HISTORY The idea of APEC was firstly publicly broached by former Prime Minister of Australia, Mr Bob Hawke, during a speech in Seoul, Korea in January 1989. Later that year, 12 Asia-Pacific economies met in Canberra, Australia to establish APEC. The founding members members were: were: Austra Australi lia, a, Brunei Brunei Daruss Darussala alam, m, Canada Canada,, Indone Indonesia sia,, Japan, Japan, Korea, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and the United States. China, Hong Kong, China and Chinese Taipei joined in 1991. Mexico and Papua New Guinea followed in 1993. Chile acceded in 1994. And in 1998, Peru, Russia and Viet Nam joined, taking the full membership to 21. Between 1989 and 1992, APEC met as an informal senior official and Ministerial level dialog dialogue. ue. In 1993, 1993, former former United United States States Presid President ent,, Mr Bill Bill Clinto Clinton, n, establ establish ished ed the practice of an annual APEC Economic Leaders' Meeting.
MISSION STATEMENT APEC APEC is the premi premier er Asia-P Asia-Paci acific fic econom economic ic forum. forum. Our primar primary y goal goal is to sup suppor portt sustainable economic growth and prosperity in the Asia-Pacific region. We are united in our drive to build a dynamic and harmonious Asia-Pacific community by championing free and open ope n trade and investment, promoting and accelerating regional econom economic ic integr integrati ation, on, encoura encouragin ging g econom economic ic and techni technical cal cooper cooperati ation, on, enhanci enhancing ng human security, and facilitating a favorable and sustainable business environment. Our initiatives turn policy goals into concrete results and agreements into tangible benefits.
Member Economies APEC has 21 members. The word 'economies' is used to describe APEC members because the APEC cooperative process is predominantly concerned with trade and economic issues, with members engaging with one another as economic entities.
APEC Members
Date of Joining
Australia
6-7 Nov 1989
Brunei Darussalam
6-7 Nov 1989
Canada
6-7 Nov 1989
Chile
11-12 Nov 1994
People's Republic of China
12-14 Nov 1991
Hong Kong, China
12-14 Nov 1991
Indonesia
6-7 Nov 1989
Japan
6-7 Nov 1989
Republic of Korea
6-7 Nov 1989
Malaysia
6-7 Nov 1989
Mexico
17-19 Nov 1993
New Zealand
6-7 Nov 1989
Papua New Guinea
17-19 Nov 1993
Peru
14-15 Nov 1998
The Philippines
6-7 Nov 1989
Russia
14-15 Nov 1998
Singapore
6-7 Nov 1989
Chinese Taipei
12-14 Nov 1991
Thailand
6-7 Nov 1989
The United States
6-7 Nov 1989
Viet Nam
14-15 Nov 1998
CORE VALUES COMMUNITY
We achieve high quality results by working together to recognize, support, and build on each other's unique strengths and contributions. We inspire teamwork through through coaching, guiding, guiding, and motivating motivating one another. another. We nurture a sense of inclusiveness inclusiveness for our staff
and our stakeholders. We enhance linkages in the the wider APEC community by effectively supporting policy-makers and efficiently facilitating implementation.
OPEN
We are honest, accessible, and transparent in sharing information, managing processes, and communicating communicating with internal internal and external stakeholder stakeholders. s. We are open to different different points of view and new ideas, and we are prepared to successfully adapt to change. We are open to input from a diverse range of contributors contributors.. We address issues issues openly and proactively, anticipating the needs of the organization, our colleagues, and our stakeholders. RESPECT
We gain trust and build productive productive relationships relationships through through mutual respect. respect. We seek to understand, listen to, and involve others, always acting with consideration and empathy. We value value our diversit diversity y as a sou source rce of streng strength. th. We apprec appreciat iatee differ different ent values values and perspectives, accepting each other as equals. We recognise that respect forms the basis of our dealings with our fellow workers and our external stakeholders. We prize integrity highly as it allows us to be true to ourselves, our colleagues and our organization
EXCELLENCE
We strive to enhance individual and organizational knowledge, skills, and capacity in support of APEC’s goals. We take pride pride in our work and keep our commitments. We are passionate about seeking progress and are constantly learning and improving ourselves. We are honest, trustworthy trustworthy and straightforward in all our dealings. We use time, money, money, and resources entrusted to us wisely, and for the benefit of APEC.
ACHIEVEMENTS AND BENEFITS The Asia-Pacific region has consistently been the most economically dynamic region in the the worl world. d. Sinc Sincee APEC APEC's 's ince incept ptio ion n in 198 1989, 9, APEC APEC's 's tota totall trad tradee has has grow grown n 395% 395%,, significantly outpacing the rest of the world.1 world. 1 In the same period, GDP (in purchasing
power parity terms) in the APEC region has tripled, while GDP in the rest of o f the world has less than doubled. APEC APEC's 's work work unde underr its its thre threee main main pill pillar arss of acti activi vity ty,, Trad Tradee and and Inve Invest stm ment ent Libera Liberalis lisati ation, on, Busine Business ss Facili Facilitat tation ion and Econom Economic ic and Techni Technical cal Cooper Cooperati ation, on, has helped drive this economic growth and improve employment opportunities and standards of living for the citizens of the region.
Trade and Investment Liberalisation •
APEC is the premier forum for trade and investment liberalisation in the Asia-Pacific and has set targets dates for "free and open trade": no later than the year 2010 for industrialised economies, and 2020 for developing economies (the Bogor Goals). Goals).
•
When APEC was established in 1989 average trade barriers in the region stood at 16.9%; by 2004 barriers had been reduced by approximately 70% to 5.5%.3 5.5%.3
•
As a consequence, intra-APEC merchandise trade (exports and imports) has grown from US$1.7 trillion in 1989 to US$8.44 trillion in 2007 - an average increase of 8.5% per year; and merchandise trade within the region accounted for 67% of APEC's total merchandise trade in 2007.4 2007.4
•
Similarly, trade with the rest of the world has increased from US$3 trillion in 1989 to US$15 trillion in 2007, an average increase of 8.3% per year. Trade in the rest of the world has increased at 7.6% over the same period.
•
Over 30 bilateral free trade agreements (FTAs) have been concluded between APEC Member Economies.
•
APEC APEC is also also pursui pursuing ng trade trade and invest investmen mentt libera liberali lisat sation ion through through its Regional Economic Integration agenda. Progress to date includes:
•
Investigating the prospects of and options for a Free F ree Trade Area of the Asia-Pacific.
•
The development of 15 model measures for RTAs/FTAs that serve as a reference for APEC members to achieve comprehensive and high-quality agreements.
•
APEC has also acted as a catalyst in the advancement of World Trade Organisation multilateral trade negotiations over the past 20 years.
Business Facilitation •
As a result of the APEC Trade Facilitation Action Plan (TFAP I) the cost of business transactions across the region was reduced by 5% between 2002 and 2006.
•
A second trade facilitation action plan (TFAP II), aims to reduce transaction costs by a further 5% between 2007 and 2010.
•
APEC initiatives that help facilitate trade include:
•
The introduction of electronic/paperless systems by all member economies, covering the payment of duties, and customs and trade-related document processing.
•
The Single Window Strategic Plan, adopted in 2007, provides a framework for the development of Single Window systems which will allow importers and exporters to submit information to government once, instead of to multiple government agencies, through a single entry point.
•
Providing business with a concise one-stop repository of customs and trade facilitation related information for all APEC economies through the APEC Customs and Trade Facilitation Handbook
•
The APEC Tariff Database provides users with easy access to APEC member economies' tariff schedules, concessions, prohibitions and other information.
•
In 2008, a groundbreaking Investment Facilitation Action Plan was endorsed; it aims to improve the investment environment in Member Economies.
•
The APEC Privacy Framework provides guidance and direction to both APEC Member Economies and businesses on implementing information privacy protection policies and procedures. By facilitating information flows it will facilitate trade and ecommerce.
•
The APEC Business Travel Card (ABTC) provides substantial time and cost savings to business people and facilitates their travel in the region, by allowing visa free travel and express lane transit at airports in participating economies.
•
APEC is also removing behind-the-border barriers to trade through its Structural Reform agenda, which focuses on reforming domestic policies and institutions that adversely affect the operation of markets, and the capacity of businesses to access markets and to operate efficiently.
Economic and Technical Cooperation •
APEC's Economic and Technical Cooperation (ECOTECH) activities are designed to build capacity and skills in APEC Member Economies at both the individual and institutional level, to enable them to participate more fully in the regional economy and the liberalisation process.
•
Since APEC first began to undertake capacity building work in 1993, more than 1200 projects have been initiated; and in 2008, APEC was implementing a total of 212 capacity building projects with a total value of US$13.5m.
•
A particular focus has been reducing the digital pide between developed and developing economies:
•
In 2000, APEC set a goal of tripling internet usage in the region and that goal has now been achieved, as recognised by the 2008 APEC Ministerial Meeting on the Telecommunications and Information Industry. APEC's new goal is to achieve universal access to broadband by 2015.
•
A network of 41 APEC Digital Opportunity Centers (ADOC) now operate in seven Member Economies. ADOC's objective is to transform the digital pide into digital opportunities and the centres act as local information and communication technology (ICT) resource centres, providing citizens and businesses of the region with access to ICT technologies, education and training.
•
APEC is also developing a Digital Prosperity Checklist that outlines specific steps economies can take to enable them to utilise ICT as catalysts for growth and development.
Other Achievements
APEC has also been able to evolve its agenda to include pressing regional priorities. Examples include: counter-terrorism (The Shanghai Statement in 2001, and the CounterTerrorism Task Force); human security (Health Working Group); emergency preparedness (Task Force for Emergency Preparedness); climate change, energy security and clean development (The Sydney Declaration in 2007); and the global financial crisis (The Lima Statement in 2008).
KEY APEC MILESTONES 2011 - Honolulu, United States
APEC Leaders issue the Honolulu Declaration in which they commit to taking concrete steps toward a seamless regional economy; addressing shared green growth objectives; and advancing regulatory cooperation and convergence. To reach these goals, APEC resolves to reduce, by the end of 2015, applied tariff rates of environmental goods to 5 percent or less, taking into account economies' economic circumstances, without prejudice to APEC economies' positions in the WTO. APEC sets the goal to reduce aggregate energy intensity by 45 percent by 2035. And APEC commits to take specific steps by 2013 to implement good regulatory practices by ensuring internal coordination of regulatory work; assessing regulatory impacts; and conducting public consultation.
2010 - Yokohama, Japan
APEC Leaders issue the Yokohama Vision to provide a roadmap for members to realize an economically-integrated, robust and secure APEC community. This includes the formulation of a comprehensive, long-term growth strategy . APEC completes an assessment of the progress towards the Bogor Goals and finds significant gains in the areas of liberalizing trade in goods, services and investment, as well as trade facilitation. APEC formulates the APEC Strategy for Investment and endorses the APEC New Strategy for Structural Reform. APEC holds its first-ever APEC Ministerial Meeting on Food Security.
2009 – Singapore
APEC resolves to pursue balanced, inclusive and sustainable growth, while Leaders agree to extend their standstill commitment on protectionism until 2010. The first-ever joint meetings of APEC senior trade and finance officials are held to address the economic crisis. APEC launches the Supply-Chain Connectivity Framework and the Ease of Doing Business Action Plan to make doing business in the region 25 percent cheaper, faster and
easier by 2015. Member economies also commence work on an APEC Services Action Plan and an Environmental Goods and Services Work Program.
2008 - Lima, Peru
APEC focused on the social dimensions of trade and on reducing the gap between developing and developed members, in accordance with the 2008 theme, "A New Commitment to Asia-Pacific Development". Leaders also addressed the global financial crisis in the Lima APEC Leaders' Statement on the Global Economy. They committed to take all necessary economic and financial measures to restore stability and growth, to reject protectionism and to intensify efforts to advance WTO Doha Development Agenda negotiations.
2007 - Sydney, Australia
For the first time, APEC Member Economies issue a Declaration on Climate Change, Energy Security and Clean Development outlining future action in support of a new international climate change arrangement and announcing a forward program of practical, cooperative actions and initiatives. Leaders also adopted a major report on closer Regional Economic Integration, including structural reform initiatives, and welcomed the new APEC Trade Facilitation Action Plan which will reduce trade transaction costs by a further five per cent by 2010.
2006 - Ha Noi, Viet Nam
APEC Economic Leaders endorsed the Ha Noi Action Plan which identifies specific actions and milestones to implement the Bogor Goals and support capacity-building measures to help APEC economies. They also issued a statement on the WTO Doha Development Agenda calling for ambitious and balanced outcomes. To prioritize its agenda, APEC takes a strategic approach to reform working groups and strengthen the Secretariat.
2005 - Busan, Korea
APEC adopts the Busan Roadmap, completes the Mid-Term Stocktake which has found that APEC is well on its way to meeting the Bogor Goals, and the APEC Privacy Framework. Leaders issue a stand-alone statement in support of a successful conclusion to the WTO's 6th Ministerial Meeting in Hong Kong, China and agree to confront pandemic health threats and continue to fight against terrorism which could cause deep economic insecurity for the region.
2004 - Santiago, Chile
APEC issues a strong statement of support for progress in the WTO Doha Development Agenda and sets a target date for achieving a breakthrough in negotiations: December 2005, the convening of the Sixth WTO Ministerial Conference. APEC adopts Best Practices for RTAs and FTAs, the Santiago Initiative for Expanded Trade and a Data Privacy Framework. APEC reiterates its "unmistakable resolve" to confront the threat of terrorism, and takes further action in this regard by identifying key elements of effective export control systems; establishing guidelines on the control of man-portable air defense systems (MANPADS), and continuing to implement the STAR initiative. APEC makes a political commitment to fight corruption and ensure transparency, and endorses a specific Course of Action towards this end.
2003 - Bangkok, Thailand
APEC agrees to re-energize the WTO Doha Development Agenda negotiations and stresses the complementary aims of bilateral and regional trade agreements, the Bogor Goals and the multilateral trading system under the WTO. APEC dedicates itself not only to promoting the prosperity of member economies, but also to improving the security of the peoples of the Asia-Pacific region. APEC pledges to take specific actions to dismantle terrorist groups, eliminate the danger of weapons of mass destruction and confront other security threats. Members sign up to the APEC Action Plan on SARS and the Health Security Initiative to further protect personal security. APEC also strengthens its efforts to build knowledge-based economies, promote sound and efficient financial systems and accelerate regional structural reform.
2002 - Los Cabos, Mexico
APEC adopts a Trade Facilitation Action Plan, Policies on Trade and the Digital Economy and Transparency Standards. APEC's second Counter-Terrorism Statement is delivered, along with the adoption of the Secure Trade in the APEC Region (STAR) Initiative.
2001 - Shanghai, People's Republic of China
APEC adopts the Shanghai Accord, which focuses on Broadening the APEC Vision, Clarifying the Roadmap to Bogor and Strengthening the Implementation Mechanism. The e-APEC Strategy is adopted, which sets out an agenda to strengthen market structures and institutions, facilitate infrastructure investment and technology for on-line transactions and promote entrepreneurship and human capacity building. APEC's first Counter-Terrorism Statement is issued.
2000 - Bandar Seri Begawan, Brunei Darussalam
APEC establishes an electronic Individual Action Plan (e-IAP) system, providing IAPs online and commits to the Action Plan for the New Economy, which, amongst other objectives, aims to triple Internet access throughout APEC region by 2005.
1999 - Auckland, New Zealand
APEC commits to paperless trading by 2005 in developed economies and 2010 in developing economies. APEC Business Travel Card scheme is approved and a Mutual Recognition Arrangement on Electrical Equipment and a Framework for the Integration of Women in APEC is endorsed.
1998 - Kuala Lumpur, Malaysia
APEC agrees on the first nine sectors for EVSL and seeks an EVSL agreement with nonAPEC members at the World Trade Organization.
1997 - Vancouver, Canada
APEC endorses a proposal for Early Voluntary Sectoral Liberalization (EVSL) in 15 sectors and decides that Individual Action Plans should be updated annually.
1996 - Manila, The Philippines
The Manila Action Plan for APEC (MAPA) is adopted, outlining the trade and investment liberalisation and facilitation measures to reach the Bogor Goals and the first Collective and Individual Action Plans are compiled, outlining how economies will achieve the free trade goals.
1995 - Osaka, Japan
APEC adopts the Osaka Action Agenda (OAA) which provides a framework for meeting the Bogor Goals through trade and investment liberalisation, business facilitation and sectoral activities, underpinned by policy dialogues, economic and technical cooperation.
1994 - Bogor, Indonesia
APEC sets the Bogor Goals of, "free and open trade and investment in the Asia-Pacific by 2010 for developed economies and 2020 for developing economies."
1993 - Blake Island, United States
APEC Economic Leaders meet for the first time and outline APEC's vision, "stability, security and prosperity for our peoples."
1989 - Canberra, Australia
APEC begins as an informal Ministerial-level dialogue group with 12 members.
BUSINESS RESOURCES APEC is committed to making it easier and more efficient for you to do business in the Asia-Pacific region. This section contains easy-to-use business information and tools and
is designed to help you build your business by leveraging APEC's expertise and resources. Business does not get done by corporate vision alone; partnerships between the public and private sector are a key step toward ensuring a sustainable, win-win economic environment for all - especially the consumer. You are encouraged to get involved with the APEC process. Your contributions will provide a valuable business perspective on APEC activities and help promote economic growth and prosperity in the Asia-Pacific region. Currently business contributes to a number of key APEC issues from energy to telecommunications and further opportunities exist across the range of APEC activities for business involvement.
Business Resources
APEC working level groups, comprising experts from the APEC region have developed a series of business tools to assist you with key business decisions.
Business Travel
The APEC Business Travel Card (ABTC) allows business travelers pre-cleared, facilitated short-term entry to participating member economies. The ABTC removes the need to individually apply for visas or entry permits, saving valuable time, and allows multiple entries into participating economies during the three years the card is valid. Card holders also benefit from faster immigration processing on arrival via access to fast-track entry and exit through special APEC lanes at major airports in participating economies. The APEC Business Travel Handbook is a practical tool which provides a quick reference guide to the visa and entry requirements of APEC Member Economies. It lists the basic eligibility criteria and procedures for applying for visas and the terms and conditions that apply to business travelers. This information is provided for both shortterm business visits and temporary residence for business people in APEC Member Economies.
Electrical and Electronic Equipment Mutual Recognition Arrangement (EEMRA)
APEC Member Economies' mandatory requirements on regulated electrical and
electronic products are provided in a standardized format to assist those who may wish to export electrical and electronic products to that economy.
Government Procurement Resources
The Government Procurement Experts' Group provides current government procurement policies, procedures, trade opportunities, and key people to contact in each of those economies.
Import Regulations
These comprehensive set of links to import regulation information in APEC Member Economies aim to make it easier for importers and exporters to access information before trading in the Asia-Pacific region.
Intellectual Property
To ensure that you will be adequately rewarded and protected as you trade and invest across borders, consult the Intellectual Property Rights Experts' Group IP Information Center . The Center provides information about the intellectual property regimes and key contacts in APEC Member Economies. The Intellectual Property Explorer is a free, secure and simple online business tool to help SMEs identify and protect their IP assets. It contains a series of interactive diagnostic questions designed to review each piece of intellectual property in an SME's business. The group also provides a library of resources used by IP offices of APEC Member Economies to effectively raise awareness of IP in their local market.
Investment
The APEC Investment Regime Guidebook, 6th Edition, provides valuable information about the investment environments of APEC Member Economies. The Investment Experts Group maintains a set of links to investment-related information in APEC Economies and is geared to providing you with current additional information.
Standardization and Regulatory Bodies
Access the Standards and Conformance information to provide you with information on Member Economies' contacts in international standardization bodies and links to Economies' regulatory bodies on various sectors.
Transparency Standards
APEC Economies developed a set of General Transparency Standards that committed members to such measures as publishing all laws and regulation, and establishing appeal mechanisms for administrative decisions. There are nine sets of Area-Specific Transparency Standards that Economies are working towards: Services, Investment, Competition Policy and Regulatory Reform, Standards and Conformance, Intellectual Property, Customs Procedures, Market Access, Business Mobility and Government Procurement.
SCOPE OF WORK Asia-Pacific Economic Cooperation (APEC) works in three broad areas to meet the Bogor Goals of free and open trade and investment in the Asia-Pacific by 2010 for developed economies and 2020 for developing economies. Known as APEC's 'Three Pillars', APEC focuses on three key areas: •
Trade and Investment Liberalisation
•
Business Facilitation
•
Economic and Technical Cooperation
The outcomes of these three areas enable APEC Member Economies to strengthen their economies by pooling resources within the region and achieving efficiencies. Tangible benefits are also delivered to consumers in the APEC region through increased training and employment opportunities, greater choices in the marketplace, cheaper goods and services and improved access to international markets.
Trade and Investment Liberalisation
Trade and Investment Liberalisation reduces and eventually eliminates tariff and nontariff barriers to trade and investment. Protectionism is expensive because it raises prices
for goods and services. Thus, Trade and Investment Liberation focuses on opening markets to increase trade and investment among economies, resulting in economic growth for APEC Member Economies and increased standards of living for all. This goal is also now furthered by APEC's Regional Economic Integration agenda, which includes work on model measures for bilateral and regional trade agreements and an examination of the prospects for a Free Trade Area of the Asia-Pacific.
Business Facilitation
Business Facilitation focuses on reducing the costs of business transactions, improving access to trade information and aligning policy and business strategies to facilitate growth, and free and open trade. Essentially, Business Facilitation helps importers and exporters in Asia Pacific meet and conduct business more efficiently, thus reducing costs of production and leading to increased trade, cheaper goods and services and more employment
opportunities
due
to
an
expanded
economy.
APEC's Structural
Reform agenda addresses this area: it focuses on reforming domestic policies and institutions that adversely affect the operation of markets, and the capacity of businesses to access markets and to operate efficiently.
Economic and Technical Cooperation (ECOTECH)
ECOTECH is dedicated to providing training and cooperation to build capacities in all APEC Member Economies to take advantage of global trade. This area builds capacity at the institutional and personal level to assist APEC Member Economies and its people gain the necessary skills to meet their economic potential.
STRUCTURE 1 POLICY LEVEL Policy Development
Asia-Pacific Economic Cooperation (APEC) policy direction is provided by the 21 APEC Economic Leaders. Strategic recommendations provided by APEC Ministers and the APEC Business Advisory Council are considered by APEC Economic Leaders as part of this process. The following meetings are conducted each year, which help shape APEC's policy direction. APEC Economic Leaders' Meeting
APEC Economic Leaders' Meetings are held once a year in the APEC host economy. Declarations from these meetings set the policy agenda for APEC. APEC Ministerial Meeting
Annual APEC Ministerial Meetings of foreign and economic/trade ministers are held immediately prior to APEC Economic Leaders' Meetings. Ministers consider the year's activities and provide recommendations for APEC Economic Leaders' consideration. Sectoral Ministerial Meetings
Sectoral Ministerial Meetings are held regularly covering areas such as education, energy,
environment
and
sustainable
development,
finance,
human
resource
development, regional science and technology cooperation, small and medium enterprises, telecommunications and information industry, tourism, trade, transportation and women's affairs. Recommendations from these meetings are also provided to APEC Economic Leaders for their consideration. APEC Business Advisory Council (ABAC)
ABAC provides APEC Economic Leaders with a business perspective on APEC issues through an annual meeting and a formal report. The annual report contains recommendations to improve the business and investment environment in the APEC region. ABAC also meets four times per year and a representative attends Ministerial Meetings.
2 WORKING LEVEL
APEC's working level activities and projects are guided by APEC Senior Officials from the 21 APEC Member Economies. These activities and projects are carried out by four high level committees: 1. Committee on Trade and Investment 2. Senior Officials' Meeting Committee on Economic and Technical Cooperation 3. Economic Committee 4. Budget and Management Committee Sub-Committees, Experts' Groups, Working Groups and Task Forces all support the activities and projects led by these four high level committees.
Senior Officials' Meeting (SOM)
Working under direction from APEC Ministers, Senior Officials guide the activities of the Committees, Working Groups and Task Forces. Senior Officials develop recommendations for APEC Ministers and APEC Economic Leaders. Senior Officials' Meetings are held three to four times a year with the chair from the host economy.
Committees, Working Groups, SOM Task Groups
A brief description of the Committees, Working Groups and SOM Task Groups is given below. Additional information on the groups can be accessed via the APEC Groups link on this page.
Committee on Trade and Investment (CTI)
The Committee on Trade and Investment coordinates APEC's work on the liberalisation and facilitation of trade and investment. The Committee on Trade and Investment also works to reduce impediments to business activity through its Sub-Committees and Experts' Groups.
SOM Committee on Economic and Technical Cooperation
The SOM Committee on Economic and Technical Cooperation assists APEC Senior Officials in coordinating and managing APEC's economic and technical cooperation agenda, as well as identifying initiatives for cooperative action by member economies.
Economic Committee (EC)
The Economic Committee (EC) has a mandate to promote structural reform within APEC by undertaking policy analysis and action-oriented work. The EC progresses this mandate in close coordination with other relevant APEC fora; for instance, the Competition Policy and Law Group (CPDG) and the Finance Ministers' Process (FMP)
Budget and Management Committee (BMC)
The Budget and Management Committee advises the SOM on budgetary, administrative and managerial issues. It also monitors and evaluates project management aspects of the operations of Committees and Working Groups and makes recommendations to SOM for improved efficiency and effectiveness.
Working Groups
Working Groups carry out APEC's work in specific sectors as directed by APEC Economic Leaders, APEC Ministers, APEC Sectoral Ministers and Senior Officials. There are currently 11 Working Groups.
SOM Special Task Groups/Ad-hoc Groups
Senior Officials set Special Task Groups to identify issues and make recommendations about important areas for APEC's consideration. Ad-hoc Groups have also been established in APEC to provide topical and relevant information or to fulfill important tasks not being covered by other groups.
ACTION PLANS
In order to meet APEC's Bogor Goals for free and open trade and investment in AsiaPacific, APEC Member Economies follow the strategic roadmap as agreed by APEC Economic Leaders in Osaka, Japan. This roadmap is known as the Osaka Action Agenda. APEC Member Economies report progress towards achieving free and open trade and investment goals through Individual Action Plans (IAPs) and Collective Action Plans (CAPs), submitted to APEC on an annual basis. Individual and Collective Action Plans are available through the dedicated e-IAP website. This site provides the ability to search individual APEC Member Economy IAPs,compare IAPs across years and view CAPs.
Osaka Action Agenda
The Osaka Action Agenda provides a framework for meeting the 'Bogor Goals' through trade and investment liberalisation, business facilitation and sectoral activities, underpinned by policy dialogues and economic and technical cooperation. As part of this framework, General Principles have been defined for Member Economies as they proceed through the APEC liberalisation and facilitation process. The following General Principles are provided in the Osaka Action Agenda and are applied to the entire APEC liberalisation and facilitation process •
Comprehensiveness - addressing all impediments to achieving the long-term goal of free and open trade.
•
WTO-consistency - measures undertaken in the context of the APEC Action Agenda are consistent with the principles of the World Trade Organization (WTO).
•
Comparability - APEC Member Economies endeavor to have comparable trade and investment liberalisation and facilitation, taking into account the general levels achieved by each APEC economy.
•
Non-discrimination - reductions in barriers to trade achieved through APEC are available to all APEC Member Economies and non-APEC economies.
•
Transparency - the laws, regulations and administrative procedures in all APEC Member Economies which affect the flow of goods, services and capital among APEC Member Economies are transparent.
•
Standstill - APEC Member Economies do not take measures which have the effect of increasing levels of protection.
•
Simultaneous start, continuous process and differentiated timetables - APEC Member Economies began simultaneously the process of liberalisation, facilitation and cooperation and continuously contribute to the long-term goal of free and open trade and investment.
•
Flexibility - APEC Member Economies deal with the liberalisation and facilitation process in a flexible manner, taking into account differing levels of economic development.
•
Cooperation - Economic and technical cooperation contributing to liberalisation and facilitation is actively pursued.
Individual Action Plans
Every Member Economy submits annually an Individual Action Plan (IAP). This is a record of actions taken to meet its stated goals for free and open trade and investment. APEC Member Economies set their own timelines and goals, and undertake these actions on a voluntary and non-binding basis. As specified in the Osaka Action Agenda, reporting is based on 15 issue areas: •
•
Tariffs Non-tariff measures
•
Services
•
Investment
•
Standards and Conformance
•
Customs Procedures
•
Intellectual Property
•
Competition Policy
•
Government Procurement
•
Deregulation/Regulatory Review
•
WTO Obligations (inc. Rules of Origin)
•
Dispute Mediation
•
Mobility of Business People
•
Information Gathering and Analysis
Each year, several APEC Member Economies volunteer to have their IAPs reviewed. Known as Peer Reviews, this process involves a formal review team considering each volunteer economy's IAP. Experts conducting independent in-country research and analysis and the involvement of the independent private sector body, the APEC Business Advisory Council (ABAC) are also part of the process. Peer Reviews are available on the e-IAP website.
Collective Action Plans
Collective Action Plans (CAPs) detail the collective actions of all APEC Member Economies in the 15 issue areas outlined in the Osaka Action Agenda. The 15 issue areas mirror the IAP's. CAPs are used by APEC to outline actions and objectives to meet the free trade and investment goals, as well as to monitor and report on progress.
APEC PROJECTS OVERVIEW
Projects are a vital part of the APEC process. They help translate APEC Ministers' and Economic Leaders' policy directions into actions and create tangible benefits for people living in the Asia-Pacific region. Projects assist member economies in building a dynamic and harmonious Asia-Pacific region by championing free and open trade and investment, promoting and accelerating regional economic integration, encouraging economic and technical cooperation, enhancing human security, and facilitating a favourable and sustainable business environment. APEC contributes funding to around 100-150 projects each year, with a total value of over $23 million committed by APEC to projects in 2010-2011. Over 1600 projects have been undertaken since 1993, when APEC initiated project work. At any moment in time, up to 170 projects may be in implementation, The majority of projects are focused on transferring knowledge and skills between members and building capacity so that each economy can move closer towards the Bogor Goals of free and open trade and investment. APEC projects include workshops, symposia, publications, and research. They are open to participation from all 21 member economies. As well as engaging with public and government sector organisations in the 21 economies, external stakeholder engagement is encouraged.
APEC also works to maximise the benefits of globalisation. In particular, APEC supports projects that: promote public health; improve the skills of workers; contribute to green growth; reduce the risks of and improve responses to natural disasters and emergencies; and that help small, medium and micro-sized enterprises to grow and access markets.
APEC Project Focus and Themes
In 2010-2011, APEC approved funding for 235 projects, focusing on trade-related issues, with particular focus on areas of relevance to APEC’s fora. Projects cover a wide range of priority sectors. Each year APEC defines the key policy priorities and projects aim to contribute to these directions. Please see the Funding Criteria for APEC-Funded Projects in 2012. In addition to cooperation for trade liberalisation, APEC also supports projects that seek to make trade and doing business easier and more efficient such as: agreeing to common standards for product testing and labeling, developing safer and more efficient
transportation routes, and providing information on each member's regulatory and legislative requirements for imports and exports.
Recent themes launched as APEC projects include: •
Regional economic integration: energy management standardization, intellectual property rights, traditional knowledge protection, self-certification of origin
•
Green growth: low-carbon model town , green finance , phasing out fossil fuel subsidies, smart grids
•
Structural reform: regulatory impact analysis, principals of corporate governance, competition law and policy
•
Capacity building for APEC’s developing members: ship and port security, trade of second generation biofuels, best practices for green ICT, infectious disease prevention
Information about individual projects can be found through the APEC Project Database.
Development of APEC’s Projects
APEC began funding projects in 1993 with three self-funded projects. Since then, the number of projects funded each year has increased to up to 150 per year. Over the same period, the funds APEC committed to projects increased from just under $1 million to over $14 million per year, depending on members’ contributions.
To implement BMC-led project management reforms and effectively build project management skills and knowledge among APEC members, the Secretariat established the Project Management Unit in 2007. The PMU brings a professionalised approach to projects and helps capacity in project management within the Secretariat and the wider APEC community. The PMU provides specialised advice and guidance to both internal and external APEC stakeholders. It provides the main link between members, Program Directors, Program Executives and the Executive Office and the Budget Management Committee (BMC) regarding project matters.
Multi Year Projects
In 2011 APEC launched a Multi Year Project (MYP) initiative, for ongoing, phased projects that continue for three to five years. MYPs focus strategically on building capacity in members so that they can take full advantage of trade opportunities.
FOOD AND SECURITY Why food security is important to APEC
In order for the benefits of free and open trade to be experienced throughout the region, food quality, availability and cost are critical. To this end, APEC has been a vehicle for cooperation on food and agricultural issues and is well-positioned to address current and emerging food security challenges in the region. How APEC addresses food security
APEC addresses food security by promoting productivity and growth in the agricultural sector, encouraging the development and adoption of new agricultural technologies and enabling regional food trade: •
Agricultural productivity and growth: This includes initiatives that foster
investment and finance in the agricultural sector (including micro-finance); raise awareness of environmentally sustainable agricultural methods (including land management, organic farming and use of advanced technologies); help economies to learn about food storage, processing and management methods to allow more food to reach more people without spoiling; help members to build well-functioning markets and regulatory frameworks for sustaining robust agricultural sectors; improve surveillance and control of pests and diseases that harm agricultural production; foster improvements in worker health and safety, agricultural inspection and agricultural education and training.
•
Food trade: This includes support for the successful conclusion of the World Trade
Organisation Doha Development Agenda negotiations; encouraging lower food export restrictions to avoid prolonging pressure on global food prices and discouraging agricultural investment for greater production; examining the impact of economic liberalisation of agriculture with the goal of assisting regional economies to
better adapt and to thrive in the global marketplace for food; exchanging best practices to develop better policies for fostering healthy agricultural sectors; helping to ensure that food products traded in the region are safe for consumption (including initiatives to enhance regulatory, inspection and certification systems, strengthening of technical and human resources, encouraging adoption of international food safety standards and promotion of regional communication on food safety).
•
Development and adoption of new agricultural technologies: This includes efforts
to improve farmers' income and productive capacities through agricultural technology transfer and training (including exchange of best practices and identification of strategies to increase fiscal returns); create an environment conducive to agricultural research and development as well as investment in trade technology; and foster development of agricultural biotechnology (including the development of regulatory frameworks and strengthening public confidence in the field).
Groups through which APEC achieves these goals
APEC advances regional dialogue and cooperation on a range of food and agriculture related issues through several groups and initiatives within the APEC structures, including: •
Agriculture Technical Cooperation Working Group: This group facilitates
cooperation to enhance agriculture's contribution to the region's economic growth and social well-being. This is achieved through the sharing of technical expertise and experience in issues ranging from finance and investment to pest and disease control. •
High-Level Policy Dialogue on Agricultural Biotechnology: This forum brings
together representatives from public and private sectors to discuss biotechnology policy issues and to promote the use of crops developed through biotechnology. •
Sub-committee on Standards and Conformance: A subgroup of the Committee on
Trade and Investment, the SCSC is the focal point for efforts to harmonise regional standards regarding the safety of food and consumer products. It oversees the Food Safety Cooperation Forum which manages food safety work among various APEC groups.
•
Fisheries Working Group: APEC economies account for 70 percent of global
consumption of fish products and 90 percent of global aquaculture production. The FWG facilitates cooperation to promote the sustainability and vitality of the fishing aquaculture industries, including the implementation of best practices and the expansion of the seafood trade. •
APEC Food System: Originally proposed by the APEC Business Advisory Council
(ABAC), this initiative seeks to establish a comprehensive strategy to address food issues in APEC, based on principles of fostering development and growth of the rural sector, increasing trade in agriculture and promoting the development and dissemination of technological advances. •
Policy Partnership on Food Security (PPFS): Formed in 2011 as the primary forum
for discussing issues related to food security, the partnership brings together individuals from the private and public sector to help facilitate investment, liberalize trade and market access and support sustainable development.
APEC CROSS-BORDER PRIVACY ENFORCEMENT ARRANGEMENT (CPEA)
"A significant step forward in Asia-Pacific privacy protection" Colin Minihan, Chair, APEC Electronic Commerce Steering Group - Data Privacy Subgroup
The APEC Cross-border Privacy Enforcement Arrangement (CPEA) aims to: •
facilitate information sharing among Privacy Enforcement Authorities (PE Authorities) in APEC economies (which may include Privacy Commissioners' Offices, Data Protection Authorities or Consumer Protection Authorities that enforce Privacy Laws)
•
provide mechanisms to promote effective cross-border cooperation between authorities in the enforcement of Privacy Law, including through referrals of matters and through parallel or joint investigations or enforcement actions
•
encourage information sharing and cooperation on privacy investigation and enforcement with PE Authorities outside APEC (including by ensuring that the CPEA can work seamlessly with similar arrangements in other regions and at the global level)
Importance of information privacy to APEC
The flow of information is fundamental to doing business in the global economy. The ability to network, exchange ideas and share knowledge can determine a company's likelihood of success. Conversely, the inability to conduct such interactions can seriously impede business. In endorsing the APEC Privacy Framework in 2004 (see link below), APEC Ministers recognised that cooperation to balance and promote effective information privacy protection and the free flow of information in the Asia-Pacific region is key to improving consumer confidence and ensuring the growth of electronic commerce.
Significance of the CPEA
In 2007 a Data Privacy Pathfinder initiative was established to progress the implementation of the APEC Privacy Framework. The Pathfinder involves multiple projects aimed at promoting consumer trust and business confidence in cross-border data flows. It also includes general commitments regarding the development of a Cross Border Privacy Rules system.
The CPEA is an outcome of the Pathfinder initiative. It focuses on one of the four key goals of the APEC Privacy Framework, namely to facilitate both domestic and international efforts to promote and enforce information privacy protections. A volunteer group of APEC member economies led the CPEA's development, with input from civil society and business groups.
The CPEA aims to contribute to consumer confidence in electronic commerce involving cross-border data flows by establishing a framework for regional cooperation in the enforcement of Privacy Laws. In future it can also contribute to cross-border enforcement of an APEC Cross-Border Privacy Rules system for businesses. The CPEA is therefore an important aspect of APEC's efforts to increase cross-border trade and growth in electronic commerce.
What the CPEA does?
The CPEA creates a framework for the voluntary sharing of information and provision of assistance for information privacy enforcement related activities. Any PE Authority in an APEC economy may participate. Participating PE Authorities will contact each other for assistance or to make referrals regarding information privacy investigations and enforcement matters that involve each other's economies. For example, during an investigation, a PE Authority in Economy X may seek the assistance of a PE Authority in Economy Y, if certain evidence of the alleged privacy violation (or the entity being investigated) is located in Economy Y. In that case, the PE Authority in Economy X may send a Request for Assistance to the point of contact in the PE Authority in Economy Y. The PE Authority in Economy Y may then consider the matter and provide assistance on a discretionary basis. International cooperation
In 2007 the Organisation for Economic Cooperation and Development (OECD) adopted a recommendation to promote cooperation between OECD member countries on information privacy law enforcement. APEC and the OECD have begun to coordinate their initiatives to ensure they are compatible, and to secure cooperation amongst PE Authorities in different regions.
In the Asia-Pacific region, the Asia-Pacific Privacy Authorities (APPA) Forum helps to form partnerships and exchange ideas about information privacy regulation, new technologies and the management of information privacy enquiries and complaints. All PE Authorities participating in the CPEA are eligible to become members of the APPA Forum. DATA PRIVACY PATHFINDER Importance of privacy to APEC
The flow of information is fundamental to business in the global economy. The ability to network, exchange ideas and share knowledge can determine a company's likelihood of success. Conversely, the inability to carry out private interactions can seriously impede business.
The APEC Privacy Framework
There is a fine line between protecting privacy and creating unnecessary barriers to the flow of information. Recognizing this, the APEC Data Privacy Pathfinder was established by APEC Ministers in 2007 to achieve accountable cross-border flow of personal information within the APEC region. This goal is to be achieved by developing and implementing a Cross-Border Privacy Rules (CBPR) system, consistent with the APEC Privacy Framework which was endorsed by APEC Ministers in 2004. Essentially, the framework: •
Improves information sharing among government agencies and regulators;
•
Facilitates the safe transfer of information between economies;
•
Establishes a common set of privacy principles;
•
Encourages the use of electronic data as a means to enhance and expand business; and
•
Provides technical assistance to those economies that have yet to address privacy from a regulatory or policy perspective.
Significance of this framework
Encouraging the flow of data ultimately benefits businesses, consumers and governments by making transactions safer, more efficient and less costly at every level. It is therefore a milestone in APEC's continuing efforts to facilitate free trade in the APEC region.
CLIMATE CHANGE Why climate change is important to APEC
APEC economies account for approximately 60 percent of world energy consumption. As the region becomes increasingly industrialized and the population shifts from rural to urban areas, these consumption levels will continue to rise. The use of fossil fuels to satisfy demand results in greenhouse gas emission and this causes climate change - also known as "global warming." Climate change can cause
extreme weather conditions, damage and deplete natural resources and accelerate the spread of disease. This impacts both individuals and economies, at large, with developing nations experiencing the most adverse effects. In addition, climate change is believed to contribute to the increasing number of natural disasters, about 70 percent of which occur in the Asia-Pacific region.
The APEC commitment to climate change
In 2007, APEC Leaders proposed a regional goal to reduce energy intensity by at least 25 percent by 2030. In 2011, APEC Leaders set a higher target to reduce energy intensity by at least 45 percent by 2035. To this end, APEC Ministers determined to improve energy efficiency and support the use of cleaner and more efficient energy technologies by setting individual goals and action plans; collaborating with the International Energy Agency (IEA) to develop energy efficiency indicators; sharing information on energy efficiency policies and measures; and encouraging APEC economies to contribute to and utilise the APEC Energy Standards Information System (ESIS).
Economies are held accountable through the APEC Peer Review Mechanism on Energy Efficiency. This peer review is also a vehicle for economies to share their respective policies, experiences, information and ultimately to improve energy efficiency. How APEC assists economies to meet their climate change goals
Many established APEC Working groups assist economies meet climate change goals: •
The Energy Working Group : informs energy policymakers, draws advice from the business community and industry experts, and collaborates with other international bodies, including the IEA, the Renewable Energy and Energy Efficiency Partnership and the Energy Charter Secretariat.
•
The Asia-Pacific Network for Energy Technology : enables economies to collaborate in energy research in the region, particularly in areas such as clean fossil energy and renewable energy resources.
•
The Energy Security Initiative : comprises short-term measures and long-term policy responses to address the challenges facing the region's energy supply.
The Environmental Goods and Services Work Programme
This year, as APEC Trade Ministers prepared for economic recovery, they recognised climate change as "one of the biggest challenges confronting the world" and determined to "ensure that economic growth is consistent with environmental sustainability." In order to support the development of the Environmental Goods and Services (EGS) Sector and to coordinate relevant APEC projects, the EGS Work Programme comprises four main components: 1. Developing new and better environmental goods and services through innovation, research and development; 2. Focus efforts and investment to increase the supply of cleaner and more energy efficient technologies; 3. Support projects that facilitate and liberalise trade in environmental goods and services; and 4. Create incentive for the market to increase research and development and investment in environmental goods and services.
ENERGY Why energy is important to APEC
APEC Economies consume approximately 60 percent of the world's energy. As the region becomes increasingly industrialized and the population shifts from rural to urban areas, consumption will increase. The use of fossil fuels to satisfy this demand results in greenhouse gas emission and contributes to climate change. Climate change can cause extreme weather conditions,
damage and deplete natural resources and accelerate the spread of disease. This impacts both individuals and economies, at large, with developing economies experiencing the most adverse effects. In addition, climate change is believed to contribute to the increasing number of natural disasters, about 70 percent of which occur in the AsiaPacific region. APEC's commitment to improving energy efficiency
In 2007, APEC Leaders proposed a regional goal to reduce energy intensity by at least 25 percent by 2030. In 2011, APEC Leaders set a higher target to reduce energy intensity by at least 45 percent by 2035. To this end, APEC Ministers are determined to improve energy efficiency and support the use of cleaner and more efficient energy technologies by setting individual goals and action plans; collaborating with the International Energy Agency (IEA) to develop energy efficiency indicators; sharing information on energy efficiency policies and measures; and encouraging APEC economies to contribute to and utilize the APEC Energy Standards Information System (ESIS).
How APEC assists economies to meet their energy goals
Many established APEC Working groups assist economies meet climate change goals. •
The Energy Working Group : informs energy policymakers, draws advice from the
business community and industry experts, and collaborates with other international bodies, including the IEA, the Renewable Energy and Energy Efficiency Partnership and the Energy Charter Secretariat. The Energy Trade and Investment Task Force has been established under the EWG to facilitate relevant cooperation in EWG. •
The Asia-Pacific Network for Energy Technology : enables economies to collaborate
in energy research in the region, particularly in areas such as clean fossil energy and renewable energy resources. •
The Energy Security Initiative : comprises short-term measures and long-term policy
responses to address the challenges facing the region's energy supply. •
The Joint Oil Data Initiative : is a collaborative oil information program undertaken
by APEC, OPEC, the IEA, the International Energy Forum and the UN Environment Program.
•
The APEC Peer Review Mechanism on Energy Efficiency : serves as a form of
accountability while providing and opportunity for economies to share their respective policies, experiences, information and ultimately to improve energy efficiency.
What APEC is doing right now
In November 2011, in the Honolulu Declaration – Toward a Seamless Regional Economy, APEC Leaders determined to: Promoting Green Growth. We are committed to advancing our shared green growth objectives. We can and must address both the region’s economic and environmental challenges by speeding the transition toward a global low-carbon economy in a way that enhances energy security and creates new sources of economic growth and employment.
We have advanced these objectives significantly in 2011. In 2012, economies will work to develop an APEC list of environmental goods that directly and positively contribute to our green growth and sustainable development objectives, on which we are resolved to reduce by the end of 2015 our applied tariff rates to 5% or less, taking into account economies’ economic circumstances, without prejudice to APEC economies’ positions in the WTO. Economies will also eliminate non-tariff barriers, including local content requirements that distort environmental goods and services trade (see Annex C). Taking these concrete actions will help our businesses and citizens access important environmental technologies at lower costs, which in turn will facilitate their use, contributing
significantly
to
APEC’s
sustainable
development
goals.
We will also take the following steps to promote our green growth goals: •
Rationalize and phase out inefficient fossil-fuel subsidies that encourage wasteful consumption, while recognizing the importance of providing those in need with essential energy services, and set up a voluntary reporting mechanism on progress, which we will review annually;
•
Aspire to reduce APEC's aggregate energy intensity by 45 percent by 2035;
•
Promote energy efficiency by taking specific steps related to transport, buildings, power grids, jobs, knowledge sharing, and education in support of energy-smart low-carbon communities;
•
Incorporate low-emissions development strategies into our economic growth plans and leverage APEC to push forward this agenda, including through the Low-Carbon Model Town and other projects; and
•
Work to implement appropriate measures to prohibit trade in illegally harvested forest products and undertake additional activities in APEC to combat illegal logging and associated trade.
HUMAN SECURITY What constitutes human security?
Human security refers to phenomena such as the random devastation caused by natural disasters, health pandemics or terrorist attacks on people or supply chains. Regardless of genesis, when security is thrown into question, human well-being is compromised both in the short and long-term. APEC's human security agenda deals with trans-boundary threats to people and economies from terrorism, pandemics, natural disasters and contamination of food supplies.
Why human security is important to APEC
APEC's agenda emphasizes the economic dimensions of human security: it recognizes that threats may potentially undermine APEC's efforts to raise living standards and reduce poverty in the region. APEC's agendas for human security and the economy are complementary: human security is essential to growth and prosperity. Conversely, economic stability enables better preparation for, more efficient responses to, and quicker recovery after attacks or disaster.
Targeted initiatives to address issues of human security
APEC recognises that human security threats require a coordinated and integrated response.
•
Emergency preparedness and recovery : As an immediate response to the 2004
Indian Ocean Tsunami and to collectively prepare for future natural disasters, Senior Officials adopted the APEC Strategy Response to and Preparedness for Natural Disasters and Emergencies; and subsequently established the Task Force for Emergency Preparedness. In 2009, APEC Leaders reaffirmed the importance of enhancing human security and reducing the threat of disruptions to business and trade in the Asia-Pacific region. Recognizing the importance of its work, in 2010 the task force was upgraded in status to a working group. •
Counter-terrorism : In October 2001, Leaders recognised the threat of terrorism to
APEC's vision of free, open and prosperous economies and to the fundamental values that its members hold. The combat of terrorism has since remained a priority at all Leaders' Meetings. Resultant initiatives aim to counter terrorism and secure trade in the APEC region, and include cooperation on maritime and port security, customs and container security, and aviation security. •
Secure Trade in the APEC Region (STAR) : This initiative aims to secure and
enhance the flow of goods and people through measures that protect cargo, ships, international aviation and people in transit. STAR programmes are designed to include the private sector, in recognition of the fact that the engagement and active participation of business is fundamental to the success of APEC's secure trade agenda. •
Trade Recovery Programme : This programme identifies what economies need to do,
in order to minimise disruption to trade flows in the event of a major terrorist attack on the supply chain, and how to ensure the rapid resumption of trade following such an attack.
Other counter-terrorism initiatives include workshops on cyber-security and terrorism, best practices in post-blast scene management, and the development of a best practice document aimed at upgrading the Protection of Critical Energy Infrastructure.
INCLUSIVE GROWTH Why inclusive growth is important to APEC
There is a growing consensus among APEC economies that an inclusive growth agenda would not only mitigate the adverse impact of the economic crisis on individuals and families, but would shorten the economic down turn at large, strengthen recovery and put the global economy on a more sustainable growth path in the longer term.
What is inclusive growth?
Inclusive growth is an approach to economic development that is anti-protectionist, fuelled by market-driven growth and facilitated by government. It is non-reactive. It does not just respond to immediate macro-economic concerns. It is a long-term strategy, extending across sectors and strata and focuses on productive employment rather than just income redistribution. Ultimately, inclusive growth empowers individuals so that they are better able to reap the benefits of globalisation and to withstand future economic shocks. It is therefore critical to poverty reduction as well as to sustainable economic growth.
APEC commitment to inclusive growth
From the outset, as APEC Leaders established goals of free and open trade, they recognised the need to: "...develop more effectively the human and natural resources of the Asia-Pacific region so as to attain sustainable growth and equitable development of APEC economies, while reducing economic disparities among them and improving the economic and social well-being of our people."
Models for inclusive growth
Strategies for inclusive growth may be viewed as compromising two broad thrusts: •
Facilitating structural reform : to make economies more resilient and adaptable
to competitive pressures; and •
Strengthening social resilience : to provide security for the vulnerable while
rewarding effort.
Anticipated outcomes
Inclusive growth strategies will include investment and infrastructure that reach out to more people; education that enables more people to enter productive employment; and will ensure that these people can both gain a stable income and become members of the consumer class. These outcomes would in turn fuel recovery and create a virtuous cycle of increased employment and higher living standards. At the same time, stronger safety nets will reduce the need for precautionary savings and help to boost domestic demand in surplus economies, thereby addressing macroeconomic imbalances.
REGIONAL ECONOMIC INTEGRATION AGENDA How APEC seeks to achieve Regional Economic Integration
The Regional Economic Integration (REI) agenda is a multi-year programme for APEC's work toward the Bogor Goals - that is, toward its goals of free and open trade and investment. As an ideal, APEC envisions a single, region-wide FTA. This is commonly known as the Free Trade Area of the Asia-Pacific (FTAAP) and analysis indicates that the establishment of such a comprehensive agreement would both benefit member economies and stimulate world trade. Progress toward Regional Economic Integration
The FTAAP is a long-term goal and requires extensive preparatory work. Nonetheless, APEC has made significant progress: •
Leveraging existing agreements: No less than 42 bilateral and regional free trade
agreements have already been established among APEC member economies. The idea of enlarging, docking or merging these agreements has been considered and next steps recommended. •
Analysis: Convergences and divergences among already existing RTAs and FTAs have
been identified, a study of bilateral investment agreements has been studied in order to develop a set of principles for future investment agreements and ideas such as the possibility of enlarging, docking or merging existing agreements have been explored.
•
Establishment of Model Measures: As they negotiate their own free trade
agreements, economies refer to model measures in order to improve quality and transparency. Fifteen such measures have been completed to date, including trade in goods, technical barriers to trade, transparency, government procurement, cooperation, dispute settlement, trade facilitation, electronic commerce, rules of origin and origin procedures, sanitary and phyto-sanitary measures, environment, competition policy and temporary entry of business persons. •
Adoption of Key Performance Indicators: As per a 2007 agreement, the Trade
Facilitation Action Plan II calls for a reduction of trade transaction costs by an additional 5 percent before 2010. The action plan recommends actions and measures to be considered in areas of customs procedures, business mobility, standards and conformance and electronic commerce. An assessment of the plan reveals that an additional 5 percent reduction in business transaction costs between 2007 and 2010 has been achieved, translating into US$58.7 billion in savings for businesses in the APEC region. •
Adoption of an Investment Facilitation Action Plan: This plan is a set of actions to
be taken by member governments, in order to attract foreign investment and to maximise the effectiveness and efficiency of administration at all stages in the investment cycle. Ultimately, the purpose is to maximise the benefits of investment through transparency, simplicity and predictability. •
Establishment of the APEC Policy Support Unit: The APEC Policy Support Unit
assists the implementation of regional economic integration by providing policy and research. Currently, priority has been given to structural (behind-the-border) economic reforms and at-the-border trade policy reforms.
SMALL AND MEDIUM ENTERPRISES Why small and medium enterprises matter to APEC
Small and Medium Enterprises (SMEs) account for more than 90 percent of all businesses in the APEC region and employ between 60 and 80 percent of the workforce. Employment leads to community wealth and stability and stable, confident communities contribute to a healthy macro-economic environment.
While APEC has always recognised the contributions of SMEs to their economies, they presently account for only about 30 percent of exports. In fact, this year, APEC Trade Ministers recognised that "not all segments of our societies have benefited from economic integration" and determined to ensure "that economic growth is more inclusive and that its benefits are spread more widely." How APEC enables SMEs
The APEC SME Working Group (SMEWG) assists SMEs to become more competitive while seeking to contribute to a more open trade and investment environment. The group endorsed a strategic plan for 2013-2016 which will provide a roadmap to address critical issues and concerns pertaining to the growth of SMEs and micro enterprises (MEs) in the APEC region. The following are the priority areas for action: •
Building Management Capability, Entrepreneurship and Innovation;
•
Financing; and
•
Business Environment, Market Access and Internationalization.
APEC Digital Opportunity e-Commerce (ADOC) centres provide information and communication technology-related training to small and medium-sized businesses. APEC-IBIZ centres train Small Business Counsellors in a range of personal and professional skills so that they are able to support businesses from a broad knowledge base. The role of the APEC SME Working Group
The SME Working Group also serves as a vehicle through which to mainstream SME considerations into the mandates and activities of other APEC groups. These include: •
Institutional lending: SMEs traditionally face impediments in securing finance and
their situation has deteriorated with the global financial crisis. APEC hosts an annual meeting of finance officials and private institutions which deal with SMEs, in order to concentrate efforts to support them. •
Structural reform: Many SMEs are excluded from the global market place, unable to
accommodate the added time and cost of conducting cross-border trade. APEC continues to implement structural reforms, aimed to improve the ease of international
business. These include simplified customs procedures, anti-corruption measures and the protection of intellectual property to reduce risks to SMEs embarking on market expansion. •
Telecommunications infrastructure: In 1990, an average of only 0.08 percent of
those living in APEC economies used the internet. In the majority of economies, this figure had soared to over 44 percent by 2005 and APEC Telecommunication Ministers are now pursuing universal access to broadband internet by 2015.
STRUCTURAL REFORM What is structural reform?
Structural policies refer to domestic policies and institutions that affect the operation of markets and the capacity of businesses to access those markets and operate efficiently. While APEC's economic focus has traditionally been on trade and investment liberalisation and facilitation, "behind-the-border" policies (or "structural policies") are now recognised as significant factors in enabling or impeding regional economic integration. Structural policy impediments may take the shape of poorly designed domestic regulatory systems, competition frameworks or governance structures. How structural reform benefits APEC member economies
Experience indicates that economies addressing domestic or behind-the-border impediments through structural reform are more resilient to economic shocks, achieve greater macroeconomic stability, realise increased productivity; and experience higher living standards over time.
The role of structural reform in the APEC economic agenda
The APEC Economic Committee may be considered in terms of three main focal points. These are: trade and investment policies, macroeconomic and financial policies and structural policies. In fact, these three focal points are synergistic and complementary, each reinforcing the other.
In 2004, APEC Leaders recognised the effects of behind-the-border impediments on economic growth and adopted the Leaders' Agenda to Implement Structural Reform Towards 2010 (LAISR 2010) which addresses five priority areas for reform: 1. Regulatory reform 2. Competition policy 3. Public sector governance 4. Corporate governance 5. Strengthening economic and legal infrastructure
Structural reform efforts to date
The first-ever Structural Reform Ministerial Meeting was held in Melbourne, Australia in August 2008. This provided an opportunity for Ministers to share experiences on the political challenges of structural reform, strategies to support the reform process, and optimal institutional frameworks. Ministers endorsed a Good Practice Guide on Regulatory Reform and initiated a process of voluntary self reviews of member economies
institutional
frameworks
that
support
structural
reform.
In 2009, APEC continued to consult with the business community to identify and address behind-the-border barriers, build capacity for reform and ensure tangible benefits by using international tools and benchmarks such as the World Bank Ease of Doing Business Survey and the APEC-OECD Integrated Checklist on Regulatory Reform.
In 2010, APEC Leaders endorsed the APEC New Strategy for Structural Reform (ANSSR) that aims to promote balanced and sustainable growth by fostering transparency, competition and better functioning markets in the Asia-Pacific. In addition, this new strategy emphasizes a social dimension that includes enhancing opportunities for women and pressing for more education and SME development. Several workshops have been conducted in 2011 to implement ANSSR.
2010 marked the turning point for LAISR, as APEC took stock of the progress member economies and the forum have made on structural reform. The 2011 APEC Economic Policy Report reviews the progress of the LAISR initiative
Impact of APEC on Australia
The APEC summit brought not only an unprecedented number of world leaders to Sydney; it strengthened our economy and further cemented our position in the Asia Pacific region. Executive Director from the Australian Institute of Export, Ian
Murray looks at the major outcomes of APEC, and gives credit to the NSW Police and DFAT task force. For Sydney, APEC is over. The leaders have gone home, the barriers are down and the demonstrators have moved on. While the press, including “Your ABC” seemed to focus primarily on some mindless antics and a little pedestrian inconvenience, APEC 2007 was an outstanding success. Great credit should be given to Paul Keating, one of the architects of APEC, and to the Federal and New South Wales Governments for putting on a good show and achieving some significant outcomes. But having 21 of the world’s top politicians in Sydney for the leaders’ conference was just the end game. APEC 2007 ran right through the year in all states of Australia. This included APEC ministerial meetings on minerals in Perth in February, transport in Adelaide in March, energy in Darwin, small business in Hobart, and health in Sydney. While trade was top of the agenda in all these discussions, specific trade issues were addressed in July in Cairns where APEC trade ministers met and when conferences were held on secure trade in APEC regions. These were followed by the APEC Business Advisory Council (ABAC) meeting in Melbourne in August. In total, 31 major meetings took place across the country resulting in a substantial number of decisions being considered on issues affecting our region. And, most importantly, a large number of export deals were struck in all sectors of business and in all states of Australia. While it was the final announcements in Sydney that made the news, these outcomes resulted from many thousands of hours of negotiation by teams here in Australia and by other member countries. Australia’s largest single export deal was announced, with agreement between Woodside Energy and Petro China for the supply of liquefied natural gas to China. This 20-year deal is worth up to $45 billion in export revenue to Australia. Another bilateral initiative was an agreement on cooperation in the use of nuclear energy for peaceful purposes between Australia and Russia. Leaders also agreed to address emissions reductions, making it the first time the United States, China, and Russia have agreed to aspiration goals that include a decrease in energy
intensity of 25 percent by 2030. One of the most important issues here is the significance of APEC to the Australian economy. Some 50 percent of world trade is undertaken by these 21 countries. It is the fastest growing region in the world. Moreover, it contributes 50 percent to our export earnings and even more to total trade. Apart from the fact that hosting APEC brought an unprecedented number of world leaders to Sydney, and some good trade deals, there was one often overlooked benefit to Australia. It further cemented our position in the Asia Pacific region and took us one big step forward as being seen by world leaders as part of Asia. And finally, who are the unsung heroes of APEC 2007? The first group has to be the DFAT Task Force who worked tirelessly for two years to make the leaders’ meeting and the many lead-up programs a huge success. Thanks is also due to the NSW Police who certainly kept things under control, and the NSW DFAT team, who I understand worked round the clock to make it all happen. Australia owes you much gratitude.
* Ian Murray is executive director of the Australian Institute of Export.
APEC Pros and Cons Asia-Pacific economic cooperation. Pros and cons of integration Organization Asia-Pacific Economic Cooperation (APEC) unites 21 countries. At the end of the last century, it passed Vietnam and Peru. At the same time it was decided to "freeze" the admission of new members for the next 10 years. The appearance of APEC in 1989,
proceeded by the establishment of the Asia-Pacific region (APR) of several associations of economic nature. Their aim was to to establish business relations and to promote reflection on the vast economic potential of its member countries. These associations included Pacific Economic Cooperation Council and theEconomic Board of the Pacific.
As interdependence of countries in the region was becoming increasingly apparent and the need to convene a new forum at the governmental level. In January 1989 the then Minister of Australia Bob Hawke, took the initiative of convening the Ministers representing the region's economies, with a view to creating fundamentally new organization for economic cooperation. Offer B. Hawk was seen in the region as "an idea whose time has come." First meeting place in australia's capital canberra in november 1989. She was represented by 26 ministers from 12 countries. They have worked out the basic principles organization of APEC.
Here is what they are 1. The purpose of APEC is to support development in the region, aimed at increasing living standards and growth of the global economy. 2. Cooperation should set the task of establishing open multilateral trading system. 3. Cooperation should be based preferably on economic rather than political or strategic manner, so as to realize common interests and strengthen the constructive interdependence, by encouraging the movement of goods, services, capital and technology.
The first Forum of Ministers of APEC countries agreed to hold such meetings annually, as well as often as possible to arrange a meeting of regional leaders for discussion at these issues further expansion of economic cooperation. Follow annual meeting of the Ministers of Foreign Affairs and Trade was held in Singapore, Seoul, Bangkok, Seattle, Jakarta, Osaka, Manila. In 1997, the Ministerial Meeting conducted in Canada, in 1998, it will be held in Malaysia.
First meeting leaders of APEC held in 1993 in the U.S. city of Seattle. In special statement, they stressed the need to support multilateral trading system and its willingness to continue to lower trade and investment barriers. The leaders agreed to promote implementation in practice of a number investment principles, although not binding.
Bogor Declaration
But especially important the next meeting of the leaders of APEC countries, happened in November 1994 in Bogor (Indonesia). They have taken on behalf of their states the commitment to free trade and investment regime no later than 2020 years, ie, abolition of all restrictions in this area. As industrialization of APEC, they promised to accomplish this task even earlier to 2010. This should be regarded now as the ultimate goal of APEC. Currently time members of APEC are 21 countries and territories - Australia, Brunei, Hong Kong, Canada. Chile, China, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua - New Guinea, Philippines, Singapore, Taiwan, Thailand, the United States, , Vietnam, Peru. Some of these countries and territories not have initiated the establishment of APEC, and entered into the organization a little later, in including China, Hong Kong and Taiwan in 1991, Mexico and Papua - New Guinea - In 1993, Chile - in 1994, , Vietnam and Peru - in 1997.drawn to attention Economic raznomernost countries belonging to APEC. Along with great powers are present here and the country's average level of economic development and countries with even low economic potential. They differ also significantly in size, population density, and natural resources. These differences have an enormous potential for mutual trade and investment. Rapidly falling real transport and telecommunication expenditures generate new conditions for complementarily between national farms. The fact that these various countries were able to put a united front problem indicates their strong desire to work together to further economic development. not ignore at the same time, and the profound differences that exist between the these countries and hamper their cooperation. This applies to culture, level of technology used, forms of state power and Legal foundations - the factors that exacerbated the historical legacy of colonialism and recent military conflicts.
purpose of APEC the time when its members have declared the Bogor Declaration on Freedom trade and investment, is to find a compromise between approach to economic cooperation. From the organization is required flexibility to combine the continued relative financial and economic decline the role of the United States and Japan in the Asia-Pacific region with a mounting the impact of the economic positions of China and the Association of Southeast Asian Nations
(ASEAN). Growth Development
Weight APEC in the global economy and population is very impressive. They account almost 40 percent of the population of our planet. But even more significant role of APEC in the world economy. In 1994 they produced 56 percent of the world product. Great is the share of these countries in international trade. With 36.2 per cent in In 1980 it increased in 1994 to 45 percent, largely to the sharp increase in exports of East Asia. Over five years (until 1994 year), gross income APEC economies grew by 9.6 per cent per year on compared with the expansion of total world exports during this period at five percent.
Main producers not only in APEC, but throughout the world in 1994 were the USA (26.5 cent) and Japan (17 percent). China accounts for 2.5 per cent while world production (World Bank calculations), and on this indicator was the third among APEC countries. There are, however, other, perhaps more accurate calculations, emanating from the socalled purchasing power parities (PPSV). Although in this case, the combined share of APEC in world production of about the same (54 percent), and the U.S. remains a world leader. But it different looks in this case, the situation in China, which moves to second place, bypassing Japan. Characteristically, the Asia-Pacific includes some of the most rapidly developing countries of the world. It especially in East Asia, economic growth rates which last decade was approximately 8.5 percent per year. According British magazine The Economist, the pace of development of APEC in the period annually up to
2000 will exceed 5.5 percent. There are signs that by 2020 year, their share in world production, calculated on PPSV, approximately two third of its volume. However, it is likely that by this time within groupings occur even greater change, as permitted the possibility that China in the first or second decade of the next century can (according to the criteria PPSB) to become the largest economy in the world.
Asia-Pacific countries have characterized by a high degree of interdependence. This is one of the reasons formation of APEC as an important regional forum in the world, 73 per cent APEC trade turnover in 1995 was carried out within the organization. Economic growth in the association and the place where the structural changes, usually aimed at increasing regional interdependence. Among the East Asian countries, Japan is increasingly making bet on the development of scientific research sectors, while new industrialized countries of the region ( "Asian tigers") more intrude into the industry, where previously dominated by Japan. China and the ASEAN countries, are less industrialized, could become competitive suppliers of labor-intensive products. China is now the largest in world exporter of such goods, while the "Asian tigers" have buy this product more than it sold, Attraction direct investment from abroad is also an important tool for cementing interdependence. APEC consists of three main party in the world of motion Capital: U.S., Japan and China, which besides the main area of application investment. Almost half of them come in APEC from these countries. Direct foreign investment in the region contribute to its rapid economic growth. Estimated IBRD, investment in East Asian countries average and relatively low development in 1993-95 accounted for 3.1 percent of their GDP, or were twice higher than in any other economic grouping of countries in the world.
In 1993 average level of import duties amounted to APEC about 14 percent. The highest tariff barriers erected in front agricultural and finished manufactured goods. However further rates began to decline rapidly. In recent years, industrial products are declined in South Korea by 62 per cent, Malaysia at 49 percent, to Philippines 36, Thailand 53, Japan 33 per cent.
Coordination efforts
Activities APEC is carried out through a series created to coordinate its of bodies. So, in January 1993 in Singapore, was formed Secretariat, which forms a working program, facilitates communication between members organization and provides government contacts, business and other agencies. In the same year he established a Committee on Trade and Investment. Its function is to organize the discussion of pressing issues and the establishment necessary conditions for trade in the region, particularly in the areas as standardization, collection of duties and non-tariff barriers, as well as in decision problems associated with the scope of investment. For example, work on standardization product is aimed at to reduce the costs of its production by alignment of standards of member countries with international standards, mutual recognition of the requirements for verification of products, and issuing certificates. Established in 1994 APEC Economic Committee provides a forum for the exchange of economic information and views on issues of economic development in the region. Committee Administrative and Budgetary Questions has been formed to assist leading figures in their orientation on finance and management projects related to the APEC work program. In 1995, its budget amounted to about 2,2 million dollars. At the annual Ministerial meetings are determined by the amount of work and funding programs Committees and working groups. Operates 10 working groups, providing practical cooperation in the region on matters of telecommunications, transport, commerce, fisheries, energy, training, tourism and transfer technology. not say that the mechanism of the APEC is well thought out. For example, it is not clear what are the objectives was to achieve by 2020 this organization. Slogans Bogor Declaration may be interpreted or how the pursuit of regionalism, that is, to closed regional free trade, but with tariffs for Countries outsiders or members of the organization as the abolition of fees in respect of other countries based on mutual distribution of the most-favored - nation. Already clear that the various APEC countries have different understandings of some aspects of future. Thus, it is clear that the U.S. has consistently opposed granting
unilateral trade concessions, will stand on principle regionalism. The Canadian government also opposes the proliferation free trade in non-organization. However, the Asian members of APEC seriously oppose the formation of regional trade zone, which would establish for them any restrictions. At a meeting in summit in Osaka in 1995 was an attempt to achieve a compromise between APEC on issues related to the process of liberalization in the Trade in November 1996 at a meeting in Manila leaders made clear plan, referred to as "action plans". However, there was determined by the final date of cancellation fees. There was no unity and on reducing non-tariff barriers. Only a few countries have adopted a firm timetable to reduce their external barriers. U.S. and Canada indicated that they liberalize trade if other nations do appropriate concessions, and "action plan" the new Australian Government stressed that it will continue to reduce rates after 2000 year, if other APEC countries to fulfill their own plans. It emphasize that the Bogor Declaration is not binding. So, Canberra a month before the signing of the document on the establishment in the near future full freedom of trade, reversed its recent decision to allow New Zealand to compete in the Australian domestic routes. Soon after the meeting in Osaka in November 1995, Prime Minister of Singapore stated that Free trade does not mean complete elimination of duties, and then Australian Prime Minister pointed to the possibility of establishing in "Free Trade" 1 0-percent tariff. In all disadvantages of APEC, of course, is the most representative of the all existing in the Asia-Pacific Economic Organizations.
CONCLUSION AND RECOMMENDATIONS
Since the Bogor Declaration of the APEC Economic Leaders in 1994, the APEC member economies have been working voluntarily through the process to develop the environment for open and free investment.
