ABAC, APEC and Exporters: New opportunities for Businesses · success in GVCs Strengthening the participation of women in the economy Best practices for MSMEEs and regulations that

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ABAC, APEC and Exporters: New opportunities for Businesses

Loreto LeytonExecutive Director

Chile Pacific Foundation and ABAC 2019

https://ka.wikipedia.org/wiki/%E1%83%98%E1%83%A3%E1%83%9C%E1%83%94%E1%83%A1%E1%83%99%E1%83%9D%E1%83%A1_%E1%83%9B%E1%83%A1%E1%83%9D%E1%83%A4%E1%83%9A%E1%83%98%E1%83%9D_%E1%83%9B%E1%83%94%E1%83%9B%E1%83%99%E1%83%95%E1%83%98%E1%83%93%E1%83%A0%E1%83%94%E1%83%9D%E1%83%91%E1%83%98%E1%83%A1_%E1%83%AB%E1%83%94%E1%83%92%E1%83%9A%E1%83%94%E1%83%91%E1%83%98_%E1%83%94%E1%83%99%E1%83%95%E1%83%90%E1%83%93%E1%83%9D%E1%83%A0%E1%83%A8%E1%83%98

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I. ABAC

Función de ABAC dentro de APEC

• ABAC was created in 1995, six years after the foundation of APEC in 1989

What does ABAC do?

• It makes recommendations from private sector representatives to the leaders of the 21 APEC economies.

• Over the years, ABAC´s agenda has included new topics related to modern-day priorities (e.g., digital economy, SME’s and sustainability)

• Contacts between ABAC members and Leaders are regular throughout the year by using institutional channels.

ABAC Working groups

Regional EconomicIntegration

SustainableDevelopment

MSME & Entrepreneurship

Finance and Economics

Digital & Innovation

ABAC’s 2019 main topic:

Inclusive and Collaborative Growth in the Digital Era by…

• Facilitating MSMEs' market access

• Reaffirming regional economic integration

• Building sustainable communities through social innovation and green growth

• Encouraging financial inclusion through innovation

• Promoting smart regulations, security and skills for the future

Digital and Innovation

Facilitating human capital digitalization

Guidelines for a regulatory

framework that facilitates business

Enhancing cybersecurity and

resilience


Enabling technology to drive increased

economic and financial inclusion

Promoting MSME access to finance

Advancing financial integration within

APEC


Promoting MSME success in GVCs

Strengthening the participation of women in the

economy

Best practices for MSMEEs and

regulations that foster their business

Sustainable Development

Fostering sustainable food

systems

Energy, innovation and circular

economy

Ensuringsustainability of,

and cohesion around, extractive

industries

Regional Economic

Integration

Further promotion, liberalization and

facilitation of trade and investment

Advancing towards the Free Trade of the Asia Pacific

(FTAAP)

Strengthening the services agenda and

progress in the implementation of the APEC Services Competitiveness

Roadmap

ABAC Working groups






resilience






APEC




economy





systems


economy



industries

Regional Economic

Integration




(FTAAP)



Roadmap

Technology






resilience






APEC




economy





systems


economy



industries

Regional Economic

Integration




(FTAAP)



Roadmap

Regulatory issues






resilience






APEC




economy





systems


economy



industries

Regional Economic

Integration




(FTAAP)



Roadmap

SME’s

Semana APEC Chile, noviembre 2019

11-13: ABAC 414: SME's and Entrepreneurs

Summit

15-16: CEO's Summit

16: APEC Leaders -

ABAC Dialogue

17: Leaders Summit

Chile’s ABAC- APEC WeekNovember 2019

Great opportunity for the host country to set the agenda

APEC CEO Summit 201915-16 Nov

✓Number of Attendees: 800 high level attendees, representing APEC members equitably

✓Assistant Profile: Chairmen, CEOs and APEC Leaders of the 21 APEC economies, renowned speakers and thought leaders

For more details and regular updates, visit

www.apecceosummit.cl

APEC MSMEE’s Summit14 Nov

• Launch of APEC MondeB2B platform

• APEC Start-UP Challenge

✓ Two concrete deliverables:

For more details and regular updates, you may download: Cumbre Pymes y emprendedores

APEC MondeB2B APPLICATION

For more information you maydownload the application:

“Cumbre Pymes y Emprendedor”

The APEC regionAPEC MONDE B2B PLATFORM

Support Producers with Technology to export their products to different parts of the world, which without a Global B2B Marketplace would be much harder to achieve.

The APEC regionAPEC MONDE B2B PLATFORM

Why is it hard for SMEs to globalize?

Companies are still using outdated

methods to communicate,

negotiate and buy, making it hard to

manage relationships around the world.

Since many online e-commerce platforms have not focused on

security, many companies have been

part of fraudulent orders when doing

business online.

NO TRUSTINEFFICIENT

It takes many companies to work

together to successfully export

products around the world and without

technology exporting products is very

difficult.

Only a small percentage of companies that could export, actually do! And it’s because they don’t know what economy they could sell their

products to, they have no visibility!

FRAGMENTEDNO VISIBILITY

The APEC regionEvery company will be validated by the Organizations

that hosts the MondeB2B Marketplace

EXPORTERs

VALIDATED

BUSINESS

PARTNERs

VALIDATED

IMPORTERs

VALIDATED

Each economy must

validate their Exporters,

Importers and Business

Partners

By validating each company,

we’ll ensure TRUST inside

the Marketplace!

The APEC regionLaunch Phases

Phase 1: BIMP (Brunei – Indonesia- Malaysia – Philippines)

Phase 3: BIMP + Pacific Alliance + ASEAN (Singapore,

Tailand, Vietnam, Cambodia, Laos and Myanmar)

Phase 2: BIMP + Pacific Alliance (México – Colombia – Perú

and Chile)

Phase 4: BIMP + Pacific Alliance + ASEAN + others APEC

(EE.UU., Canada, China, South Korea, Australia, New Zealand, Japan, PNG)

Inven(s)ting the Future 2019

APEC STARTUP CHALLENGE

Lanzamiento plataforma para PYMES: MondeB2B Marketplace

Conectar de forma segura a exportadores, importadores y socios comerciales de todo el mundo a través de un Marketplace B2B SEGURO que valida

a todas las compañías que se unen

Inventing the Future 2019

APEC STARTUP CHALLENGEOBJECTIVES

Call and select the best startups from America and Asia-Pacific, through an attractive application

process with the capacities and expertise to detect the best initiatives.

Invest and accelerate the most promissory startups through a unique financing system in the Chilean

ecosystem, able to support startups at early and advanced stages (accelerator, angels network andCLIN fund).

Put on the agenda those promissory technologies that are going to change the world, and show

them to the people in charge of the society´s future.

Bring together the best entrepreneurs and world experts in forefront technologies on a exclusive

event in Chile to think about new bets of Venture capital industries.

DIGITALIZATION

Logistics

Waste

management Sustainable

consumer

Share economy

Machine

learning

A.I

WHAT WE ARE LOOKING FOR?

Resources

management

Reduce

New materials

Re-use repair

Plastic

management

Monitoring

systemsTraceability

Recycle

materials

Platforms Education

IoT

Renewable energy

Crowdsourcing

New sustainable

business models

New circular

business models

Optimization

Up cycling

Eco design

Big data

Process

innovation

Digita lization

Consumer

information

CIRCULAR ECONOMY

4.0 Industry5G

Biomaterials

II. APEC and business opportunities

The APEC regionThe Asia Pacific Economic Cooperation region

(APEC)

As of today, there are 21 member APEC economies

Opportunities for Exporters

• APEC is at the core of 21st Century free trade development

• Asia Pacific region will host 60% of global middle class by 2040 (ECLA)

• Asia Pacific has become

the most dynamic region of 21st Century

• APEC favors integration into global value chains


• Topics 21st Century:

• Digital economy

• Free trade of services

• Public Private interaction favors an acute understanding of businesses concerns among government officials

APEC in the global economy

Source: APEC in Charts, 2018 (www.apec.org)

4,4

1,6

2,4

3,4

4,4

4,2 4,3 4,4

2,0

-0,6

5,1

3,7 3,7

3,6 3,7 3,8

3,2

3,7 3

,9

3,7

3,5

3,5

3,3

3,3

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

Asia-Pacific Emerging Advanced

Source: data from IMF WEO April 2018 database, analysis by PECC International Secretariat

Asia Pacific: GDP Growth

• Free trade integration among APEC economies invigorates exports by opening up new markets


• Non-binding nature of APEC facilitates free trade negotiations and a regular best-practices sharing process

Value of APEC Merchandise Trade in APEC (USD trillion), 2000 – 2017


Value and Growth of APEC Commercial Services Trade, 2007 – 2017


Trade Volume Growth in APEC (annual percent change), 2017


Source: Research Outcomes. Summary of Research Projects 2018. Policy Support Unit, APEC.


• Number of RTA (Regional Trade Agreements) and FTA (Free Trade Agreements) has steadily increased :

• 175 RTA/FTA signed by at least one APEC economy (Dec, 2017)

• Almost 50% of APEC’s bilateral trade was under the umbrellaof an RTA and/or FTA (Dec, 2017)

Source: Research Outcomes. Summary of Research Projects 2018. Policy Support Unit, APEC.


• 2016-2017: tariffs went down from 5,5% to 5,3% on average (heavy reduction on tariffs to agriculture products)

• Number of tariff-free products in the APEC region grew to almost 50% in the same period

• Exporting and importing are becoming increasingly faster processes

Perceptions of APEC

APEC is widely seen as a relevant and effective

-12

,5%

-18

,6%

-21

,9%

-12

,3%

-14

,1%

71

,4%

60

,5%

60

,9%

66

,7%

60

,6%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

NorthAmerica

NortheastAsia

Oceania PacificSouth

America

SoutheastAsia

Disagree Agree

-37

,0%

-46

,9%

-35

,8%

-30

,8%

-22

,7%

-17

,9%

-17

,2%

-13

,7%

-12

,8%

-11

,8%

-15

,9%

45

,9%

48

,2%

41

,8%

40

,3%

36

,1%

35

,0%

61

,4%

64

,9%

67

,7%

66

,9%

63

,4%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

20

06

20

07

20

08

20

10

20

11

20

13

20

14

20

15

20

16

20

17

20

18

Negative Positive

Perception Usefulness

Source: State of the Region 2018-2019 Survey, Pacific Economic Cooperation Council

-42

,7%

-14

,2%

-21

,1%

-29

,5% -1

4,2

%

-14

,6%

-25

,5%

-29

,5%

-29

,2%

28,7

% 42,2

%

24,6

%

24,1

%

49,1

%

17,3

%

42,9

%

22,1

%

26,3

%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

Chin

a

Ind

ia

Jap

an

Russ

ia

Sou

thea

st A

sia

Oce

ania

US

A

EU

Worl

d

Weaker Stronger

Source: Pacific Economic Cooperation Council State of the Region Survey 2018

Growth expectations by region

APEC

Sustainable growth and prosperity

Liberalization of trade and

investment

Business promotion

Economic and technical

cooperation

Markets openness

Increasing trade and investment

More economic and social development

Lower export and import costs

Lower production costs (Gloval Value Chains)

Strengthening of institutional capacities

Digital Economy Partnership Agreement (DEPA)

• New Zealand, Chile and Singapore announced formal negotiations in April, during APEC meeting

• Take advantage of the Digital Economy’s potential (more opportunities for MSMEs)

• Considers all aspects of the digital economy that might support digital trade policy in the digital era, such as:

• Free data flows• Non-discrimination of digital products• No forced localization requirements for computers

equipment

South Pacific Undersea CableA new digital bridge connecting Asia and South America

A case of connectivity in the 21st

Century

Missing link between Asia and

South America

One of Main macro projects in Chile´s telecom infrastructure 2018-2021

Digital Gate from Asia to South

America

Curie (Google)

USD 300 Mill* (P)

(2019)

PPP: Public Private Partnership P: Private Investment (*) Estimates (**) Devices and apps are not included (***) In coverage zones

USD 500-600 Mill

(PPP)

(2021)

25 fold increment in Chile’s

International connectivity

Capacity: from 6 to 160 Tbps

Enhanced International connectivity

38

22,000 KmFiber Optic System

10 TBpsCapacity

USD 600 mill Investment

• A new digital bridge connecting Asia to South America, that is set to reconfigure digital possibilities in the Pacific Area.

• A new source of redundancy for Internet Traffic.

• A high capacity route to allow datacenters on both sides of the Pacific to interact with minimum delays.

• A landing point for digital distribution to: Brazil, Argentina, Peru

and the countries in the South American region, through an extensive network of fiber optic cables (AMX1, MONET, ELLA, PCCS, SACS).

•Prime access to a wealth of astronomical data generated in Chile (the country hosts nearly 60% of the world’s

astronomical infrastructure).

South Pacific Undersea Cable

Eje Inversión e InfraestructuraUndersea Cable: “Asia - South America Digital Gateway”

40

Origin

China, Japan, Korea

& Singapore

Intermediate

New Zealand, Australia

& Hawaii

Branches Landing point

Rapa Nui, J. Fernández &

French Polynesia

Valparaíso, Arica, Punta

Arenas, branch to Lima

Route Alternatives (preliminary):

1. Conceived to boost Chile as Hub Digital of the Southern Cone,adding demand for data transport with South Americancountries, with the confirmation of Brazil and Argentina.

2. Other interested countries: China, Japan, French Polynesia,New Zealand and Singapore.

3. Main potential gains (positive externality) associated to worldclass datacenter deployment and transit to other countries inthe Southern Cone.

4. Increased availability (offer) of international connectivity andredundancy for routes through the South Pacific

5. Investment: USD 500-600 million

6. First stage: Feasibility study (USD 3 MM, CAF Funding)

Key aspects

III. Chile’s experience

64ECONOMIES

63%GLOBAL POPULATION

86%GLOBAL GDP

57%OF THE COUNTRY’S GDP IS

EXPLAINED BY TRADE

28FREE TRADE

AGREEMENTS

8.080COMPANIES EXPORTED DURING 2018,

INCLUDING 3.378 SME’s

1,2 MILLONS

OF JOBS CREATED BY EXPORT COMPANIES

95% OF EXPORTS GO TO COUNTRIES WITH

WHICH CHILE HAS AN FTA (2018)

CHINA (35%)

UNITES STATES (14%)JAPAN (10%)

SOUTH KOREA (6%)BRAZIL (5%)

1st

GLOBAL EXPORTER

2018

I Fresh Cherries I Fresh Grapes I Fresh Blueberries I Salmon Fillet I

14

9 2.5

18

11

.09

3

38

.97

5

1960 1980 2000 2018

Record of non-copper exportsUSD Millions

| T H E N U M B E R S B E H I N D C H I L E ’ S F R E E T R A D E P O L I C Y

1%

8%

8%

8%

8%

8%

13

%

14

%

15

%

16

%

16

%

17

%

17

%

17

%

18

%

18

%

18

%

18

%

19

%

20

% 22

%

23

%

24

% 27

%

33

%

34

%

43

%

50

%

61

%

Source: Chile’s General Directorate of International Economic Relations

Access to global GDP through FTA’s

Fuente: DIRECON, sobre la base de Banco Central de Chile, Aduana y Cámara de Comercio de Santiago.

Tariffs and exports

0%

5%

10%

15%

20%

25%

30%

35%

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

EXPORTACIONES* EXPORTACIONES EXPORTACIONES NO COBRE

ARANCEL DE IMPORTACIÓN**

0,89%(MFN 6%)

ACE MERCOSURAAE UE

TLC KOREA

TLC EEUU

TLC CHINA

32,6%(NMF 220%)

6,2%(NMF 10%)

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

Total Exportado Total Importado

Chile’s trade balance since implementationof growth strategy based on trade openness


Exported Imported

Chile’s exports destinations


1% 4

% 5%

5%

16

%

17

%

21

%

20

%

21

%

21

%

19

%

45

%

66

%

65

%

77

%

91

%

91

%

92

%

92

%

93

%

93

%

93

%

94

%

93

%

95

%

95

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%%

Chile´s commercial partners Rest of the world

APEC and Chile

Port of Valparaiso, Chile

• 69% of Chilean exports

go to the APEC region

• 59% of Chile’s imports

come from APEC

• 58% of investments in

Chile come from the APEC region

Source: Chile at a Glance (www.apecchile2019.cl)

Evolution of Chile’s exports by destination


0

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

80.000.000

90.000.000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mundo Mundo sin APEC

Chile - Worldversus

Chile – World without APEC

World World without APEC

Documents

ABAC, APEC and Exporters: New opportunities for Businesses · success in GVCs Strengthening the participation of women in the economy Best practices for MSMEEs and regulations that