FACTBOX: Asia-Pacific Economic Cooperation

TASS FACTBOX. The 31st Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting will be held on November 15-16, 2024, in Lima, Peru. Leaders of APEC economies will meet for dialogues on November 15, with the official part of the meeting scheduled for November 16. The Russian delegation will be led by Deputy Prime Minister Alexey Overchuk. TASS FACTBOX editors have compiled this factsheet on the forum’s structure and activities.

Creation and goals

The Asia-Pacific Economic Cooperation (APEC) forum was first organized during a conference of foreign and economic ministers from 12 countries in the Asia-Pacific region, which took place in Canberra, Australia, on November 6-7, 1989. The stated goals were to promote economic integration, expand trade, and stimulate economic growth in the region. APEC does not have a charter and cannot be considered an organization in a legal sense. Thus, it functions as an intergovernmental consultative platform.

Members

APEC currently comprises 19 economies and two territories. These include the 12 founding members - Australia, Brunei Darussalam, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and the United States - as well as China and its two territories, Hong Kong and Taiwan (joined in 1991), Mexico and Papua New Guinea (joined in 1993), Chile (acceded in 1994), Peru, Russia, and Vietnam (joined in 1998). Given the specifics of APEC membership, which includes not only states but also territories, APEC members are usually referred to as "economies."

The Association of Southeast Asian Nations (ASEAN), the Pacific Economic Cooperation Council (PECC), and the Pacific Island Forum hold observer status. Countries such as Bangladesh, India, Cambodia, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Macau (a special administrative region of China), Mongolia, Pakistan, Panama, and Sri Lanka have expressed interest in joining APEC. However, an APEC membership expansion moratorium has been in place since 1998. Initially set for ten years, the moratorium was extended indefinitely in 2010.

APEC economies account for 62% of the world’s GDP and 47% of global trade, with approximately 3 billion people living in countries that participate in the forum.

Structure

The Leaders' Meeting is the supreme body of the Asia-Pacific Economic Cooperation. During this meeting, member economies adopt declarations summarizing the forum's activities for the year and set the agenda for future cooperation. APEC Leaders' Meetings are typically held in September and November. Decisions are made by consensus. One of the member economies organizes and chairs the meeting, determining its priorities. APEC chairmanship is rotated without a fixed principle.

Ministerial Meetings usually coincide with the Leaders' Meetings. Sectoral Ministerial Meetings and Senior Officials' Meetings are held throughout the year. The Committee on Trade and Investment, along with various subcommittees and working groups, address economic cooperation among APEC members. In total, there are about 50 structural units. Administrative and technical functions are handled by the APEC Secretariat, established in 1992, with its headquarters in Singapore.

Activities

APEC economic leaders met for the first time in November 1993 in Seattle, USA. They outlined APEC’s vision for improving people's welfare, developing education, advancing science, and protecting the environment. In 1994, APEC adopted the Bogor Goals in Bogor, Indonesia, setting the target of "free and open trade and investment in the Asia-Pacific by 2010 for industrialized economies and 2020 for developing economies."

Subsequently, APEC members adopted several key documents to promote a favorable environment for trade. Following the 1997 Asian financial crisis, APEC shifted its focus to restoring and sustaining economic growth by strengthening markets and ensuring financial stability in the region.

In 2000, political issues were added to APEC’s agenda, with international terrorism at the forefront. The forum also expanded its scope to include issues related to the development of the internet and electronic technologies. During the 2007-2009 meetings, APEC discussed energy security and climate change, particularly aiming to reduce carbon dioxide emissions by 25% by 2030. Through the creation of the APEC Vision Group, leaders articulated their commitment to a strategic and ambitious post-2020 agenda to position APEC for 21st-century opportunities after achieving the Bogor Goals.

The 26th summit (November 17-18, 2018, Port Moresby, Papua New Guinea) was the first to end without a final declaration. The member economies failed to reach an agreement due to mutual accusations of "unfair trade practices" between China and the US. Additionally, disagreements arose over the development and implementation of measures to modernize the World Trade Organization (WTO).

The 2020 meeting (Kuala Lumpur, Malaysia) was held via videoconference due to the COVID-19 pandemic. For the first time, APEC leaders met virtually and focused on overcoming the pandemic’s challenges through coordinated action. They acknowledged significant progress under the Bogor Goals but recognized the need to address unfulfilled objectives, such as the full liberalization of trade and investment. The leaders announced the Putrajaya Vision 2040, which outlined a commitment to an open, dynamic, resilient, and peaceful Asia-Pacific community. The vision prioritized secure, sustainable trade, innovation, and digitalization.

In 2021, New Zealand chaired two online meetings on July 16 and November 12 (formally considered the 28th APEC meeting). At the first meeting, APEC leaders pledged to increase vaccine production and promote technology transfer. At the second, they built on the Putrajaya Vision 2040, setting a plan for APEC’s work over the next two decades. The agenda focused on advancing trade and economic growth, combating climate change, improving emergency preparedness, and promoting collaboration in vaccine development and distribution.

The 29th APEC meeting was held on November 18-19, 2022, in Bangkok, Thailand. Participants agreed to increase efforts to develop the agricultural sector and ensure long-term food security. The outcome document addressed the situation in Ukraine, though without a concrete plan of action.

The 30th meeting took place on November 15-17, 2023, in San Francisco (USA). The declaration reflected the member economies' commitment to steering the region toward resilience, sustainability, innovation, and inclusion to tackle the region’s most pressing economic challenges. Leaders agreed to transition to low-or zero-emission vehicles and triple renewable energy capacity by 2030. They also agreed to support small-and medium-sized businesses (including through digitalization, financing, and moving out of the shadow economy) and continue efforts to combat corruption and illegal assets. However, geopolitical issues, such as the situation in Ukraine and the escalation of the Israeli-Palestinian conflict, were not addressed in the declaration.

APEC and Russia

Russia applied for membership in APEC in March 1995 and became a member at the meeting on November 25, 1997, in Vancouver, Canada. Since 1998, Russia has been a regular participant in APEC Ministerial Meetings. Since 2000, Russian representatives at APEC meetings have included the country’s presidents (Vladimir Putin represented Russia 15 times, including in November 2021), prime ministers, or deputy prime ministers (such as Deputy Prime Minister Alexey Overchuk in 2023 and 2024).

One of Russia's key objectives in APEC is to implement major infrastructure projects and enhance the investment appeal of Siberia and the Far East.

Russia has been a proponent of intercultural dialogue and has advocated for better coordination during epidemics and pandemics. Russia hosted the summit in Vladivostok in 2012. In 2017, APEC approved Russian proposals on the development of remote areas and innovation cooperation. Russian representatives have actively participated in discussions on issues such as human capital development, increasing economic activity for women, improving public procurement competitiveness, digital economy and e-commerce, and the creation of an Asia-Pacific Free Trade Area. In 2024, Russia presented an initiative to facilitate trade in agricultural products at the 31st APEC Economic Leaders' Meeting in Peru.

According to the Federal Customs Service, the share of APEC countries in Russia's total foreign trade turnover was 33.8% ($193 billion) in 2020 and 33.3% ($261 billion) in 2021.

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