HISTORY

The idea of APEC was firstly publicly broached by former Prime Minister of Australia,

Mr Bob Hawke, during a speech in Seoul, Korea in January 1989. Later that year, 12

Asia-Pacific economies met in Canberra, Australia to establish APEC. The founding

members were: Australia, Brunei Darussalam, Canada, Indonesia, Japan, Korea,

Malaysia, New Zealand, the Philippines, Singapore, Thailand and the United States.

China, Hong Kong, China and Chinese Taipei joined in 1991. Mexico and Papua New

Guinea followed in 1993. Chile acceded in 1994. And in 1998, Peru, Russia and Viet

Nam joined, taking the full membership to 21.

Between 1989 and 1992, APEC met as an informal senior official and Ministerial level

dialogue. In 1993, former United States President, Mr Bill Clinton, established the

practice of an annual APEC Economic Leaders' Meeting.

MISSION STATEMENT

APEC is the premier Asia-Pacific economic forum. Our primary goal is to support

sustainable economic growth and prosperity in the Asia-Pacific region.

We are united in our drive to build a dynamic and harmonious Asia-Pacific community

by championing free and open trade and investment, promoting and accelerating regional

economic integration, encouraging economic and technical cooperation, enhancing

human security, and facilitating a favorable and sustainable business environment. Our

initiatives turn policy goals into concrete results and agreements into tangible benefits.

Member Economies

APEC has 21 members. The word 'economies' is used to describe APEC members

because the APEC cooperative process is predominantly concerned with trade and

economic issues, with members engaging with one another as economic entities. 

 

APEC Members  Date of Joining

Australia 6-7 Nov 1989

Brunei Darussalam 6-7 Nov 1989

Canada 6-7 Nov 1989

Chile 11-12 Nov 1994

People's Republic of China 12-14 Nov 1991

Hong Kong, China 12-14 Nov 1991

Indonesia 6-7 Nov 1989

Japan 6-7 Nov 1989

Republic of Korea 6-7 Nov 1989

Malaysia 6-7 Nov 1989

Mexico 17-19 Nov 1993

New Zealand 6-7 Nov 1989

Papua New Guinea 17-19 Nov 1993

Peru 14-15 Nov 1998

The Philippines 6-7 Nov 1989

Russia 14-15 Nov 1998

Singapore 6-7 Nov 1989

Chinese Taipei 12-14 Nov 1991

Thailand 6-7 Nov 1989

The United States 6-7 Nov 1989

Viet Nam 14-15 Nov 1998

CORE VALUES

COMMUNITY

 We achieve high quality results by working together to recognize, support, and build on

each other's unique strengths and contributions.  We inspire teamwork through coaching,

guiding, and motivating one another.  We nurture a sense of inclusiveness for our staff

and our stakeholders.  We enhance linkages in the wider APEC community by effectively

supporting policy-makers and efficiently facilitating implementation. 

 

OPEN

 We are honest, accessible, and transparent in sharing information, managing processes,

and communicating with internal and external stakeholders.  We are open to different

points of view and new ideas, and we are prepared to successfully adapt to change.  We

are open to input from a diverse range of contributors.  We address issues openly and

proactively, anticipating the needs of the organization, our colleagues, and our

stakeholders.

RESPECT

 We gain trust and build productive relationships through mutual respect.  We seek to

understand, listen to, and involve others, always acting with consideration and empathy.

We value our diversity as a source of strength.  We appreciate different values and

perspectives, accepting each other as equals.  We recognise that respect forms the basis of

our dealings with our fellow workers and our external stakeholders. We prize integrity

highly as it allows us to be true to ourselves, our colleagues and our organization

EXCELLENCE

 We strive to enhance individual and organizational knowledge, skills, and capacity in

support of APEC’s goals.  We take pride in our work and keep our commitments.  We are

passionate about seeking progress and are constantly learning and improving ourselves.

We are honest, trustworthy and straightforward in all our dealings.  We use time, money,

and resources entrusted to us wisely, and for the benefit of APEC.

ACHIEVEMENTS AND BENEFITS

The Asia-Pacific region has consistently been the most economically dynamic region in

the world. Since APEC's inception in 1989, APEC's total trade has grown 395%,

significantly outpacing the rest of the world.1 In the same period, GDP (in purchasing

power parity terms) in the APEC region has tripled, while GDP in the rest of the world

has less than doubled.

APEC's work under its three main pillars of activity, Trade and Investment

Liberalisation, Business Facilitation and Economic and Technical Cooperation, has

helped drive this economic growth and improve employment opportunities and standards

of living for the citizens of the region.

Trade and Investment Liberalisation

APEC is the premier forum for trade and investment liberalisation in the Asia-Pacific

and has set targets dates for "free and open trade": no later than the year 2010 for

industrialised economies, and 2020 for developing economies (the Bogor Goals).

When APEC was established in 1989 average trade barriers in the region stood at

16.9%; by 2004 barriers had been reduced by approximately 70% to 5.5%.3

As a consequence, intra-APEC merchandise trade (exports and imports) has grown

from US$1.7 trillion in 1989 to US$8.44 trillion in 2007 - an average increase of

8.5% per year; and merchandise trade within the region accounted for 67% of APEC's

total merchandise trade in 2007.4

Similarly, trade with the rest of the world has increased from US$3 trillion in 1989 to

US$15 trillion in 2007, an average increase of 8.3% per year. Trade in the rest of the

world has increased at 7.6% over the same period.

Over 30 bilateral free trade agreements (FTAs) have been concluded between APEC

Member Economies.

APEC is also pursuing trade and investment liberalisation through its Regional

Economic Integration agenda. Progress to date includes:

Investigating the prospects of and options for a Free Trade Area of the Asia-Pacific.

The development of 15 model measures for RTAs/FTAs that serve as a reference for

APEC members to achieve comprehensive and high-quality agreements.

APEC has also acted as a catalyst in the advancement of World Trade Organisation

multilateral trade negotiations over the past 20 years.

Business Facilitation

As a result of the APEC Trade Facilitation Action Plan (TFAP I) the cost of business

transactions across the region was reduced by 5% between 2002 and 2006.

A second trade facilitation action plan (TFAP II), aims to reduce transaction costs by

a further 5% between 2007 and 2010.

APEC initiatives that help facilitate trade include:

The introduction of electronic/paperless systems by all member economies, covering

the payment of duties, and customs and trade-related document processing.

The Single Window Strategic Plan, adopted in 2007, provides a framework for the

development of Single Window systems which will allow importers and exporters to

submit information to government once, instead of to multiple government agencies,

through a single entry point.

Providing business with a concise one-stop repository of customs and trade

facilitation related information for all APEC economies through the APEC Customs

and Trade Facilitation Handbook

The APEC Tariff Database provides users with easy access to APEC member

economies' tariff schedules, concessions, prohibitions and other information.

In 2008, a groundbreaking Investment Facilitation Action Plan was endorsed; it aims

to improve the investment environment in Member Economies.

The APEC Privacy Framework provides guidance and direction to both APEC

Member Economies and businesses on implementing information privacy protection

policies and procedures. By facilitating information flows it will facilitate trade and e-

commerce.

The APEC Business Travel Card (ABTC) provides substantial time and cost savings

to business people and facilitates their travel in the region, by allowing visa free

travel and express lane transit at airports in participating economies.

APEC is also removing behind-the-border barriers to trade through its Structural

Reform agenda, which focuses on reforming domestic policies and institutions that

adversely affect the operation of markets, and the capacity of businesses to access

markets and to operate efficiently.

Economic and Technical Cooperation

APEC's Economic and Technical Cooperation (ECOTECH) activities are designed to

build capacity and skills in APEC Member Economies at both the individual and

institutional level, to enable them to participate more fully in the regional economy

and the liberalisation process.

Since APEC first began to undertake capacity building work in 1993, more than 1200

projects have been initiated; and in 2008, APEC was implementing a total of 212

capacity building projects with a total value of US$13.5m.

A particular focus has been reducing the digital pide between developed and

developing economies:

In 2000, APEC set a goal of tripling internet usage in the region and that goal has

now been achieved, as recognised by the 2008 APEC Ministerial Meeting on the

Telecommunications and Information Industry. APEC's new goal is to achieve

universal access to broadband by 2015.

A network of 41 APEC Digital Opportunity Centers (ADOC) now operate in seven

Member Economies. ADOC's objective is to transform the digital pide into digital

opportunities and the centres act as local information and communication technology

(ICT) resource centres, providing citizens and businesses of the region with access to

ICT technologies, education and training.

APEC is also developing a Digital Prosperity Checklist that outlines specific steps

economies can take to enable them to utilise ICT as catalysts for growth and

development.

Other Achievements

APEC has also been able to evolve its agenda to include pressing regional priorities.

Examples include: counter-terrorism (The Shanghai Statement in 2001, and the Counter-

Terrorism Task Force); human security (Health Working Group); emergency

preparedness (Task Force for Emergency Preparedness); climate change, energy security

and clean development (The Sydney Declaration in 2007); and the global financial crisis

(The Lima Statement in 2008).

KEY APEC MILESTONES

2011 - Honolulu, United States 

APEC Leaders issue the Honolulu Declaration in which they commit to taking concrete

steps toward a seamless regional economy; addressing shared green growth objectives;

and advancing regulatory cooperation and convergence. To reach these goals, APEC

resolves to reduce, by the end of 2015, applied tariff rates of environmental goods to 5

percent or less, taking into account economies' economic circumstances, without

prejudice to APEC economies' positions in the WTO. APEC sets the goal to reduce

aggregate energy intensity by 45 percent by 2035. And APEC commits to take specific

steps by 2013 to implement good regulatory practices by ensuring internal coordination

of regulatory work; assessing regulatory impacts; and conducting public consultation. 

2010 - Yokohama, Japan 

APEC Leaders issue the Yokohama Vision to provide a roadmap for members to realize

an economically-integrated, robust and secure APEC community. This includes the

formulation of a comprehensive, long-term growth strategy . APEC completes an

assessment of the progress towards the Bogor Goals and finds significant gains in the

areas of liberalizing trade in goods, services and investment, as well as trade facilitation.

APEC formulates the APEC Strategy for Investment and endorses the APEC New

Strategy for Structural Reform. APEC holds its first-ever APEC Ministerial Meeting on

Food Security.

2009 – Singapore

APEC resolves to pursue balanced, inclusive and sustainable growth, while Leaders agree

to extend their standstill commitment on protectionism until 2010. The first-ever joint

meetings of APEC senior trade and finance officials are held to address the economic

crisis. APEC launches the Supply-Chain Connectivity Framework and the Ease of Doing

Business Action Plan to make doing business in the region 25 percent cheaper, faster and

easier by 2015. Member economies also commence work on an APEC Services Action

Plan and an Environmental Goods and Services Work Program.

2008 - Lima, Peru

APEC focused on the social dimensions of trade and on reducing the gap between

developing and developed members, in accordance with the 2008 theme, "A New

Commitment to Asia-Pacific Development". Leaders also addressed the global financial

crisis in the Lima APEC Leaders' Statement on the Global Economy. They committed to

take all necessary economic and financial measures to restore stability and growth, to

reject protectionism and to intensify efforts to advance WTO Doha Development Agenda

negotiations.

2007 - Sydney, Australia 

For the first time, APEC Member Economies issue a Declaration on Climate Change,

Energy Security and Clean Development outlining future action in support of a new

international climate change arrangement and announcing a forward program of practical,

cooperative actions and initiatives. Leaders also adopted a major report on closer

Regional Economic Integration, including structural reform initiatives, and welcomed the

new APEC Trade Facilitation Action Plan which will reduce trade transaction costs by a

further five per cent by 2010.

2006 - Ha Noi, Viet Nam 

APEC Economic Leaders endorsed the Ha Noi Action Plan which identifies specific

actions and milestones to implement the Bogor Goals and support capacity-building

measures to help APEC economies. They also issued a statement on the WTO Doha

Development Agenda calling for ambitious and balanced outcomes. To prioritize its

agenda, APEC takes a strategic approach to reform working groups and strengthen the

Secretariat.

2005 - Busan, Korea 

APEC adopts the Busan Roadmap, completes the Mid-Term Stocktake which has found

that APEC is well on its way to meeting the Bogor Goals, and the APEC Privacy

Framework. Leaders issue a stand-alone statement in support of a successful conclusion

to the WTO's 6th Ministerial Meeting in Hong Kong, China and agree to confront

pandemic health threats and continue to fight against terrorism which could cause deep

economic insecurity for the region.

2004 - Santiago, Chile 

APEC issues a strong statement of support for progress in the WTO Doha Development

Agenda and sets a target date for achieving a breakthrough in negotiations: December

2005, the convening of the Sixth WTO Ministerial Conference. APEC adopts Best

Practices for RTAs and FTAs, the Santiago Initiative for Expanded Trade and a Data

Privacy Framework. APEC reiterates its "unmistakable resolve" to confront the threat of

terrorism, and takes further action in this regard by identifying key elements of effective

export control systems; establishing guidelines on the control of man-portable air defense

systems (MANPADS), and continuing to implement the STAR initiative. APEC makes a

political commitment to fight corruption and ensure transparency, and endorses a specific

Course of Action towards this end.

2003 - Bangkok, Thailand 

APEC agrees to re-energize the WTO Doha Development Agenda negotiations and

stresses the complementary aims of bilateral and regional trade agreements, the Bogor

Goals and the multilateral trading system under the WTO. APEC dedicates itself not only

to promoting the prosperity of member economies, but also to improving the security of

the peoples of the Asia-Pacific region. APEC pledges to take specific actions to dismantle

terrorist groups, eliminate the danger of weapons of mass destruction and confront other

security threats. Members sign up to the APEC Action Plan on SARS and the Health

Security Initiative to further protect personal security. APEC also strengthens its efforts

to build knowledge-based economies, promote sound and efficient financial systems and

accelerate regional structural reform.

2002 - Los Cabos, Mexico 

APEC adopts a Trade Facilitation Action Plan, Policies on Trade and the Digital

Economy and Transparency Standards. APEC's second Counter-Terrorism Statement is

delivered, along with the adoption of the Secure Trade in the APEC Region (STAR)

Initiative.

2001 - Shanghai, People's Republic of China

APEC adopts the Shanghai Accord, which focuses on Broadening the APEC Vision,

Clarifying the Roadmap to Bogor and Strengthening the Implementation Mechanism.

The e-APEC Strategy is adopted, which sets out an agenda to strengthen market

structures and institutions, facilitate infrastructure investment and technology for on-line

transactions and promote entrepreneurship and human capacity building. APEC's first

Counter-Terrorism Statement is issued.

2000 - Bandar Seri Begawan, Brunei Darussalam 

APEC establishes an electronic Individual Action Plan (e-IAP) system, providing IAPs

online and commits to the Action Plan for the New Economy, which, amongst other

objectives, aims to triple Internet access throughout APEC region by 2005.

1999 - Auckland, New Zealand

APEC commits to paperless trading by 2005 in developed economies and 2010 in

developing economies. APEC Business Travel Card scheme is approved and a Mutual

Recognition Arrangement on Electrical Equipment and a Framework for the Integration

of Women in APEC is endorsed.

1998 - Kuala Lumpur, Malaysia 

APEC agrees on the first nine sectors for EVSL and seeks an EVSL agreement with non-

APEC members at the World Trade Organization.

1997 - Vancouver, Canada 

APEC endorses a proposal for Early Voluntary Sectoral Liberalization (EVSL) in 15

sectors and decides that Individual Action Plans should be updated annually.

1996 - Manila, The Philippines 

The Manila Action Plan for APEC (MAPA) is adopted, outlining the trade and

investment liberalisation and facilitation measures to reach the Bogor Goals and the first

Collective and Individual Action Plans are compiled, outlining how economies will

achieve the free trade goals.

1995 - Osaka, Japan 

APEC adopts the Osaka Action Agenda (OAA) which provides a framework for meeting

the Bogor Goals through trade and investment liberalisation, business facilitation and

sectoral activities, underpinned by policy dialogues, economic and technical cooperation.

1994 - Bogor, Indonesia

APEC sets the Bogor Goals of, "free and open trade and investment in the Asia-Pacific

by 2010 for developed economies and 2020 for developing economies."

1993 - Blake Island, United States 

APEC Economic Leaders meet for the first time and outline APEC's vision, "stability,

security and prosperity for our peoples."

1989 - Canberra, Australia

APEC begins as an informal Ministerial-level dialogue group with 12 members.

 

BUSINESS RESOURCES

APEC is committed to making it easier and more efficient for you to do business in the

Asia-Pacific region. This section contains easy-to-use business information and tools and

is designed to help you build your business by leveraging APEC's expertise and

resources.

Business does not get done by corporate vision alone; partnerships between the public

and private sector are a key step toward ensuring a sustainable, win-win economic

environment for all - especially the consumer.

You are encouraged to get involved with the APEC process. Your contributions will

provide a valuable business perspective on APEC activities and help promote economic

growth and prosperity in the Asia-Pacific region. Currently business contributes to a

number of key APEC issues from energy to telecommunications and further opportunities

exist across the range of APEC activities for business involvement.

Business Resources 

APEC working level groups, comprising experts from the APEC region have developed a

series of business tools to assist you with key business decisions.

Business Travel 

The APEC Business Travel Card (ABTC) allows business travelers pre-cleared,

facilitated short-term entry to participating member economies. The ABTC removes the

need to individually apply for visas or entry permits, saving valuable time, and allows

multiple entries into participating economies during the three years the card is valid. Card

holders also benefit from faster immigration processing on arrival via access to fast-track

entry and exit through special APEC lanes at major airports in participating economies.

The APEC Business Travel Handbook is a practical tool which provides a quick

reference guide to the visa and entry requirements of APEC Member Economies. It lists

the basic eligibility criteria and procedures for applying for visas and the terms and

conditions that apply to business travelers. This information is provided for both short-

term business visits and temporary residence for business people in APEC Member

Economies.

Electrical and Electronic Equipment Mutual Recognition Arrangement (EEMRA) 

APEC Member Economies' mandatory requirements on regulated electrical and

electronic products are provided in a standardized format to assist those who may wish to

export electrical and electronic products to that economy.

Government Procurement Resources 

The Government Procurement Experts' Group provides current government procurement

policies, procedures, trade opportunities, and key people to contact in each of those

economies.

Import Regulations 

These comprehensive set of links to import regulation information in APEC Member

Economies aim to make it easier for importers and exporters to access information before

trading in the Asia-Pacific region.

Intellectual Property 

To ensure that you will be adequately rewarded and protected as you trade and invest

across borders, consult the Intellectual Property Rights Experts' Group IP Information

Center. The Center provides information about the intellectual property regimes and key

contacts in APEC Member Economies.

The Intellectual Property Explorer is a free, secure and simple online business tool to

help SMEs identify and protect their IP assets. It contains a series of interactive

diagnostic questions designed to review each piece of intellectual property in an SME's

business. The group also provides a library of resources used by IP offices of APEC

Member Economies to effectively raise awareness of IP in their local market.

Investment 

The APEC Investment Regime Guidebook, 6th Edition, provides valuable information

about the investment environments of APEC Member Economies.

The Investment Experts Group maintains a set of links to investment-related

information in APEC Economies and is geared to providing you with current additional

information.

Standardization and Regulatory Bodies 

Access the Standards and Conformance information to provide you with information on

Member Economies' contacts in international standardization bodies and links to

Economies' regulatory bodies on various sectors.

Transparency Standards 

APEC Economies developed a set of General Transparency Standards that committed

members to such measures as publishing all laws and regulation, and establishing appeal

mechanisms for administrative decisions. There are nine sets of Area-Specific

Transparency Standards that Economies are working towards: Services, Investment,

Competition Policy and Regulatory Reform, Standards and Conformance, Intellectual

Property, Customs Procedures, Market Access, Business Mobility and Government

Procurement. 

SCOPE OF WORK

Asia-Pacific Economic Cooperation (APEC) works in three broad areas to meet the

Bogor Goals of free and open trade and investment in the Asia-Pacific by 2010 for

developed economies and 2020 for developing economies.

Known as APEC's 'Three Pillars', APEC focuses on three key areas:

Trade and Investment Liberalisation

Business Facilitation

Economic and Technical Cooperation

The outcomes of these three areas enable APEC Member Economies to strengthen their

economies by pooling resources within the region and achieving efficiencies. Tangible

benefits are also delivered to consumers in the APEC region through increased training

and employment opportunities, greater choices in the marketplace, cheaper goods and

services and improved access to international markets.

Trade and Investment Liberalisation

Trade and Investment Liberalisation reduces and eventually eliminates tariff and non-

tariff barriers to trade and investment. Protectionism is expensive because it raises prices

for goods and services. Thus, Trade and Investment Liberation focuses on opening

markets to increase trade and investment among economies, resulting in economic

growth for APEC Member Economies and increased standards of living for all. This goal

is also now furthered by APEC's Regional Economic Integration agenda, which includes

work on model measures for bilateral and regional trade agreements and an examination

of the prospects for a Free Trade Area of the Asia-Pacific.

Business Facilitation

Business Facilitation focuses on reducing the costs of business transactions, improving

access to trade information and aligning policy and business strategies to facilitate

growth, and free and open trade. Essentially, Business Facilitation helps importers and

exporters in Asia Pacific meet and conduct business more efficiently, thus reducing costs

of production and leading to increased trade, cheaper goods and services and more

employment opportunities due to an expanded economy. APEC's Structural

Reform agenda addresses this area: it focuses on reforming domestic policies and

institutions that adversely affect the operation of markets, and the capacity of businesses

to access markets and to operate efficiently.

Economic and Technical Cooperation (ECOTECH)

ECOTECH is dedicated to providing training and cooperation to build capacities in all

APEC Member Economies to take advantage of global trade. This area builds capacity at

the institutional and personal level to assist APEC Member Economies and its people

gain the necessary skills to meet their economic potential.

STRUCTURE

1 POLICY LEVEL

Policy Development

Asia-Pacific Economic Cooperation (APEC) policy direction is provided by the 21 APEC

Economic Leaders. Strategic recommendations provided by APEC Ministers and the

APEC Business Advisory Council are considered by APEC Economic Leaders as part of

this process. The following meetings are conducted each year, which help shape APEC's

policy direction.

APEC Economic Leaders' Meeting

APEC Economic Leaders' Meetings are held once a year in the APEC host economy.

Declarations from these meetings set the policy agenda for APEC.

APEC Ministerial Meeting

Annual APEC Ministerial Meetings of foreign and economic/trade ministers are held

immediately prior to APEC Economic Leaders' Meetings. Ministers consider the year's

activities and provide recommendations for APEC Economic Leaders' consideration.

 Sectoral Ministerial Meetings

Sectoral Ministerial Meetings are held regularly covering areas such as education,

energy, environment and sustainable development, finance, human resource

development, regional science and technology cooperation, small and medium

enterprises, telecommunications and information industry, tourism, trade, transportation

and women's affairs. Recommendations from these meetings are also provided to APEC

Economic Leaders for their consideration.

APEC Business Advisory Council (ABAC)

ABAC provides APEC Economic Leaders with a business perspective on APEC issues

through an annual meeting and a formal report. The annual report contains

recommendations to improve the business and investment environment in the APEC

region. ABAC also meets four times per year and a representative attends Ministerial

Meetings.

2 WORKING LEVEL

APEC's working level activities and projects are guided by APEC Senior Officials from

the 21 APEC Member Economies. These activities and projects are carried out by four

high level committees:

1. Committee on Trade and Investment

2. Senior Officials' Meeting Committee on Economic and Technical Cooperation

3. Economic Committee

4. Budget and Management Committee

Sub-Committees, Experts' Groups, Working Groups and Task Forces all support the

activities and projects led by these four high level committees.

Senior Officials' Meeting (SOM) 

Working under direction from APEC Ministers, Senior Officials guide the activities of

the Committees, Working Groups and Task Forces. Senior Officials develop

recommendations for APEC Ministers and APEC Economic Leaders. Senior Officials'

Meetings are held three to four times a year with the chair from the host economy.

Committees, Working Groups, SOM Task Groups 

A brief description of the Committees, Working Groups and SOM Task Groups is given

below. Additional information on the groups can be accessed via the APEC Groups link

on this page.

Committee on Trade and Investment (CTI) 

The Committee on Trade and Investment coordinates APEC's work on the liberalisation

and facilitation of trade and investment. The Committee on Trade and Investment also

works to reduce impediments to business activity through its Sub-Committees and

Experts' Groups.

SOM Committee on Economic and Technical Cooperation 

The SOM Committee on Economic and Technical Cooperation assists APEC Senior

Officials in coordinating and managing APEC's economic and technical cooperation

agenda, as well as identifying initiatives for cooperative action by member economies.

Economic Committee (EC) 

The Economic Committee (EC) has a mandate to promote structural reform within APEC

by undertaking policy analysis and action-oriented work. The EC progresses this mandate

in close coordination with other relevant APEC fora; for instance, the Competition Policy

and Law Group (CPDG) and the Finance Ministers' Process (FMP)

Budget and Management Committee (BMC) 

The Budget and Management Committee advises the SOM on budgetary, administrative

and managerial issues. It also monitors and evaluates project management aspects of the

operations of Committees and Working Groups and makes recommendations to SOM for

improved efficiency and effectiveness.

Working Groups 

Working Groups carry out APEC's work in specific sectors as directed by APEC

Economic Leaders, APEC Ministers, APEC Sectoral Ministers and Senior Officials.

There are currently 11 Working Groups.

SOM Special Task Groups/Ad-hoc Groups 

Senior Officials set Special Task Groups to identify issues and make recommendations

about important areas for APEC's consideration. Ad-hoc Groups have also been

established in APEC to provide topical and relevant information or to fulfill important

tasks not being covered by other groups.

 

ACTION PLANS

In order to meet APEC's Bogor Goals for free and open trade and investment in Asia-

Pacific, APEC Member Economies follow the strategic roadmap as agreed by APEC

Economic Leaders in Osaka, Japan. This roadmap is known as the Osaka Action Agenda.

APEC Member Economies report progress towards achieving free and open trade and

investment goals through Individual Action Plans (IAPs) and Collective Action Plans

(CAPs), submitted to APEC on an annual basis. Individual and Collective Action Plans

are available through the dedicated e-IAP website. This site provides the ability to search

individual APEC Member Economy IAPs,compare IAPs across years and view CAPs.

Osaka Action Agenda

The Osaka Action Agenda provides a framework for meeting the 'Bogor Goals' through

trade and investment liberalisation, business facilitation and sectoral activities,

underpinned by policy dialogues and economic and technical cooperation. As part of this

framework, General Principles have been defined for Member Economies as they

proceed through the APEC liberalisation and facilitation process.

The following General Principles are provided in the Osaka Action Agenda and are

applied to the entire APEC liberalisation and facilitation process -

Comprehensiveness  - addressing all impediments to achieving the long-term goal of

free and open trade.

WTO-consistency  - measures undertaken in the context of the APEC Action Agenda

are consistent with the principles of the World Trade Organization (WTO).

Comparability  - APEC Member Economies endeavor to have comparable trade and

investment liberalisation and facilitation, taking into account the general levels achieved

by each APEC economy.

Non-discrimination  - reductions in barriers to trade achieved through APEC are

available to all APEC Member Economies and non-APEC economies.

Transparency  - the laws, regulations and administrative procedures in all APEC

Member Economies which affect the flow of goods, services and capital among APEC

Member Economies are transparent.

Standstill  - APEC Member Economies do not take measures which have the effect of

increasing levels of protection.

Simultaneous start, continuous process and differentiated timetables  - APEC Member

Economies began simultaneously the process of liberalisation, facilitation and

cooperation and continuously contribute to the long-term goal of free and open trade and

investment.

Flexibility  - APEC Member Economies deal with the liberalisation and facilitation

process in a flexible manner, taking into account differing levels of economic

development.

Cooperation  - Economic and technical cooperation contributing to liberalisation and

facilitation is actively pursued.

Individual Action Plans

Every Member Economy submits annually an Individual Action Plan (IAP). This is a

record of actions taken to meet its stated goals for free and open trade and investment.

APEC Member Economies set their own timelines and goals, and undertake these actions

on a voluntary and non-binding basis.

As specified in the Osaka Action Agenda, reporting is based on 15 issue areas:

Tariffs

Non-tariff measures

Services

Investment

Standards and Conformance

Customs Procedures

Intellectual Property

Competition Policy

Government Procurement

Deregulation/Regulatory Review

WTO Obligations (inc. Rules of Origin)

Dispute Mediation

Mobility of Business People

Information Gathering and Analysis

Each year, several APEC Member Economies volunteer to have their IAPs reviewed.

Known as Peer Reviews, this process involves a formal review team considering each

volunteer economy's IAP. Experts conducting independent in-country research and

analysis and the involvement of the independent private sector body, the APEC Business

Advisory Council (ABAC) are also part of the process.

Peer Reviews are available on the e-IAP website.

Collective Action Plans

Collective Action Plans (CAPs) detail the collective actions of all APEC Member

Economies in the 15 issue areas outlined in the Osaka Action Agenda. The 15 issue areas

mirror the IAP's.

CAPs are used by APEC to outline actions and objectives to meet the free trade and

investment goals, as well as to monitor and report on progress.

APEC PROJECTS OVERVIEW

Projects are a vital part of the APEC process. They help translate APEC Ministers' and

Economic Leaders' policy directions into actions and create tangible benefits for people

living in the Asia-Pacific region. Projects assist member economies in building a

dynamic and harmonious Asia-Pacific region by championing free and open trade and

investment, promoting and accelerating regional economic integration, encouraging

economic and technical cooperation, enhancing human security, and facilitating a

favourable and sustainable business environment.  APEC contributes funding to around

100-150 projects each year, with a total value of over $23 million committed by APEC to

projects in 2010-2011. Over 1600 projects have been undertaken since 1993, when APEC

initiated project work. At any moment in time, up to 170 projects may be in

implementation, The majority of projects are focused on transferring knowledge and

skills between members and building capacity so that each economy can move closer

towards the Bogor Goals of free and open trade and investment.  APEC projects include

workshops, symposia, publications, and research. They are open to participation from all

21 member economies. As well as engaging with public and government sector

organisations in the 21 economies, external stakeholder engagement is encouraged.

APEC also works to maximise the benefits of globalisation. In particular, APEC supports

projects that: promote public health; improve the skills of workers; contribute to green

growth; reduce the risks of and improve responses to natural disasters and emergencies;

and that help small, medium and micro-sized enterprises to grow and access markets. 

APEC Project Focus and Themes

In 2010-2011, APEC approved funding for 235 projects, focusing on trade-related issues,

with particular focus on areas of relevance to APEC’s fora.

Projects cover a wide range of priority sectors. Each year APEC defines the key policy

priorities and projects aim to contribute to these directions. Please see the Funding

Criteria for APEC-Funded Projects in 2012.

In addition to cooperation for trade liberalisation, APEC also supports projects that seek

to make trade and doing business easier and more efficient such as: agreeing to common

standards for product testing and labeling, developing safer and more efficient

transportation routes, and providing information on each member's regulatory and

legislative requirements for imports and exports.

Recent themes launched as APEC projects include:

Regional economic integration: energy management standardization, intellectual

property rights, traditional knowledge protection, self-certification of origin

Green growth:  low-carbon model town , green finance , phasing out fossil fuel

subsidies, smart grids

Structural reform:  regulatory impact analysis, principals of corporate governance,

competition law and policy

Capacity building for APEC’s developing members: ship and port security, trade of

second generation biofuels, best practices for green ICT, infectious disease prevention

 

Information about individual projects can be found through the APEC Project Database. 

Development of APEC’s Projects

APEC began funding projects in 1993 with three self-funded projects. Since then, the

number of projects funded each year has increased to up to 150 per year.  Over the same

period, the funds APEC committed to projects increased from just under $1 million to

over $14 million per year, depending on members’ contributions.

To implement BMC-led project management reforms and effectively build project

management skills and knowledge among APEC members, the Secretariat established the

Project Management Unit in 2007. The PMU brings a professionalised approach to

projects and helps capacity in project management within the Secretariat and the wider

APEC community. The PMU provides specialised advice and guidance to  both internal

and external APEC stakeholders.  It provides the main link between members, Program

Directors, Program Executives and the Executive Office and the Budget Management

Committee (BMC) regarding project matters.

Multi Year Projects

In 2011 APEC launched a Multi Year Project (MYP) initiative, for ongoing, phased

projects that continue for three to five years. MYPs focus strategically on building

capacity in members so that they can take full advantage of trade opportunities.

FOOD AND SECURITY

Why food security is important to APEC

In order for the benefits of free and open trade to be experienced throughout the region,

food quality, availability and cost are critical. To this end, APEC has been a vehicle for

cooperation on food and agricultural issues and is well-positioned to address current and

emerging food security challenges in the region.

How APEC addresses food security

APEC addresses food security by promoting productivity and growth in the agricultural

sector, encouraging the development and adoption of new agricultural technologies and

enabling regional food trade:

Agricultural productivity and growth: This includes initiatives that foster

investment and finance in the agricultural sector (including micro-finance); raise

awareness of environmentally sustainable agricultural methods (including land

management, organic farming and use of advanced technologies); help economies to

learn about food storage, processing and management methods to allow more food to

reach more people without spoiling; help members to build well-functioning markets

and regulatory frameworks for sustaining robust agricultural sectors; improve

surveillance and control of pests and diseases that harm agricultural production; foster

improvements in worker health and safety, agricultural inspection and agricultural

education and training.

Food trade: This includes support for the successful conclusion of the World Trade

Organisation Doha Development Agenda negotiations; encouraging lower food

export restrictions to avoid prolonging pressure on global food prices and

discouraging agricultural investment for greater production; examining the impact of

economic liberalisation of agriculture with the goal of assisting regional economies to

better adapt and to thrive in the global marketplace for food; exchanging best

practices to develop better policies for fostering healthy agricultural sectors; helping

to ensure that food products traded in the region are safe for consumption (including

initiatives to enhance regulatory, inspection and certification systems, strengthening

of technical and human resources, encouraging adoption of international food safety

standards and promotion of regional communication on food safety).

Development and adoption of new agricultural technologies: This includes efforts

to improve farmers' income and productive capacities through agricultural technology

transfer and training (including exchange of best practices and identification of

strategies to increase fiscal returns); create an environment conducive to agricultural

research and development as well as investment in trade technology; and foster

development of agricultural biotechnology (including the development of regulatory

frameworks and strengthening public confidence in the field).

Groups through which APEC achieves these goals

APEC advances regional dialogue and cooperation on a range of food and agriculture

related issues through several groups and initiatives within the APEC structures,

including:

Agriculture Technical Cooperation Working Group: This group facilitates

cooperation to enhance agriculture's contribution to the region's economic growth and

social well-being. This is achieved through the sharing of technical expertise and

experience in issues ranging from finance and investment to pest and disease control.

High-Level Policy Dialogue on Agricultural Biotechnology: This forum brings

together representatives from public and private sectors to discuss biotechnology

policy issues and to promote the use of crops developed through biotechnology.

Sub-committee on Standards and Conformance: A subgroup of the Committee on

Trade and Investment, the SCSC is the focal point for efforts to harmonise regional

standards regarding the safety of food and consumer products. It oversees the Food

Safety Cooperation Forum which manages food safety work among various APEC

groups.

Fisheries Working Group: APEC economies account for 70 percent of global

consumption of fish products and 90 percent of global aquaculture production. The

FWG facilitates cooperation to promote the sustainability and vitality of the fishing

aquaculture industries, including the implementation of best practices and the

expansion of the seafood trade.

APEC Food System: Originally proposed by the APEC Business Advisory Council

(ABAC), this initiative seeks to establish a comprehensive strategy to address food

issues in APEC, based on principles of fostering development and growth of the rural

sector, increasing trade in agriculture and promoting the development and

dissemination of technological advances.

Policy Partnership on Food Security (PPFS): Formed in 2011 as the primary forum

for discussing issues related to food security, the partnership brings together

individuals from the private and public sector to help facilitate investment, liberalize

trade and market access and support sustainable development.

APEC CROSS-BORDER PRIVACY ENFORCEMENT ARRANGEMENT (CPEA)

"A significant step forward in Asia-Pacific privacy protection" Colin Minihan, Chair,

APEC Electronic Commerce Steering Group - Data Privacy Subgroup

The APEC Cross-border Privacy Enforcement Arrangement (CPEA) aims to:

facilitate information sharing among Privacy Enforcement Authorities (PE

Authorities) in APEC economies (which may include Privacy Commissioners'

Offices, Data Protection Authorities or Consumer Protection Authorities that enforce

Privacy Laws)

provide mechanisms to promote effective cross-border cooperation between

authorities in the enforcement of Privacy Law, including through referrals of matters

and through parallel or joint investigations or enforcement actions

encourage information sharing and cooperation on privacy investigation and

enforcement with PE Authorities outside APEC (including by ensuring that the CPEA

can work seamlessly with similar arrangements in other regions and at the global

level)

Importance of information privacy to APEC

The flow of information is fundamental to doing business in the global economy. The

ability to network, exchange ideas and share knowledge can determine a company's

likelihood of success. Conversely, the inability to conduct such interactions can seriously

impede business.

In endorsing the APEC Privacy Framework in 2004 (see link below), APEC Ministers

recognised that cooperation to balance and promote effective information privacy

protection and the free flow of information in the Asia-Pacific region is key to improving

consumer confidence and ensuring the growth of electronic commerce.

Significance of the CPEA

In 2007 a Data Privacy Pathfinder initiative was established to progress the

implementation of the APEC Privacy Framework. The Pathfinder involves multiple

projects aimed at promoting consumer trust and business confidence in cross-border data

flows. It also includes general commitments regarding the development of a Cross Border

Privacy Rules system.

The CPEA is an outcome of the Pathfinder initiative. It focuses on one of the four key

goals of the APEC Privacy Framework, namely to facilitate both domestic and

international efforts to promote and enforce information privacy protections. A volunteer

group of APEC member economies led the CPEA's development, with input from civil

society and business groups.

The CPEA aims to contribute to consumer confidence in electronic commerce involving

cross-border data flows by establishing a framework for regional cooperation in the

enforcement of Privacy Laws. In future it can also contribute to cross-border enforcement

of an APEC Cross-Border Privacy Rules system for businesses. The CPEA is therefore

an important aspect of APEC's efforts to increase cross-border trade and growth in

electronic commerce.

What the CPEA does?

The CPEA creates a framework for the voluntary sharing of information and provision of

assistance for information privacy enforcement related activities. Any PE Authority in an

APEC economy may participate. Participating PE Authorities will contact each other for

assistance or to make referrals regarding information privacy investigations and

enforcement matters that involve each other's economies.

For example, during an investigation, a PE Authority in Economy X may seek the

assistance of a PE Authority in Economy Y, if certain evidence of the alleged privacy

violation (or the entity being investigated) is located in Economy Y. In that case, the PE

Authority in Economy X may send a Request for Assistance to the point of contact in the

PE Authority in Economy Y. The PE Authority in Economy Y may then consider the

matter and provide assistance on a discretionary basis.

International cooperation

In 2007 the Organisation for Economic Cooperation and Development (OECD) adopted a

recommendation to promote cooperation between OECD member countries on

information privacy law enforcement. APEC and the OECD have begun to coordinate

their initiatives to ensure they are compatible, and to secure cooperation amongst PE

Authorities in different regions.

In the Asia-Pacific region, the Asia-Pacific Privacy Authorities (APPA) Forum helps to

form partnerships and exchange ideas about information privacy regulation, new

technologies and the management of information privacy enquiries and complaints. All

PE Authorities participating in the CPEA are eligible to become members of the APPA

Forum.

DATA PRIVACY PATHFINDER

Importance of privacy to APEC

The flow of information is fundamental to business in the global economy. The ability to

network, exchange ideas and share knowledge can determine a company's likelihood of

success. Conversely, the inability to carry out private interactions can seriously impede

business.

The APEC Privacy Framework

There is a fine line between protecting privacy and creating unnecessary barriers to the

flow of information. Recognizing this, the APEC Data Privacy Pathfinder   was

established by APEC Ministers in 2007 to achieve accountable cross-border flow of

personal information within the APEC region. This goal is to be achieved by developing

and implementing a Cross-Border Privacy Rules (CBPR) system, consistent with

the APEC Privacy Framework   which was endorsed by APEC Ministers in 2004.

Essentially, the framework:

Improves information sharing among government agencies and regulators;

Facilitates the safe transfer of information between economies;

Establishes a common set of privacy principles;

Encourages the use of electronic data as a means to enhance and expand business; and

Provides technical assistance to those economies that have yet to address privacy

from a regulatory or policy perspective.

Significance of this framework

Encouraging the flow of data ultimately benefits businesses, consumers and governments

by making transactions safer, more efficient and less costly at every level. It is therefore a

milestone in APEC's continuing efforts to facilitate free trade in the APEC region.

CLIMATE CHANGE

Why climate change is important to APEC

APEC economies account for approximately 60 percent of world energy consumption. As

the region becomes increasingly industrialized and the population shifts from rural to

urban areas, these consumption levels will continue to rise.

The use of fossil fuels to satisfy demand results in greenhouse gas emission and this

causes climate change - also known as "global warming." Climate change can cause

extreme weather conditions, damage and deplete natural resources and accelerate the

spread of disease. This impacts both individuals and economies, at large, with developing

nations experiencing the most adverse effects. In addition, climate change is believed to

contribute to the increasing number of natural disasters, about 70 percent of which occur

in the Asia-Pacific region.

The APEC commitment to climate change

In 2007, APEC Leaders proposed a regional goal to reduce energy intensity by at least 25

percent by 2030. In 2011, APEC Leaders set a higher target to reduce energy intensity by

at least 45 percent by 2035. To this end, APEC Ministers determined to improve energy

efficiency and support the use of cleaner and more efficient energy technologies by

setting individual goals and action plans; collaborating with the International Energy

Agency (IEA) to develop energy efficiency indicators; sharing information on energy

efficiency policies and measures; and encouraging APEC economies to contribute to and

utilise the APEC Energy Standards Information System (ESIS).

Economies are held accountable through the APEC Peer Review Mechanism on Energy

Efficiency. This peer review is also a vehicle for economies to share their respective

policies, experiences, information and ultimately to improve energy efficiency.

How APEC assists economies to meet their climate change goals

Many established APEC Working groups assist economies meet climate change goals:

The Energy Working Group  : informs energy policymakers, draws advice from the

business community and industry experts, and collaborates with other international

bodies, including the IEA, the Renewable Energy and Energy Efficiency Partnership

and the Energy Charter Secretariat.

The Asia-Pacific Network for Energy Technology  : enables economies to collaborate

in energy research in the region, particularly in areas such as clean fossil energy and

renewable energy resources.

The Energy Security Initiative  : comprises short-term measures and long-term policy

responses to address the challenges facing the region's energy supply.

The Environmental Goods and Services Work Programme

This year, as APEC Trade Ministers prepared for economic recovery, they recognised

climate change as "one of the biggest challenges confronting the world" and determined

to "ensure that economic growth is consistent with environmental sustainability." 

In order to support the development of the Environmental Goods and Services (EGS)

Sector and to coordinate relevant APEC projects, the EGS Work Programme comprises

four main components:

1. Developing new and better environmental goods and services through innovation,

research and development;

2. Focus efforts and investment to increase the supply of cleaner and more energy

efficient technologies;

3. Support projects that facilitate and liberalise trade in environmental goods and

services; and

4. Create incentive for the market to increase research and development and investment

in environmental goods and services.

ENERGY

Why energy is important to APEC

APEC Economies consume approximately 60 percent of the world's energy. As the

region becomes increasingly industrialized and the population shifts from rural to urban

areas, consumption will increase.

The use of fossil fuels to satisfy this demand results in greenhouse gas emission and

contributes to climate change. Climate change can cause extreme weather conditions,

damage and deplete natural resources and accelerate the spread of disease. This impacts

both individuals and economies, at large, with developing economies experiencing the

most adverse effects. In addition, climate change is believed to contribute to the

increasing number of natural disasters, about 70 percent of which occur in the Asia-

Pacific region. 

APEC's commitment to improving energy efficiency

In 2007, APEC Leaders proposed a regional goal to reduce energy intensity by at least 25

percent by 2030. In 2011, APEC Leaders set a higher target to reduce energy intensity by

at least 45 percent by 2035. To this end, APEC Ministers are determined to improve

energy efficiency and support the use of cleaner and more efficient energy technologies

by setting individual goals and action plans; collaborating with the International Energy

Agency (IEA) to develop energy efficiency indicators; sharing information on energy

efficiency policies and measures; and encouraging APEC economies to contribute to and

utilize the APEC Energy Standards Information System (ESIS).

 

How APEC assists economies to meet their energy goals

Many established APEC Working groups assist economies meet climate change goals.

The Energy Working Group: informs energy policymakers, draws advice from the

business community and industry experts, and collaborates with other international

bodies, including the IEA, the Renewable Energy and Energy Efficiency Partnership

and the Energy Charter Secretariat. The Energy Trade and Investment Task Force has

been established under the EWG to facilitate relevant cooperation in EWG.

The Asia-Pacific Network for Energy Technology: enables economies to collaborate

in energy research in the region, particularly in areas such as clean fossil energy and

renewable energy resources.

The Energy Security Initiative: comprises short-term measures and long-term policy

responses to address the challenges facing the region's energy supply.

The Joint Oil Data Initiative: is a collaborative oil information program undertaken

by APEC, OPEC, the IEA, the International Energy Forum and the UN Environment

Program.

The APEC Peer Review Mechanism on Energy Efficiency: serves as a form of

accountability while providing and opportunity for economies to share their respective

policies, experiences, information and ultimately to improve energy efficiency.

What APEC is doing right now

In November 2011, in the Honolulu Declaration – Toward a Seamless Regional

Economy, APEC Leaders determined to:  Promoting Green Growth.

 We are committed to advancing our shared green growth objectives. We can and must

address both the region’s economic and environmental challenges by speeding the

transition toward a global low-carbon economy in a way that enhances energy security

and creates new sources of economic growth and employment. 

We have advanced these objectives significantly in 2011. In 2012, economies will work

to develop an APEC list of environmental goods that directly and positively contribute to

our green growth and sustainable development objectives, on which we are resolved to

reduce by the end of 2015 our applied tariff rates to 5% or less, taking into account

economies’ economic circumstances, without prejudice to APEC economies’ positions in

the WTO. Economies will also eliminate non-tariff barriers, including local content

requirements that distort environmental goods and services trade (see Annex C). Taking

these concrete actions will help our businesses and citizens access important

environmental technologies at lower costs, which in turn will facilitate their use,

contributing significantly to APEC’s sustainable development goals. 

We will also take the following steps to promote our green growth goals:

Rationalize and phase out inefficient fossil-fuel subsidies that encourage wasteful

consumption, while recognizing the importance of providing those in need with

essential energy services, and set up a voluntary reporting mechanism on progress,

which we will review annually;

Aspire to reduce APEC's aggregate energy intensity by 45 percent by 2035;

Promote energy efficiency by taking specific steps related to transport, buildings, power

grids, jobs, knowledge sharing, and education in support of energy-smart low-carbon

communities;

Incorporate low-emissions development strategies into our economic growth plans and

leverage APEC to push forward this agenda, including through the Low-Carbon Model

Town and other projects; and

Work to implement appropriate measures to prohibit trade in illegally harvested forest

products and undertake additional activities in APEC to combat illegal logging and

associated trade.

HUMAN SECURITY

What constitutes human security?

Human security refers to phenomena such as the random devastation caused by natural

disasters, health pandemics or terrorist attacks on people or supply chains. Regardless of

genesis, when security is thrown into question, human well-being is compromised both in

the short and long-term. APEC's human security agenda deals with trans-boundary

threats to people and economies from terrorism, pandemics, natural disasters and

contamination of food supplies.

Why human security is important to APEC

APEC's agenda emphasizes the economic dimensions of human security: it recognizes

that threats may potentially undermine APEC's efforts to raise living standards and

reduce poverty in the region. APEC's agendas for human security and the economy are

complementary: human security is essential to growth and prosperity. Conversely,

economic stability enables better preparation for, more efficient responses to, and quicker

recovery after attacks or disaster.

Targeted initiatives to address issues of human security

APEC recognises that human security threats require a coordinated and integrated

response.

Emergency preparedness and recovery : As an immediate response to the 2004

Indian Ocean Tsunami and to collectively prepare for future natural disasters, Senior

Officials adopted the APEC Strategy Response to and Preparedness for Natural

Disasters and Emergencies; and subsequently established the Task Force for

Emergency Preparedness. In 2009, APEC Leaders reaffirmed the importance of

enhancing human security and reducing the threat of disruptions to business and trade

in the Asia-Pacific region. Recognizing the importance of its work, in 2010 the task

force was upgraded in status to a working group.

Counter-terrorism : In October 2001, Leaders recognised the threat of terrorism to

APEC's vision of free, open and prosperous economies and to the fundamental values

that its members hold. The combat of terrorism has since remained a priority at all

Leaders' Meetings. Resultant initiatives aim to counter terrorism and secure trade in the

APEC region, and include cooperation on maritime and port security, customs and

container security, and aviation security.

Secure Trade in the APEC Region (STAR) : This initiative aims to secure and

enhance the flow of goods and people through measures that protect cargo, ships,

international aviation and people in transit. STAR programmes are designed to include

the private sector, in recognition of the fact that the engagement and active participation

of business is fundamental to the success of APEC's secure trade agenda.

Trade Recovery Programme : This programme identifies what economies need to do,

in order to minimise disruption to trade flows in the event of a major terrorist attack on

the supply chain, and how to ensure the rapid resumption of trade following such an

attack.

Other counter-terrorism initiatives include workshops on cyber-security and terrorism,

best practices in post-blast scene management, and the development of a best practice

document aimed at upgrading the Protection of Critical Energy Infrastructure.

INCLUSIVE GROWTH

Why inclusive growth is important to APEC

There is a growing consensus among APEC economies that an inclusive growth agenda

would not only mitigate the adverse impact of the economic crisis on individuals and

families, but would shorten the economic down turn at large, strengthen recovery and put

the global economy on a more sustainable growth path in the longer term.

What is inclusive growth?

Inclusive growth is an approach to economic development that is anti-protectionist,

fuelled by market-driven growth and facilitated by government.

It is non-reactive. It does not just respond to immediate macro-economic concerns. It is a

long-term strategy, extending across sectors and strata and focuses on productive

employment rather than just income redistribution.

Ultimately, inclusive growth empowers individuals so that they are better able to reap the

benefits of globalisation and to withstand future economic shocks. It is therefore critical

to poverty reduction as well as to sustainable economic growth.

APEC commitment to inclusive growth

From the outset, as APEC Leaders established goals of free and open trade, they

recognised the need to: "...develop more effectively the human and natural resources of

the Asia-Pacific region so as to attain sustainable growth and equitable development of

APEC economies, while reducing economic disparities among them and improving the

economic and social well-being of our people."

Models for inclusive growth

Strategies for inclusive growth may be viewed as compromising two broad thrusts:

Facilitating structural reform : to make economies more resilient and adaptable to

competitive pressures; and

Strengthening social resilience : to provide security for the vulnerable while

rewarding effort.

Anticipated outcomes

Inclusive growth strategies will include investment and infrastructure that reach out to

more people; education that enables more people to enter productive employment; and

will ensure that these people can both gain a stable income and become members of the

consumer class.

These outcomes would in turn fuel recovery and create a virtuous cycle of increased

employment and higher living standards. At the same time, stronger safety nets will

reduce the need for precautionary savings and help to boost domestic demand in surplus

economies, thereby addressing macroeconomic imbalances.

REGIONAL ECONOMIC INTEGRATION AGENDA

How APEC seeks to achieve Regional Economic Integration

The Regional Economic Integration (REI) agenda is a multi-year programme for APEC's

work toward the Bogor Goals - that is, toward its goals of free and open trade and

investment.

As an ideal, APEC envisions a single, region-wide FTA. This is commonly known as the

Free Trade Area of the Asia-Pacific (FTAAP) and analysis indicates that the

establishment of such a comprehensive agreement would both benefit member economies

and stimulate world trade.

Progress toward Regional Economic Integration

The FTAAP is a long-term goal and requires extensive preparatory work. Nonetheless,

APEC has made significant progress:

Leveraging existing agreements: No less than 42 bilateral and regional free trade

agreements have already been established among APEC member economies. The idea

of enlarging, docking or merging these agreements has been considered and next steps

recommended.

Analysis: Convergences and divergences among already existing RTAs and FTAs have

been identified, a study of bilateral investment agreements has been studied in order to

develop a set of principles for future investment agreements and ideas such as the

possibility of enlarging, docking or merging existing agreements have been explored.

Establishment of Model Measures: As they negotiate their own free trade

agreements, economies refer to model measures in order to improve quality and

transparency. Fifteen such measures have been completed to date, including trade in

goods, technical barriers to trade, transparency, government procurement, cooperation,

dispute settlement, trade facilitation, electronic commerce, rules of origin and origin

procedures, sanitary and phyto-sanitary measures, environment, competition policy and

temporary entry of business persons.

Adoption of Key Performance Indicators: As per a 2007 agreement, the Trade

Facilitation Action Plan II calls for a reduction of trade transaction costs by an

additional 5 percent before 2010. The action plan recommends actions and measures to

be considered in areas of customs procedures, business mobility, standards and

conformance and electronic commerce. An assessment of the plan reveals that an

additional 5 percent reduction in business transaction costs between 2007 and 2010 has

been achieved, translating into US$58.7 billion in savings for businesses in the APEC

region.

Adoption of an Investment Facilitation Action Plan: This plan is a set of actions to

be taken by member governments, in order to attract foreign investment and to

maximise the effectiveness and efficiency of administration at all stages in the

investment cycle. Ultimately, the purpose is to maximise the benefits of investment

through transparency, simplicity and predictability.

Establishment of the APEC Policy Support Unit: The APEC Policy Support Unit

assists the implementation of regional economic integration by providing policy and

research. Currently, priority has been given to structural (behind-the-border) economic

reforms and at-the-border trade policy reforms.

SMALL AND MEDIUM ENTERPRISES

Why small and medium enterprises matter to APEC

Small and Medium Enterprises (SMEs) account for more than 90 percent of all

businesses in the APEC region and employ between 60 and 80 percent of the workforce.

Employment leads to community wealth and stability and stable, confident communities

contribute to a healthy macro-economic environment.

While APEC has always recognised the contributions of SMEs to their economies, they

presently account for only about 30 percent of exports. In fact, this year, APEC Trade

Ministers recognised that "not all segments of our societies have benefited from

economic integration" and determined to ensure "that economic growth is more inclusive

and that its benefits are spread more widely."

How APEC enables SMEs

The APEC SME Working Group (SMEWG) assists SMEs to become more competitive

while seeking to contribute to a more open trade and investment environment. The group

endorsed a strategic plan for 2013-2016 which will provide a roadmap to address critical

issues and concerns pertaining to the growth of SMEs and micro enterprises (MEs) in the

APEC region. The following are the priority areas for action:

Building Management Capability, Entrepreneurship and Innovation;

Financing; and

Business Environment, Market Access and Internationalization.

APEC Digital Opportunity e-Commerce (ADOC) centres provide information and

communication technology-related training to small and medium-sized businesses.

APEC-IBIZ centres train Small Business Counsellors in a range of personal and

professional skills so that they are able to support businesses from a broad knowledge

base.

The role of the APEC SME Working Group

The SME Working Group also serves as a vehicle through which to mainstream SME

considerations into the mandates and activities of other APEC groups. These include:

Institutional lending: SMEs traditionally face impediments in securing finance and

their situation has deteriorated with the global financial crisis. APEC hosts an annual

meeting of finance officials and private institutions which deal with SMEs, in order to

concentrate efforts to support them. 

Structural reform: Many SMEs are excluded from the global market place, unable to

accommodate the added time and cost of conducting cross-border trade. APEC

continues to implement structural reforms, aimed to improve the ease of international

business. These include simplified customs procedures, anti-corruption measures and

the protection of intellectual property to reduce risks to SMEs embarking on market

expansion.

Telecommunications infrastructure: In 1990, an average of only 0.08 percent of

those living in APEC economies used the internet. In the majority of economies, this

figure had soared to over 44 percent by 2005 and APEC Telecommunication Ministers

are now pursuing universal access to broadband internet by 2015.

STRUCTURAL REFORM

What is structural reform?

Structural policies refer to domestic policies and institutions that affect the operation of

markets and the capacity of businesses to access those markets and operate efficiently.

While APEC's economic focus has traditionally been on trade and investment

liberalisation and facilitation, "behind-the-border" policies (or "structural policies") are

now recognised as significant factors in enabling or impeding regional economic

integration. Structural policy impediments may take the shape of poorly designed

domestic regulatory systems, competition frameworks or governance structures.

How structural reform benefits APEC member economies

Experience indicates that economies addressing domestic or behind-the-border

impediments through structural reform are more resilient to economic shocks, achieve

greater macroeconomic stability, realise increased productivity; and experience higher

living standards over time.     

The role of structural reform in the APEC economic agenda

The APEC Economic Committee may be considered in terms of three main focal points.

These are: trade and investment policies, macroeconomic and financial policies and

structural policies. In fact, these three focal points are synergistic and complementary,

each reinforcing the other.

In 2004, APEC Leaders recognised the effects of behind-the-border impediments on

economic growth and adopted the Leaders' Agenda to Implement Structural Reform

Towards 2010 (LAISR 2010) which addresses five priority areas for reform:

1. Regulatory reform

2. Competition policy

3. Public sector governance

4. Corporate governance

5. Strengthening economic and legal infrastructure

Structural reform efforts to date

The first-ever Structural Reform Ministerial Meeting was held in Melbourne, Australia in

August 2008. This provided an opportunity for Ministers to share experiences on the

political challenges of structural reform, strategies to support the reform process, and

optimal institutional frameworks. Ministers endorsed a Good Practice Guide on

Regulatory Reform and initiated a process of voluntary self reviews of member

economies institutional frameworks that support structural reform. 

In 2009, APEC continued to consult with the business community to identify and address

behind-the-border barriers, build capacity for reform and ensure tangible benefits by

using international tools and benchmarks such as the World Bank Ease of Doing

Business Survey and the APEC-OECD Integrated Checklist on Regulatory Reform. 

In 2010, APEC Leaders endorsed the APEC New Strategy for Structural Reform

(ANSSR) that aims to promote balanced and sustainable growth by fostering

transparency, competition and better functioning markets in the Asia-Pacific. In addition,

this new strategy emphasizes a social dimension that includes enhancing opportunities for

women and pressing for more education and SME development. Several workshops have

been conducted in 2011 to implement ANSSR.

 

2010 marked the turning point for LAISR, as APEC took stock of the progress member

economies and the forum have made on structural reform. The 2011 APEC Economic

Policy Report reviews the progress of the LAISR initiative

Impact of APEC on Australia

The APEC summit brought not only an unprecedented number of world leaders to

Sydney; it strengthened our economy and further cemented our position in

the Asia Pacific region. Executive Director from the Australian Institute of Export, Ian

Murray looks at the major outcomes of APEC, and gives credit to the NSW Police and

DFAT task force.

For Sydney, APEC is over. The leaders have gone home, the barriers are down and the

demonstrators have moved on. While the press, including “Your ABC” seemed to focus

primarily on some mindless antics and a little pedestrian inconvenience, APEC 2007 was

an outstanding success.

Great credit should be given to Paul Keating, one of the architects of APEC, and to the

Federal and New South Wales Governments for putting on a good show and achieving

some significant outcomes.

But having 21 of the world’s top politicians in Sydney for the leaders’ conference was

just the end game. APEC 2007 ran right through the year in all states of Australia. This

included APEC ministerial meetings on minerals in Perth in February, transport in

Adelaide in March, energy in Darwin, small business in Hobart, and health in Sydney.

While trade was top of the agenda in all these discussions, specific trade issues were

addressed in July in Cairns where APEC trade ministers met and when conferences were

held on secure trade in APEC regions. These were followed by the APEC Business

Advisory Council (ABAC) meeting in Melbourne in August.

In total, 31 major meetings took place across the country resulting in a substantial

number of decisions being considered on issues affecting our region. And, most

importantly, a large number of export deals were struck in all sectors of business and in

all states of Australia. While it was the final announcements in Sydney that made the

news, these outcomes resulted from many thousands of hours of negotiation by teams

here in Australia and by other member countries. Australia’s largest single export deal

was announced, with agreement between Woodside Energy and Petro China for the

supply of liquefied natural gas to China. This 20-year deal is worth up to $45 billion in

export revenue to Australia. Another bilateral initiative was an agreement on cooperation

in the use of nuclear energy for peaceful purposes between Australia and Russia. Leaders

also agreed to address emissions reductions, making it the first time the United States,

China, and Russia have agreed to aspiration goals that include a decrease in energy

intensity of 25 percent by 2030.

One of the most important issues here is the significance of APEC to the Australian

economy. Some 50 percent of world trade is undertaken by these 21 countries. It is the

fastest growing region in the world. Moreover, it contributes 50 percent to our export

earnings and even more to total trade. Apart from the fact that hosting APEC brought an

unprecedented number of world leaders to Sydney, and some good trade deals, there was

one often overlooked benefit to Australia. It further cemented our position in the Asia

Pacific region and took us one big step forward as being seen by world leaders as part of

Asia.

And finally, who are the unsung heroes of APEC 2007? The first group has to be the

DFAT Task Force who worked tirelessly for two years to make the leaders’ meeting and

the many lead-up programs a huge success. Thanks is also due to the NSW Police who

certainly kept things under control, and the NSW DFAT team, who I understand worked

round the clock to make it all happen. Australia owes you much gratitude.

* Ian Murray is executive director of the Australian Institute of Export.

APEC Pros and Cons

Asia-Pacific economic cooperation. Pros and cons of integration Organization

Asia-Pacific Economic Cooperation (APEC) unites 21 countries. At the end of the last

century, it passed Vietnam and Peru. At the same time it was decided to "freeze" the

admission of new members for the next 10 years. The appearance of APEC in 1989,

proceeded by the establishment of the Asia-Pacific region (APR) of several associations

of economic nature. Their aim was to to establish business relations and to promote

reflection on the vast economic potential of its member countries. These associations

included Pacific Economic Cooperation Council and theEconomic Board of the Pacific.

As interdependence of countries in the region was becoming increasingly apparent and

the need to convene a new forum at the governmental level. In January 1989 the then

Minister of Australia Bob Hawke, took the initiative of convening the Ministers

representing the region's economies, with a view to creating fundamentally new

organization for economic cooperation. Offer B. Hawk was seen in the region as "an idea

whose time has come."

First meeting place in australia's capital canberra in november 1989. She was represented

by 26 ministers from 12 countries. They have worked out the basic principles

organization of APEC.

Here is what they are

1. The purpose of APEC is to support development in the region, aimed at increasing

living standards and growth of the global economy.

2. Cooperation should set the task of establishing open multilateral trading system.

3. Cooperation should be based preferably on economic rather than political or strategic

manner, so as to realize common interests and strengthen the constructive

interdependence, by encouraging the movement of goods, services, capital and

technology.

The first Forum of Ministers of APEC countries agreed to hold such meetings annually,

as well as often as possible to arrange a meeting of regional leaders for discussion at

these issues further expansion of economic cooperation. Follow annual meeting of the

Ministers of Foreign Affairs and Trade was held in Singapore, Seoul, Bangkok, Seattle,

Jakarta, Osaka, Manila. In 1997, the Ministerial Meeting conducted in Canada, in 1998, it

will be held in Malaysia.

First meeting leaders of APEC held in 1993 in the U.S. city of Seattle. In special

statement, they stressed the need to support multilateral trading system and its

willingness to continue to lower trade and investment barriers. The leaders agreed to

promote implementation in practice of a number investment principles, although not

binding.

Bogor Declaration

But especially important the next meeting of the leaders of APEC countries, happened in

November 1994 in Bogor (Indonesia). They have taken on behalf of their states the

commitment to free trade and investment regime no later than 2020 years, ie, abolition of

all restrictions in this area. As industrialization of APEC, they promised to accomplish

this task even earlier to 2010. This should be regarded now as the ultimate goal of APEC.

Currently time members of APEC are 21 countries and territories - Australia, Brunei,

Hong Kong, Canada. Chile, China, Indonesia, Japan, South Korea, Malaysia, Mexico,

New Zealand, Papua - New Guinea, Philippines, Singapore, Taiwan, Thailand, the United

States, , Vietnam, Peru. Some of these countries and territories not have initiated the

establishment of APEC, and entered into the organization a little later, in including

China, Hong Kong and Taiwan in 1991, Mexico and Papua - New Guinea - In 1993,

Chile - in 1994, , Vietnam and Peru - in 1997.drawn to attention Economic raznomernost

countries belonging to APEC. Along with great powers are present here and the country's

average level of economic development and countries with even low economic potential.

They differ also significantly in size, population density, and natural resources. These

differences have an enormous potential for mutual trade and investment. Rapidly falling

real transport and telecommunication expenditures generate new conditions for

complementarily between national farms. The fact that these various countries were able

to put a united front problem indicates their strong desire to work together to further

economic development. not ignore at the same time, and the profound differences that

exist between the these countries and hamper their cooperation.

This applies to culture, level of technology used, forms of state power and Legal

foundations - the factors that exacerbated the historical legacy of colonialism and recent

military conflicts.

purpose of APEC the time when its members have declared the Bogor Declaration on

Freedom trade and investment, is to find a compromise between approach to economic

cooperation. From the organization is required flexibility to combine the continued

relative financial and economic decline the role of the United States and Japan in the

Asia-Pacific region with a mounting the impact of the economic positions of China and

the Association of Southeast Asian Nations

(ASEAN).

Growth Development

Weight APEC in the global economy and population is very impressive. They account

almost 40 percent of the population of our planet. But even more significant role of

APEC in the world economy. In 1994 they produced 56 percent of the world product.

Great is the share of these countries in international trade. With 36.2 per cent in In 1980 it

increased in 1994 to 45 percent, largely to the sharp increase in exports of East Asia.

Over five years (until 1994 year), gross income APEC economies grew by 9.6 per cent

per year on compared with the expansion of total world exports during this period at five

percent.

Main producers not only in APEC, but throughout the world in 1994 were the USA (26.5

cent) and Japan (17 percent). China accounts for 2.5 per cent while world production

(World Bank calculations), and on this indicator was the third among APEC countries.

There are, however, other, perhaps more accurate calculations, emanating from the so-

called purchasing power parities (PPSV). Although in this case, the combined share of

APEC in world production of about the same (54 percent), and the U.S. remains a world

leader. But it different looks in this case, the situation in China, which moves to second

place, bypassing Japan. Characteristically, the Asia-Pacific includes some of the most

rapidly developing countries of the world. It especially in East Asia, economic growth

rates which last decade was approximately 8.5 percent per year. According British

magazine The Economist, the pace of development of APEC in the period annually up to

2000 will exceed 5.5 percent. There are signs that by 2020 year, their share in world

production, calculated on PPSV, approximately two third of its volume. However, it is

likely that by this time within groupings occur even greater change, as permitted the

possibility that China in the first or second decade of the next century can (according to

the criteria PPSB) to become the largest economy in the world.

Asia-Pacific countries have characterized by a high degree of interdependence. This is

one of the reasons formation of APEC as an important regional forum in the world, 73

per cent APEC trade turnover in 1995 was carried out within the organization. Economic

growth in the association and the place where the structural changes, usually aimed at

increasing regional interdependence. Among the East Asian countries, Japan is

increasingly making bet on the development of scientific research sectors, while new

industrialized countries of the region ( "Asian tigers") more intrude into the industry,

where previously dominated by Japan. China and the ASEAN countries, are less

industrialized, could become competitive suppliers of labor-intensive products. China is

now the largest in world exporter of such goods, while the "Asian tigers" have buy this

product more than it sold, Attraction direct investment from abroad is also an important

tool for cementing interdependence. APEC consists of three main party in the world of

motion Capital: U.S., Japan and China, which besides the main area of application

investment. Almost half of them come in APEC from these countries. Direct foreign

investment in the region contribute to its rapid economic growth. Estimated IBRD,

investment in East Asian countries average and relatively low development in 1993-95

accounted for 3.1 percent of their GDP, or were twice higher than in any other economic

grouping of countries in the world.

In 1993 average level of import duties amounted to APEC about 14 percent. The highest

tariff barriers erected in front agricultural and finished manufactured goods. However

further rates began to decline rapidly. In recent years, industrial products are declined in

South Korea by 62 per cent, Malaysia at 49 percent, to Philippines 36, Thailand 53, Japan

33 per cent.

Coordination efforts

Activities APEC is carried out through a series created to coordinate its of bodies. So, in

January 1993 in Singapore, was formed Secretariat, which forms a working program,

facilitates communication between members organization and provides government

contacts, business and other agencies. In the same year he established a Committee on

Trade and Investment. Its function is to organize the discussion of pressing issues and the

establishment necessary conditions for trade in the region, particularly in the areas as

standardization, collection of duties and non-tariff barriers, as well as in decision

problems associated with the scope of investment. For example, work on standardization

product is aimed at to reduce the costs of its production by alignment of standards of

member countries with international standards, mutual recognition of the requirements

for verification of products, and issuing certificates.

Established in 1994 APEC Economic Committee provides a forum for the exchange of

economic information and views on issues of economic development in the region.

Committee Administrative and Budgetary Questions has been formed to assist leading

figures in their orientation on finance and management projects related to the APEC work

program. In 1995, its budget amounted to about 2,2 million dollars.

At the annual Ministerial meetings are determined by the amount of work and funding

programs Committees and working groups. Operates 10 working groups, providing

practical cooperation in the region on matters of telecommunications, transport,

commerce, fisheries, energy, training, tourism and transfer technology.

not say that the mechanism of the APEC is well thought out. For example, it is not clear

what are the objectives was to achieve by 2020 this organization. Slogans Bogor

Declaration may be interpreted or how the pursuit of regionalism, that is, to closed

regional free trade, but with tariffs for Countries outsiders or members of the organization

as the abolition of fees in respect of other countries based on mutual distribution of the

most-favored - nation.

Already clear that the various APEC countries have different understandings of some

aspects of future. Thus, it is clear that the U.S. has consistently opposed granting

unilateral trade concessions, will stand on principle regionalism. The Canadian

government also opposes the proliferation free trade in non-organization. However, the

Asian members of APEC seriously oppose the formation of regional trade zone, which

would establish for them any restrictions.

At a meeting in summit in Osaka in 1995 was an attempt to achieve a compromise

between APEC on issues related to the process of liberalization in the Trade in November

1996 at a meeting in Manila leaders made clear plan, referred to as "action plans".

However, there was determined by the final date of cancellation fees. There was no unity

and on reducing non-tariff barriers.

Only a few countries have adopted a firm timetable to reduce their external barriers. U.S.

and Canada indicated that they liberalize trade if other nations do appropriate

concessions, and "action plan" the new Australian Government stressed that it will

continue to reduce rates after 2000 year, if other APEC countries to fulfill their own

plans.

It emphasize that the Bogor Declaration is not binding. So, Canberra a month before the

signing of the document on the establishment in the near future full freedom of trade,

reversed its recent decision to allow New Zealand to compete in the Australian domestic

routes. Soon after the meeting in Osaka in November 1995, Prime Minister of Singapore

stated that Free trade does not mean complete elimination of duties, and then Australian

Prime Minister pointed to the possibility of establishing in "Free Trade" 10-percent tariff.

In all disadvantages of APEC, of course, is the most representative of the all existing in

the Asia-Pacific Economic Organizations.

CONCLUSION AND RECOMMENDATIONS

Since the Bogor Declaration of the APEC Economic Leaders in 1994, the APEC member

economies have been working voluntarily through the process to develop the environment

for open and free investment.

The findings of this follow-up study revealed that all member economies will benefit from

investment liberalization. Those benefits would be larger for economies with steeper

investment barriers, although this is dependent on internal and external FDI stock prior to

investment liberalization.

Moreover, it is shown that the growth in FDI spurred by investment liberalization has a

complementary relationship with trade volume. Trade volume for both imports and

exports would grow as a result of investment liberalization. These results suggest that

promoting liberalization of investment will be vitally important for APEC in the years

ahead.

In this study, quantification of investment barriers was updated based on the most recent

Description of investment-area activities in the IAP of each member economy. However,

IAPs are updated and improved continually. Therefore, it is important to undertake

periodic follow-up assessments of the anticipated impact of APEC actions in terms of

evaluating the current state of investment liberalization and facilitation in the region.