FIFTEENTH APEC MINISTERIAL MEETING
Bangkok, Thailand
17-18 October 2003
JOINT STATEMENT
Ministers from Australia; Brunei Darussalam; Canada; Chile; the
People’s Republic of China; Hong Kong, China; Indonesia; Japan; the Republic of
Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; the Republic of the
Philippines; the Russian Federation; Singapore; Chinese Taipei; Thailand; the United
States of America; and Viet Nam, representing economies which collectively account for 47
percent of world trade and over 60 percent of global GDP, participated in the Fifteenth
Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting in Bangkok, Thailand on 17-18
October 2003. The APEC Secretariat was present. The Association of Southeast Asian Nations
(ASEAN) Secretariat, the Pacific Economic Cooperation Council (PECC) and the Pacific
Islands Forum (PIF) attended as observers.
The meeting was chaired by Dr. Surakiart Sathirathai, Minister of
Foreign Affairs and Dr. Adisai Bodharamik, Minister of Commerce of the Kingdom of
Thailand.
Ministers renewed their commitment to stable economic growth in the
Asia Pacific region based on an open multilateral trading system. They reiterated their
pledge to achieve the Bogor Goals of free and open trade and investment through harnessing
the diverse and unique strengths of the twenty-one APEC member economies to create jobs
and raise the standard of living of its peoples. Working towards the equitable and shared
prosperity for all, Ministers reviewed the implementation of the APEC 2003 work program
and set new directions and taskings for the APEC 2004 Year. These outcomes are organized
in accordance with the theme and sub-themes of the APEC 2003 Year:
A World of Differences: Partnership for the Future
Act on Development Pledge;
Knowledge-Based Economy for All;
Promoting Human Security;
Financial Architecture for a World of Differences;
New Growth Enterprises: SMEs and Micro-Enterprises.
PARTNERSHIP FOR THE FUTURE
For APEC to reach the Bogor Goals of free and open trade and investment
by 2010 for industrialized economies and 2020 for developing economies, Ministers called
on all APEC members to work together in an effective partnership not only among economies
but also together with other stakeholders and actors such as civil society, the business
sector, and academia. In particular, APEC is encouraged to collaborate and work with
International Financial Institutions (IFIs) to better utilize and harness the expertise
and resources to bring about tangible benefits to all regardless of cultural differences
and levels of economic development.
ACT ON DEVELOPMENT PLEDGE
Despite its diversity, the APEC spirit of cooperation has underpinned
its trade and investment liberalization and facilitation agenda that works in concert with
economic and technical cooperation rather than through a donor-recipient relationship.
Through this process, APEC integrates its peoples and communities into the mainstream of
regional economic activities, turning them into stronger trade and investment partners as
APEC moves closer towards the Bogor Goals.
World Trade Organization (WTO)
Ministers agreed that the WTO Doha Development Agenda (DDA) offers the
potential for real gains for all economies, and particularly developing economies, in the
areas of agricultural reform, improved market access for goods and services, and
clarification and improvement of trade disciplines. Ministers regretted the missed
opportunity to advance the DDA during the Fifth WTO Ministerial Conference held in Cancun,
Mexico, on 10-14 September 2003. They noted that progress has been made in some areas of
negotiations, and welcomed the recent historic decision on TRIPS and access to essential
medicines.
To move the DDA forward and arrive at an ambitious and balanced outcome
to the DDA, Ministers agreed on the need to re-establish the common purpose, commitment
and contribution from all WTO Members that has been the hallmark of successful
multilateral trade liberalization, and reiterated that the development dimension is at the
core of the DDA.
Ministers also recalled the Leaders’ Declaration at Los Cabos and
reiterated that one of the objectives of the negotiations should be the abolition of all
forms of agricultural export subsidies, and unjustifiable export prohibition and
restrictions. Ministers remained committed to on-going work in the negotiating group on
rules aiming at clarifying and improving trade disciplines.
Ministers called on all WTO Members to quickly re-energize the
negotiation process by building on Chairman Derbez’s text of 13 September 2003,
recognizing that flexibility and political will from all are urgently needed. They also
supported the Chairman of the WTO General Council’s initiative to lead talks at the
General Council on the areas that dominated discussions in Cancun, such as agriculture,
industrial market access, and the Singapore Issues, with an aim to setting out future work
programs for negotiations by 15 December 2003. Ministers noted that the valuable work on
trade facilitation already undertaken by APEC would be helpful in the context of WTO
negotiations. They underlined their willingness to show flexibility in advancing such
negotiations and urged their trading partners to do the same.
Ministers reaffirmed the importance of effective WTO capacity building
activities in helping developing economies fully participate in WTO DDA negotiations and
enjoy the full benefits of WTO membership. To contribute to the successful completion of
the DDA, Ministers, reaffirming the importance of capacity building, instructed Senior
Officials to focus on meeting the needs identified by developing economies. Ministers
recognized APEC’s capacity building contributions and instructed Senior Officials to
review the experience gained, as well as the lessons of the Fifth WTO Ministerial
Conference in Cancun, in order to identify measures and practices to improve WTO capacity
building activities in the future, and make them as effective as possible in
reinvigorating the DDA negotiations.
Ministers instructed officials in Geneva to increase the momentum in
the work undertaken by the APEC WTO Caucus so as to follow up on the discussions held and
the instructions given to them in Bangkok, on advancing the DDA negotiation agenda.
Ministers restated their support for the WTO accessions of the Russian
Federation and Vietnam, and agreed to seek early accession for these economies. Ministers
noted that APEC capacity building programs could help the Russian Federation and Vietnam
in building confidence and capacity to accelerate their negotiation process to join the
WTO.
Ministers noted the efforts underway in the current GATS negotiations
to encourage economies to provide greater transparency in all sectors and modes of supply.
Greater transparency by APEC members would facilitate such efforts and promote investment
and trade in goods and services in the region. Ministers encouraged economies to continue
their discussions on transparency and consider practical and effective ways to improve the
availability of information related to their GATS specific commitments, including mode 4.
Structural Reform
Ministers stressed their determination to continue pursuing structural
reform in the APEC region as a valuable avenue for achieving the Bogor Goals. Work should
continue to ensure that policies of open markets are complemented by genuine efforts to
progress structural reform and constantly review policies and practices in the relevant
areas. They reiterated that "behind-the-border" reforms are necessary to support
"at the border" trade and investment liberalization and facilitation
initiatives.
Ministers adopted the "APEC Structural Reform Action Plan"
as a unified framework for helping build economies' capacity to undertake structural
reform by coordinating and promoting current and future structural reform work in APEC.
The Action Plan incorporates work in structural impediments to trade in goods and
services, training on competition policy and deregulation, corporate governance and
insolvency systems, corporate debt restructuring, and strengthening economic legal
infrastructure activities. They also encouraged strengthening of social safety nets to
complement structural reform efforts. Ministers requested Senior Officials to report
progress on implementation of the APEC Structural Reform Action Plan to the 16th AMM in
2004.
Ministers welcomed the progress with Strengthening Economic Legal
Infrastructure (SELI) capacity building projects, including initiatives on commercial
laws, accounting systems and competition policy. They took note of the report on the Study
on Debt Collection Litigation/Arbitration in APEC Economies and the launch of the
report on Strengthening Commercial Laws in the APEC Region, and reaffirmed the
importance of more transparent and more predictable environment for business activities.
They also instructed Senior Officials to further develop SELI’s activities by taking
into account the findings of the past projects of the SELI Coordinating Group.
Ministers also recognized that good governance is fundamental to
sustained economic growth and development and strongly support the implementation of good
governance practices across the APEC region.
Trade and Investment Liberalization and Facilitation
Ministers endorsed the 2003 Committee on Trade and Investment Annual
Report on APEC’s Trade and Investment Liberalization and Facilitation activities.
Ministers welcomed considerable progress made by APEC in liberalizing
and facilitating investment flows in the region and urged members to attach greater
importance to investment cooperation.
Individual and Collective Action Plans
Ministers reaffirmed their commitment to achieve the Bogor Goals
through actions outlined in their respective Individual Action Plans (IAPs). They
endorsed the Senior Officials’ Report on IAP Improvements for 2003 and
welcomed the actions and measures taken by individual economies on Trade Facilitation.
They urged all economies to report progress in the new IAP Chapter on Trade
Facilitation. They agreed that this IAP Chapter on Trade Facilitation will be a
useful tool in charting progress toward the objective in the Shanghai Accord of realizing
a 5 percent reduction in business transaction costs by 2006. Increased profits, due to
reduction in transaction costs, will be returned to business, which will result in
increased trade volume, creation of new jobs and lower prices for consumers.
The new IAP Chapter on the APEC Food System is also a welcome
addition to the IAP process. The APEC Food System, an initiative of the APEC 1999 Year,
combines the development of rural infrastructure, dissemination of technological advances
in food production and processing, and liberalization and promotion of trade in food
products, into a robust regional food system. This system provides a vital contribution to
meeting the objectives of APEC, aiding efficient and safe food production, and
facilitating effective trade in food products, and ensuring that its requirements are
based on sound science. In this context, Ministers noted the Agricultural Technical
Cooperation Working Group’s plan to pursue a high-level policy dialogue on
agriculture in 2004.
Ministers also welcomed the annual reporting mechanism of Strengthening
Economic Legal Infrastructure (SELI) that was agreed on by the members following the
broadening of the OAA to include a new chapter of SELI last year. The reporting mechanism
will help each economy identify the economic legal areas that need improvement, and will
push forward their efforts in the area. In addition, the mechanism will facilitate policy
discussions and mutual cooperation among APEC member economies in this area. Ministers
instructed Senior Officials to further improve it with the consideration of its relations
with other relevant IAPs.
Ministers welcomed the successful 2003 IAP Peer Reviews of
Australia; Canada; Hong Kong, China; Japan; Korea; Mexico; New Zealand and Thailand. They
took note of progress to complete the peer reviews of Chile, China, Peru, Singapore,
Chinese Taipei and the United States in 2004. Ministers reaffirmed their commitment to
complete all twenty-one IAP peer reviews by the First Senior Officials’ Meeting (SOM
I) in 2005 and to conduct a mid-term stocktake in 2005 on overall progress towards meeting
the Bogor Goals. Completion of preparations for this mid-term stocktake should be agreed
on by the 16th APEC Ministerial Meeting (AMM).
Whilst noting the progress made on the implementation of collective
action plans, Ministers instructed Senior Officials to expeditiously review and
progressively improve the CAPs to ensure that they produce tangible benefits to the
business community and meet the Bogor Goals.
Ministers welcomed the expansion of the 1998 APEC’s Menu of
Options for Investment Liberalization and Business Facilitation to Strengthen APEC
Economies to include competition policy and regulatory reform as well as the capacity
building programs and activities to improve the economies’ capabilities in the
investment area. Ministers noted the reports prepared by most economies highlighting their
implementation of the Menu of Options, and urged all remaining economies to provide
their reports on the progress in implementing the Menu of Options as soon as
possible, and encouraged the Investment Experts Group to advance work in this important
arena.
Trade Facilitation Action Plan
Ministers applauded economies’ work to implement the APEC Trade
Facilitation Action Plan (TFAP), in particular the individual economies’ selected
actions and measures. They noted that several economies have presented case studies on how
the benefits of trade facilitation actions and measures can be quantified and encouraged
economies to step up efforts to provide this type of detail. Ministers welcomed the time
release survey carried out by several economies as one of the proxies to measure the 5
percent reduction of transaction costs. To ensure APEC meets Leaders’ target of
reducing business transaction costs by 5 percent by 2006, Ministers instructed Senior
Officials to identify and implement concrete actions and measures. In this regard, the
Ministers were of the view that compilation of information about best practices of trade
facilitation should be made available in local languages of APEC to maximize the gain of
trade facilitation.
Ministers further instructed Senior Officials to begin preparing for
the mid-term review and Expanded Dialogue on Trade Facilitation scheduled to take place at
the Third Senior Officials Meeting in 2004. Ministers agreed that the mid-term review and
the participation of economies, non-government experts and private sector representatives
in the Dialogue should provide APEC members with an accurate view of progress made thus
far to achieve the Shanghai Accord’s mandate.
Ministers reiterated their appreciation for recent studies, such as "Assessing
the Economic Benefits of Trade Facilitation and Recommendations for a Coordinated Capacity
Building" by the World Bank, estimating the substantial economic benefits APEC
economies can realize from reducing transaction costs. Ministers instructed Senior
Officials to develop a work program to share information on similar benefits that other
WTO members could potentially achieve.
Ministers instructed Senior Officials to identify APEC-wide concrete
actions and measures that would enhance the cross border movement and customs clearance of
goods and people in the region. Ministers also urged Senior Officials to further develop
confidence and capacity building activities to assist economies to implement the TFAP,
including the progress report on the study to examine developments in trade facilitation
and secure trade. They looked forward to the development of a monitoring mechanism to
demonstrate the cost reduction effect and the benefit to the business community and
requested Senior Officials to report progress on the TFAP to the 16th AMM in 2004. In this
context, Ministers welcomed the outcome of the APEC Workshop on Quantitative Methods for
Assessing NTMs and Trade Facilitation, sponsored by the Market Access Group in Bangkok in
October 2003, at which participants exchanged views on the latest analytical methods for
assessing the impact of non-tariff measures and trade facilitation. By building capacity
among trade policy specialists in the developing APEC economies, the Workshop will lead to
better information for policymakers on a wide range of topics, including helping economies
to assess their progress to achieve a 5 % reduction in transaction costs by 2006.
Ministers noted the outcomes of a symposium held in Chinese Taipei in
September 2003 on Toward a Cross-Border Paperless Trading Environment - Actions for
Trade Facilitation and the Roadmap for Establishing an APEC Cross-Border Paperless
Trading Environment. They requested relevant APEC fora to consider its recommendations
in particular the commitment to achieving paperless trading goals in the APEC region by
2005 for industrialized economies and 2010 for developing economies.
Ministers noted that trade and security are complementary issues. As
such, the implementation of security related measures, such as STAR within the APEC
region, should take into account the need to minimize costs directly associated to trade.
Leaders’ Statement to Implement APEC Transparency Standards
Ministers endorsed area-specific Transparency Standards on Services,
Investment, Competition Law and Policy and Regulatory Reform, Standards and Conformance,
Intellectual Property, Custom procedures, market access and business mobility and directed
their officials to complete their work on area-specific standards on government
procurement by the 2004 MRT. Ministers requested Senior Officials to further refine the
template developed for reporting on how economies implement the General Transparency
Standards for use from 2004 onwards. Ministers agreed to recommend that Leaders endorse
the Transparency by 2005 Strategy agreed by Ministers Responsible for Trade to ensure that
economies implement the Leaders’ Transparency Standards in their domestic legal
regimes. Ministers instructed Senior Officials to study how implementation of the
area-specific Transparency Standards could also be tracked in the IAPs and called for the
development of demand-driven capacity building to assist developing economies to implement
the APEC Transparency Standards by January 2005. Furthermore, Ministers asked Senior
Officials to ensure that these standards are made publicly available to the business
community, as they make an important contribution to APEC’s trade facilitation
agenda.
Ministers recognized that enhancing transparency will contribute to
combating corruption. Ministers noted that in many member economies there already exist
appropriate laws, institutions and structures aimed at eliminating corrupt practices in
both the public and private sectors. Ministers agreed that these anti-corruption measures
should be vigorously enforced, and where appropriate laws, institutions and structures
should be strengthened in pursuit of our common goals.
Pathfinder Initiatives
Ministers re-emphasized the important role of Pathfinder initiatives
that allow economies that are ready to initiate and implement the cooperative arrangements
to proceed to do so, while those that are not yet ready to participate may join at a later
date. In this connection, Ministers urged all economies to actively take steps to
participate in Pathfinder initiatives so as to ensure timely progress towards the Bogor
Goals.
Ministers of participating economies endorsed the "Next
Steps" Action Plan adopted by Ministers Responsible for Trade to implement the 2002 Pathfinder
Statement to Implement APEC Policies on Trade and the Digital Economy. They also
welcomed progress achieved so far under this Plan to implement the Leaders’ Digital
Economy Statement in the e-commerce, services, intellectual property and tariff areas, and
instructed that work under the Next Steps Plan continue.
Ministers welcomed Chile’s decision to participate in the
Leaders’ Digital Economy Statement, according to the understanding annexed to this
Statement (see Annex A). Ministers instructed Senior Officials to work on the basis
of participating economies’ proposals to identify additional information technology
products on which tariffs could be eliminated. Ministers also instructed Senior Officials
of the economies participating in the 2002 Pathfinder Statement to Implement APEC Policies
on Trade and the Digital Economy to undertake work on technology choice and
non-discriminatory trade in digital products under the "Future Works" paper.
Ministers agreed on the importance of effective intellectual property
protection consistent with existing regimes and international agreements as critical to
fuel human genius and creativity, and to promote investment in the creation of culturally
diverse materials, and agreed to continue work under the Digital Piracy Initiative to
create the regulatory and enforcement environment needed to eliminate the production,
import, export and distribution of pirated optical media. To this end, Ministers of
economies participating in the Leaders’ Digital Economy Statement endorsed Effective
Practices for Regulations Related to Optical Disc Production. They also noted the Initial
Report on Enforcement Best Practices in APEC Economies to Combat Optical Disk Piracy,
and agreed that economies participating the Leaders’ Digital Economy Statement
should provide information on their enforcement practices so that a final report is ready
for submission to Ministers Responsible for Trade next year. Ministers instructed
officials to continually pursue new work areas under the Leaders’ Digital Economy
Pathfinder Statement. They also called for the formulation of demand-driven capacity
building projects that would help developing economies benefit from digital trade.
Ministers welcomed the launch of the APEC Sectoral Food Mutual
Recognition Arrangement (MRA) as a Pathfinder initiative and encouraged economies to
share effective and/or best practices in food regulations as initial means to help promote
the initiative. This initiative has the potential to bring greater returns to agricultural
producers and would pass on the benefits of reduced costs to consumers. The initiative
would also support APEC’s efforts to promote the APEC Food System.
Ministers also welcomed progress made with respect to the following
Pathfinder initiatives and urged economies to participate actively in Pathfinder
initiatives:
Implementation of Unilateral Advance Passenger Information Systems;
Adoption of the revised Kyoto Convention on the Simplification and
Harmonization of Customs Procedures;
Electronic Sanitary and Phytosanitary (SPS) Certificates;
Electronic Certificates of Origin;
Mutual Recognition Arrangement of Conformity Assessment on Electrical
and Electronic Equipment Part II and Part III; and
Corporate Governance.
Regional Trading Arrangements/Free Trade Agreements
Ministers acknowledged the development of intra-APEC Regional Trade
Agreements/Free Trading Arrangements (RTAs/FTAs) and welcomed APEC’s 1st Policy
Dialogue on RTAs/FTAs held in May 2003 in Khon Kaen, Thailand.
While recognizing that RTAs/FTAs can contribute to multilateral trade
liberalization, Ministers reiterated Leaders’ emphasis that RTAs/FTAs must be
consistent with both the WTO’s rules and disciplines and APEC’s goals and
principles. They noted that if FTAs are comprehensive they can promote competitive
liberalization in the region and help to build momentum for the Doha Round negotiations.
Ministers welcomed the convening of a 2nd Policy Dialogue on RTAs/FTAs in May/June 2004 in
Pucon, Chile. They supported continued work within APEC and with relevant organizations,
for example, the Pacific Economic Cooperation Council (PECC), to develop their work for
maximising the contribution of RTAs/FTAs to the achievement of the Bogor Goals. In
particular, Ministers instructed Senior Officials to develop work on ways to include
discussions on RTAs/FTAs on a regular basis, within APEC’s work agenda.
APEC Business Advisory Council
Ministers recognized the unique role of the APEC Business Advisory
Council (ABAC) in providing specific advice concerning the improvement of the business
environment in the region. They welcomed the presentation of the 2003 ABAC Report to
APEC Economic Leaders and acknowledged ABAC’s call to act decisively to deliver
on APEC members’ commitments. Ministers welcomed the five key messages in the ABAC
Report:
reaffirm APEC’s commitment to advancing free, open and
transparent trade, and specifically reaffirm the commitment to achieve the Bogor Goals,
and to advance the Doha Development Agenda;
facilitate trade to ensure that the benefits of liberalization are
realized, and reaffirm the commitment to reduce transaction costs by 5 percent by 2006,
ensuring that security measures do not hinder legitimate commerce but rather provide an
opportunity to facilitate trade;
pursue capacity building to ensure that growth resulting from
liberalization is balanced, equitable and sustainable and contributes to strengthened
financial systems;
work with the private sector to promote good governance, transparency
and application of international standards and conformance procedures to restoring trust
in markets; and
ensure that APEC remains open to business input and participation so
that APEC efforts result in real improvements to the business environment and for regional
economies.
Ministers noted with satisfaction the closer working relationship
between ABAC and Senior Officials in 2003, and expressed appreciation for ABAC’s
continued work to provide constructive, specific recommendations and to engage with
officials to help ensure the achievement of APEC goals and their translation into real
economic growth and benefits.
Ministers recognized the fact that financial stability is key to
reinvigorating APEC economies. Ministers welcomed ABAC’s recommendations on
strengthening APEC’s financial systems, securing the financial environment and
improving governance as well as transparency in order to restore confidence in our
markets. Ministers also recommended the Finance Ministers Process to work with ABAC on the
implementation of measures that will contribute to the creation of a sound investment
environment for business within the APEC region.
APEC Business-Government Dialogues
Ministers welcomed the excellent business-government
understanding that has been achieved as a result of the Automotive and Chemical Dialogues.
The automotive sector accounts for approximately ten percent of world
trade. In response to the call of the 5th APEC Automotive Dialogue in June 2003, Ministers
reaffirmed that they will endeavor to refrain from using measures which would have the
effect of increasing the level of protection in the automotive sector. Ministers will also
continue their support for the Automotive Dialogue to map out strategies for increasing
integration and development of the automotive sector within the region.
In the chemicals sector, Ministers noted the continuing concern of
economies over the European Commission’s proposed regulatory framework for chemicals
and downstream products (REACH system). Ministers observed that many APEC economies
submitted detailed comments on the proposed system, and urged the European Commission to
carefully consider the trade effects and trade policy implications of the proposed
legislation. Ministers welcomed the efforts of the Chemical Dialogue to identify
non-tariff barriers to trade to be addressed in APEC and as part of the contribution to
the Doha Development Agenda.
Ministers also welcomed the outcome of the Globally
Harmonized System (GHS) Capacity Building Seminar held in Chinese Taipei in September 2003
for participants to exchange views on the mechanism and benefits of adopting the GHS for
classification, labeling and safety information management of chemical products.
Ministers welcomed the outcome of the test-seminar held in August 2003
in Bratsk, Russia and endorsed the convening of the first meeting of APEC Dialogue on
Non-Ferrous Metals in 2004. Ministers requested officials to consult with GEMEED and other
relevant APEC fora on the organizational and technical aspects of convening the first
dialogue.
Economic and Technical Cooperation and Capacity Building
Ministers endorsed a short list of APEC-wide Economic and Technical
Cooperation or ECOTECH priorities:
Integration into the Global Economy;
Promoting the Development of Knowledge-Based Economies;
Addressing the Social Dimension of Globalization; and
Counter-Terrorism Capacity Building.
These ECOTECH priorities guide APEC’s contribution to the economic
and social development of the region. They provide an up-to-date overall strategic focus,
a strategic roadmap for future ECOTECH activities and will enable APEC to better
communicate with its constituents and facilitate efforts to attract additional support
from external organizations. The complementary and cross-cutting nature of TILF and
ECOTECH are also reflected in the list of priorities. This list of priorities, however,
does not preclude APEC from responding to future priorities as may be identified by
Leaders. Additional ECOTECH and capacity building activities may be undertaken by
economies. Ministers tasked SOM to focus on identification and implementation of capacity
building projects under the four ECOTECH priorities and report to AMM 2004.
Ministers welcomed the 2003 Senior Officials’ Report on
Economic and Technical Cooperation, and endorsed its recommendations.
Ministers instructed Senior Officials to use existing management
mechanisms, such as the SOM Committee on ECOTECH and the Budget and Management Committee
to significantly strengthen the coordination of APEC activities, in particular APEC
projects, so as to avoid duplication and maximize APEC value, goodwill and benefit to
stakeholders. They welcomed the development of a project evaluation framework, which
should be integrated into the APEC project framework in time for 2005 projects, and looked
forward to continued progress in assessing APEC’s ECOTECH activities.
Ministers welcomed the rigorous assessment of ECOTECH Action Plans
in the area of human resources development. They remain accessible to interested economies
as a basis for discussion and may be revised for their own use.
Ministers acknowledged that it is essential to expand APEC’s
relationships with other organizations including the IFIs. They welcomed the success of
the first APEC/International Financial Institutions Roundtable Discussion on Economic
and Technical Cooperation as a first step in identifying synergies and proposing a
framework for coordination and capacity building opportunities for further cooperation. In
this connection, distance learning as well as outreach activities on issues such as the
positive impact of globalization, structural reform, trade security, youth, women and
digital economy may be areas with potential for further APEC/IFI cooperation activities.
Ministers encouraged economies and APEC fora to continue to engage IFIs in the ECOTECH and
capacity building work of APEC and to develop relationships with other suitable
organizations and the business sector in the year ahead. In particular, they looked
forward towards the concrete results that may arise from a Second APEC/IFI Roundtable
discussion on Economic and Technical Cooperation, to be held during the Second Senior
Officials’ Meeting in 2004.
KNOWLEDGE-BASED ECONOMY FOR ALL
Promoting the Development of Knowledge-based Economies (KBEs), one of
APEC’s ECOTECH priorities, is a foundation for the economic and social development of
the APEC region. APEC needs to redouble implementation of its APEC 2000 Year KBE Strategy
by maximizing the combined potential of information and communications technology, human
resources development and a facilitating legal and regulatory framework. APEC’s work
in this area will enhance economies’ abilities to engage in broader trade and
investment liberalization, which will help APEC meet the Bogor Goals.
Ministers encouraged undertaking technical cooperation amongst member
economies in order to develop global learning communities that can build the skills that
our youth require in our increasingly global and knowledge based economies: Ministers
welcomed the initiative of holding a Working Research Summit on Education Reform in the
APEC region during 12-14 January 2004 in Beijing, in order to examine the research base
and policy trends in education affecting our economies. These findings will inform policy
recommendations and establish a substantive action-oriented agenda for the region.
Intellectual Property Rights
Ministers recognized that effective management of Intellectual Property
Rights (IPR) is essential to building a knowledge-based economy. Proper protection and
enforcement of IPR are key factors in promoting foreign trade and investment as well as
boosting economic development. They committed to continuing close cooperation within APEC
aimed at improving IPR facilitation, protection and enforcement, and endorsed the
establishment of IPR Service Centers, as a CAP, understanding that each member
economy will proceed with implementation as soon as it is ready. They also endorsed the Comprehensive
Strategy on IPR in APEC which will improve IPR protection and enforcement in the
region. The objective of this Comprehensive Strategy is to set guidelines for proper
protection and enforcement of IPR in the region for the sake of better coordination and
collaboration among APEC economies in this area. Ministers also instructed Senior
Officials to develop concrete plans to implement the strategy. They emphasized the
importance of implementation of the APEC IP Toolkit through well-targeted projects
which take into account the particular needs of developing APEC economies. In this area,
increased support for capacity building programs as well as infrastructure development in
order to strengthen the fight against piracy is required. Ministers also recognized the
importance of APEC Technical Cooperation in IP Automation, which will bridge the digital
divide among Intellectual Property Offices (IPOs) and facilitate the implementation of
cost-effective IP automation.
Cybersecurity
Ministers welcomed the TEL’s Report to Leaders and Ministers on
Actions of the Telecommunications and Information Working Group to Address Cybercrime and
Cybersecurity, reflecting the work done to implement the APEC Cybersecurity
Strategy, and urged APEC fora and economies to continue their efforts to implement it.
In particular, Ministers welcomed the Cybercrime Legislation and Enforcement Capacity
Building Project and its first meeting held in Thailand in 2003, and called for
further work by APEC fora and economies to develop laws and procedures to facilitate the
investigation and prosecution of cross-jurisdictional cybercrime. Ministers noted the
efforts economies have made to share information about security threats and to assist each
other in international cybercrime investigations, and welcomed APEC efforts to promote the
development of an international network of Computer Emergency Response Teams
("CERTs"). They also agreed to continue to support the work done by APEC fora
and economies to promote security and technical guidelines, raise public awareness about
computer security threats, and promote cybersecurity training and education.
Life Sciences Innovation
Ministers recognized the importance of life sciences innovation to
economic development and the well being of people. They welcomed the first APEC Life
Sciences Innovation Forum in Phuket, Thailand in August 2003 and supported the
forum’s recommendations to identify economy-specific strengths in life sciences and
ways to promote trade and investment, economic and technical cooperation and
government-business sector collaboration in life sciences innovation. Ministers took note
of the progress in developing the draft Strategic Plan for Promoting Life Sciences
Innovation and requested that the forum and its expert groups finalize the plan for
endorsement in 2004. As an immediate outcome of the forum, Ministers endorsed an agreement
in principle to harmonize quality standards for life science products and services
according to international best practices. They requested that the 4th APEC
Ministers’ Meeting on Regional Science and Technology Cooperation in New Zealand in
2004 be kept informed of the forum’s progress.
Innovative APEC
Ministers recognized the importance of promoting cooperation on science
and technology innovation to ensure the long-term economic growth of APEC economies. They
welcomed the Innovative APEC initiative, which will promote cooperation in the APEC
region through the development of science and technology intermediary mechanisms and
identification of bottlenecks and impediments to their development. They charged Senior
Officials with examining the policy recommendations arising from the Innovative APEC
Workshop in February 2004 in China for further implementation. They requested Senior
Officials to report progress on implementation of Innovative APEC to the Fourth APEC
Ministers’ Meeting on Regional Science and Technology Cooperation, where connecting
innovative science, policy and business will be a key feature. Senior Officials are also
requested to report progress in this area to the 16th AMM in 2004.
Biodiversity and Sustainable Development
Ministers agreed to continue to support global efforts to address
significant sustainable development issues and stressed the importance of the sustainable
use of biodiversity. Ministers welcomed the Senior Officials’ decision to hold a
workshop on this matter in 2004 where an opportunity could be provided for representatives
from governments, scientific institutions and the business sector to exchange views on
relevant best practices in biodiversity and implications on trade.
Ministers reaffirmed their commitments delivered in the Seoul Statement
on APEC Tourism Charter. They recognized tourism as the significant instrument towards
obtaining sustainable development within APEC region as well as in individual economy.
Agricultural Biotechnology
Ministers welcomed the 2nd APEC High Level Policy Dialogue on
Agricultural Biotechnology held in Thailand in 2003 and recognised the benefits of
biotechnology in improving agricultural productivity, food security, and enhancing the
environment. They reaffirmed the importance of the safe introduction and use of
agricultural biotechnology products based on sound scientific risk assessment and risk
management. They reiterated the need for enhancing public awareness and confidence in
products derived through biotechnology and called on Senior Officials to continue to
develop better understanding in this area. In this regard, they welcomed the convening of
a 3rd APEC High Level Policy Dialogue on Agricultural Biotechnology in Chile in 2004 which
would cover Intellectual Property Rights and Capacity Building.
Invasive Alien Species
Ministers noted the difficulty and cost of dealing with problems caused
by Invasive Alien Species (IAS). IAS also has significant implications for trade.
Ministers agreed that the invasive species problem cuts broadly across sectors and that
APEC should identify opportunities for cooperation and capacity building to combat the
problem, using science-based criteria in accordance with international standards. In this
context, a workshop will be held in 2004 where economies can discuss IAS and consider
APEC’s response, including the possibility of developing a common strategy.
Electronic Commerce
Ministers took note of the 2003 Stocktake of Electronic Commerce
Activities in APEC.
Ministers welcomed the work of Senior Officials in the area of
electronic commerce, including the Cybersecurity Workshop on 14 August 2003 and the
APEC Digital Trade Seminar held on 16 August 2003, both in Phuket, Thailand. For
2004, Ministers highlighted the importance of Senior Officials completing the APEC Data
Privacy Principles and note that an APEC Symposium on Data Privacy Implementation
Mechanisms will be held in August/September 2004 in Santiago, Chile. The Principles
will help APEC economies to develop privacy laws and regulations that achieve a balance
between effective privacy protection and the continuity of cross-border information flows,
thus promoting electronic commerce. Ministers also endorsed updating the 1998 APEC
Blueprint for Action on Electronic Commerce, conducting future work on
"spam" in close collaboration with the OECD, holding an APEC Symposium on
ebXML (electronic business Extensible Markup Language) for Paperless Trading and
Collaborative e-Business in Thailand and noted plans for an APEC ECSG Internet
Investigatory Training Workshop for Law Enforcement Personnel.
Ministers welcomed China’s offer to host the APEC E-Commerce Fair
on 15-19 June 2004 in Yantai, China, and encouraged all member economies to participate in
this event.
APEC Education Foundation and Cyber Education Cooperation Consortium
Ministers expressed their appreciation to the APEC Education Foundation
for its initiatives to enhance Information and Communications Technology (ICT) capacity
building of small and micro-enterprises. Ministers also recognized the Foundation’s
potential as a useful vehicle to enhance APEC education and human capacity building
cooperation.
Ministers also recognized the achievement for the Consortium for APEC
Cyber Education Cooperation (ACEC) in reducing the digital divide in the APEC region and
welcomed the Consortium’s new directions towards building a wide learning community
of teachers, learners and researchers/administrators in the region. Ministers encouraged
member economies, business, academia and other stakeholders to actively participate in the
activities of the Foundation and the Consortium.
E-Learning
Ministers recognized the increasing role of technology in developing
students' skills for the 21st Century and ability to contribute to knowledge based
economies. Ministers welcomed the development of a Five-year Strategic Plan for
e-Learning in the region outlining recommendations to improve students' and teachers'
access to the Internet infrastructure, availability of innovative educational content
using the Internet, teachers' capacity to use technology, and addressing policy issues
raised in implementing e-Learning efforts across APEC. Ministers encouraged APEC's
Education Ministers to review the document and provide further direction for promoting
e-Learning at the upcoming 3rd APEC Education Ministerial Meeting in Chile in 2004.
Ministers also encouraged member economies to undertake measures geared
towards the adequate knowledge and practical use of English as a Working Language within
the APEC region. Such measures focus, in particular, on strengthening current distance
learning methods, exchanging best practices and establishing a framework for increasing
the appropriate use of English amongst APEC’s youth, micro-enterprises and SMEs, in
the different areas of economic activity, including standards and conformance.
World Summit on the Information Society
Ministers welcomed the opportunity for APEC to contribute to the World
Summit on the Information Society (WSIS) in December 2003. WSIS offers an opportunity to
bridge the Digital Divide and enhance cooperation, economic growth and social progress
throughout the world, including the APEC region. Ministers noted that APEC’s input
into the WSIS Statement reflects APEC’s commitment to: sound economic policies; legal
and regulatory frameworks that encourage competition and innovation in the information
society; good corporate governance; and the need to protect information and communications
technology infrastructure from criminal misuse.
PROMOTING HUMAN SECURITY
Empowering people to become actively engaged and self-reliant in the
regional economy is the essence of promoting human security, as pointed out by the Report
of the Commission on Human Security. Through capacity building programs and providing
opportunities for human resources development, the strengths and potential of all people
in the APEC region can be better realized. As the region moves towards the Bogor Goals,
within and between economies the process of economic adjustment must be properly
coordinated and social safety nets strengthened to ensure that economic and social
opportunities are accessible to all APEC stakeholders.
Terrorism and the spread of Severe Acute Respiratory Syndrome (SARS)
have also highlighted other aspects of human security.
Counter-terrorism
Ministers reiterated their resolve to secure trade and make APEC
economies more resilient to the threat of terrorism. They welcomed the important role of
the newly created Counter-Terrorism Task Force in coordinating the implementation
of APEC commitments to fight terrorism. They applauded the development of Counter-Terrorism
Action Plans as a practical means to assist economies in implementing the 2002 Leaders’
Statement on Fighting Terrorism and Promoting Growth and to identify and respond to
capacity building needs, as per the objectives put forward in the Leaders’ Statement.
They called on Senior Officials and APEC fora to continue to identify security measures
and capacity building programs that would both facilitate and secure trade.
Ministers noted the World Bank’s report "The Use of
Informal Funds Transfer Systems in the APEC region: Initial Findings and a Framework for
Further Analysis" and agreed that more effort is needed to understand how
remittances operate and, in some cases, how the formal financial systems can be
strengthened to provide more attractive and accessible remittance services. Ministers
looked forward to the APEC Policy Dialogue to be held next year to bring together public
and private sectors to consider ways in which remittances flows can be facilitated through
safe and reliable channels.
Ministers welcomed the progress to implement the Secure Trade in the
APEC Region (STAR) Initiative, the Energy Security Initiative, Countering
the Financing of Terrorism and the APEC Cybersecurity Strategy as set out in
the Report on Implementing the Leaders’ Statement on Fighting Terrorism and
Promoting Growth. In this context, they welcomed the Energy Security Initiative
Implementation Plan which identifies the actions that economies will take to implement
the recommendations of the Energy Security Initiative and, where appropriate, the
timeframes within which these will be achieved. Ministers highlighted the Energy Security
Initiative’s long-term measures, such as the development of clean and sustainable
energy resources. Ministers further encouraged continued efforts by APEC members to share
information on money laundering and cybersecurity and welcomed the outcomes of the APEC
Anti-Money Laundering/Anti-Terrorist Financing Seminar held in Tokyo in mid-October that
enhanced APEC economies’ understanding of the international financial obligations and
practices in this area.
They stressed the importance of building business confidence by working
closely with the business sector and sharing information on measures taken to secure
trade. They welcomed the non-binding APEC Private Sector Supply Chain Security
Guidelines and encouraged economies to share this best practice model with the
business sector.
Ministers welcomed the outcomes of the APEC High Level Meeting on
Maritime Security Cooperation held in Manila, the Philippines on 8-9 September 2003 and
recognized the importance of exchanging best practices in maritime security to improve
trade efficiency, reduce costs and ensure trade security in the Asia-Pacific region. They
stressed the need for enhancing public-private partnership to strengthen cooperation in
maritime security.
Ministers praised the efforts of economies to establish container
security regimes and to protect ships engaged in international voyages as called for by
Leaders in the STAR initiative. They noted particular projects underway in Canada; China;
Hong Kong, China; Japan; Republic of Korea; Malaysia; New Zealand; the Philippines;
Singapore; Thailand; and the United States. They called on all economies to undertake
further measures to secure and facilitate trade and tasked SOM to discuss the issue of
costs of new secure trade measures in the CTTF 2004 work program.
Ministers welcomed work undertaken to secure people in transit,
including the development of standards for advance passenger information systems
and enhanced immigration service cooperation to improve the security of travel
documentation and issuing systems. Ministers congratulated Australia, Canada, Japan, New
Zealand, Thailand, and the USA for implementing or announcing their commitment to
implement the advance passenger information systems. Feasibility studies have been
conducted in Korea, Malaysia, Thailand, the Philippines and Indonesia. A further eight
economies had agreed to undertake feasibility studies to enable them consider implementing
the advance passenger information systems. They encouraged all economies to participate in
these activities. Ministers also instructed Senior Officials to progress work to assess
the strategic options, benefits and feasibility of a pilot phase of a Regional Movement
Alert System (RMAS) that can contribute to business mobility by harmonizing work on trade
facilitation and security measures.
Ministers recognized the existence of the new threat to civil aviation
posed by Man-Portable Air Defense Systems (MANPADS). They also called for stronger
domestic controls, as considered necessary, on the production, stockpiles, transfer and
brokering of MANPADS in order to prevent acquisition by terrorists of these systems and a
potentially devastating attack that would severely reduce tourism and business travel.
Ministers noted the outcomes of the 1st STAR Conference in Bangkok,
Thailand in February 2003. They also welcomed the holding of the 2nd STAR Conference on
5-6 March 2004 in Valparaiso, Chile. The Conference will cover issues such as airport and
maritime security, the mobility of passengers and the establishment of Financial
Intelligence Units (FIUs) by APEC member economies.
Ministers welcomed the outcomes of the recent APEC Smart Border
Symposium in Vancouver, Canada, which identified best practices in implementing various
elements of the STAR initiative and in addressing trade facilitation and security
concerns, and which pointed to priority areas for future border-related counter-terrorism
capacity building.
Ministers also emphasized that secure trade in the APEC region must be
applied across all economies and that the development of enhanced capacity for individuals
and institutions with security mandates is of primary importance. They welcomed the
cooperative efforts of economies and APEC fora to develop targeted capacity building
programs, responding to the specific needs contained in the Counter Terrorism Action
Plans, to help developing economies implement Leaders' counter-terrorism commitments. In
this context, Ministers welcomed the possibility of technical cooperation, where
appropriate, with IFIs and relevant international, regional and functional organizations,
including the United Nations Security Council Counter-Terrorism Committee the G-8
Counter-Terrorism Action Group, ASEAN and the OECD Financial Action Task Force. Ministers
also welcomed SOM Report to Ministers on the Implementation of the Leaders’ Statement
on Fighting Terrorism and Promoting Growth, including the "Counter-Terrorism Capacity
Building Ongoing Activities and Needs" submitted by Japan, and encouraged member
economies to implement necessary projects as pointed out in this paper. Ministers also
welcomed an Australian report which highlighted the threat that global terrorism poses to
economic development, the costs to economies of failing to secure trade, and the
importance of working cooperatively in APEC towards this end. They encouraged the Counter
Terrorism Task Force to further pursue and realise such cooperation in the year ahead.
Ministers also requested the APEC Secretariat to give priority to
ensuring that its communications strategy promoted APEC's counter-terrorism initiatives to
its stakeholders.
Response to Severe Acute Respiratory Syndrome (SARS) and Other Health
Threats
Ministers recognized the human and economic impact of Severe Acute
Respiratory Syndrome (SARS) on APEC economies, individually and collectively, and the
importance of preventing future outbreaks of SARS and other infectious diseases. They
welcomed the APEC Action Plan on SARS and the establishment of an ad hoc
APEC Health Task Force under SOM to address infectious diseases and other health threats,
such as HIV/AIDs. Ministers emphasized the need for continued implementation of the Action
Plan and the APEC Infectious Disease Strategy, especially with a view to mitigating
the impact of future outbreaks of infectious diseases. They acknowledged the importance of
communications and confidence building in facing future outbreaks of infectious diseases
and in this context, welcomed the APEC Communications Strategy on SARS. They
welcomed the positive cooperation on SARS with the World Health Organization and other
relevant organizations, such as the United States Centers for Disease Control and
Prevention, and encouraged continued similar cooperation in the future as the need arises.
They endorsed the APEC Health Security Initiative and forwarded it to
Leaders.
Social Safety Nets and Workforce Retraining
Ministers stressed the need for addressing the social dimensions of
globalization and the importance of developing social safety nets to minimize the costs of
structural change. They commended the initiatives undertaken by APEC which aim to empower
vulnerable people, especially the jobless workforce, and to better manage the impact of
structural change and ensure more equitable distribution of the benefits brought about by
globalization. They welcomed an event in this regard to be held in China in 2004.
Ministers instructed Senior Officials to redouble their efforts in workforce retraining
programs through the Human Resources Development Working Group and the Social Safety Nets
Capacity Building Network (SSN-CBN). This work will build on APEC’s current work in
areas such as health, financing, human resources development, micro-enterprises and SMEs,
gender integration and youth, access to ICT and social safety nets. They requested Senior
Officials to report progress on the issue of workforce retraining at the 16th AMM in 2004.
Framework for the Integration of Women in APEC
Ministers recognized the important roles undertaken by women in APEC
economies and the need to eliminate gender inequalities in social and economic life. They
welcomed initiatives to ensure that women are integrated into the activities, programs and
projects undertaken by all APEC fora and the establishment of the Gender Focal Point
Network (GFPN) to provide a sustainable and effective mechanism for the implementation of
the Framework for the Integration of Women in APEC and looked forward to
GFPN’s deliverables beyond this first year. They also welcomed the training program
for women’s IT capacity building held in August in 2003 in Korea.
Ministers also welcomed the recommendations of the 8th Women
Leader’s Network meeting held in Thailand in July/August 2003, and support the
Network’s commitment to strengthening partnerships with APEC fora. They appreciate
the pro-active role played by this APEC advisory group to promote economic opportunities
for women, in particular they recognize the importance of removing barriers that prevent
marginalized and displaced women from fully participating in and benefiting from economic
growth.
Youth
Youth form the foundation of APEC’s future. Engaging the youth of
APEC economies and bringing them together in cooperative activities will ensure that the
Asia-Pacific community develops on the basis of understanding and cohesiveness. In this
regard, Ministers welcomed the successful completion of the APEC International Youth Camp
in Thailand, which was undertaken under the APEC Sister Schools Networking (ASSN)
initiative, an APEC 2003 Year deliverable. This year’s youth camp focused on
scientific and environmental issues. Ministers further welcomed the proposal to hold the
2004 APEC International Youth Camp in Chinese Taipei.
FINANCIAL ARCHITECTURE FOR A WORLD OF DIFFERENCES
Reducing economic and financial vulnerabilities, enhancing investment
and trade between differing social systems and economies requires a sound international
financial infrastructure. Post 1997, APEC is in a position to play a substantial role in
reforming the global financial system. Attention to best practices of financial
regulations and corporate governance is applicable to all economies regardless of the
level of economic development. A financial infrastructure that recognizes the differences
between APEC economies will also generate more options for investment and trade.
New Financial Architecture
Ministers recognized the benefits of the financial cooperation to
pursue the shared vision of establishing a sound and resilient financial system in the
region. They also acknowledged that channeling both domestic and foreign resources into
their most productive forms of investment is one crucial element to sustainable long-term
economic growth. It is therefore essential to put in place the institutional framework and
structural reforms that allow the most efficient allocation of savings.
Ministers acknowledged that promoting the development of bond markets
in the region will provide an alternative means of mobilizing savings, providing
investment alternatives, and achieving deeper financial markets. Ministers welcomed the
APEC Finance Ministers’ work on the promotion of the regional bond market. They also
welcomed the studies and work currently pursued in the following areas: On regional bond
market issues by the Asian Development Bank and the World Bank, the APEC initiative to
promote the development of securitization and credit guarantee markets, as well as the
development new products for regional bond markets.
Economi
