Abstract
Two grand issues about APEC’s future are treated in this paper: What decision-making mechanisms should APEC use, and what functions should APEC concentrate on? Among important boundary conditions, APEC’s character as a transregional mechanism, its size of membership, heterogeneity, and lack of a common political agenda are discussed, while similarities and differences with European integration are noted. It is concluded that APEC should concentrate on trade and investment facilitation, regulation, and industrial cooperation. By doing so, it can continue to rely on consensus-based decision-making and employ sub-APEC level voluntary clubs of members. To make such mechanisms effective, the role of regional monitoring mechanisms, peer review, variable geometry and governance experimentalism are emphasized.
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