APEC As A New Model of Regional Economic Cooperation: Compatibility with GATT

Today’s driving forces in world trade are private trade, investment flows, technological progress, and job creation. These forces create momentum towards the further integration of economy within their respective regions. The challenge for governments today is to reinforce these trends in favor of long-term economic benefits, while resisting the temptation to make short-term adjustments for growth. Regionalism is being considered as a solution to contemporary international economic problems; with the division of the world into the three major trading blocs of the EC, NAFTA, and APEC, regionalism seems to be the fastest road to multilateral free trade. This paper proposes APEC as a new model of regional economic cooperation. This proposal will rely upon the analysis of Article XXIV of the GATT and regional economic integration, i.e., EC and NAFTA, as well as a discussion of the background, significance, and features of APEC