Rudd was quoted in 'The Age' newspaper as saying that 80-year-old retired diplomat Richard Woolcott, the Australian envoy who negotiated the formation of APEC in 1989, would be recalled to be Canberra's envoy to persuade other countries to agree to set up such an institution.
If accepted by its intended members, it could lead ultimately to a security pact covering the vast region and a free trade agreement between the world's four biggest economies.
"Global economic and strategic weight is shifting to Asia," Rudd said, adding "For the first time in the settled history of this continent, we find ourselves in the region that will be at the centre of global affairs."
"By 2020, according to a study, Asia will account for around 45 per cent of global GDP, around one-third of global trade. By 2020, Asia's share of global military spending will have grown to nearly one-quarter. We need strong and effective regional institutions. We believe that we need to anticipate the historic changes in our region and seek to shape them, rather than simply reacting to them," he said.
Rudd proposed that a new institution, the Asia Pacific Community, be forged to deal with security, economic and resource challenges such as generating regional co-operation on security, freeing up trade and ensuring long-term security of energy, food and resource supplies.
