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2009/MRCWG/003

Agenda Item: 3

2009 APEC Secretariat Report on APEC Developments

Purpose: Information

Submitted by: APEC Secretariat

/ 22nd Marine Resource Conservation Working Group MeetingVancouver, Canada
1-3 June 2009

2009 APEC SECRETARIAT REPORT ON APEC DEVELOPMENTS

2009 APEC priorities

APEC 2009 is taking place amidst a challenging global economic environment. APEC economies have an important role to play at this critical juncture. To help sustain growth, APEC can provide a “stimulus package” for trade, by resisting protectionism and accelerating economic integration within the Asia-Pacific region. Singapore’s chairmanship of APEC in 2009 will pursue this goal under the theme of “Sustaining Growth, Connecting the Region”.

Ø  Resist Protectionism, Support Doha.-APEC’s top priority for 2009 is to provide impetus for the successful conclusion of the Doha Round of negotiations under the WTO.

Ø  Accelerate Regional Economic Integration.- APEC will focus on:

a.-Strengthening Trade and Investment Liberalization (At-the-border) by reducing tariffs, non-tariff barriers and other restrictions to trade and investment flows at-the-border.

b.-Improving the Ease of Doing Business (Behind-the-border) by simplifying business regulations, as part of its larger structural reform agenda.

c.-Enhancing Physical Connectivity (Across-the-border) by improving logistics and transport networks so as to enhance physical connectivity across-the-border.

Ø  Strengthen APEC.-APEC will continue to strive to be the premier forum for economic integration and cooperation within the Asia-Pacific region, as well as an effective platform for business sector engagement.

Key outcomes from SOM I

At the meeting in Singapore on 15-16 February, APEC Senior Officials took stock of measures to address the global economic crisis, reaffirmed their commitment to resist protectionist pressures and agreed initiatives to accelerate regional economic integrations. Please see various sections below for the details/highlights of these initiatives.

It is noteworthy that in the margins of this meeting, the APEC Senior Officials and APEC Senior Finance Officials met jointly for the first time in an informal dialogue to exchange views on their respective economies’ response to the global financial and economic crisis.

I - Trade and Investment Liberalization and Facilitation (TILF)

1.  World Trade Organisation-Doha Development Agenda (WTO-DDA)

APEC Leaders committed in Lima to support a prompt, ambitious and balanced conclusion to the WTO DDA negotiations. Leaders undertook to refrain with the next 12 months from raising any new barriers to investment, trade in goods and services, imposing new export restrictions, or implementing WTO inconsistent measures in all areas, including those that stimulate exports.

At SOMI, SOM agreed that the Chair, in consultation with the APEC Secretariat, would prepare a report to the Ministers Responsible for Trade (MRT) summarizing key trends and developments on trade and investment measures and their impact on the region. This report would draw on the report of the WTO Secretariat on trade-related developments which have occurred in the context of the global economic crisis and inputs from ABAC.

2.  Regional Economic Integration (REI)

In Lima, APEC Leaders welcomed the 2008 progress report from Ministers and Officials on efforts to meet the 2007 long term agenda to strengthen the regional economic integration. The report summarised steps undertaken in response to the 53 agreed actions contained in the 2007 REI report. It also highlights key areas of APEC´s work which would be advanced as part of the REI agenda in 2009. A number of the 53 agreed actions have been completed and significant progress has been made on a large portion of those items still pending.

Work on examining the options and prospects for a Free Trade Area of the Asia-Pacific (FTAAP) has been constructive and useful. This work included: compilation of a preliminary inventory of issues relevant to a possible FTAAP; completion of an initial review of existing analysis relevant to a possible FTAAP and assessment of the need for future work; and, exploration of the concepts of enlargement docking or merging of existing agreements.

At SOM1, SOM endorsed an updated REI multi-year work plan with priority work items in accelerating trade and investment liberalisation “at the border”; improving the business environment “behind the border”; and enhancing physical connectivity “across the border” and directed relevant economies, committees and sub-fora to follow up.

SOM also agreed to undertake work to accelerate trade and investment liberalisation in three ways: (i) making the Rules of Origin (ROOs) more business-friendly; (ii) identifying possible vehicles for FTAAP; and, (iii) deepening analysis on FTAAP.

With respect to improving the business environment, Senior Officials discussed the outlines of an APEC Ease of Doing Business (EoDB) Action Plan, to be submitted to the APEC Ministerial Meeting (AMM) for endorsement in November 2009. Work in area is largely undertaken in the Economic Committee (EC). (See Section III below).

On enhancing physical connectivity, Senior Officials welcomed CTI and EC’s work this year to develop a Physical Connectivity Framework for endorsement at AMM, which would cover three broad areas: (i) identifying areas affecting the movement of goods and services across the entire supply chain; (ii) recommending specific measures to enhance physical connectivity, including capacity building; and (iii) setting targets to measure improvements.

At the CTI level, the Committee agreed at CTI1 on a work plan on REI/FTAAP to take forward work on exploring modalities for an FTAAP as well as new initiatives to accelerate REI “at the border”. A CTI-MAG Trade Policy Dialogue on ROOs was held on 21 May. CTI discussed next steps on making ROOs business friendly and agreed to concentrate on simplification of documentation and procedures in terms of self-certification and implementation issues. The SCCP and MAG agreed to work together to bring the issues forward.

With respect to the 2008 Convergences/ Divergences Study of APEC FTAs, CTI agreed to update the chapters with the recently completed FTAs/RTAs as notified to the WTO by 1 Jan 2009, with a view to having further discussions on the next steps at the CTI3 TPD.

3.  Regional Trading Arrangements/Free Trade Agreements (RTAs/FTAs)

In 2008, APEC Leaders welcomed five new model measures, including a chapter on Customs Administration and Trade Facilitation developed by ABAC which CTI agreed to include as part of the package of RTAs/FTAs. This resulted in a total of 15 model measures completed. APEC Ministers urged member economies to make efforts to bridge differences and agree to the model measures on investment; anti-dumping; subsidies and countervailing measures; trade in services and labour cooperation over the course of the year. At CTI1, the Committee agreed that economies would notify the CTI Chair when they were ready to adopt the model measures as they are.

With the completion of work on model measures, CTI agreed to explore whether the model measures for trade facilitation could be expanded to provide more specificity and content. It further agreed that this work would commence with a comparative listing of the 2005 APEC model measures for trade facilitation; the ABAC model measures for trade facilitation and customs procedures; and the chapter on trade facilitation from the Canada-Costa Rica free-trade agreement.

4.  Individual Action Plans and Collective Action Plans (IAP-CAP)

In Lima in November 2008, Ministers reaffirmed the importance of APEC’s Individual Action Plans (IAPs) as a driver for reaching the Bogor Goals and commended the measures carried out by individual economies to liberalize and facilitate trade and investment. The IAP Peer Reviews for Brunei, Indonesia, Malaysia, and Thailand were held in the margins of SOM I in Singapore on 13-14 February 2009. Those for Philippines, Papua New Guinea, Russia, and Vietnam will be held in the margins of SOM II in July this year.

Collective Action Plans (CAPs) continue to frame the work plans of the CTI and its sub-fora. These CAPs are living documents and are revised and enhanced annually in response to the priorities set by Leaders and Ministers, including the call to ensure deliverables in CAPs are relevant to business. CAPs are recognised as a useful channel to implement APEC commitments on trade and investment liberalisation and facilitation (TILF), which complement the Individual Action Plans (IAPs).

5.  Investment

Investment continues to be a priority area for robust action in 2009. The Investment Facilitation Action Plan (IFAP) for 2008-2010 aims to strengthen regional economic integration; strengthen the competitiveness and sustainability of economic growth of APEC’s member economies; expand prosperity and employment opportunities in the APEC region; and make further progress toward achievement of the Bogor Goals. CTI identified three initial priority areas for implementing the IFAP: e-transparency, reducing investor risk and simplifying business regulations. CTI (FOTC) continues work to develop an implementation plan for the IFAP, including agreed Key Performance Indicators (KPIs) and reporting methodologies. In this regard, the final report of the project Establishing a Methodology and Selecting KPIs for Measuring Progress in Implementing APEC’s IFAP will be submitted to the AMM in November 2009.

IEG has also launched its initiatives to implement IFAP through its newly established Small Group. It has identified 15 specific actions, 5 under each of the three priority areas, for implementation in 2009 and 2010 and will work to address capacity building needs. IEG has recently concluded a study on Core Elements in the International Investment Agreements as well as a study on Investment at the Sub-national Level to Promote Economic Integration, which would contribute to APEC’s future work to promote investment. IEG will also continue a roundtable discussion on global financial crisis and FDI. Other initiatives made by other fora in 2008 include the LSIF’s Checklist of Enablers of Investment and the EWG’s draft Energy Trade and Investment Action Plan.

6.  Trade Facilitation

In 2008, APEC Leaders endorsed the continued process of implementation of APEC’s Second Trade Facilitation Action Plan (TFAPII) to meet the trade facilitation goal of a further 5% reduction in transaction costs by 2010. Ministers welcomed the inclusion of trade logistics issues in trade facilitation agenda and instructed officials to develop new trade facilitation and trade logistics initiatives. Ministers also instructed officials to work towards the implementation of international trade “Single Windows” across APEC using recognised international instruments and standards to enhance interoperability of trade systems.

CTI and the EC jointly held a policy dialogue on trade logistics prior to CTI1 in Feb 09 where both Committees agreed to collaborate on a Supply Chain Connectivity Initiative (SCI) that would be carried out in three steps: (i) mapping; (ii) identification of choke points within the supply chain; and (iii) prioritization of steps to be taken by APEC to address the choke points. An APEC Supply-chain Connectivity Symposium addressing these three steps was held on 16-17 May to take forward the SCI. The outcomes of the symposium would contribute to CTI’s development of its Supply-chain Connectivity Framework.

On TFAP II, CTI adopted a set of KPIs and reporting methodologies in 2008 to measure the progress of implementing the agreed actions and measures in TFAPII for implementation by sub-fora collectively. It had also agreed to work with the PSU and relevant sub-fora to re-look the KPIs and to develop a rigorous methodology by which to measure the effect of the implementing TFAP II.

7. Pathfinder Initiatives

In 2008, lead economies continued to promote increased participation in the existing TILF-related pathfinders. Membership of the Data Privacy Pathfinder expanded with China, Philippines and Singapore joining the initiative, bringing the number of participating economies to 16.

8. Capacity Building

CTI established an informal capacity building steering group (CBSG) to ensure that capacity building strategies are better integrated into the formulation of new CTI initiatives. At CTI1 in February 2009, CTI reviewed the strategy to promote capacity building in a more holistic way for CTI and its sub-fora in collaboration with the EC, SCE and BMC. As a matter of priority, CTI agreed to look into streamlining of CTI’s project ranking system, and at what the SCE, the BMC and the EC are doing to integrate capacity building needs in their work programs in accordance with their overall strategic thinking.

9. Intellectual Property Rights

In 2009, the Intellectual Property Rights Experts' Group (IPEG) is continuing its efforts to deepen the dialogue on intellectual property policy, survey and exchange information on the current status of Intellectual Property Rights (IPR) protection and administrative systems, and study measures for the effective enforcement of IPR.

The 28th IPEG meeting took place in February 2009 in Singapore. Additionally, a number of workshops have been held in 2009: “Effective Implementation of Model Guidelines on Supply Chain Integrity,” was held in Hong Kong, China in January; “From Mind to Market – The Highs and Lows of Technology Transfer” was held in February in Singapore; and "Conducting Effective IPR Public Education and Awareness (PE&A) Campaigns for Small and Medium Enterprises (SMEs)”was held in April in Melbourne, Australia.

IPEG’s 29th meeting will take place in July 2009, and feature a workshop entitled “Trading Ideas – 2009.”

10. Government Procurement

The 28th GPEG meeting was held on 15 August 2008, in Lima, Peru. The meeting was preceded by a capacity-building seminar on the Implementation of the Value for Money Non-Binding Principle (NBP) in Government Procurement from 13-14 August 2008. The meeting endorsed a project proposal on a Seminar on the APEC-wide Government Procurement Market Accessibility. The seminar is scheduled to take place in Seoul in July 2009.

11. Business Mobility

The 1st BMG meeting was held on 21-22 February. BMG goals for 2009 are: enhancing trade facilitation through implementing the agreed BMG Collective Action Plan and BMG Trade Facilitation Action Plan II (TFAP) Actions; enhancing human security by implementing agreed BMG and relevant Secure Trade in the APEC Region (STAR) initiatives and by working towards a biometric ABTC; anti-corruption and transparency – reviewing and maintaining comprehensive, up-to-date information on rules and procedures governing temporary entry, processing standards and contact points, in the on-line APEC Business Travel Handbook; and interact with the private sector – enhancing dialogue and cooperation with business, and in particular with ABAC. The meeting also agreed to enhance security features of the ABTC to make it a difficult document to fraudulently copy.

12. Market Access Group (MAG)

At MAG2 meeting held on may 20th, members encouraged liberalization of electrical products and collaboration among APEC economies and considered the issues regarding tariffs on technologicalproducts. Regarding Environmental Goods and Services (EGS), the group approved the Workshop on Trade and Environment, a Workshop on EGS and a Survey of Major Impediments to the Development of Trade in Environmental Goods. A demonstration of a mock up website consisting ofan EGS Information Exchange Tool was given by the United States. Its main purpose is to provide APEC stakeholders economies with a tool to exchange voluntary information on specific environmental goods and services.