asia pacific economic cooperation
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Report on APECTRANSCRIPT
ASIA-PACIFIC ECONOMIC COOPERATION (APEC)
Master of Commerce
(M.Com-I)
Semester I
(2012-13)
Submitted by
VARSHA CHAWLA
SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS
BANDRA (W)
MUMBAI-50
ASIA-PACIFIC ECONOMIC COOPERATION (APEC)
Master of Commerce
(M.Com-I)
Semester I
(2012-13)
Submitted
In Partial Fulfillment of the requirements
For the Award of Degree of Master of
Commerce (Part-I)
By
VARSHA CHAWLA
SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS
BANDRA (W)
MUMBAI-50
SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS
BANDRA (W)
MUMBAI-50
CERTIFICATE
(2012 – 2013)
This is to certify that VARSHA CHAWLA of M.Com (I) Semester I (2012-13)
has successfully completed the project on “ASIA-PACIFIC ECONOMIC
COOPERATION (APEC)” under the guidance of Prof. MANI IYER & Prof.
Dr. K. SHASHIKUMAR.
Date:- 03/10/2012
Place:- Mumbai
(Prof. Mrs. Megha Somani) (Dr. Ashok Vanjani)
Course Co-ordinator Principal
(Prof. Mr. MANI IYER) (Prof. Dr. K. SHASHIKUMAR)
Project Guide Project Guide
External Examiner
DECLARATION
Date: 03/10/2012
I, Miss. VARSHA CHAWLA the student of M.Com (I) Semester I (2012-13)
hereby declare that I have completed the project on “ASIA-PACIFIC
ECONOMIC COOPERATION (APEC)” successfully.
The information submitted is true and original to the best of my knowledge.
Thank you,
Yours faithfully,
VARSHA CHAWLA
ACKNOWLEDGEMENT
At the beginning, I would like to thank Almighty God for his shower of blessing.
The desire of completing this dissertation was given a way by my guides Mr.
MANI IYER & Dr. K. SHASHIKUMAR. I am very much thankful to them for
the guidance, support and for sparing their precious time from a busy and hectic
schedule.
I am thankful to Dr. ASHOK VANJANI, Principal of Smt. M.M.K. College. My
sincere thanks to Prof. MANI IYER & Prof. Dr. K. SHASHIKUMAR who
always motivated and provided a helping hand for conceiving higher education.
I would fail in my duty if I don’t thank my parents who are pillars of my life.
Finally, I would express my gratitude to all those persons who directly and
indirectly helped me in completing dissertation.
VARSHA CHAWLA
DECLARATION
Date: 03/10/2012
I the undersigned Mr. MANI IYER & Dr. K. SHASHIKUMAR, have guided
VARSHA CHAWLA for her project, she has completed the project “ASIA-
PACIFIC ECONOMIC COOPERATION (APEC)” successfully.
I hereby, declared that information provided in this project is true as per the best of
my knowledge.
Thank you,
Yours faithfully,
Mr. MANI IYER
Dr. K. SHASHIKUMAR
Asia-Pacific Economic Cooperation (APEC)
Introduction:
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries (formally
Member Economies) that seeks to promote free trade and economic cooperation throughout
the Asia-Pacific region. Established in 1989 in response to the growing interdependence of Asia-
Pacific economies and the advent of regional trade blocs in other parts of the world, initially,
with the notion to the likely dominance of the sphere of economic influences of the highly
industrialized Japan (a member of G8) in the Asia-Pacific region and for the economic interests
of Australian agricultural/raw material products to search for new buyers other than the demand-
declining European market, APEC works gradually (to include members of Newly industrialized
economy at the time, although the agenda of free trade was a sensitive issue for the developing
NIEs, and for ASEAN economies to explore new export market opportunities of the natural
resources such as natural gas and seek regional economic integration(industrial integration) by
means of foreign direct investment on the behalf of ASEAN) to raise living standards and
education levels through sustainable economic growth and to foster a sense of community and an
appreciation of shared interests among Asia-Pacific countries. Members account for
approximately 40% of the world's population, approximately 54% of the world's gross domestic
product and about 44% of world trade.
An annual APEC Economic Leaders' Meeting is attended by the heads of government of all
APEC members except Republic of China (represented under the name Chinese Taipei) by
a ministerial-level official. The location of the meeting rotates annually among the member
economies, and until 2011, a famous tradition involved the attending leaders dressing in
a national costume of the host member.
History:
In January 1989, Australian Prime Minister Bob Hawke called for more effective economic
cooperation across the Pacific Rim region. This led to the first meeting of APEC in
the Australian capital of Canberra in November, chaired by Australian Foreign Affairs
Minister Gareth Evans. Attended by political ministers from twelve countries, the meeting
concluded with commitments for future annual meetings in Singapore and South Korea.
Countries of the Association of South East Asian Nations (ASEAN) opposed the initial proposal,
instead proposing the East Asia Economic Caucus which would exclude non-Asian countries
such as the United States, Canada, Australia, and New Zealand. This plan was opposed and
strongly criticized by Japan and the United States.
The first APEC Economic Leaders' Meeting occurred in 1993 when U.S. President Bill Clinton,
after discussions with Australian Prime Minister Paul Keating, invited the heads of
government from member economies to a summit on Blake Island. He believed it would help
bring the stalled Uruguay Round of trade talks back on track. At the meeting, some leaders
called for continued reduction of barriers to trade and investment, envisioning a community in
the Asia-Pacific region that might promote prosperity through cooperation. The APEC
Secretariat, based in Singapore, was established to coordinate the activities of the organization.
During the meeting in 1994 in Bogor, Indonesia, APEC leaders adopted the Bogor Goals that
aim for free and open trade and investment in the Asia-Pacific by 2010 for industrialized
economies and by 2020 for developing economies. In 1995, APEC established a business
advisory body named the APEC Business Advisory Council (ABAC), composed of three
business executives from each member economy.
Mission Statement:
APEC is the premier Asia-Pacific economic forum. Their primary goal is to support sustainable
economic growth and prosperity in the Asia-Pacific region.
They are united in their 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 favourable and sustainable business environment. Their initiatives turn policy goals
into concrete results and agreements into tangible benefits.
Member Economies:
APEC currently has 21 members, including most countries with a coastline on the Pacific Ocean.
However, the criterion for membership is that the member is a separate economy, rather than a
state. As a result, APEC uses the term member economies rather than member countries to refer
to its members. One result of this criterion is that membership of the forum
includes Taiwan (officially the Republic of China, participating under the name "Chinese
Taipei") alongside People's Republic of China (see Cross-Strait relations), as well as Hong
Kong, which entered APEC as a British colony but it is now a Special Administrative Region of
the People's Republic of China.
Member economy (name as used in
APEC)Date of accession
Australia 6-7 Nov,1989
Brunei (Brunei Darussalam) 6-7 Nov,1989
Canada 6-7 Nov,1989
Chile 11-12 Nov,1994
China (People's Republic of China) 12-14 Nov,1991
Hong Kong (Hong Kong, China)[4] 12-14 Nov,1991
Indonesia 6-7 Nov,1989
Member economy (name as used in
APEC)Date of accession
Japan 6-7 Nov,1989
South Korea (Republic of Korea) 6-7 Nov,1989
Mexico 17-19 Nov,1993
Malaysia 6-7 Nov,1989
New Zealand 6-7 Nov,1989
Papua New Guinea 17-19 Nov,1993
Peru 14-15 Nov,1998
Philippines 6-7 Nov,1989
Russia 14-15 Nov,1998
Singapore 6-7 Nov,1989
Republic of China (Chinese Taipei)[5] 12-14 Nov,1991
Thailand 6-7 Nov,1989
Member economy (name as used in
APEC)Date of accession
United States 6-7 Nov,1989
Vietnam14-15 Nov,1998
How APEC operates:
APEC - A Multilateral Economic Forum
Asia-Pacific Economic Cooperation (APEC) operates as a cooperative, multilateral economic
and trade forum. It is the only international intergovernmental grouping in the world committed
to reducing barriers to trade and investment without requiring its members to enter into legally
binding obligations. APEC achieves its goals by promoting dialogue and arriving at decisions on
a consensus basis, giving equal weight to the views of all members.
APEC Member Economies report progress towards achieving free and open trade and
investment goals through Individual Action Plans (IAPs) and Collective Action Plans (CAPs).
Host Economy
Every year one of the 21 APEC Member Economies plays host to APEC meetings and serves as
the APEC Chair. The APEC host economy is responsible for chairing the annual Economic
Leaders' Meeting, selected Ministerial Meetings, Senior Officials Meetings, the APEC Business
Advisory Council and the APEC Study Centres Consortium. Until 2009, the host has also filled
the Executive Director position at the APEC Secretariat. From 2010, the appointment will be
made on a fixed-term basis (3 yrs) and will be open to candidates from all Member Economies.
Funding
APEC is not a donor organisation. Instead, APEC activities are centrally funded by small annual
contributions from APEC Member Economies - since 1999 these have totalled US$3.3 million
each year. From 2009 onwards, members' contribution will increase by 30% to a total of US$5
million. These contributions are used to fund a Secretariat in Singapore and various projects
which support APEC's economic and trade goals. Since 1997, Japan has provided additional
funds - between US$ 1.6 and 4.6 million annually - for projects which support APEC's trade and
investment liberalisation and facilitation goals. Projects generally -
Relate to the priorities of APEC Economic Leaders and APEC Ministers
Cover the interest of at least several APEC Member Economies
Build capacity
Improve economic efficiency, and
Encourage the participation of the business sector, non-governmental institutions and women.
APEC's Project Database contains information about all APEC projects.
APEC Member Economies also provide considerable resources to assist the operation of APEC.
These include the secondment of professional staff to the Secretariat; the hosting of meetings;
and partial or full funding of some projects.
The Budget and Management Committee (BMC) advises the Senior Officials' Meeting
(SOM) on budgetary, administrative and managerial issues. Its key responsibility is to prepare
the budget for APEC and approve and recommend APEC funding for projects.
The BMC also monitors and evaluates APEC's project management systems. It takes decisions
and makes recommendations to Senior Officials to improve project efficiency and effectiveness.
It also works closely with APEC's other Committees to ensure projects remain relevant to
APEC's core goals and objectives.
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.
Since its formation in 1989, APEC has held annual meetings with representatives from all
member economies. The first four annual meetings were attended by ministerial-level officials.
Beginning in 1993, the annual meetings are named APEC Economic Leaders' Meetings and are
attended by the heads of government from all member economies except Taiwan, which is
represented by a ministerial-level official. The annual Leaders' Meetings are not called summits.
Meeting developments
In 1997, the APEC meeting was held in Vancouver. Controversy arose after officers of
the Royal Canadian Mounted Police used pepper spray against protesters. The protesters
objected to the presence of autocratic leaders such as Indonesian president Suharto.
At the 2001 Leaders' Meeting in Shanghai, APEC leaders pushed for a new round of trade
negotiations and support for a program of trade capacity-building assistance, leading to the
launch of the Doha Development Agenda a few weeks later. The meeting also endorsed the
Shanghai Accord proposed by the United States, emphasising the implementation of open
markets, structural reform, and capacity building. As part of the accord, the meeting committed
to develop and implement APEC transparency standards, reduce trade transaction costs in the
Asia-Pacific region by 5 percent over 5 years, and pursue trade liberalization policies relating to
information technology goods and services.
In 2003, Jemaah Islamiah leader Riduan Isamuddin had planned to attack the APEC Leaders
Meeting to be held in Bangkok in October. He was captured in the city Ayutthaya, Thailand by
Thai police on August 11, 2003, before he could finish planning the attack. Chile became the
first South American nation to host the Leaders' Meeting in 2004. The agenda of that year was
focused on terrorism and commerce, small and medium enterprise development, and
contemplation of free trade agreements and regional trade agreements.
The 2005 Leaders' Meeting was held in Busan, South Korea. The meeting focused on the Doha
round of World Trade Organization (WTO) negotiations, leading up to the WTO Ministerial
Conference of 2005 held in Hong Kong in December. Weeks earlier, trade negotiations
in Paris were held between several WTO members, including the United States and
the European Union, centered on reducing agricultural trade barriers. APEC leaders at the
summit urged the European Union to agree to reduce farm subsidies. Peaceful protests against
APEC were staged in Busan, but the meeting schedule was not affected.
At the Leaders' Meeting held on November 19, 2006 in Hanoi, APEC leaders called for a new
start to global free-trade negotiations while condemning terrorism and other threats to security.
APEC also criticised North Korea for conducting a nuclear test and a missile test launch that
year, urging the country to take "concrete and effective" steps toward nuclear disarmament.
Concerns about nuclear proliferation in the region were discussed in addition to economic topics.
The United States and Russia signed an agreement as part of Russia's bid to join the World
Trade Organization.
The APEC Australia 2007 Leaders' Meeting was held in Sydney from 2–9 September 2007. The
political leaders agreed to an "aspirational goal" of a 25% reduction of energy intensity
correlative with economic development. Extreme security measures including airborne
sharpshooters and extensive steel-and-concrete barricades were deployed against anticipated
protesters and potential terrorists. However, protest activities were peaceful and the security
envelope was penetrated with ease by a spoof diplomatic motorcade manned by members of the
Australian television program The Chaser, one of whom was dressed to resemble the Al-
Qaeda leader Osama bin Laden.
The APEC USA 2011 Leaders' Meeting was held on Honolulu, Hawaii 8–13 November 2011.
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.
Competition Policy and Law Group
The implementation of competition policy and deregulation provides markets with a framework
that encourages market discipline, eliminates distortions and promotes economic efficiency.
APEC's Competition Policy and Law Group (CPLG) therefore works to promote an
understanding of regional competition laws and policies, to examine the impact on trade and
investment flows, and to identify areas for technical cooperation and capacity building among
member economies.
The CPLG, formerly known as Competition Policy and Deregulation Group, was established in
1996, when the Osaka Action Agenda (OAA) work programmes on competition policy and
deregulation were combined. In 1999 APEC Ministers endorsed the APEC Principles to
Enhance Competition and Regulatory Reform and approved a "road map" which established the
basis for subsequent work on strengthening markets in the region.
In 2008 members agreed to change the name of the group to the Competition Policy and Law
Group to reflect the fact the regulatory aspects of competition are now being discussed within
the framework of the Economic Committee (EC).
The CPLG meets once annually and its most recent meeting was held in March 2011 in
Washington DC, the United States. At CPLG meetings, member economies have the opportunity
to update other members on their respective competition policies and laws, including recent
cases. Challenges to competition policy and competition advocacy efforts are also discussed.
Members’ Dialogue on Competition Advocacy are also held where views are exchanged on
topics related to institutions, objectives and priorities; challenges and obstacles and strategies to
effective competition advocacy; use of tools developed by international organizations; and
assessment of the effectiveness of competition advocacy efforts.
Utilising the APEC-OECD Integrated Checklist on Regulatory Reform
Organised by Indonesia, this seminar explored ways to apply the "APEC-OECD Integrated
Checklist on Regulatory Reform." The Checklist provides instruction on a range of public sector
reforms that include regulations, competition policy and market openness. The seminar covered
the two core areas of regulatory reform and competition policy and law. The outcomes were
recommendations for actions that would enable APEC member economies to make better use of
the Checklist in policy harmonisation.
APEC Training Course on Competition Policy
A training course addressing selected aspects of competition policy is run by CPLG on an annual
basis. The first of these courses was held in 2005, and the fifth and last in this series was held in
August 2009. The training courses, which are aimed at contributing towards the "APEC
Principles to Enhance Competition and Regulatory Reform", provide technical cooperation and
assistance focused on building capacity, especially in developing economies. The courses are
designed to be attended by the staff of competition agencies in APEC economies.
The training courses run from 2005 to 2009 have focused on the following competition issues:
(1) Abuse of Dominant Position, Organisation and Function of Competition Agency;
(2) Regulation of Business Combination, Competition Advocacy;
(3) Competition Policy and Small and Medium Sized Enterprises (SMEs), Effective
Implementation of Competition Policy and Law;
(4) Challenges for Cartel Cases in Domestic/International Markets, Competition Policy and
Industrial Policy;
(5) Vertical Restraints and Interrelations between Competition Policy and Consumer Protection
Policy.
In 2009, the CPLG agreed to hold a series of three new training courses on competition policy
over the period of 2010 to 2012.Two training courses have been organised thus far. They
include:
APEC Training Course on Competition Advocacy, which was held in September 2010 in Viet
Nam;
APEC Training Course on Effective Mechanisms Against Cartel Offences, which was held in
Penang, Malaysia in October 2011.
The next training course, “APEC Training Course on best practices in dealing with abuse of
dominant practices in Competition Policy”, is being proposed for 2012 by Indonesia and Japan.
The Competition Policy and Law Database
This Competition Policy and Law Database is managed by Chinese Taipei and covers all APEC
member economies. The database gives effect to the Osaka Action Agenda which, inter alia,
calls on APEC economies to "gather information and promote dialogue on and study ... the
objectives, necessity, role and operation of each APEC economy's competition policy and/or
laws and administrative procedures, thereby establishing a database on competition policy.
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.
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.
Trade and investment liberalisation and facilitation are the cornerstones of APEC's mission and
activities, and the Committee on Trade and Investment (CTI) is the coordinating body for all of
APEC's work in these areas.
The CTI provides a forum for APEC's 21 member economies to deliberate trade and policy
issues. It works to reduce impediments to business activity in the areas outlined by the Osaka
Action Agenda, with the objective of helping APEC economies achieve the Bogor Goals of free
and open trade and investment.
The CTI oversees:
Eight sub-groups: Business Mobility Group (BMG), Electronic Commerce Steering Group
(ECSG), Group on Services (GOS), Intellectual Property Experts' Group (IPEG), Investment
Experts' Group (IEG), Market Access Group (MAG), Sub-Committee on Customs Procedures
(SCCP), Sub-Committee on Standards Conformance (SCSC); and
Three industry dialogues: Automotive Dialogue (AD), Chemical Dialogue (CD) and Life
Sciences Innovation Forum (LSIF).
The CTI was established in November 1993 by the Declaration of an APEC Trade and
Investment Framework. APEC Leaders and Ministers direct its work and APEC Senior Officials
provide guidance. The scope of the CTI's work was expanded and further clarified by the Osaka
Action Agenda in 1995.
Average applied tariffs in APEC economies have been reduced from 16.9 percent in 1989, when
APEC was established, to around 5.8 percent in 2010. APEC's total trade (goods and services)
has increased from US$3.1 trillion in 1989 to US$16.8 trillion in 2010. Intra-APEC merchandise
trade (exports and imports) has grown from US$1.7 trillion in 1989 to US$9.9 trillion in 2010,
accounting for 67 percent of APEC's total merchandise trade.
In 2011, the CTI focused its work around the APEC 2011 priorities of (i) strengthening regional
economic integration (REI) and expanding trade; (ii) promoting green growth; and (iii)
advancing regulatory convergence and cooperation. The 2011 CTI Annual Report to
Ministers contains an overview of CTI’s work in 2011 and outlines advances made by the
Committee to take forward its work program. Those advances and achievements include:
A set of guidelines for implementing recommendations and measures to track progress of APEC
economies towards achieving Bogor Goals in 2010;
The final assessment of the implementation of APEC’s Second Trade Facilitation Action Plan
(TFAPII) with the assistance of the Policy Support Unit, which shows that trade costs within
APEC were reduced by 5% in real terms during the 2007-2010 periods. The reduction represents
total savings for business of US$58.7 billion;
An agreement on a methodology to use internal and external indicators for measuring progress
towards the 10% improvement of supply-chain performance (i.e. improving the flow of goods
and services within the APEC region in terms of reduced time, cost and uncertainty) by 2015;
The identification of three next generation trade and investment issues: (i) facilitating global
supply chains; (ii) enhancing small and medium-sized enterprises (SMEs) participation in global
production chains; and (iii) promoting effective, non-discriminatory, and market-driven
innovation policy and the specific work to address these issues;
A proposed set of actions to address the next generation trade and investment issues of
“Enhancing SMEs participation in Global Production Chains”;
The development of a list of nine barriers that SMEs face in trading in the region, in
collaboration with the APEC SME Working Group. The CTI worked with APEC economies to
identify concrete actions to address those barriers related to trade and investment liberalization;
The identification of “interoperability standards for smart grid” as the first emerging regulatory
issue to be worked on in 2011 under the APEC Regulatory Cooperation Advancement
Mechanism on Trade Related Standards and Technical Regulations (ARCAM) and agreed on a
set of recommendations to promote interoperable standards for smart grid.
The development of two new pathfinders: Pathfinder to enhance Supply Chain Connectivity by
Establishing a Baseline De Minimis Value that seeks to exempt express and postal shipments
from customs duties or taxes and from certain entry documentation requirements for shipments
and Pathfinder on Facilitating Trade in Remanufactured Goods that ensures participating
economies do not apply measures specifically concerning used goods to remanufactured goods.
The substantive progress made in the implementation of the action plans endorsed in 2010 to
address the eight chokepoints under the Supply-Chain Connectivity (SCI) Framework as they
relate to regulatory impediments, customs inefficiencies and inadequate transport networks and
infrastructure.
The contribution to the development of a set of policies economies would adopt to promote
innovation without distorting global markets. The set of policies was adopted by APEC Leaders
and attached as Annex A to their statement in 2011.
The advancement of work on liberalizing the trade and investment in environmental goods and
services (EGS). The CTI discussed a proposal for an APEC EGS Technology Dissemination
Action Plan. The Committee also contributed to the development of Annex C of the 2011
Leaders’ Statement on Trade and Investment in Environmental Goods and Services.
Sub-Committee on Standards and Conformance
Harmonised standards and conformance procedures improve the efficiency of production and
facilitate the conduct of international trade, resulting in more rapid trade flows, reduced costs
and greater integration of production networks.
The Sub-Committee on Standards and Conformance (SCSC) was established in 1994 to help
reduce the negative effects that differing standards and conformance arrangements have on trade
and investment flows in the Asia-Pacific region. In this way, the SCSC assists the Committee on
Trade and Investment (CTI) to achieve APEC's trade and investment liberalisation and
facilitation agenda.
The SCSC also promotes open regionalism and market-driven economic interdependence by
encouraging greater alignment of APEC member economies' standards with international
standards.
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.
APEC economies engage in economic and technical co-operation to attain sustainable growth
and equitable development in the Asia-Pacific region, to reduce economic disparities among
members and to improve overall economic and social well-being.
The Senior Officials' Meeting (SOM) Steering Committee on Economic and Technical
Cooperation (SCE) coordinates and manages APEC's economic and technical cooperation
(ECOTECH) agenda, which is outlined in the Osaka Action Agenda. In 1996, an APEC
Framework for Strengthening Economic Cooperation and Development was adopted to guide
members in implementing the Osaka Action Agenda.
The objectives of the SCE are to:
Strengthen the implementation of APEC's ECOTECH activities by prioritising work based on
Leaders' and Ministers' commitments, and coordinating and providing oversight to the work of
APEC fora
Provide policy guidance on ways to contribute to APEC's ECOTECH goals
Coordinate ECOTECH objectives and priorities between the APEC Economic Leaders' Meeting
and Ministerial Meetings
In 2010, Senior Officials endorsed a new Framework to Guide ECOTECH activities to guide the
APEC-funded capacity building and all ECOTECH activities. This framework adopted a holistic
approach by:
1. Revising the APEC ECOTECH priorities
2. Introducing a uniform set of criteria for all project funding, where funding is based on the
link between proposals and APEC’s core objectives.
Within this new framework, five areas have been identified as medium-term ECOTECH
priorities:
1. Regional economic integration
2. Addressing the social dimensions of globalisation (inclusive growth)
3. Safeguarding the quality of life through sustainable growth
4. Structural reform
5. Human security
The medium-term priorities will be reviewed again by 2015.
The SCE was first established as the SOM Sub-Committee for Economic and Technical
Cooperation (ESC) in 1998. In 2002, this was elevated to the SOM Committee on Economic and
Technical Cooperation. In 2005, the ESC was strengthened and transformed into the SOM
Steering Committee on ECOTECH (SCE). In 2012, the SCE conducted an internal review of its
working mechanisms and new Terms of Reference were endorsed.
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)
As tariffs have declined in the APEC region, attention has gradually shifted to the structural and
regulatory obstacles that inhibit cross-border trade and investment by creating behind-the-border
barriers to doing business.
The Economic Committee (EC) works to remove these obstacles by promoting structural reform
within APEC. Structural reform consists of improvements made to institutional frameworks,
regulations and government policies so that the efficient functioning of markets is supported and
behind-the-border barriers are reduced.
In 2004, APEC Leaders endorsed an ambitious work programme called the Leaders' Agenda to
Implement Structural Reform 2010 (LAISR). The agenda covers five areas for structural policy
reform: regulatory reform, competition policy, public sector governance, corporate governance,
and strengthening economic and legal infrastructure.
The EC was established in 1994 and meets twice a year. The EC also works closely with other
relevant APEC fora including the Competition Policy and Law Group and the Finance Ministers'
Process.
Structural Reform Ministerial Meeting 2008
An inaugural Structural Reform Ministerial Meeting (SRMM) was held in August 2008 in
Melbourne, Australia. Ministers explored strategies for successful implementation of structural
reforms and stressed the importance of robust legislative and institutional frameworks. They also
engaged in a dialogue with business and considered the importance of structural reform to the
private sector.
Economic Committee Initiatives in 2010 and 2011
The EC undertook various activities in the areas of structural reform, including LAISR and the
APEC New Strategy on Structural Reform (ANSSR), the Ease of Doing Business (EoDB) plan
and regulatory reform, among others.
The EC had in 2009 identified five priority areas for regulatory reform in APEC economies,
namely: starting a business, getting credit, trading across borders, enforcing contracts, and
dealing with permits. These priority areas are the focus of the APEC "Ease of Doing Business
(EoDB) Action Plan," which was launched by Leaders in 2009. The Action Plan sets an APEC-
wide aspirational target to make it 25 percent cheaper, faster and easier to do business within
APEC economies by 2015, with an interim target of a 5 percent improvement by 2011. Led by
"champion economies," a number of capacity building programmes were carried out in 2010 and
2011 focusing on the necessary regulatory reforms in the five priority areas. Awareness-building
workshops (Phase I) have been conducted on each of the priority areas (see below), and current
attention is on developing more customised capacity building measures in those economies that
have sought specific assistance on their reform efforts (Phase II). The EoDB Phase I seminars
and workshops held in 2010 and 2011 included: Workshop on "Reducing Start-up and
Establishment Time of Businesses"; Workshop on “Enforcing Contracts”; Seminar on "Getting
Credit for Small and Medium Enterprises"; "Reforming the Regulatory System for Construction
Permits”; “APEC Seminar on the First Steps of Successful Reform in Doing Business”;
and “APEC Seminar on the First Steps of Successful Reform in Doing Business”.
On structural reform, a seminar on "Impacts of Structural Reform and LAISR Stocktake", was
held in Hiroshima, Japan, in February 2010, discussing three areas: first, the issue of structural
reforms in the telecommunications, transport and energy sectors in APEC; second, an
examination of the impacts of those reforms, drawing on the findings of a PSU research project;
and third, a stocktake of the progress that has been made in implementing the LAISR. Since
2011, a series of capacity building events have been held to build specific understanding of what
ANSSR will seek to accomplish, including: Symposium on APEC's New Strategy for Structural
Reform 2011 (ANSSR Symposium) in May 2011; ANSSR Residential Training on Structural
Reformin August 2011; and Workshop on Assessing Approaches to Structural Reform in
September 2011. The workshop in September 2011 was the final series of ANSSR activities held
earlier in 2011 and assisted members in their selection of assessment indicators for their
domestic ANSSR priorities.
With regard to the area of regulatory reform, an "APEC-OECD Joint Seminar on the APEC-
OECD Integrated Checklist on Regulatory Reform on Japan" was held in Hiroshima, Japan, in
February 2010. This Seminar shared the results of Japan's self-assessment under the Integrated
Checklist among the EC members and discussed the further utilisation of the Checklist to
facilitate regulatory reform in the Asia-Pacific region. Aside from Japan, the other APEC
economies to have conducted an assessment are the United States; Hong Kong, China; Chinese
Taipei; Australia; and Korea. The workshop on “Using Regulatory Impact Analysis to Improve
Transparency and Effectiveness in the Rulemaking Process” was held in Washington DC in
March 2011, focusing on how regulatory impact analysis (RIA) can be used to help develop
more effective and transparent regulations, which can also contribute to improved public
consultation in the rulemaking process.
The workshop on “Advancing Good Corporate Governance by Promoting Utilization of the
OECD Principles of Corporate Governance” was held in Washington DC in March 2011 and
discussed the 2010 APEC Economic Policy Report on Corporate Governance specific steps that
can be taken to enhance regimes for corporate governance with reference to the OECD
Principles for Corporate Governance.
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. In 2011, the BMC approved 138 projects at a total value of
US$14.5 million. These include activities which aim to promote trade facilitation; access to
finance; strengthen small, medium and micro enterprises; improve knowledge and information
sharing in areas such as climate change, agricultural productivity and energy efficiency; improve
human resource development; and promote capacity building.
A key reform progressed by the BMC in 2011 includes the commencement of more strategic,
higher value, multi-year APEC projects. Following the BMC’s approval of the policy guidelines
and templates for Multi-Year Projects (MYP) in March 2011, the pilot phase MYPs commenced
in November-December 2011 with a review of the pilot scheduled for 2013. A total of six MYP
projects have been approved in the last two project approval sessions.
The BMC also approved a range of policies and procedures relating to APEC projects in 2010
and 2011. The current edition of the Guidebook (Edition 8) incorporating these changes took
effect in June 2012. A digitized version of the new guidebook will be available in July 2012.
The BMC approved the scope, timing and approach for conducting longer term evaluations of
APEC projects to improve the existing system for tracking project progress and reporting on
project results. Work on the proposed evaluations will commence in 2012 following the
establishment of the BMC Small Working Group on Evaluations to guide this process.
Further strengthening of the capacities of the Secretariat’s Project Management Unit (PMU) is
proposed through the upgrading of the Project Database.
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.
Business Mobility Group
The mobility of business people is a key factor in the promotion of free and open trade. APEC
member economies are committed to enhancing business mobility by exchanging information on
regulatory regimes and streamlining immigration processes for business travellers and temporary
residence of business people. It is one the areas of the Osaka Action Agenda (OAA), adopted by
APEC Economic Leaders in 1995.
In response to the OAA, the Business Mobility Group (BMG) was formed in 1997 when
the APEC Business Advisory Council (ABAC) made the facilitation of business travel a priority.
Since its establishment, the group maintains close consultation with the business community,
represented by the ABAC, in the development of the APEC Business Travel Card (ABTC)
scheme and other BMG initiatives.
The recognition of the importance of mobility in the region is reiterated in the 2011 APEC
Economic Leaders’ Declaration which endorsed the APEC Travel Facilitation Initiative to
explore ways to make travel in the region faster, easier, and more secure. The BMG is dedicated
to working on initiatives that improve the efficiency and comfort of APEC business travelers,
while ensuring passenger safety and border security. In so doing, the group is to enhance
cooperation with other relevant APEC 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.
Electronic Commerce Steering Group
The amount of trade conducted electronically has grown exponentially and electronic commerce
has transformed many industry sectors and the way business is done.
The Electronic Commerce Steering Group (ECSG) promotes the development and use of
electronic commerce by creating legal, regulatory and policy environments in the APEC region
that are predictable, transparent and consistent. It performs a coordinating role for APEC e-
commerce activities, based on the principles set out in the 1998 APEC Blueprint for Action on
Electronic Commerce.
The ECSG also explores how economies may best develop legal, regulatory and policy
environments that are predictable, transparent and optimised to enable economies across all
levels of development to utilise Information and Communication Technologies (ICTs) to drive
economic growth and social development.
The ECSG recognises the importance of public-private collaboration in developing an
environment conducive to e-commerce and encourages the active participation and contribution
of the private sector to its meetings and activities. Reports presented by guest organisations to
the group, including the Global Business Dialogue on e-Society, the International Chamber of
Commerce, the Pan Asian E-Commerce Alliance, the United Nations Centre for Trade
Facilitation and Electronic Business, the Organisation for Economic Co-operation and
Development (OECD), and the Internet Society are a welcome contribution to the ECSG.
Originally established in 1999 as an APEC Senior Official's Special Task Force, the ECSG was
aligned to the Committee on Trade and Investment (CTI) in 2007. This alignment enhances the
coordinating capacity of the ECSG by ensuring a stronger focus on trade and investment issues.
Intellectual Property Rights Experts Group
Intellectual property rights (IPR) protection and enforcement is a key factor for promoting
foreign trade and investment, as well as for boosting economic development.
In recognition of its importance, IPR was included in the 1995 Osaka Action Agenda - APEC's
strategic roadmap for achieving free and open trade and investment in the region.
In 1996, the Committee on Trade and Investment (CTI) established an Intellectual Property
Rights Get-Together (IPR-GT), The aim was to ensure adequate and effective protection,
through legislative, administrative and enforcement mechanisms, of intellectual property rights
in the Asia-Pacific region based on the principles of the World Trade Organization's Agreement
on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) and other related
agreements. In 1997, the CTI made the IPR-GT an official APEC group with explicit terms of
reference, and renamed it the Intellectual Property Rights Experts' Group (IPEG).
The IPEG implements a work program which aims to:
Deepen the dialogue on intellectual property policy.
Survey and exchange information on the current status of IPR protection and administrative
systems.
Study measures for the effective enforcement of IPR.
Fully implement the TRIPS Agreement.
Facilitate technical cooperation to help economies implement TRIPS
Investment Experts' Group
Investment drives economic production, creates jobs, raises incomes, strengthens trade flows and
spreads technical knowhow and best practices. Investment is therefore integral to economic
growth and development in the Asia-Pacific region and is the driving force of growth for
developing economies.
The Investment Experts' Group (IEG) was established by the Committee on Trade and
Investment (CTI) in 1994 to develop a set of Non-Binding Investment Principles. It continues to
assist the CTI with its efforts to encourage and facilitate free and open investment in the region.
The IEG comprises experts on investment and officials responsible for investment policies in all
APEC member economies, and it creates opportunities for the private and public sectors to
exchange views on investment issues.
Market Access Group
Trade liberalisation through the elimination of tariff and non-tariff measures (NTMs) encourages
greater trade and investment flows; creates new business opportunities and jobs in the Asia-
Pacific; and contributes to APEC's goal of advancing free and open trade and investment in the
region.
Established in 1998 by the Committee for Trade and Investment (CTI), the Market Access
Group's (MAG) mandate is to advance and integrate the CTI's objectives on tariffs and NTMs.
These are two of the 15 specific areas outlined in the Osaka Action Agenda through which
APEC member economies are working to eliminate barriers to trade.
In order to involve business in its work, the MAG invites representatives from the business
community, including the APEC Business Advisory Council (ABAC), the International Centre
for Trade and Sustainable Development (ICTSD), and the World Customs Organization (WCO),
to its meetings and workshops.
The MAG also works with other APEC groups including: the Sub-Committee on Standards and
Conformance (SCSC); the Group on Services (GOS); the Energy Working Group / Expert
Group on Energy Efficiency and Conservation [on environmental goods and services (EGS)];
and the Sub-Committee on Customs Procedures (SCCP) and the Electronic Commerce Steering
Group (ECGS) [on simplifying documents and procedures relating to rules of origin].
Group on Services
The services sector generates significant employment, economic growth, trade and investment in
the Asia-Pacific region. To encourage further growth and development in this sector, APEC's
Group on Services (GOS) works on trade and investment liberalisation and facilitation (TILF)
issues related to trade in services, and coordinates APEC's work in this area. GOS works in close
collaboration with four service-related APEC Working Groups: Telecommunications and
Information; Transportation;Tourism; and Energy.
The Group on Services (GOS) was established by the Committee on Trade and Investment in
1997 to address the TILF tasks in the area of services as mandated in the Osaka Action
Agenda and instructed by APEC Leaders, Ministers, Senior Officials and the CTI.
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.
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.
More details about CAPs can be found in the Committee on Trade and Investment Annual
Report to Ministers publication, and in the APEC Groups section of this website.
Rules of Origin
Rules of Origin (ROO) are the laws and regulations used in international trade to define where a
product was made. ROO are important when implementing trade policy tools such as anti-
dumping and countervailing duties, and in the context of Regional Trade Agreements (RTAs)
and Free Trade Agreements (FTAs). Globalisation of the supply chain has, however, made it
increasingly difficult to determine where a product 'originally' comes from, since raw materials
and parts used to make finished goods are drawn from all over the world. The Committee on
Trade and Investment (CTI) has therefore agreed to work towards harmonisation of these rules
among APEC member economies.
Automotive Dialogue
The APEC Automotive Dialogue (AD) serves as a forum for APEC member economy officials
and senior industry representatives to work together to map-out strategies for increasing the
integration and development of the automotive sector within the region.
The AD was established in recognition of the crosscutting nature of the automotive industry and
of the broad benefits to many economies of trade liberalisation and facilitation in this sector. It
allows the public and private sectors to work together to improve policy development, to identify
barriers to growth and to develop effective cooperation mechanisms for APEC economies to
address and reduce impediments.
The goals of the AD are to engage participants in cooperative efforts to foster the growth and
development of the regional auto industry and to provide actionable recommendations to APEC
Trade Ministers.
The AD first met in 1999 in Indonesia and has continued to meet every year since then. Current
active members include Australia, Canada, China, Indonesia, Japan, Korea, Malaysia, Mexico,
the Philippines, Chinese Taipei, Thailand, Viet Nam and the United States.
The 16th Automotive Dialogue (AD) Meeting was held on 28-29 May 2012 in Kazan, Russia.
The AD commended the World Forum for Harmonization of Vehicle Regulations (WP.29) for
proactively pursuing the harmonization of automotive regulations for electric vehicles (EV)
before different national standards get established. It was noted that this proposal is consistent
with the recommendations made last year at both the Washington and San Francisco AD
meetings. It was proposed that more collaboration take place between the WP.29 and the AD.
In support of sustainable transportation and regulatory harmonization, the AD endorsed the
development of harmonized electric vehicle safety requirements within the context of a Global
Technical Regulation (GTR) under the 1998 agreement, with the inclusion of a harmonized plug
and communication protocol as part of the EV-GTR currently under development.
The AD members also supported the proposal that economies share information on updates to
their policies in Facilitating the Diffusion of Advanced Technology and Alternative-Fuelled
Demonstration Motor Vehicles. Further detailed discussion should be considered as a priority for
the next AD meeting.
Chemical Dialogue
The chemical industry is a cross-cutting sector that contributes to most industrial and many non-
industrial sectors - its products are widely traded across borders, and it is a key economic
building block in APEC economies.
The Chemical Dialogue (CD) serves as a forum for regulatory officials and industry
representatives to find solutions to challenges facing the chemical industry and users of
chemicals in the Asia-Pacific region. It reflects APEC members' recognition of the importance
of engaging with the private sector and building public-private sector dialogue and cooperation
for mutual benefit.
Issues addressed include chemical sector liberalisation, chemical trade facilitation and capacity
building. The CD also focuses on improving regulatory policies and practices: it seeks workable
regulatory programmes which ensure that regulatory, safety, and environmental goals can be
implemented by both governments and business.
The CD has been active in promoting implementation of the United Nation's Globally
Harmonized System of Classification and Labeling of Chemicals (GHS) by APEC member
economies. The GHS is a set of guidelines aimed at simplifying regulations and labeling
requirements, as well as improving safety and environmental protection. Over the years the CD
has conducted numerous workshops to provide economies with information on the GHS and to
build capacity to facilitate its adoption.
In 2008, APEC Ministers endorsed the report of the CD's Virtual Working Group on GHS
implementation issues entitled Developing Clarity and Consistency in the Implementation of the
Globally Harmonized System for the Classification and Labelling of Chemicals as an APEC
contribution to the UN's Strategic Approach to International Chemicals Management (SAICM).
The SAICM is a policy framework aimed at promoting chemical safety around the world and is
an initiative of the United Nations Environment Program.
APEC has also shown regional leadership by contributing the groundbreaking APEC Best
Practices for Chemical Regulation to the SAICM. The guidelines were formulated by APEC
officials and industry representatives, and endorsed by APEC Ministers.
Representatives of the CD presented the Best Practices for Chemical Regulation and the GHS
Virtual Working Group reports to the second session of the International Conference on
Chemicals Management in Geneva, Switzerland in May 2009.
The CD is also addressing APEC member economies' and regional manufacturers' concerns
about the potentially trade-distorting effects of the European Union's system of Registration,
Evaluation and Authorisation of Chemicals (REACH) legislation. The CD has undertaken to
coordinate APEC engagement with the EU on these issues, and in 2008, the CD endorsed and
transmitted to the European Commission a set of questions and letters on REACH
implementation.
Chemical Dialogue Regulators' Forum
To support and complement the work of the CD, a Chemical Dialogue Regulators' Forum has
been established with regular meetings commencing in 2009. The objectives of the Forum are to:
1. Facilitate risk reduction and the sound management of chemicals across the APEC region
and as an APEC contribution to broader SAICM implementation;
2. Share information and knowledge on chemicals management more broadly in the region
with the increased and direct involvement of regulators;
3. Bridge principles and practice - sharing tools and experience with best practices and plan
opportunities for collaboration to address common concerns; and
4. Discuss the nexus between chemicals management and competitiveness (including for small
and medium enterprises), with a view to facilitating trade while protecting human health
and the environment.
In 2012, the CD Regulators’ Forum was held in Singapore on March 30, back to back with the
OECD Clearing House on New Chemical event. The next CD Regulators’ Forum is scheduled to
be held in Jakarta, Indonesia in February 2013.
In May 2011, APEC Trade Ministers in Big Sky, Montana welcomed the continued active
commitment to regulatory cooperation for chemicals through a strategic framework that
contributes to regional economic integration and regulatory convergence, including progressing
the UN’s GHS.
The Strategic Framework contains three shared goals: (1) expand and support cooperation and
mutual recognition among chemical regulators in the region to facilitate trade; (2) enhance
understanding of the chemical industry’s role as an innovative solutions industry; and (3)
encourage chemical product stewardship, safe use and sustainability. Chemical regulators
routinely participate in the work of the Chemical Dialogue, especially through its Regulators
Forum.
The work items in the revised CD Strategic Framework and the current action items include the
following:
1. To establish multi-party virtual working group to develop concept note on conducting
Chemical Management Best Practice Seminar;
2. To involve participation of the European Chemical Agency (ECHA) in the CD meeting in
2012;
3. To establish virtual working group to develop case studies for GHS implementation for
consumer products;
4. To explore options to refine reporting template to be placed on G.R.E.A.T. website;
5. To draft concept note for industry workshop and the CD regulators’ forum and training
workshop; and
6. To encourage member economies to provide case studies for use in Rio+20 and SAICM
Life Sciences Innovation Forum
Life sciences innovation is critical to growth and socio-economic development as healthy people
produce healthy economies. Efficient and effective delivery of patient focused products and
services can improve a population's longevity, wellness, productivity and economic potential.
Established by APEC Leaders in 2002, the Life Sciences Innovation Forum (LSIF) has since
grown to become APEC's leading initiative on health and health sciences innovation.
It is a tripartite forum that engages representatives from the highest levels of government,
industry and academia to create the right policy environment for life sciences innovation. The
LSIF brings together scientific, health, trade, economic and financial considerations to address
the challenges of infectious and chronic disease and ageing populations. Guiding principles
include transparency, meaningful dialogue with stakeholders and recognition of due process.
The LSIF forum also acknowledges that capacity building is critical to successful
implementation.
In March 2011, the LSIF held its first joint meeting with the Health Working Group (HWG) in
Washington DC, the United States to explore possible cooperation areas. The second joint event
with HWG was held in St. Petersburg, Russia with the theme "Health and the Economy:
Investing in a Healthy Life Course." LSIF members acknowledged that health is an economic
asset that should be preserved and enhanced to drive sustainable growth. The cooperation with
HWG will be continued in 2013 with a joint event to be held in Indonesia.
Sub-Committee on Customs Procedures
Customs organisations implement government policies that help to facilitate trade at the border.
In an era of trade globalisation, it is important that trade is secured in an internationally
consistent manner and that customs rules and procedures are kept to a minimum to reduce trade
transaction costs.
The APEC Sub-Committee on Customs Procedures (SCCP) was established in 1994. Its main
objectives are to simplify and harmonise regional customs procedures to ensure that goods and
services move efficiently, effectively and safely through the region, and to reconcile and
facilitate border control.
The SCCP holds to the following basic guiding principles:
1. Facilitation: while ensuring proper enforcement of customs law and regulations, APEC
customs administrations should strive to improve customs clearance procedures
2. Accountability: customs administrations should be accountable for their actions through a
transparent and accessible process of administrative and/or judicial review
3. Consistency: customs law, regulations, administrative guidelines and procedures should be
applied in a uniform manner within each economy
4. Transparency: customs law, regulations, administrative guidelines and procedures should be
publicly available in a prompt and easily accessible manner
5. Simplification: customs law, regulations, administrative guidelines and procedures should
be simplified to the greatest extent possible so that customs clearance can proceed without
undue burdens.
Stakeholder Participation
Strong and vibrant economies are not built by governments alone, but by partnerships between
government and its key stakeholders including the business sector, industry, academia, policy
and research institutions, and interest groups within the community. APEC actively involves
these key stakeholders because it welcomes participation that -
Facilitates the attainment of APEC goals through appropriate partnerships
Strengthens the quality of APEC's work by drawing on relevant insight and expertise
Strengthens understanding and support for APEC's goals through openness, transparency and a
broad-based partnership that seeks multiple perspectives from the community.
In general, non-member economies, organisations, business/private sector representatives,
academic bodies and other experts may apply or be invited to APEC activities subject to
guidelines.
Business Participation
APEC fully appreciates the key role that business plays in driving economic growth and involves
the international business community at all levels of the APEC process. At the highest level,
APEC has created the APEC Business Advisory Council (ABAC). ABAC comprises up to 3
high-level business representatives from each of APEC's 21 Member Economies and it meets 4
times a year. In an annual dialogue with APEC Economic Leaders ABAC presents
recommendations to improve the business and investment environment in the APEC region and
outlines business views about priority regional issues. ABAC also has a representative at APEC
sectoral Ministerial Meetings, and advises APEC officials on business sector priorities and
concerns throughout the year.
At the working level, representatives from the private sector are invited to join APEC working
groups and expert groups. This process provides an important opportunity for industry to provide
input into various areas of APEC's ongoing work. Example of where this arrangement has been
formalised include the APEC Automotive Dialogue and the APEC Chemical Dialogue.
Academic and Research Institution Participation
Through the APEC Study Centres (ASC) Consortium, APEC Member Economies actively
engage academic and research institutions in the APEC process. Amongst a range of key
activities, the ASC Consortium facilitates cultural and intellectual exchanges in the Asia-Pacific
region and assists the APEC process by undertaking advanced, collaborative interdisciplinary
and policy-relevant research from an independent and long-term perspective. There are ASCs in
20 APEC Member Economies, comprising some 100 universities, research centres and centres of
academic excellence across the APEC region.
Academics and research institutions also participate in the working level of APEC through
meetings, seminars and other activities.
APEC Study Center Consortium
In 1993, APEC Leaders decided to establish a network of APEC Study Centres among
universities and research institutions in member economies.
Notable centers include:
Australian APEC Study Centre, Royal Melbourne Institute of Technology, Australia
Berkeley APEC Study Center, University of California, Berkeley, United States
Chinese Taipei APEC Study Center, Taiwan Institute of Economic Research, Taiwan
HKU APEC Study Center, Hong Kong University, Hong Kong, China
Kobe APEC Study Center, Kobe University, Japan
Nankai APEC Study Center, Nankai University, China
Philippine APEC Study Center Network, Philippine Institute for Development
Studies, Philippines
The Canadian APEC Study Centre, The Asia Pacific Foundation of Canada, Vancouver,
Canada
Indonesian APEC Study Centre, APEC Study Center University of Indonesia, Indonesia.
Women's Participation
APEC actively encourages and seeks the input and participation of women in the APEC process.
Currently, the Gender Focus Network Point, which comprises government representatives from
all 21 APEC Member Economies, encourages the consideration of gender issues within APEC,
provides gender-based analysis training for APEC officials, and is a resource for gender-related
information and advice for the integration of gender perspectives in APEC. APEC projects and
activities are monitored to ensure that gender issues are considered. In addition, the Women
Leaders' Network (WLN), a public-private network of women representing academia, civil
society, business and government from all APEC member economies, holds a yearly conference.
Each APEC Member Economy has a contact person that serves as the conduit for information
about the Network.
The APEC Policy Partnership on Women and the Economy (PPWE) provides a mechanism to
integrate gender considerations into APEC activities. It also provides policy advice on gender
issues and supports gender equality where relevant to the APEC process.
In 1998 APEC Leaders endorsed the recommendations of the first Ministerial Meeting on
Women in Makati City, Philippines, and this resulted in the formation of the Senior Officials'
Meeting (SOM) Ad-Hoc Advisory Group on Gender Integration (AGGI). The AGGI was tasked
to assist with the implementation of the "Framework for the Integration of Women in APEC"
within APEC groups, and to provide recommendations on gender integration. Its mandate
expired in 2002 and Ministers then endorsed the establishment of the APEC Gender Focal Point
Network (GFPN) to continue to advance the implementation of the Framework and to sustain the
AGGI's achievements in maintaining awareness on gender issues.
The PPWE was established at the second Senior Officials’ Meeting in May 2011 held at Big
Sky, Montana, the United States. It combined the former APEC Gender Focal Point Network
(GFPN) and the private sector-oriented Women’s Leadership Network (WLN) – creating a
single public-private entity to streamline and elevate the influence of women’s issues within
APEC. The PPWE effectively acts as an institutional mechanism for reporting to the SOM
Steering Committee on Economic and Technical Cooperation (SCE) on APEC gender activities
and outcomes. The broad goal of the PPWE is to provide linkages between APEC working
groups, APEC economies and the APEC Secretariat to advance the economic integration of
women in the APEC region for the benefit of all members.
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:
1. Trade and Investment Liberalisation
2. Business Facilitation
3. 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 reduce and eventually eliminate 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.
Proposed Free Trade Area of the Asia-Pacific:
APEC is considering the prospects and options for a Free Trade Area of the Asia-Pacific
(FTAAP), which would include all APEC member economies. Since 2006, the APEC Business
Advisory Council, promoting the theory that a free trade area has the best chance of converging
the member nations and ensuring stable economic growth under free trade, has lobbied for the
creation of a high-level task force to study and develop a plan for a free trade area. The proposal
for a FTAAP arose due to the lack of progress in the Doha round of World Trade
Organization negotiations, and as a way to overcome the "spaghetti bowl" effect created by
overlapping and conflicting elements of the umpteen free trade agreements—there are
approximately 60 free trade agreements, with an additional 117 in the process of negotiation
in Southeast Asia and the Asia-Pacific region. The FTAAP is more ambitious in scope than the
Doha round, which limits itself to reducing trade restrictions. The FTAAP would create a free
trade zone that would considerably expand commerce and economic growth in the region. The
economic expansion and growth in trade could exceed the expectations of other regional free
trade areas such as the ASEAN Plus Three (ASEAN + China, Japan, and South Korea). Some
criticisms include that the diversion of trade within APEC members would create trade
imbalances, market conflicts and complications with nations of other regions. The development
of the FTAAP is expected to take many years, involving essential studies, evaluations and
negotiations between member economies. It is also affected by the absence of political will and
popular agitations and lobbying against free trade in domestic politics.
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.
APEC Secretariat
The APEC Secretariat is based in Singapore and operates as the core support mechanism for the
APEC process. It provides coordination, technical and advisory support as well as information
management, communications and public outreach services.
The APEC Secretariat performs a central project management role, assisting APEC Member
Economies and APEC fora with overseeing more than 250 APEC-funded projects. APEC's
annual budget is also administered by the APEC Secretariat.
Staffing
The APEC Secretariat is headed by an Executive Director, currently Ambassador Muhamad
Noor Yacob. 2009 marks the last year when the position will be held on an annually rotating
basis by an officer of Ambassadorial rank from the host economy. From 2010 the appointment
will be made on a fixed-term basis (3 years) and is open to professional candidates from any of
APEC's 21 member economies.
The APEC Secretariat is staffed by a small team of program directors, seconded from APEC
Member Economies. In addition, professional staff fulfill specialist and support functions at the
APEC Secretariat.
ISO Certification
In 2002, the APEC Secretariat obtained ISO 9001 Quality Management Certification. This
recognises the continuous efforts made by the APEC Secretariat to provide improved
administrative and support activities. The APEC Secretariat is the first multilateral trade-related
secretariat to attain ISO certification.
APEC Secretariat 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.
Executive Director
Curriculum Vitae: Ambassador Muhamad Noor Yacob
Ambassador Muhamad Noor Yacob is the Executive Director of the APEC Secretariat based in
Singapore, the coordinating, technical and advisory body that supports sustainable economic
growth and prosperity in the Asia-Pacific region. In this role, Ambassador Noor advances
APEC’s agenda by effectively executing APEC’s work programmes as mandated by Leaders
and Ministers who meet annually. He is the first appointee to be recruited through an open
selection process and holds this appointment until December 31, 2012.
Ambassador Noor has also held several senior positions within the Malaysian public service.
Prior to taking up his current position, Ambassador Noor was Malaysia’s Permanent
Representative to the World Trade Organisation in Switzerland until 2009. He was appointed in
October 2003 and was elected Chair of the following WTO bodies:
General Council (2007) which is the highest decision-making body of the WTO
outside of the Ministerial Conference;
Dispute Settlement Body (2006); and
Negotiating Group on Trade Facilitation (2004 – 2005).
Before moving to Geneva, for two years Ambassador Noor served as Deputy Secretary General
of the Ministry of Women, Family and Community Development.
Ambassador Noor began his career in Malaysia’s Public Service at the Ministry of Plantation
Industry and Commodities in 1974. During this stint, including as Trade Commissioner in the
United Kingdom, he represented Malaysia extensively in international trade fora, including
ASEAN, the United Nations Conference on Trade and Development (UNCTAD) and various
international commodity organisations. Notably, Malaysia was then the world’s leading producer
of a number of commodities, including of rubber, tin, tropical timber, cocoa and palm oil. At the
same time, these industries then accounted for more than 60 per cent of Malaysia’s GDP, which
attests to the importance of the negotiating tasks involved.
The suspension of buffer stock operations by the International Tin Council in October 1985, in
particular, required participation in complex and intensive negotiations involving industry as
well as banks and brokers. At the same time, it provided practical exposure to public
international law and its interface with municipal commercial law and trade finance.
Ambassador Noor was honoured to have been elected:
Vice-Chairman, International Cocoa Council (1995);
Chairman, Management Board of the International Tin Research Institute (1986);
Chairman, Executive Committee, International Rubber Study Group (1985); and
Vice-Chairman, International Tin Council (1984).
In recognition of service to Malaysia, Ambassador Noor was awarded the ‘Kesatria Mangku
Negara’ in 1998 by HM the King of Malaysia, ‘Darjah Indera Mahkota Pahang’ in 2006 by
HRH the Sultan of Pahang and the Excellent Public Service Award by the Ministry of
Plantation Industry and Commodities in 1995.
Ambassador Noor graduated with honours in economics from the University of Malaya in 1974.
He took leave to seek a Master of Public Policy at the University of Wisconsin at Madison in
1981-82 and attended the Advanced Management Program at Harvard Business School in 2002.
Departments under APEC
Agricultural Technical Cooperation
Agriculture makes a substantial economic contribution to most APEC member economies, and
the issues of food security and safety are of critical importance to the region.
The objective of the Agricultural Technical Cooperation Working Group (ATCWG) is to
enhance agriculture's contribution to the region's economic growth and social well-being by
promoting agricultural technical cooperation between APEC members. The ATCWG's
objectives are to improve the capacity of agriculture and its related industries and to share
information and experiences in the areas of agriculture, biotechnology, and animal and
biogenetic resource management. Priority is given to projects and activities that build members'
capacities to increase trade in agricultural products.
This work contributes to APEC's trade facilitation agenda by reducing business transaction costs,
enhancing marketing capacity and improving the implementation of agriculture-related
provisions in free trade agreements (FTAs).
In recent years, APEC Leaders have charged the ATCWG with: strengthening food safety
standards; responding to food security challenges; promoting the development of next-
generation sustainable biofuels; enhancing agriculture's ability to adjust and mitigate the impact
of climate change; and strengthening technological cooperation in the strategic planning of
ATCWG projects. The development of capacity building programmes in these areas is now a
core ATCWG activity.
The ATCWG is composed of government officials and experts from academia.
Energy
Accounting for around 60 percent of world energy demand, the APEC region is a net energy
importer and its demand for energy is on the rise. According to the International Energy Agency
(IEA) forecasts, global energy demand would increase by 40 percent between 2007 and 2030
(World Energy Outlook 2009). These factors make energy cooperation an important agenda item
for APEC.
The Energy Working Group (EWG), launched in 1990, seeks to maximize the energy sector's
contribution to the region's economic and social well-being, while mitigating the environmental
effects of energy supply and use.
The EWG is assisted by four Expert Groups (Clean Fossil Energy, Efficiency & Conservation,
Energy Data & Analysis, New & Renewable Energy Technologies) and two Task Forces: one on
Biofuels and the other on Energy Trade and Investment (ETITF).
The ETITF was established to facilitate cooperation and promote regional energy trade and
investment liberalization, and in particular to consider climate change policies and approaches to
reducing greenhouse gas emissions which includes carbon pricing across the region.
Recognizing that business can make an important contribution to the development and
implementation of its work programme, the EWG established its own public-private sector
dialogue mechanism - the EWG Business Network (EBN)-. The EBN advises the EWG on
energy policy issues from an industry perspective and facilitates regular dialogues between
energy policy-makers and business sector representatives.
Anti-Corruption and Transparency Working Group
Corruption is a major obstacle to social and economic development and increases the cost of
doing business.
APEC Leaders acknowledged the threat that corruption poses to good governance and economic
growth in the Asia-Pacific when they met in Santiago, Chile in 2004. They agreed that APEC
economies should nurture and sustain good governance, economic development and prosperity
by working together to fight corruption and ensure transparency.
To advance this work, Leaders endorsed the Santiago Commitment to Fight Corruption and
Ensure Transparency and theAPEC Course of Action on Fighting Corruption and Ensuring
Transparency.
The following year an Anti-Corruption and Transparency Experts' Task Force (ACT) was
established. Recognizing the importance of its work, the ACT was upgraded in status to a
working group in March 2011. The purpose of the ACT is to coordinate the implementation of
the Santiago Commitment, the APEC Course of Action and the APEC Transparency Standards.
It also promotes cooperation in areas such as extradition, legal assistance and judicial/law
enforcement (especially asset forfeiture and recovery).
The ACT is open to anti-corruption experts and law enforcement officials from all interested
APEC member economies, APEC Observers (namely ASEAN, the Pacific Islands Forum, and
the Pacific Economic Cooperation Council), and representatives from the APEC Secretariat and
the APEC Business Advisory Council.
Emergency Preparedness
The Asia-Pacific region comprises 52 percent of the earth's surface area and 40 percent of the
world's population, and experiences over 70 percent of the world's natural disasters.
Disturbingly, scientists warn that the intensity and frequency of disasters in the Asia-Pacific
region will increase in the decades ahead, exacerbated by unplanned urbanisation, poor land-use
management, and climate change.
Emergency preparedness is one of the key elements of APEC's human security agenda, along
with countering terrorism and pandemics. Disasters that affect one member economy can have
significant spill-over effects in other economies.
Catastrophes in the region - such as the 2004 Indian Ocean Tsunami, the 2008 earthquake in
China's Sichuan province, the 2010 earthquake in Chile, and the 2011 earthquakes in New
Zealand and Japan - are critical reminders of the importance of APEC's emergency preparedness
work.
APEC's Emergency Preparedness Working Group (EPWG) was first established as APEC's Task
Force for Emergency Preparedness (TFEP) by APEC Senior Officials in 2005. Originally called
the Virtual Task Force for Emergency Preparedness, the TFEP carried out much of its work via
electronic communications. Pursuant to its Terms of Reference, the Task Force is mandated to
coordinate and facilitate emergency and disaster preparedness within APEC.
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 TFEP was upgraded in status to a working group.
Now the EPWG continues to play a constructive role in enabling the region to better prepare for
and respond to emergencies and disasters by helping to reduce the risk of disasters and building
business and community resilience. By sharing expertise and collaborating on emergency
preparedness issues, APEC members strengthen their capacity to mitigate emergencies and
disasters.
Health
The emergence of regional and global health epidemics - including Severe Acute Respiratory
Syndrome, avian influenza and H1N1 influenza - has highlighted the impact that threats to
public health can have on a broad range of sectors including agriculture, trade, tourism,
transportation and business. APEC's leadership in the region and its wide-ranging economic
work programmes make it uniquely suited to address the multi-sectoral impact of today's health
threats.
In October 2003 APEC established the Health Task Force (HTF) to address health-related
threats to economies' trade and security, focusing mainly on emerging infectious diseases,
including naturally occurring and man-made diseases. In 2007, as a result of a review of the
APEC fora, the HTF was upgraded in status to become the Health Working Group (HWG).
In 2010, a new Terms of Reference (TOR) for the SOM Steering Committee on Economic and
Technical Cooperation (SCE) was endorsed by APEC Senior Officials. The mandated work
areas of the HWG include:
Coordinate and supervise the HWG and provide policy guidance on the Economic and Technical
Cooperation (ECOTECH) agenda;
Assess and direct realignment of work plans of the HWG with the APEC-wide medium-term
ECOTECH Priorities and annual objectives as outlined in the ECOTECH framework;
Approve and rank all ECOTECH-related projects proposals ahead of presentation to the BMC;
Evaluate the progress of the HWG in implementing and achieving APEC's ECOTECH priorities;
Compile progress and evaluation reports of the HWG for review and report to Senior Officials;
and
Review the role and operations of the HWG, with a view to making recommendations to Senior
Officials on establishing merging, disbanding or reorienting this body.
To respond to the recommendations of the SCE, the first HWG and Life Sciences Innovation
Forum (LSIF) joint meeting was held in March 2011 in Washington DC, the United States with
a purpose of exploring possible cooperation areas. The second HWG-LSIF joint event on Health
& the Economy: “Investing in a Healthy Life Course” was held in Saint Petersburg, Russia on
June 27, 2012.
Human Resource
The goal of human resources development in APEC is to promote the well-being of all people
and achieve sustainable and inclusive economic growth in the region.
The Human Resources Development Working Group (HRDWG), established in 1990, has
played an important role in building the region’s human capacity and achieving this goal.
The HRDWG conducts work programs on education, labor and capacity building to develop
human resources. It derives its mandate from taskings from APEC Leaders and Ministers as well
as Labor and Education Ministers. The group’s mission is to share knowledge, experience, and
skills to strengthen human resource development and promote sustainable economic growth.
The HRDWG conducts its work program through three networks:
Capacity Building Network (CBN)
Education Network (EDNET)
Labour and Social Protection Network (LSPN)
The following objectives guide the three HRDWG networks in achieving the HRDWG’s
mission:
Develop 21st Century Knowledge and Skills For All
Integrate HRD into the Global Economy
Address the Social Dimensions of Globalization
Recognizing that human resources development is a cross-cutting issue, the HRDWG has been
coordinating with several APEC working groups including the Committee on Trade and
Investment (CTI), the Economic Committee (EC), the Small and Medium Enterprises Working
Group (SMEWG), the Emergency Preparedness Working Group (EPWG), and the APEC
Business Advisory Council (ABAC).
Points of collaboration include building human capital for business sectors; implementing the
APEC New Strategy for Structural Reform (ANSSR); conducting disaster reduction education;
and conducting skills mapping research exercises in the APEC region.
The HRDWG also cooperates with other international organizations such as the Organisation for
Economic Co-operation and Development (OECD) and Southeast Asian Ministers of Education
Organization (SEAMEO) in the areas of labor and social protection and foreign language
education and training.
Experts Group on Illegal Logging and Associated Trade
Forests and forest resources provide critical economic, social, and environmental benefits for
APEC economies and the world as a whole. The United Nations estimates that over 1.6 billion
people worldwide depend directly on forests for food, clothing and shelter.
Importantly, APEC economies account for approximately 53 percent of the world’s forests, 60
percent of global production of forest products, and 80 percent of global trade in forest products,
according to data provided by the UN Food and Agriculture Organization. APEC forest products
trade was valued at over $150 billion in 2010.
Forest resources are therefore important to APEC economies, businesses and citizens. Illegal
logging and associated trade, however, have brought about adverse economic, environmental,
and social impacts and is a significant problem facing the Asia-Pacific region.
In 2011, APEC Ministers Responsible for Trade directed officials to establish an experts group
in order to promote trade in legally harvested forest products, combat illegal logging and
associated trade, and build capacity. In Honolulu, Hawaii in 2011, APEC Leaders committed to
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.
Thus in 2011, the APEC Experts Group on Illegal Logging and Associated Trade was created to
enhance the efforts of member economies to take concrete steps to combat illegal logging and
associated trade, promote trade in legally harvested forest products, and support capacity
building activities in member economies.
The Experts Group directly supports the overarching goals envisaged by APEC Leaders and
Ministers. Specifically, in Yokohama, Japan in 2010, APEC Leaders pledged to seek growth that
is compatible with global efforts for protection of the environment and to transition to a green
economy. APEC Leaders further agreed to enhance cooperation to address concerns with illegal
logging and associated trade and to promote sustainable forest management and rehabilitation.
APEC Leaders reaffirmed this commitment in Vladivostok, Russia in 2012.
Industrial Science and Technology
The APEC Industrial Science and Technology Working Group (ISTWG) recognizes its critical
and strategic role in helping member economies achieve positive gains by encouraging
widespread access to, and increase in, knowledge about industrial science and technology.
The ISTWG’s objective is therefore to achieve innovative growth and to fulfill the APEC vision
for the 21st century; that is, to be a dynamic and prosperous region built on the development and
application of industrial science and technology that improves the quality of life, while
safeguarding the natural environment and achieving sustainable development.
The policy directions of ISTWG are set by APEC Economic Leaders and are guided by APEC
Ministers responsible for science and technology.
The Terms of Reference and the 2010-2015 Work Plan set out the ISTWG’s goals.
They are:
Enhanced economic growth, trade and investment opportunities in harmony with sustainable
development, through policies, innovative R&D and technologies, and knowledge sharing;
Better quality of life and a cleaner environment;
Safe and secure society, emphasizing the importance of measures for infectious diseases and
natural disasters;
Human resource capacity building;
Enhanced international science and technology networks;
Improved level of connection between research and innovation, involving and encouraging the
potential of SMEs; and
Strengthened technological cooperation and achievement of best practices in strategic planning
for IST projects and programs.
Originally the ISTWG was known as the Working Group on Expansion of Investment and
Technology Transfer, which was initiated at the APEC Ministerial Meeting in Singapore in
1990.
Ocean and Fisheries
According to Harvesting Currency - The Importance of Fisheries and Aquaculture for APEC
Economies, APEC members account for over 80 percent of global aquaculture production
and more than 65 percent of the world’s capture fisheries. the consumption of fishery products in
the APEC region is 65 percent higher than the world average. Significantly, APEC economies
represent nine of the top ten fish producers in the world.
Given these figures, APEC economies are an important voice internationally on fishery-related
issues and collectively have a significant impact on the global sustainability of fisheries and
responsible practices in the fish trade.
Healthy marine and coastal environments support marine-related industries like aquaculture
production and tourism, and the associated employment it creates contribute significantly to
economic growth, as well as to food security.
Sound environmental conservation and proper marine resources management are critical to
addressing challenges including overfishing and the loss of marine biodiversity. And this is
effectively addressed through international and regional cooperation.
Recognizing these issues, APEC established the Marine Resource Conservation Working Group
(MRCWG) in 1990 to promote initiatives to facilitate balanced and integrated domestic and
regional policies and programs leading to the sustainability of the marine and coastal
environments in the APEC region. The following year, APEC created the Fisheries Working
Group (FWG) to achieve well-managed fisheries and aquaculture to yield optimal economic
value and support of local communities and livelihoods.
In 2011, the MRCWG and the FWG jointly decided to merge and form the Ocean and Fisheries
Working Group (OFWG). This merger cultivates synergy and efficiency between the two
groups.
For over twenty years, these groups have actively implemented projects and engaged in annual
meetings and other activities. The groups’ focus was on marine pollution, including the
transportation of hazardous substances, pollution generated by land-based activities, and red tide
and toxic algae, among other issues. More recently, the focus has expanded to activities such as
illegal, unreported and unregulated (IUU) fishing and the sustainable development of
aquaculture.
In 2012 in Vladivostok, Russia, APEC Leaders reaffirmed their commitment to “Enhancing
cooperation to combat illegal, unreported and unregulated fishing and associated trade; working
towards sustainable management of marine ecosystems; improving capture fisheries
management and sustainable aquaculture practices; and facilitating sustainable, open and fair
trade in products of fisheries and aquaculture.”
Tourism
Sustainable tourism is a key economic driver for the Asia-Pacific region, creating jobs and
promoting investment and development.
To help promote growth in travel and tourism in the region, the Tourism Working Group (TWG)
was formed in 1991. It brings tourism administrators together to share information, exchange
views and develop areas of cooperation on tourism trade and policies.
The TWG's objective is to foster economic development in the Asia-Pacific region through
sustainable tourism, recognizing that: tourism is one the region's fastest growing industries and
is of significant importance to the economic development of APEC economies; tourism is
important in fostering regional understanding and cooperation; the tourism industry in member
economies is at different levels of development; and member economies share the common goal
of quality development and services.
The APEC Tourism Charter, endorsed at the 1st Tourism Ministerial Meeting in Korea in 2000,
constitutes the basis for APEC tourism cooperation. The Charter reflects a collective
commitment to improve the economic, cultural, social and environmental well-being of APEC
member economies through tourism. It establishes four key policy goals and an agreed process
for realising these aims:
Removal of impediments to tourism business and investment
Increase mobility of visitors and demand for tourism goods and services
Sustainable management of tourism outcomes and impacts
Enhance recognition and understanding of tourism as a vehicle for economic and social
development
Transportation
The efficient and safe transportation of goods and people is key to APEC's goal of free and open
trade in the Asia-Pacific region.
The Transportation Working Group (TPTWG) aims to achieve the liberalisation of
transportation services and works to enhance the safety of APEC transport systems to encourage
economic development in the Asia-Pacific region. It aims to balance security, safety and
environmental requirements with trade facilitation and its efforts are focused on: the facilitation
of domestic policy regulations; the development of intermodal supply chains and secure
transport activity; the integration of Corporate Social Responsibility; and building the capacity
of all stakeholders to help them reach the eventual goal of free and open trade. At the same time,
parallel measures are being undertaken by individual economies to strengthen the security of all
transportation modes - land, sea and air.
The TPTWG has a clearly defined set of priority action areas based on the 2006 Leaders'
Declaration, the 2007 Transportation Ministerial Meeting Statement and the TPT strategic
direction paper. In the 2007 Statement Ministers agreed to:
Aggressive road safety strategies tailored to the special circumstances of each economy.
Prioritise the harmonisation of security measures, noting that differences in security processes
across the region have implications for both passengers and industry, and in particular to work
together on mass transit security measures.
Help developing economies comply with global security requirements such as the International
Ship and Port Facility Security Code.
Develop timetables and strategies to work towards the liberalisation of air services.
Work together on a balanced package of options for addressing greenhouse gas emissions from
aviation.
Counter-Terrorism Task Force
Terrorism poses a direct threat to APEC's vision of secure, open and prosperous economies.
APEC Leaders have pledged to help secure the region's people and its economic, trade,
investment and financial systems from terrorist attack or abuse and trade-based money
laundering. Their commitments to undertake individual and joint actions to counter terrorism are
expressed in two principle statements - the 2001 APEC Leaders Statement on Counter-
Terrorismand the 2002 Statement on Fighting Terrorism and Promoting Growth - and in every
subsequent annual Leaders' Declaration.
Bearing in mind Leaders' instructions to monitor progress and build capacity in counter-
terrorism, the APEC Counter-Terrorism Task Force was established in May 2003 to:
coordinate the implementation of Leaders' Statements and commitments on fighting terrorism
and enhancing human security
assist members to identify and assess counter-terrorism needs
coordinate capacity building and technical assistance programs
cooperate with relevant international and regional organisations
facilitate cooperation between APEC fora on counter-terrorism issues.
Given the continuing threat the region faces, APEC Senior Officials have extended the CTTF
mandate for the period 2009-2010.
APEC Leaders also emphasise the important role played by the UN and its Global Counter-
Terrorism Strategy, and have stressed the need for implementation, where applicable, of UN
counter-terrorism measures and the Financial Action Task Force's (FATF) Special
Recommendations on Terrorist Financing.
Mining Task Force
The mining, mineral and metal industries are very important to APEC member economies as the
majority of global trade and investment in these commodities occurs in the APEC region. Some
APEC members are significant producers and consumers of minerals and metals, and many
APEC economies derive important economic and social benefits from the development, use and
trade of minerals and metals.
From 1996 until 2005, APEC dealt with mining issues through the Group of Experts on Mineral
and Energy Exploration and Development (GEMEED). From 2005 until 2007, mining was
considered through the Non Ferrous Metals Dialogue (NFMD).
In 2007, APEC Ministers endorsed the establishment of the Mining Task Force (MTF). The
MTF derives its mandate from priorities set by APEC Leaders and Ministers and from directions
provided by Ministers Responsible for Mining.
At the 15th APEC Economic Leaders' Meeting in Sydney in 2007, Leaders endorsed further
economic integration in the Asia-Pacific region and agreed to accelerate efforts towards this
objective by, "facilitating integration in sectors such as transportation, telecommunications,
mining and energy."
The 2007 Ministers Responsible for Mining Meeting Statement gave direction to economies and
the MTF regarding future work. Ministers agreed to APEC Mining Policy Principles, including:
Pursue policies that enhance the sustainable production, trade and consumption of minerals and
metals thereby improving the economic and social wellbeing of our people.
Foster regular exchange between member economies about experiences with regulations,
policies and practices and about significant developments in each economy's minerals and
metals sector.
Foster investment certainty in the APEC minerals sector through the pursuit of open minerals
and metals markets and the articulation of clear and predictable investment policies.
Promote cost effective, evidence based, transparent and objective-based measures which
improve the efficiency in the regulation of the minerals industry to contribute to economic,
environment and social development outcomes.
Encourage, support and promote initiatives by the minerals and metals industry and stakeholders
that contribute to national and international sustainable development goals.
Support capacity building activities for sustainable development so that all APEC Economies are
able to maximise the benefits and minimise the impacts from minerals resource development.
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.2
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 ground-breaking 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 Centres (ADOC) now operates 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
1989 - Canberra, Australia
APEC begins as an informal Ministerial-level dialogue group with 12 members.
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."
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."
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
APEC Projects:
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 on-going, 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.
Possible enlargement
India has requested membership in APEC, and received initial support from the United States,
Japan and Australia. Officials have decided not to allow India to join for various reasons.
However, the decision was made not to admit more members until 2010. Moreover, India does
not border the Pacific Ocean, which all current members do. However, India has been invited to
be an observer for the first time in November 2011.
In addition to India, Mongolia, Pakistan, Laos, Bangladesh, Costa Rica, Colombia, Panama
and Ecuador, are among a dozen countries seeking membership in APEC by 2008. Colombia
applied for APEC's membership as early as in 1995, but its bid was halted as the organization
stopped accepting new members from 1993 to 1996, and the moratorium was further prolonged
to 2007 due to the 1997 Asian Financial Crisis. Costa Rica, Colombia and Ecuador had hoped to
become members by 2010. Guam has also been actively seeking a separate membership, citing
the example of Hong Kong, but the request is opposed by the United States, which currently
represents Guam.
Criticism/ Conclusion
APEC has been criticized for failing to clearly define itself or serve a useful purpose. According
to the organization, it is "the premier forum for facilitating economic growth, cooperation, trade
and investment in the Asia-Pacific region" established to "further enhance economic growth and
prosperity for the region and to strengthen the Asia-Pacific community". However, whether it
has accomplished anything constructive remains debatable, especially from the viewpoints of
European countries that cannot take part in APEC.
Although there have been developments in enhancing trade, business, services in and between
the member economies, there is still a need for further advancement and constant research and
technological development, new policies, to maintain a certain level of economic activity
amongst the member countries.
Bibliography/ References
www.wikipedia.com
www.apec.org
Advanced Micro & Macro Economics – Michael Vaz.
Advanced Economics Part I- Andrew Benstein.