APEC is examining the prospects and options for a free trade area in the Asia-Pacific region (FTAAP), which would include all APEC member countries. Since 2006, the APEC Business Advisory Council, which advocates the theory that a free trade area has the best chance of converging Member States and ensuring stable economic growth within the framework of free trade, has committed to creating a high-level task force to study and develop a free trade area plan. The proposed free trade agreement was born out of a lack of progress in the World Trade Organization negotiations in Doha and a way to overcome the spaghetti bowl effect created by divergent and contradictory elements of the umpteenth free trade agreements. There are approximately 60 free trade agreements and another 117 are located in Southeast Asia and the Asia-Pacific region. The EU is working on a system of supranational independent institutions and intergovernmental decisions negotiated by member states. The important institutions of the EU are the European Commission, the Council of the European Union, the European Council, the European Court of Justice and the European Central Bank. The European Parliament is elected every five years by EU citizens. The EU has developed an internal market through a standardised legal system that applies to all Member States. Passport controls have been abolished within the Schengen area (which includes EU and third country member states). EU policy aims to ensure the free movement of people, goods, services and capital, to legislate in the areas of justice and home affairs and to maintain common policies in the areas of trade, agriculture, fisheries and regional development.

The monetary union, the euro area, was created in 1999 and has been made up of 17 Member States since January 2012. Thanks to the common foreign and security policy, the EU has developed a limited role in external relations and defence. Permanent diplomatic representations have been established around the world. The EU is represented at the United Nations, the WTO, the G8 and the G20. The agreement faces potentially controversial legislative conflicts in the United States and elsewhere before it comes into force. At the 1994 meeting in Bogor, Indonesia, APEC leaders adopted Bogor`s goals of free and open trade and investment in Asia-Pacific by 2010, for industrialized countries and by 2020 for developing countries. In 1995, APEC established a business council, called the APEC Business Advisory Council (ABAC), made up of three leaders from each member economy. To achieve Bogor`s objectives, APEC is conducting work in three main areas: the implementation of NAFTA on January 1, 1994 led to the immediate removal of tariffs on more than half of Mexican exports to the United States and more than one-third of U.S. exports to Mexico. Within 10 years of the implementation of the agreement, all U.S.-Mexico tariffs would be eliminated, with the exception of some U.S. agricultural exports to Mexico, which were to expire within 15 years.

Most U-Canada trade was already duty-free.