Promoting supply chain connectivity – can APEC deliver?

Address to CBAFF Conference

Stephen Jacobi, Executive Director

Auckland, 10 May 2012

APEC and ABAC

• APEC stimulates economic growth and raises incomes

• ABAC advises APEC Economic Leaders and ensures the agenda makes business sense

Today’s agenda

• About APEC’s supply chain agenda

• About the role of ABAC

• About the Trans Pacific Partnership

Linking global supply to demand

• A one day loss in exports can lead to a loss in export value of 1 %

• World Bank says that improving trade-related transparency in the region could increase trade by 7.5 percent or US$148 billion

APEC supply chain agenda

• Trade Facilitation Action Plans (TFAPs) targeted a reduction in trade transaction costs by 5 % over 2 x 5 year timeframes

• Supply Chain Connectivity Initiative targets a 10% improvement in s/chain performance by 2015

APEC supply chain agenda

• APEC Single Window– 13 out of 21 economies have implemented

systems– 5 economies have systems under

development

ABAC is the voice of business

• Support regional economic integration

• Accelerate the supply chain work plan

• Assess progress

• Promote integrated supply chain and value chain framework

Primary ResourcesAN INTEGRATED REGIONAL GOODS SUPPLY CHAIN

The Pathway to MarketMarkets and Consumers

LandWaterOceans

MineralsForests

etc

AutomotiveChemicalsElectronics

PharmaceuticalFoodetc

SUPPORTED BY REGIONAL VALUE CHAIN COMPONENTS

Quality Assurance Frameworks and Regimes (e.g. food standards, PSP, mutual recognition of qualifications)

Innovation Development Frameworks (e.g. science, R&D, commercialization, multidisciplinary collaboration)

Business & Capability Development Frameworks (e.g. education, human resource development, knowledge infrastructure)

Human resources (e.g. availability, mobility, standards, immigration, social security)

“Border” Flows (e.g. customs, tax, profit repatriation, biosecurity, visas, licences and their scope of business)

Funding and Investment (e.g. venture / private / merchant / public / sovereign)

Market Access (e.g. WTO, regional and bilateral trade and investment agreements, FTAAP, commercial presence, IP)

Overarching Frameworks (e.g. regulatory coherence, transparency and efficiency, cross-border inter-operability, recognition)

Dis

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Primary ServicesAN INTEGRATED REGIONAL SERVICES SUPPLY CHAIN/NETWORK

The ‘Pathway‘ to MarketMarkets and Customers

Financialprofessional, technical

telecoms, IT, audiovisual transport/logisticsbusiness services, tourism, health,

education etc

etc

Plan

ning

Des

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Eval

uatio

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lecti

onte

am fo

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Sour

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peop

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Dia

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Imag

inati

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Cont

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outs

ourc

ing

LegalFinancial

EngineeringArchitectureAccounting

etc

ABAC is the voice of business

• Support concept of APEC Single Window Cloud– Ease of access– Flexibility– Availability– Lower cost

USC Marshall School Study

• Co-ordinate and share supply chain best practice information

• Improve data collection• Accelerate harmonization of customs requirements and

procedures• Provide leadership, governance, and oversight of

standardization initiatives• Develop APEC wide systems for ICT based systems for

sharing information• Eliminate non-tariff barriers

http://classic.marshall.usc.edu/assets/148/24584.pdf

Trans Pacific Partnership

• Nine economies

• Rules bound framework

• High quality, ambitious comprehensive FTA

• Facilitating supply chains

• Range of commitments

Untangling the noodles !

FTAAP?

Can APEC deliver?

• Only if informed and supported business!

Promoting supply chain connectivity – can APEC deliver?

Address to CBAFF Conference

Stephen Jacobi, Executive Director

Auckland, 10 May 2012