in the region it was nearly 50 percent cheaper at US$896 compared to US$1,768 elsewhere.In 2009, APEC launched a program offering small and medium enterprises management system diagnostics and technical consultancy services. Between 2009-2012, the program worked with nearly 100 companies in APEC economies ranging from Indonesia and Malaysia, to Peru and the United States. In 2012 alone, 85 percent of recommendations were adopted, building the capacity of firms to take advantage of business opportunities across the APEC region.APEC is strengthening resilient growth through work to safeguard trade and limit disruptions to regional supply chains. This includes joint activities with the private sector to promote business continuity planning in a region where more than 70 percent of all natural disasters occur.In 2012, APEC economies committed to reduce tariffs to 5 percent or less on a list of 54 environmental goods such wind turbine blades and solar panels by the end of 2015 to promote greater trade, renewable energy and environmental protection. APEC is now working towards this goal and exploring opportunities for building on the region's landmark initiative within the World Trade Organization.
