Apec in Engleza

8/2/2019 Apec in Engleza

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The Asia-Pacific Economic Cooperation (APEC) forum was established in1989 to capitalize on the growing interdependence of Asia-Pacific economies. Bfacilitating economicgrowth, intensifying economic and technical cooperationand enhancing a sense ofcommunity, APEC aims to create greaterprosperity fo

the people of the region.

APEC is a unique forum, operating on the basis of open dialogue andrespect for theviews of all participants. There are no binding commitments;compliance is achieved through discussion and mutual support in the formofeconomic and technical cooperation. InAPEC, all economies have an equal sayand decision-making is reached by consensus.Since its inception, APEC hasgrown to become one of the world's most important regional groupings. Its 21member economiesare home to more than 2.6 billion peopleand representapproximately 56% of worldGDP and 49% of world trade.*(Source: The WorldBa

and The APEC Region Trade and Investment 2006)APEC is the most economicadynamic regionin the world. Building on the five-year targetset in Shanghai in2001 to reduce trade transaction costs by 5%, APEC member economies havetargeted a further 5% reduction by 2010.

The forum constantly adapts itself to enable members to discuss importanew economic challenges. These include facilitating electronic commerce,addressing the digital divide,countering terrorism and introducing measures tosafeguard against infectious diseases.

What s Asia-Pacific Economic Cooperation?

Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitatineconomic growth, cooperation, trade and investment in the Asia-Pacific region

APEC is the only inter governmental grouping in the world operating on the basof non-binding commitments, open dialogue and equal respect for the views of participants. Unlike the WTO or other multilateral trade bodies, APEC has notreaty obligations required of its participants. Decisions made within APEC arereached by consensus and commitments are undertaken on a voluntary basis.

APEC has 21 members - referred to as "Member Economies" - which account fo

approximately 41% of the world's population, approximately 56% of world GDPand about 49% of world trade.

APEC's 21 Member Economies are Australia; Brunei Darussalam; Canada; ChilePeople's Republic of China; Hong Kong, China; Indonesia; Japan; Republic ofKorea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republicthe Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand;United States of America; Viet Nam.


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Purpose and GoalsAPEC was established in 1989 to further enhance economic growth andprosperity for the region and to strengthen the Asia-Pacific community.

Since its inception, APEC has worked to reduce tariffs and other trade barriers

across the Asia-Pacific region, creating efficient domestic economies anddramatically increasing exports. Key to achieving APEC's vision are what arereferred to as the 'Bogor Goals' of free and open trade and investment in the

Asia-Pacific by 2010 for industrialised economies and 2020 for developingeconomies. These goals were adopted by Leaders at their 1994 meeting in BogoIndonesia.Free and open trade and investment helps economies to grow, creates jobs andprovides greater opportunities for international trade and investment. In contrasprotectionism keeps prices high and fosters inefficiencies in certain industries.Free and open trade helps to lower the costs of production and thus reduces th

prices of goods and services - a direct benefit to all.APEC also works to create an environment for the safe and efficient movement goods, services and people across borders in the region through policyalignment and economic and technical cooperation.

Since its inception, APEC has worked to reduce tariffs and other trade barriersacross the Asia-Pacific region, creating efficient domestic economies anddramatically increasing exports. Key to achieving APEC's vision are what arereferred to as the 'Bogor Goals' of free and open trade and investment in the As

Pacific by 2010 for industrialised economies and 2020 for developing economieThese goals were adopted by Leaders at their 1994 meeting in Bogor, Indonesia

Free and open trade and investment helps economies to grow, creates jobs andprovides greater opportunities for international trade and investment. In contrasprotectionism keeps prices high and fosters inefficiencies in certain industries.Free and open trade helps to lower the costs of production and thus reduces thprices of goods and services - a direct benefit to all.

APEC also works to create an environment for the safe and efficient movement goods, services and people across borders in the region through policyalignment and economic and technical cooperation.APEC operates as a cooperative, multilateral conomic and trade forum. Memberconomies take individual and collective actionsto open their markets andpromote economic growth.


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Economic GrowthSince its inception in 1989, the APEC region has consistently been the mosteconomically dynamic part of the world. In its first decade, APEC MemberEconomies generated nearly 70 percent of global economic growth and the APEregion consistently outperformed the rest of the world, even during the Asian

financial crisis.

APEC Member Economies work together to sustain this economic growththrough a commitment to open trade, investment and economic reform. Byprogressively reducing tariffs and other barriers to trade, APEC MemberEconomies have become more efficient and exports have expanded dramaticallBenefits to the People in the APEC RegionConsumers in Asia-Pacific have both directly and indirectly benefited from thecollective and individual actions of APEC Member Economies. Some directbenefits include increased job opportunities, more training programmes, strong

social safety nets and poverty alleviation. More broadly however, APEC MembeEconomies on average enjoy lower cost of living because reduced trade barrierand a more economically competitive region lowers prices for goods andservices that everyone needs on a daily basis, from food to clothes to mobilephones

Asia-Pacific Economic Cooperation (APEC) works in three broad areas to methe Bogor Goals of free and open trade and investment in the Asia-Pacific by2010 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


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The outcomes of these three areas enable APEC Member Economies tostrengthen their economies by pooling resources within the region and achievinefficiencies. Tangible benefits are also delivered to consumers in the APECregion through increased training and employment opportunities, greater choic

in the marketplace, cheaper goods and services and improved access tointernational markets.

Trade and Investment LiberalisationTrade and Investment Liberalisation reduces and eventually eliminates tariff annon-tariff barriers to trade and investment. Protectionism is expensive becauseraises prices for goods and services. Thus, Trade and Investment Liberationfocuses on opening markets to increase trade and investment among economieresulting in economic growth for APEC Member Economies and increasedstandard of living for all.

Business FacilitationBusiness Facilitation focuses on reducing the costs of business transactions,improving access to trade information and aligning policy and businessstrategies to facilitate growth, and free and open trade. Essentially, BusinessFacilitation helps importers and exporters in Asia Pacific meet and conductbusiness more efficiently, thus reducing costs of production and leading toincreased trade, cheaper goods and services and more employmentopportunities due to an expanded economy.

Economic and Technical Cooperation (ECOTECH)ECOTECH is dedicated to providing training and cooperation to build capacitiesin all APEC Member Economies to take advantage of global trade and the NewEconomy. This area builds capacity at the institutional and personal level toassist APEC Member Economies and its people gain the necessary skills to metheir economic potential.


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APEC - A Multilateral Economic ForumAsia-Pacific Economic Cooperation (APEC) operates as a cooperative,multilateral economic and trade forum. It is unique in that it represents the onlyintergovernmental grouping in the world committed to reducing trade barriersand increasing investments without requiring its members to enter into legally

binding obligations. The forum succeeds by promoting dialogue and equalrespect for the views of all participants and making decisions based onconsensus to achieve its free and open trade and investment goals.

APEC Member Economies take individual and collective actions to open theirmarkets and promote economic growth. More information about these actions iavailable in the Action Plans section of this website.

Host EconomyEvery year one of the 21 APEC Member Economies plays host to APEC meeting

and serves as the APEC Chair. The APEC host economy is responsible forchairing the annual Economic Leaders' Meeting, selected Ministerial Meetings,Senior Officials Meetings, the APEC Business Advisory Council and the APECStudy Centres Consortium and also fills the Executive Director position at theAPEC Secretariat. The Deputy Executive Director position is filled by a seniordiplomat from the economy which will host in the next year.

FundingAPEC is not a donor organisation. Instead, APEC activities are centrally fundedby small annual contributions from APEC Member Economies - since 1999 thes

have totalled US$3.38 million each year. These contributions are used to fund asmall Secretariat in Singapore and various projects which support APEC'seconomic and trade goals. Since 1997 Japan has provided additional funds forprojects (between US$2.7 and 4.2 million annually, depending on amount andexchange rates) which support APEC's trade and investment liberalisation andfacilitation goals. Projects generally -

APEC Member Economies also provide considerable resources to assist in theoperations of APEC. These include the secondment of professional staff to theSecretariat; the hosting of meetings; and partial (or full) funding of some projec


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Policy DevelopmentAsia-Pacific Economic Cooperation (APEC) policy direction is provided by the 2APEC Economic Leaders. Strategic recommendations provided by APECMinisters and the APEC Business Advisory Council are considered by APECEconomic Leaders as part of this process.

The following meetings are conducted each year, which help shape APEC'spolicy direction -

APEC Economic Leaders' MeetingAPEC 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 MeetingAnnual APEC Ministerial Meetings of foreign and economic/trade ministers are held

immediately prior to APEC Economic Leaders' Meetings. Ministers consider theyear's activities and provide recommendations for APEC Economic Leaders'consideration.

Sectoral Ministerial MeetingsSectoral Ministerial Meetings are held regularly covering areas such as education,energy, environment and sustainable development, finance, human resourcedevelopment, regional science and technology cooperation, small and mediumenterprises, 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 APECissues through an annual meeting and a formal report. The annual reportcontains recommendations to improve the business and investment environmein the APEC region. ABAC also meets four times per year and a representativeattends Ministerial Meetings.

Asia-Pacific Economic Cooperation (APEC) has three Official Observers: theAssociation of Southeast Asian Nations Secretariat, the Pacific EconomicCooperation Council and the Pacific Islands Forum Secretariat. These observerparticipate in APEC meetings and have full access to documents and informatiorelated to these meetings. The observer groups provide partnership, expertiseand insight that assist APEC to attain its goals and implement its initiatives.

Association of Southeast Asian Nations (ASEAN) SecretariatThe ASEAN Declaration states that the aims and purposes of the Association ar-
http://www.apecsec.org.sg/apec/leaders__declaration.htmlhttp://www.apecsec.org.sg/apec/ministerial_statements/annual_ministerial.htmlhttp://www.apecsec.org.sg/apec/ministerial_statements/sectoral_ministerial.htmlhttp://www.apecsec.org.sg/apec/business_resources/apec_business_advisory.htmlhttp://www.apecsec.org.sg/apec/leaders__declaration.htmlhttp://www.apecsec.org.sg/apec/ministerial_statements/annual_ministerial.htmlhttp://www.apecsec.org.sg/apec/ministerial_statements/sectoral_ministerial.htmlhttp://www.apecsec.org.sg/apec/business_resources/apec_business_advisory.html


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to accelerate the economic growth, social progress and cultural development inthe region through joint endeavours in the spirit of equality and partnership inorder to strengthen the foundation for a prosperous and peaceful community ofSoutheast Asian nations, and

to promote regional peace and stability through abiding respect for justice andthe rule of law in the relationship among countries in the region and adherencethe principles of the United Nations Charter.

Pacific Economic Cooperation Council (PECC)PECC is a unique tripartite partnership of senior individuals from business andindustry, government, academic and other intellectual circles.

All participate in their private capacity and discuss freely current, practical polic

issues of the Asia-Pacific region.

PECC aims to serve as a regional forum for cooperation and policy coordinationto promote economic development in the Asia-Pacific region, based on thefollowing premises -

The respective strengths of business and industry, government, academic andother intellectual circles can be better focused to promote the acceleration ofeconomic growth, social progress, scientific and technological development anenvironmental quality in the region, and

Trade, joint ventures, mutual aid and other forms of linkage, when developed inspirit of partnership, fairness, respect and genuine cooperation, strengthen thefoundation needed for a prosperous, progressive and peaceful Pacific Region.

Pacific Islands Forum (PIF) SecretariatPIF is the paramount regional inter-governmental forum in the South Pacific. PIaddresses issues such as regional trade, economic development, theenvironment and regional law enforcement, cooperation and security in the SouPacific.

The APEC Secretariat is based in Singapore and operates as the core supportmechanism for the APEC process. It provides coordination, technical andadvisory support as well as information management, communications andpublic outreach services.


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CAP 2. APEC Projects in ActionThe SCE is mandated to report annually on APECs ECOTECH activities. In 2007, this report isbased for the first time on a consolidated list of ECOTECH priorities, which were endorsed byMinisters in 2006. This list has merged and updated the 1996 Manila Framework priorities and the

APEC-wide ECOTECH priorities approved in 2003 following a call from the Leaders and Ministersto improve the focus on APECs economic and technical cooperation and capacity-buildingobjectives.The priorities for APECs economic and technical cooperation are: Developing human capital; Developing stable and efficient markets through structural reform; Strengthening economic infrastructure; Facilitating technology flows and harnessing technologies for the future; Safeguarding the quality of life through environmentally sound growth;

Developing and strengthening the dynamism of small and medium enterprises (SMEs); Integration into the global economy; Human security and counter-terrorism capacity building; Promoting the development of knowledge-based economies; andAddressing the social dimension of globalisation.This chapter highlights some of the projects being undertaken by different APEC fora in 2007 tosupport economic and technical cooperation. The Budget and Management Committee (BMC)approved 76 ECOTECH projects for implementation in 2007 (excluding CTI, Economic Committee(EC) and Finance Ministers Process (FMP) projects). These are summarized in Table 1. Figure 1prov ides a graph of the projects by priority from 200607.

2.1Developing human CapitalA large number of APEC projects help to develop human capital in the region. For example, the


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Human Resources Development Working Group (HRD) conducted a symposium on capacitybuilding for investment liberalisation. The project aims to raise capacity of public and businesssectors involved in domestic legislation, policy making and social system development in the fieldof foreign direct investment. It plans to address economic reform measures, legal processesthroughout the life cycle of investment, (e.g., establishment, operation and dissolution ofbusinesses) and other practices to create attractive investment climates.The Industrial Science and Technology Working Group (ISTWG) will implement short-term trainingprojects targeting natural resource development and its environmental impacts in the APEC region.Japan conducted the training in August 2007. The training objectives were the transfer ofguidelines for natural resource development and its environmental impact, environmental impactassessment, natural resource assessment, public awareness and measurement of quality. Thosebeing targeted for training include strategic planning officers practicing land utilisation, naturalresource development and environmental risk management in APEC member economies(especially developing economies). The planned outcome is to bring about economy regulationsand guidelines for natural resource development and its environmental impact to ensure long-termsustainable growth in developing economies where rapid economical growth may causeenvironmental degradation.2.2 Developing stable and efficient markets through structural reformMost activities supporting this priority are undertaken by the Economic Committee and FinanceMinisters Process. For example, in late 2007, a second Policy Dialogue on Savings and Capital

Market Development will be held.Another activity being undertaken by the Finance Ministers Process is the Deepening PrudentialRegulatory Capacity in Non-Life Insurance Training Program, which will educate regulators oncurrent best practices in regulation in the non-life insurance industry and highlight the experiencesof developed economies in regulating their respective industries.2.3 Strengthening economic infrastructureThe Telecommunications and Information Working Group (TELWG) and the TransportationWorking Group (TPTWG) are the main APEC fora undertaking activities to strengthen economicinfrastructure.TEL is implementing the Project WTO Capacity Building on Domestic Regulations to familiarize

APEC members with the WTO GATS Domestic Regulation disciplines and how they are applied tothe information and communication technology (ICT) sector. Economies have discussed examplesof best practices and a set of guidelines to implement domestic regulations in the ICT sector.

These guidelines will assist developing economies develop or reform their policy and regulatorystructures and become WTO compliant.The TPTWG has developed the APEC Port Services Network Initiative, which will integrate varioussectors in the shipping business, facilitate convenient and secure cargo transportation, enhanceexchanges and cooperation among ports and related sectors and promote their development,improve efficiency and security of logistics system, and stimulate trade and investment in APECregion.The TPTWG has also undertaken a study to facilitate international shipping in the APEC region.The study will develop guidelines for member economies to address the non-competitive aspects ofnon-ratemaking agreements among liner shipping companies. The principal activity is a consultantstudy that will identify and categorize the various kinds of non-ratemaking agreements thatcurrently exist on APEC trade routes. These agreements will be assessed on their importance to

APEC trade and the pros and cons to carriers, shippers and other stakeholders. It will then assess

the non-competitive aspects of such agreements and propose guidelines to deal with them.2.4 Facilitating technology flows and harnessing technologies for the futureAs part of the Industrial Science and Technology Working Groups (ISTWG) focus on EmergingInfectious Diseases, a two-stage project will be conducted which aims to enhance the regionscapacity in using converging technologies, i.e. two or more disparate technologies or disciplinesthat come together to contribute to the prevention and management of emerging infectiousdiseases that could become widespread in the APEC region. The first stage will identify a group ofconverging technologies by using bibliometric analysis and scenario planning. The second stagewill consist of workshops in Japan and Chinese Taipei, or Korea. It will invite experts in varioustechnological areas throughout APEC to jointly build roadmaps of these technologies.

An ISTWG project will provide more effective, accurate and timely climate information to assistAPECs Climate Center for Climate Information Services. It will take the currently available climateprediction technology and skills to the next level of high accuracy so that member economies can


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more efficiently protect their people from extreme climate events.2.5 Safeguarding the quality of life through environmentally sound growthThe Marine Resource Conservation Working Group (MRCWG) will support an initiative to build onan earlier TILF-funded project that identified the environmental principles and policies used inaquaculture administration and their role in trade and investment liberalisation. Two workshops areplanned (in Indonesia in 2007 and Peru in 2008) and a report outlining the critical components of asustainable aquaculture strategy will be presented for consideration to higher officials and Leadersby the end of 2008.

APEC economies accounts for nearly 90% of all aquaculture fisheries in the world and consume70% of global fish production. All APEC economies seek to maintain their regional seas andcommon oceans in good health to ensure the sustainability of fish production for the future. TheRepublic of Korea has invested considerable research on ocean sciences and developedstrategies that help to maintain the ecological balance in marine ecosystems. MRCWG issupporting the Republic of Korea to undertake short training courses where Korea will share itsknowledge with regional developing economies.In 2007, the Energy Working Group (EWG) has undertaken a number of projects to improve coalplants in the region. Including its work to promote Environmental Monitoring for Coal-Fired PowerPlants in Developing Asian APEC Economies and a project focused on the lessons learned inupgrading and refurbishing older coal-fired power plantsa best practice guide for APECdeveloping economies.

2.6 Developing and strengthening the dynamism of small and medium enterprisesThe Small and Medium Enterprises Working Group (SMEWG) will conduct short-term training aspart of its project on Enhancing the Market Development of Local Cultural Industries in APEC.Local cultural industries exist in almost every APEC economy and are targeted for governmentassistance. Their products are attractive to foreign buyers and therefore have high export potential.This project is aimed to help them to expand their markets to the international arena through ecommerceby: building up e-commerce capacity and transforming digital divides into digital opportunities; building a platform for local cultural industries to display their products and increase theirbusiness opportunities in foreign markets; and strengthening cross-border cooperation in the APEC region to promote the development ofoverseas markets.SMEWG will also conduct a seminar on Best Practices for the Internationalization of SMEs. The

project will enhance the capacity of APEC developing economies to generate employment; developthe potential afforded by human resources; stimulate economic growth; strengthen the dynamismof SMEs; and increase exports through the promotion of entrepreneur export potential.In addition, an SMEWG project will develop a sustainable model for small and micro-enterprisegrowth through enhancing domestic and international trade linkages. It will be based on acombination of components in existing best practices for micro-enterprise development with specialemphasis on women and indigenous peoples.The ATCWG will hold a Workshop to Enhance Capacity of SMEs in Agricultural Sector of APECEconomies on October 2007 in Ha Noi, Viet Nam. The aim of the workshop is to help promotenetworking and policies, which are more conducive for SMEs in the agriculture sector. Theworkshop will provide government, private sector and non-governmental stakeholders with keytools and methods to manage and develop SMEs, particularly in field of storage and processingagricultural products.

2.7 Integration into the global economyActivities to support integration into the global economy occur across a range of different fora,including promoting trade through the development of standards across the region, improvingcompetitiveness through capacity building and education or even improving customs andquarantine processes. Examples include the EWGs Electric Motors - Alignment of Standards andBest Practice Programs within APEC, which aims to promote the use of efficient motors in membereconomies by aligning test methods and energy performance standards. It builds on the recentagreement at the IEC to create a single method acceptable to world technical experts to measuremotor efficiency. The project aims to facilitate the use of a single common test method and promoteappropriate performance and efficiency endorsement levels amongst member economies. The useof a common test method and a set of aligned performance and high efficiency endorsementlevels will enable suppliers to more easily market efficient products within APEC economies.The ATCWG conducted projects to build capacity in plant and animal quarantine and pest


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management. For example, a symposium on achieving improved quarantine treatment capabilitythrough the implementation of the AFAS approach was held in Jakarta, Indonesia, in April 2007.The HRDWG held a seminar to Increase the Productivity of APEC Economies through HighPerformance Workplace Systems, which will better analyse these systems across APEC.2.8 Human security and counter-terrorism capacity buildingThe Counter Terrorism Taskforce annually holds a Secure Trade in the APEC Region (STAR)conference. The fifth STAR conference, was held in Sydney on 27-28 June 2007. It constitutes animportant initiative, enhancing public-private partnership in order to ensure secure trade in aneffective way and reduce any adverse impacts of anti-terrorism activities on trade and investment.In this way, it is also helping to develop and to improve human security and counter-terrorism in the

APEC region.The Counter Terrorism Taskforce has also developed the Trade Recovery Program (TRP), which isa set of recommendations that will set the framework for future work in APEC on total supply chainsecurity, improving economies capacity building in human security and counter-terrorism.The Anti-Corruption and Transparency Experts Task Force (ACT) will conduct a capacity buildingworkshop on combating corruption related to money laundering. The purpose of the workshop is toexchange best practices among relevant authorities in the APEC region and raise awareness bybringing the money laundering and corruption nexus to the forefront of understanding amongofficials and the public. Through this workshop, a minimum level of standards will be clarified and anetwork of professionals in the anti-corruption and anti-money laundering established for sharing of

information and practices. The workshop will emphasise the dissemination of experts informationand case studies to relevant government authorities and other scholars focusing on therecommendations of the Financial Action Task Force and its implementation by membereconomies.The Agriculture Technical Cooperation Working Group (ATCWG) held a seminar in May 2007 toshare experiences with the management of the avian influenza H5N1 threat. It will provide APECeconomies the opportunity to identify the key factors of the various approaches in preparing for,and responding to, H5N1 avian influenza and to consider the relevance of these factors to theirown situations.The Health Task Force (HTF) also undertook a workshop on the Implementation of APEC ActionPlan on the Prevention and Response to Avian and Influenza Pandemics. The main objective ofthe workshop is to create opportunities for member economies to share information on theimplementation of the Action Plan, identify capacity building needs, discuss priority areas of work

and discuss future capacity building activities.The Task Force for Emergency Preparedness (TFEP) undertook a capacity-building workshop forsenior disaster management coordinators. The project will enhance regional emergency responsecapacity and build effective response and recovery mechanisms in APEC member economies via atwo-year rolling training program. It will build on APECs high-level commitment to an all-hazardsresponse to emergency management and focus on the needs of developing economies throughbuilding institutional capability.2.9 Promoting the development of knowledge-based economiesPromoting the development of knowledge-based economies is undertaken by many fora, includingthe Telecommunications and Information Working Group (TEL), ECSG and HRDWG. For example,in 2007, TEL undertook a project to deploy the Government Chief Information Officer (CIO)Training Model in the APEC region during 2007. The project defines a framework for CIOnetworking both inside and outside the region. This latest project is based on the successful

outcome of earlier activities which recommended, in its last workshop in Jakarta in November2005, that the APEC GCIO Training Model should be deployed within the region to achieve the socalled proof of concept.The ECSG undertook a project to build capacity in paperless trading. The APEC Project onPaperless Trading Capacity Building and Intellectual Property Protection will improve membereconomies paperless trading capacity building, which has become the key point for the realisationof APEC paperless trading development strategy. Paperless trading capacity has from two aspects:1) Paperless trading environment building (including infrastructures, regulations, policy,standardisation, security, etc.); and 2) The digitalisation level of paperless trading in customsclearance, trade administration, transportations, financial settlement, third-party services, andmanagement within enterprises.The Fisheries Working Group (FWG) is contributing to the promotion of the development ofknowledge-based economies through two on-going projects: Improving the Conservation and


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Management of Sharks in the APEC Region, which is designed to improve the capacity of APECmembers in the Eastern Pacific to manage their shark fisheries sustainably; and the AquacultureNetwork for the Americas is proceeding and will provide a means for exchange of informationbetween economies as a basis for better planning, coordination, and management of aquacultureinitiatives among economies.The APEC Education Foundation (AEF, www.apecef.org) continued to foster APEC cooperation ineducation, human resources development and capacity building through its grant programs. Since2006 the AEF has been supporting six projects from five economies (Korea, Peru, Philippines,Russia, and Viet Nam) on providing disadvantaged youths with useful educational opportunities.Since its inception, the AEF has provided financial support of US$2.4 million to 19 projects onenhancing digital opportunities and promoting capacity building for disadvantaged groups in theregion.2.10 Addressing the social dimension of globalisation

A project sponsored by the Fisheries Working Group (FWG) will undertake an assessment of theeconomic, social and environmental impacts of illegal, unreported and unregulated (IUU) fishingas well as the challenges and obstacles to implementing measures to combat IUU fishing. It isexpected that the project will result in recommendations for actions by APEC economies, non-

APEC economies in the Asia-Pacific region, regional organisations (including regional fisheriesmanagement organisations, non-governmental organisations and intergovernmentalorganisations) and any other relevant stakeholders with an interest to mitigate illegal, unreported

and unregulated fishing in the Asia-Pacific region.The Industrial Science and Technology Working Group (ISTWG) has approved a workshop onthe participation of women and ethnic communities in the science and technology (S&T)workforce. At the workshop planned for Seoul, all member economy participants would report ontheir own economy including sex/ethnicity disaggregated statistics and policy analyses foreducation, S&T workforce, and R&D. By sharing and comparing, it is hoped to promote furtherunderstanding of the situation facing women and ethnic minorities in the S&T sector.

APEC Project Lifecycle

2.1 The life cycle of an APEC project (outline below) begins with a project proponentin a Member Economy proposing a project. This project should be relevant to theinterests of several APEC economies. With limited resources projects whichrespond to APEC priorities will be given precedence for funding. The current

APEC priorities may be found at www.apec.org. Projects include a range ofactivities such as: research; seminars and training to build capacity; and improvingeconomic efficiency.

2.2 With the support of the Member Economy, the project proponent puts forward thedetailed project proposal (including a proposed budget) to the relevant APEC forafor consideration, assessment, approval by consensus and ranking. (All projectsneed to be assessed using the Quality Assessment Framework (See Chapter 4).The project should then be co-sponsored by at least two other economies for it tobe considered further. Following endorsement by relevant Fora, all ECOTECHprojects (defined as all projects from Working Groups and SOM Task Forces) arealso required to be submitted to the SOM Steering Committee on ECOTECH(SCE) for their endorsement.
http://www.apec.org/http://www.apec.org/


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2.3 The Project proponent also needs to submit the proposal to the Secretariat forassessment and checking that the project meets the guidelines, particularly inrelation to the cost estimates. TILF and ASF projects are also checked for qualityand relevance to their respective funding priorities.

2.4 Final project proposals are then submitted to the BMC via the Secretariat. TheBMC examines and, if necessary, ranks the project proposals across all APEC forawith a view to obtaining Ministers final approval. This final approval is given forthe majority of projects in October/November each year.

2.5 Once funding has been approved the project proponent (now called the ProjectOverseer), with the assistance of the APEC Secretariat, will implement the project.The Project Overseer should be independent from those contracted to implementthe project.

2.6 The life span of an APEC project is two years by which time all disbursement orpayments should be completed. In exceptional cases, the project disbursementdeadline may be extended with the prior approval of the BMC. At the end of theproject, it is evaluated and the results reported back to the relevant fora for theirfurther consideration.


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APEC Project Life Cycle

Project Proponentsdevelop project

proposals. Projectsassessed and ranked

by APEC Fora.

Project completedand outcomes

evaluated. Lessonslearned.

Progress assessedand needs identified

through Seniorofficials meetings andAPEC Leaders andMinisterial meetings

Proposals seeking

APEC Fundingsubmitted to the

Secretariat to ensureprojects meet the

guidelines and are ofa high quality.

Projects submitted to

the SCE (whererelevant) and BMC

for approval.

Approved project

overseers proceed toimplement and

monitor project.


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2.7 The timetable for proposing a project, obtaining approval, and implementing it isset out below. The main determinant of this timetable is the approval requiredfrom the Ministerial meeting (usually in October or November).

Urgent Projects

2.8 The BMC also approves urgent projects at its meetings (March/April orSeptember/ October) or intersessionally by correspondence. Urgent projects aredefined as those projects which respond to Leaders, Ministerial, or Hostspriorities and need to be implemented faster than a normal project (for example

before the end of the host year). An urgent project should be implemented in thesame year and, in principle, its result should be reported to Leaders/Ministers inthe same year.

2.9 If a project proponent wishes a project to be considered as urgent thenjustifications for the urgency must be provided in the application form.Justifications are not required for projects seeking funding from the ASF.

2.10 A portion of funds are set aside each year for urgent projects. The BMC willdetermine the amount at its September/October meeting. At present this is

approximately 25% for Operational Account funding and 15% for TILF funding.These amounts are set to rise under APEC Reform.

2.11Urgent projects arising out of the Ministers/Leaders process in October/ Novembershould be put forward to the Secretariat by:

15 January of the following year (for intersessional approval by the BMC, incases where funding is required before the end of April); and

End of February (for consideration by the BMC at its March meeting. The

BMC will not consider requests for urgent funding intersessionally in the fourweeks prior to a BMC meeting).

2.12 Urgent projects exceeding US$100,000 need to be approved by Senior Officials onBMCs recommendation.

2.13Disbursement of urgent projects need be completed before 31 December of thefollowing year (i.e. a 2006 project approved in May 2006 should havedisbursement completed by 31 December 2007).


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Self-Funded Projects

2.14 Self-funded projects can be put forward at any time to the relevant APEC fora fortheir consensual approval. These projects do not need to be assessed by the QAF

or ranked. The projects do not require approval from BMC. The project proponentshould use the simplified project proposal format at Annex B2 to help ensure theproject meets APECs values and also for statistical purposes.

Reporting, Monitoring and Evaluation of APEC Projects

11.1 The Guidelines for Evaluation and Reporting System for APEC Projects are set outin Annex G. The Guidelines detail the requirements for progress and evaluationreports for APEC projects.

11.2 The Project Overseers should report the progress in implementing the project(formatin Annex G2) as required. The BMC asks all APEC fora to provideProgress Reports for all the APEC projects to the APEC Secretariat before the 2nd

BMC meeting each year, so that summary tables for such reports can be preparedfor the meeting.

11.3 Approximately 10-20% of projects need be monitored during theirimplementation. Information and instructions on how and when to completethe Monitoring Framework is at Annex B4.

11.4 Upon completion of the projects, Project Overseers should complete theEvaluation Report (format in Annex G3) within 2 weeks of the completion ofthe project. .

11.5 Since July 1999, the BMC has formed itself into 7 Small Groups to better monitor

the Evaluation Reports of APEC fora. The BMC Small Groups will assess theEvaluation Reports and submit their outcome of assessments along with theseEvaluation Reports to the BMC for their consideration.


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Strengthening RegionalEconomic IntegrationA report on regional economicintegration, including a possibleFree Trade Area of the Asia-Pacificas a long-term prospectExecutive summaryIn Hanoi last year, Leaders called forfurther studies on ways and meansto promote regional economic integration, including a Free Trade Area ofthe Asia-Pacific as a long-term prospect, and report to the 2007 APECEconomic Leaders Meeting in Australia.

This report sketches out significant existing trends sweeping the regionand sets out a range of agreed actions designed to give a significant boostto APECs efforts to promote regional economic integration. This initiativewill lead to greater growth and increased prosperity for the people of the

Asia-Pacific.The agreed actions build on the dynamic economic developments in the

Asia-Pacific region in recent years and address in particular the issuesarising from the increase in the number of free-trade agreements among

APEC economies and the challenges this poses for business.The report and the agreed actions outline our commitment to:continuing support for the multilateral trading system through strong

commitments and concrete actions;achieving the Bogor Goals and taking concrete actions towards freeand open trade and investment;through a range of practical incremental steps we will take forwardour examination of the options and prospects for a Free Trade Areaof the Asia-Pacific (FTAAP);strengthening APECs work to promote high-quality free-tradeagreements;refocusing APECs trade and investment agenda through concreteinitiatives that accelerate regional economic integration and reducebehind-the-border barriers;strengthening APECs work on structural reform;intensifying efforts to strengthen and deepen financial markets inthe region;sharpening ministerial agendas to place a greater focus oninitiatives that promote regional economic integration and exploringnew work on issues expected to support the regions economicgrowth and development over the longer term;developing a strategic approach to the expanding capacity-buildingactivities flowing from APECs strengthened work on regionaleconomic integration; and.


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providing the APEC secretariat with greater resources andinstitutional capacity to support this work.

The APEC Initiative for

Strengthening RegionalEconomic IntegrationThis report outlines a wide range of actions aimed at strengthening worktowards regional economic integration among the APEC economies. Itbuilds on, and develops further, APECs commitment to achieve economicgrowth and prosperity through collective and individual actions, supportedby targeted capacity-building programs.

APECs commitment to regional

economic integrationAPEC was founded in 1989 on a common commitment to cooperation andthe pursuit of economic prosperity in the Asia-Pacific region. When theymet for the first time at Blake Island in the United States in 1993, APECEconomic Leaders espoused a shared commitment to a deeperspirit ofcommunity based on a shared vision of achieving stability, security and

prosperity for our peoples. At the heart of this vision was a commitment toboosting economic growth through regional integration and free and opentrade and investment.In 1994, at Bogor, Indonesia, APEC Leaders demonstrated thiscommitment by setting in place the Bogor Goals, a bold vision to achievefree and open trade and investment in the Asia Pacific region by 2010 fordeveloped economies and 2020 for developing economies. The Osaka

Action Agenda, updated in 2002, remains the underlying plan for progressin APEC towards achieving the Bogor Goals.In 1996, APEC agreed to use Individual Action Plans (IAPs) as tools totrack progress towards achieving the Bogor Goals. This wassupplemented with a program of peer reviews that began in 1997. Thepeer review process offers the opportunity to learn from other economiesreform experiences and generally encourages open markets andmeasures to reduce the cost of doing business.The 2001 Shanghai Accordrecognised the importance of trade facilitationand the gains to be made from a reduction in business transaction costs. Itlaunched the first Trade Facilitation Action Plan (TFAP), which met itsoverriding goal of reducing transaction costs by five percent. Building onthis effort, APEC Trade Ministers endorsed a second TFAP in July 2007 toreduce trade transaction costs by another 5 percent by 2010.In 2005, APEC Leaders endorsed in Busan, Korea, the Mid-termStocktake of Progress Towards the Bogor Goals, which concluded that

APEC had contributed significantly to the growth and prosperity in theAsia-Pacific region through promoting free and open trade and investmentand reducing barriers to trade and investment a result that helped theregion outperform the rest of the world in terms of economic growth,


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employment, reductions in poverty, and access to education.

The changing trade and investmentenvironmentThe trade and investment policy landscape in the APEC region has

changed considerably since the creation of APEC in 1989. The multilateraltrading system remains the basic framework for the conduct of economicrelations by APEC economies. But economies are turning to regional tradeagreements and free-trade agreements (RTAs and FTAs) to pursueliberalisation and economic engagement objectives. More complex andefficient supply chains have emerged in response to lower trade barriersand regional economic integration. The services sector has become thelargest component of many regional economies, and business isincreasingly concerned about the efficiency, availability and security ofeconomic infrastructure and supply chains.Developments in information and communications technology, changing

demographics, and increasing prosperity are increasingly bringingcommunities together through, inter alia, expanded tourism, internationaleducation services, and business mobility. In addition, greater prosperity inthe region has been accompanied by demands in areas such as cleanerdevelopment, stronger intellectual property rights, more robust financialmarkets and greater certainty and transparency in business law.Small and medium-sized enterprises (SMEs) have become key players inthe new global business environment. They represent 90 percent ofbusinesses in the APEC region. The effect of these developments onSMEs varies considerably. APEC therefore must be alert to the needs ofSMEs to ensure they reach their full potential.In 2005 Leaders developed the Busan Roadmap as a key component ofthe Mid-term Stocktake. The Roadmap outlined six key priorities toredefine and broaden APECs work and in particular to accelerateprogress towards the Bogor Goals. These priorities are: (1) support for themultilateral trading system, (2) strengthening collective and individualactions, (3) promoting high-quality RTAs/FTAs, (4) implementing theBusan Business Agenda, (5) implementing a strategic approach tocapacity building, and (6) utilising the Pathfinder approach better. TheBusan Roadmap called for development of a comprehensive businessfacilitation program, with due consideration to private sector development,to include such areas as customs procedures, standards andconformance, business mobility, electronic commerce, transparency, anticorruptionand corporate governance, food cooperation, security in trade,intellectual property rights protection and enforcement, structural andregulatory reform, competition policy and financial systems. The Hanoi

Action Plan, endorsed by Leaders in 2006, was developed to set outspecific actions to implement the Busan Roadmap.

The APEC Framework for StrengtheningRegional Economic IntegrationThe proposed framework for strengthening regional economic integrationin the APEC region consists of four key elements:


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first, it promotes and supports further liberalisation of trade in goodsand services and investment flows in a manner that reflects theBogor Goals and supports the multilateral trading system. In thisway it will also lay the foundation for a possible Free Trade Area ofthe Asia-Pacific (FTAAP) in the longer term;

second, it places a greater focus on behind-the-border reform and abusiness environment conducive to maximising the benefitsobtainable from cross-border liberalisation;third, the framework seeks to strengthen and deepen regionalfinancial markets to make it easier to mobilise financial resources;andfourth, this effort to strengthen regional economic integration willinclude initiatives in specific sectors, such as transport andcommunications.For these elements to be sustained, it is essential that we improve theability of the APEC Secretariat to respond to and support Leaders and

Ministers directives.The multilateral trading system represented by the World TradeOrganization (WTO) provides the all-encompassing framework forstrengthening economic integration in the Asia-Pacific region. APECeconomies are committed to continuing their active and positiveinvolvement in the WTO and the Doha Development Agenda (DDA)negotiations, and they will continue to see it as the best vehicle forenhancing regional economic integration.The regional economic integration framework is dynamic. It is based onthe willingness and commitment of APEC economies to give it momentum.Its components are specific and action-oriented.

A targeted and effective capacity-buildingprogram

APEC economies have a firm belief that trade and investmentliberalisation will progress at a faster pace if sustained by well targetedeconomic and technical cooperation. This is fundamental to theachievement of Bogor Goals of free and open trade and the overallprocess of regional economic integration.

Agreed actionsCharting a way forward: opportunities andchallenges aheadThe Bogor Goals, to which APEC members remain committed, continue tobe a key organising principle and driving force for APEC. The variouscooperation activities derived from the Bogor Goals have not onlypromoted the sustainable and stable economic development of APECmember economies, but also made substantial contribution to Asia-Pacificeconomic integration. That progress has been underpinned by impressiveand continuing economic growth derived in large part from trade andinvestment with other parts of the world. This in turn points to the realitythat greater non-discriminatory trade liberalisation under the multilateral


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system will remain a principal driver of further regional economic growthand integration.The future for economic integration in the Asia-Pacific region is promising

driven by open markets and rising living standards. While much of thisprocess will be organic as businesses and consumers respond to factors

such as emerging technologies and demographic trends our economieshave a crucial role to play in shaping and nurturing economic integration.Poor policy choices are likely to result in slower growth and render theregion as a whole less competitive globally.The challenges ahead should not, however, be discounted. As well as thecommon challenge of meeting economic needs, economies in the regionwill have to deal with a range of demographic and structural changes,rising demand for energy and infrastructure, and environmentalconsequences. All of these challenges can be managed without puttingfuture growth and development at risk. Cooperation between APECmembers in developing policy responses will help support stable long-term

regional economic development and integration.APEC already has an extensive work program to promote regionaleconomic integration. APEC economies also have a long history ofworking together to advance economic reform. APECs robust trade andinvestment liberalisation and facilitation agenda continues to open marketsin ways that yield countless benefits to the people of the APECeconomies. APECs intensified focus on structural reform policies addsweight to the pro-reform voices in individual economies. APEC is alsoideally suited to provide needed capacity building to strengthen theinstitutions that support strong and effective domestic markets.

Supporting the multilateral trading systemThe APEC region, consisting of 21 global traders, places paramountimportance on the effective functioning of the multilateral trading system.Since its inception in 1989, APEC has been a strong advocate andconsistent supporter of non-discriminatory trade liberalisation first underthe GATT and later the WTO. More recently, APEC has played a similarlypositive role in advancing the Doha Development Agenda negotiations byproviding crucial support at key junctures in the negotiations.

Agreed actions:We will continue to support the multilateral trading system throughstrong and unambiguous political commitments as well as a rangeof supportive, practical and concrete actions.We reaffirm that the Doha Round of multilateral negotiationsprovides the best opportunity for achieving trade liberalisation andthat it remains our first priority.

Reaffirming our commitment to theBogor GoalsThe Bogor Goals remain a key organising principle and driving force for

APEC. They have helped the APEC economies not only to promotesustainable and stable economic development, but they have also made aconsiderable contribution to Asia-Pacific economic integration.


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Agreed actions:We reaffirm our commitment to achieve the Bogor Goals and will

continue to take concrete actions towards free and open trade andinvestment.We underline in particular the role played by the Busan Roadmap

and the Hanoi Action Plan to advance this goal.

Exploring a Free Trade Area of the Asia-PacificIn 2006 we called for recommendations concerning the possibility of aFree Trade Area of the Asia-Pacific (FTAAP) as a long-term prospect. AnFTAAP could make a considerable contribution to economic integration inthe Asia-Pacific region, but its implications are not yet fully understood.Nor are the issues that would need to be addressed clearly identified.Several plurilateral free-trade agreements involving members of APEC arealready in place, and others are at various stages of consideration (see

attachment). A considerable quantity of analytical material concerningbilateral and plurilateral free-trade agreements is available forexamination. It is nevertheless clear that more could be learned fromintensified work among the APEC economies on the opportunities anFTAAP could provide, as well as the challenges it could present.

Additional SOM Trade Policy Dialogues to discuss various aspects of apossible FTAAP would be helpful.

Agreed actions:Through a range of practical incremental steps, we will examine theoptions and prospects for a FTAAP, including:compiling an inventory of issues relevant to an FTAAP thatwould need to be addressed as part of a possible preparatoryprocess and examining their possible implications;conducting an analytical study of existing bilateral andplurilateral free-trade agreements in the region with the aims ofincreasing knowledge of their similarities and differences, aswell as enabling economies to identify possible ways in whichthe FTAAP concept could be furthered;undertaking a review of existing analytical work relevant to apossible FTAAP and assessing the need for any additionalanalytical work; andexamining the feasibility of docking or merging existing freetrade agreements.

Supporting regional economic Integrationthrough RTAs/FTAs

APEC has consistently stressed the importance of high-quality andcomprehensive RTAs/FTAs, achievement of trade and investmentliberalisation and facilitation and achievement of the Bogor Goals. At thesame time, member economies are aware of business concerns aboutunnecessary complexity in trade agreements as well as markeddivergences among them. For this reason, APEC has pioneered the


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promotion of high-quality agreements through the development of theAPEC Best Practices and the model measures for RTAs/FTAs.Increasing the number of agreed sets of model measures wouldstrengthen the ability of policy-makers to negotiate high-qualityagreements. In addition, the effectiveness of the model measures can be

enhanced through capacity-building activities aimed at making them betterunderstood.Preferential rules of origin offer another possible area of future work onRTAs/FTAs. Differences between and complexities in these rules are oftencited by business as an impediment to better utilisation of preferentialtrade agreements. An exploration of the various rules of origin used in the

APEC region therefore could be undertaken, possibly followed by anexploration of how they might be rationalised.

Agreed actions:We will strengthen APECs work promoting high-quality,comprehensive RTAs/FTAs that open markets and promote

economic integration while seeking to promote consistency amongagreements and maximise their trade and economic benefits. In thisregard, we will:complete by 2008 the program of comprehensive and highqualitymodel measures of commonly accepted chapters forRTAs/FTAs and identify ways to facilitate their use as a guide tonegotiating RTAs/FTAs;examine the various types of preferential rules of origin used inthe APEC region with the aim of increasing knowledge of theirsimilarities and differences;explore in close cooperation with the business sector how rules

of origin used in economies RTAs/FTAs might be rationalised;expand dialogue on examining ways to achieve greaterconsistency in key provisions of RTAs/FTAs in the region; andundertaking a study of bilateral investment agreements and coreinvestment-related elements of existing free-trade agreementswith a view to developing principles for investment agreements;andexploring the possibility of building on the model measures fortrade facilitation to provide more specificity and content.

Facilitating business activity through an

expanded trade and investment agendaAPEC continues to place a central focus on promoting regional growth andcooperation through increased trade and investment liberalisation andfacilitation. This has been a core objective of APEC from the outset andcovers work in areas such as customs, standards, intellectual propertyrights, transparency, and competition policy. As trade barriers havegradually fallen, burdensome or inconsistent regulatory frameworksaffecting trade and investment have emerged as significant impedimentsto business activity and competitiveness. APEC should therefore not onlyplace a greater focus on trade and investment liberalisation initiatives thatcontribute to regional economic integration, but also put an increased


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emphasis on reforms that address behind-the-border barriers that impedetrade and hinder economic growth.

APEC economies have undertaken substantial investment liberalisationand reform in recent years. APEC has an important role to play in furtherinvestment reform in the region. The key to improving investment climates

in member economies is a home-grown strategy that would remove orreduce the impact of regulatory barriers to investment. It is not sufficient toidentify where the barriers are it is equally important to provide help inhow to go about removing them in a coherent way. This can be donecollectively (e.g. experience-sharing, institutional stocktake) and byassisting member economies to understand fully the benefits of reform.Targeted capacity building that benefits individual member economiesreform efforts should also be encouraged.

Agreed actions:We will refocus APECs trade and investment liberalisation andfacilitation agenda on concrete initiatives that accelerate regional

economic integration and reduce behind-the-border barriers,particularly in ways that would improve the investment climate in

APEC economies and their competitiveness, including:reducing trade transaction costs by implementing APECssecond Trade Facilitation Action Plan addressing in particularcollective actions on standards and conformance, customsprocedures, e-commerce and business mobility. In particular,we agree to: advance the single customs windows initiative that willprovide a strategic direction and common understanding forsingle windows in APEC economies; and

pursue international implementation of the APEC PrivacyFramework through the development of a voluntary crossbordersystem of data privacy rules;launching the region-wide Cooperation Initiative on Patent

Acquisition Procedures;launching a customs clearance initiative that would facilitatecustoms procedures for low-risk shippers;pursuing membership in the APEC Business Travel Card(ABTC) scheme by all member economies;exploring ways to reduce barriers to trade in environmentalgoods and services; and

encouraging collaboration with other international organisationsto help achieve the economic and trade goals of APEC membereconomies.We are determined to improve further the investment climate in

APEC economies and the Asia-Pacific region by reducing majorimpediments to investment. In that regard, we agree to:identify domestic restrictions that have the effect of deterringinvestment to complement the work done on border measures;develop an Investment Facilitation Action Plan in APEC;give high priority to focused capacity building activities to assistinvestment climate reform and promote investment liberalisation


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and facilitation, for example: the use of diagnostic tools developed by relevantinternational organisations; expand dialogue on how APEC member economiesundertake investment policy reform and share the

experiences and lessons among member economies; and undertake work on risk-sharing Public-Private Partnerships,where appropriate, as a means of increasing investmentlevels.

Supporting structural reformAddressing structural impediments to growth, investment andcompetitiveness will have positive economic follow-on effects for theregion. Appropriate domestic policies and targeted structural reformpolicies remain essential for achieving higher productivity and internationalcompetitiveness. The Busan Roadmap and the Hanoi Action Plan helppave the way for advances on the structural reform front: yet structural

reform is specific to an economy and dependent on unilateral action. Suchreforms can also be politically difficult. All economies can learn from eachother and share best practices. Within APEC, there is considerable scopefor assisting each other through individually tailored capacity-buildingprograms.

Agreed actions:We will strengthen APECs work on structural reform and providegreater resources and institutional capacity to support it. In thisregard, we will:strengthen the capacity of the APEC Secretariat to assist

member economies in policy dialogue on structural reform andin strengthening domestic institutions and policies that supportthe reform process;identify and prioritise reform initiatives under the five Leaders

Agenda on Structural Reform (LAISR) themes of competitionpolicy, regulatory reform, strengthening economic and legalinfrastructure, corporate governance and public sectormanagement with the best potential to improve economicgrowth and trade;accelerate the work being undertaken under the Private SectorDevelopment Agenda, using the World Banks Ease of DoingBusiness indicators as a guide to best practice; andprovide high-level guidance for this agenda by calling a meetingon structural reform issues at a ministerial level.

Strengthening financial marketsRecalibrating and bolstering APECs work on financial sector issuesgeared toward promoting regional economic integration would do much topromote growth and reform in the region. Well-functioning financial sectorsare necessary for facilitating investment as they provide markets andintermediaries for matching savings and financing requirements,exercising market discipline and spreading risks. Underdevelopment offinancial sectors in some APEC economies, combined with a lack of


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harmonisation and coordination in regulation and enforcement, createimpediments to domestic and cross-border investment in the region.Financial sector reform priorities include strengthening legal andregulatory frameworks, in particular addressing gaps in property rights,creditor rights and insolvency regimes in some economies; making

improvements in disclosure and corporate governance requirements; andimproving physical infrastructure, such as payments systems.

Agreed actions:We will intensify efforts to strengthen and deepen financial marketswithin the APEC region. In this regard, we will:explore options to secure diversified and deeper capitalmarkets;address domestic structural policies and systems that posebarriers to deepening and developing financial markets throughcapacity building and information sharing in ways thatcorresponds to member economies individual circumstances;

andexamine options for greater cooperation in the development offinancial systems and capital markets and identify appropriatecapacity-building and information-sharing initiatives, includinginitiatives to enable financial institutions in APEC economies toachieve global standards.

Sectoral issues and private sectorengagement

APEC has a long history of promoting economic growth and reform on asector-by-sector basis, convening regular sectoral ministerial meetings to

address prominent new and ongoing issues, in such areas as Energy,Mining and Transportation. In light of the focus Leaders are placing onpromoting regional economic integration, these ministerial meetingsshould recalibrate their agendas to fulfil more effectively this broadmandate.

APECs work in recent years has benefited from dialogue and cooperationwith the business community, which is a key driver of economic integrationin the region. As APECs work on regional economic integrationintensifies, it will be important to maintain close engagement with the

APEC Business Advisory Council (ABAC) and other representatives of thebusiness community.

Agreed actions:We instruct APEC to place a greater focus in sectoral ministerialmeetings on initiatives that promote economic development andintegration in the APEC region. This may include:TransportReview the implementation of the APEC EightOptions for More Competitive Air Services (air carrier ownershipand control, doing-business matters, air freight, multiple airlinedesignation, tariffs, charter services, cooperative arrangementsbetween airlines, and market access) and identify further stepsto liberalise air services in accordance with the Bogor Goals;


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identify measures to improve maritime port efficiency and fostercompetition in maritime transport;Minerals and miningExamine the recommendations made inthe 2007 study on impediments to trade and investment inmining and propose possible actions for APEC by 2008 APEC

Ministerial Meeting;EnvironmentSupport the work being done in ICAO to developa balanced approach to addressing emissions from aviationoperations;TelecommunicationsImplement mechanisms to achieve the

Asia Pacific Information Society;Small and Medium-Sized Enterprises (SMEs)Promote theappropriate economic environment to foster the establishment,growth and development of micro, small and medium-sizedenterprises and develop strategies to increase theircompetitiveness in the global trading system; and

EnergyCommission an expert study to identify barriers totrade and investment in energy, including behind-the-borderbarriers, to the adoption of new, cleaner and more efficient fuelsand technologies. Form an APEC Energy Investment and TradeRoundtable of senior energy, environment, finance and tradeexperts, plus private sector representatives, to develop a plan ofaction to address identified barriers, tailored to the needs ofindividual economies.We will strengthen dialogue and cooperation with the private sector,including through the APEC Business Advisory Council (ABAC).We will also intensify efforts to strengthen APEC public-privatesector dialogues to promote regional economic growth andintegration and improve the business environment.We instruct officials to work with ABAC to identify potential jointactivities that would benefit the APEC business community byfacilitating trade and investment and addressing structural reformissues.We also instruct officials to explore new work in APEC on issuesexpected to impact on the regions economic growth anddevelopment over the longer term, and their implications forregional economic integration.

Strategic approach to expanding capacity

buildingStrengthening regional economic integration will yield better results if it isaccompanied by targeted capacity-building activities. This strategicapproach should place a priority on carrying out the specificrecommendations in this report and promoting regional economicintegration generally. A number of the recommendations suggested in thepreceding sections are capacity-building in nature. A more focussed andlong-term approach in addressing the capacity-building needs of APECmembers would contribute to more coordinated effort and outcome inenhancing regional economic integration.


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To increase APECs effectiveness in promoting such integration, relevantexpertise and funding should be provided in response to identifiedcapacity-building needs.

Agreed actions:We will develop and implement capacity-building activities in

support of APECs work on regional economic integration. In thatregard, we will:provide targeted trade-related technical assistance and capacitybuilding to strengthen capacities of developing economies toparticipate in the multilateral trading system and ultimately betteruse trade policy to help achieve their development goals;strengthen the APEC Secretariats ability to provide analysisand evaluation capacity, and assist in coordinating relatedcapacity building for the development and implementation of

APECs trade, investment and economic reform agenda,including through a new Policy Support Unit and a dedicated

evaluation unit in the Secretariat;develop and implement longer term sustainable capacitybuilding projects reflecting the extended time horizons involvedin undertaking work on regional economic integration;ensure that the allocation of APEC resources reflects prioritiesin Leaders Declarations and Ministerial Statements, includingpromoting regional economic integration;encourage contributions to the APEC Support Fund by membereconomies and other interested parties;encourage contributions by member economies to the Tradeand Investment Liberalisation and Facilitation Fund; and

encourage engagement with international financial institutionsand other relevant international organisations.

AttachmentFree-trade agreements in the APEC regionThe development of intra-APEC free-trade agreements began slowly. The

Australia New Zealand Closer Economic Relations Trade Agreement(ANZCERTA) led the way in 1983. It was followed in 1992 by the ASEANFree Trade Agreement (AFTA) in 1992 and the North American FreeTrade Agreement (NAFTA) in 1994. Other agreements concluded in the

1990s were those between Canada and Chile (1997) and Mexico andChile (1999).The number of agreements entering into force has picked up greatly in thisdecade. In 2001 there was New ZealandSingapore, followed in 2002 byJapanSingapore and the following year by SingaporeAustralia. In 2004ChileKorea, ChinaHong Kong, China, United StatesChile and UnitedStatesSingapore were added to this list. In 2005 AustraliaUnited States,JapanMexico, New ZealandThailand and ThailandAustralia enteredinto force. A further four followed in 2006: ChileChina, JapanMalaysia,KoreaSingapore and the P4 Agreement (Brunei Darussalam, Chile,New Zealand and Singapore) and JapanChile in 2007.


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Several agreements are awaiting ratification by the parties. Among theseare IndonesiaJapan, JapanBrunei, JapanPhilippines, JapanThailand,KoreaUnited States and United StatesPeru. Map 1 on page 23 showsclearly the growing number of linkages between economies in the APECregion.

Many other bilateral agreements are at various stages of negotiation.Additionally, several feasibility studies now under way suggest thateconomies are increasingly prepared to look at new combinations and thatthe trend towards free-trade agreements will continue for some yet.

Plurilateral free-trade agreementsAFTA and NAFTA (the largest free-trade agreement in existence), areearly examples of plurilateral free-trade agreements in the APEC region.In both cases, the parties are in the same geographical area, and some ofthem share borders. The P-4 Agreement is different: its members arelocated on both sides of the Pacific. It is also the only agreement coveringinternational air transport services.

Some APEC economies are now examining the possibility of even moreambitious free-trade areas. One of these is the ASEAN+3 free-trade area(ASEAN members plus China, Japan and Korea). Another is the

ASEAN+6 proposal (ASEAN members plus Australia, China, India, Japan,Korea and New Zealand). Map 2 on page 24 shows the potentialgeographical coverage of these agreements.

Documents

Apec in Engleza