Asia-Pacific Economic Cooperation (APEC) was founded in November 1989 as an informal consultative forum to promote economic cooperation. At present it includes 21 economies of the Asia-Pacific region: Australia; Brunei Darussalam; Canada; Chile; the People's Republic of China; Hong Kong, China; Indonesia; Japan; the Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; the Philippines; the Russian Federation; Singapore; Chinese Taipei; Thailand; the United States; and Viet Nam. After admitting Russia, Viet Nam and Peru in 1998, APEC imposed a moratorium on the forum's expansion, which was extended in 2010*.
APEC members account for 57% of the world's GDP, 48% of international trade, over 40% of direct foreign investment and about 40% of the world's population.
The prime mover of the APEC process is the annual APEC Economic Leaders' Meetings (AELM) which are preceded by the APEC Foreign and Trade Ministers' Meetings (AMM). Senior Officials meet on a regular basis three or four times a year, while Sectoral Ministerial Meetings are held in accordance with schedule agreed by relevant APEC fora. Sectoral APEC activities are run by more than 50 committees, subcommittees, working groups and other subfora.
Each year, one of the APEC Member Economies becomes the APEC host economy and has the obligation to host the major APEC meetings and serve as the APEC Chair.
Administrative and technical functions are performed by the Singapore-based APEC Secretariat. Since January 1, 2010 the Secretariat has been headed by the Executive Director appointed under a three-year contract. Currently this post is held by Ambassador Muhamad Noor Yacob, Malaysia.
The region's business community takes part in forum's activities through the APEC Business Advisory Council (ABAC), which was set up in 1995. ABAC consists of three business representatives from each APEC member economy appointed by heads of state and government.
APEC operates by consensus and aims for free and open trade and investment in industrialized member economies by 2010, and in developing member economies by 2020 as it was set by the Bogor Goals defined in the 1994 AELM Bogor Declaration.
Starting from the AELMs in Shanghai (2001) and in Las Cabos (2002), APEC has been paying special attention to the issue of countering terrorism, primarily through economic and financial mechanisms. In the face of new challenges APEC deals with other security concerns, including those in the spheres of trade, finance, energy, health and transportation.
The AELM in Honolulu, the USA, in November 2011 focused on a wide range of issues related to promoting economic growth and jobs in the conditions of unsteady global economy, strengthening regional economic integration, converging regulatory systems, fostering energy efficiency and security.
"The Honolulu Declaration - Toward a Seamless Regional Economy" was supplemented by four annexes on the topics of promoting effective, non-discriminatory and market-driven innovation policy; enhancing small and medium-sized enterprises participation in global production chains; trade and investment in environmental goods and services; and strengthening implementation of good regulatory practices.
Russia's priorities as APEC-2012 host economy include trade and investment liberalization and regional economic integration, cooperation for innovative growth, food security as well as supply chains connectivity.
In 2013, APEC events will be hosted by Indonesia.
* When APEC admitted three new members during the third APEC Ministerial Meeting in Seoul in November 1991, the protocol was accepted to refer to the three new member economies as the People's Republic of China; Hong Kong, China; and Chinese Taipei. As such, APEC's members are always referred to as "Economies" rather than countries or nations. The use or display of national flags, symbols or anthems is prohibited and only simple nameplates of the member economies are displayed at any APEC function.
In November 2010 in Yokohama, APEC leaders agreed that they "will continue to review the question of APEC new membership going forward".