Concluding Senior Officials Meeting

17 November 2008

NationalMuseum, Lima, Peru

Plenary Session

Summary Notes

The Concluding Senior Officials Meeting for the Twentieth APEC Ministerial Meeting was convened in Lima, Peru on the 17th November 2008. Senior Officials from Australia; Brunei Darussalam; Canada; Chile; the People’s Republic of China; Hong Kong, China; Indonesia; Japan; Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; the Republic of the Philippines; Russia; Singapore; Chinese Taipei; Thailand; the United States and Vietnam participated in the meeting. The Chairs of the Committee on Trade and Investment (CTI), SOM Steering Committee on ECOTECH (SCE), the Budget and Management Committee (BMC) and the ABAC Chair attended the meeting. The APEC Secretariat; PECC and ASEAN Representatives were in attendance.

I.Opening Remarks by SOM Chair

SOM Chair noted the various issues included in the agenda as well as the intention to expedite the meeting this morning.

II.Adoption of the Agenda

The agenda was endorsed without amendments

III.Trade and Investment Liberalisation and Facilitation

Global Economic Issues/Doha Round

SOM thanked Australia and Korea for their updates on developments in Geneva on the DDA and G20 discussions in WashingtonDC.

Progress Report to Leaders on the Regional Economic Integration Agenda

The SOM approved the Progress Report to Leaders on Regional Economic Integration Agenda (2008/CSOM/025) and thanked all economies for their inputs and comments.

Committee on Trade and Investment (CTI)

The CTI Chair provided an overview of the 2008 CTI Annual Report to Ministers covering the year’s activities and accomplishments of the Committee and its sub-fora. (2008/CSOM/022). She reported that work on the six remaining sets of model measures was continuing. The SOM Chair encouraged all coordinating/proposing economies to make best efforts to conclude those model measures for submission to Ministers.

The CTI Chair highlighted the closer collaboration between CTI and EC as well as CTI and ABAC during the year and noted that the CTI and EC have identified (i) trade logistics, (ii) IFAP; and (iii) capacity building as areas for collaboration in 2009, starting with a TPD on trade logistics at CTI1.

Japan updated the meeting on the progress in two IPR related initiatives, Cooperation Initiative on Patent Acquisition and APEC Anti-Counterfeiting and Piracy Initiative.

SOM approved the 2008 CTI Annual Report to Ministers and its recommendations as well as the associated papers to be submitted to Ministers, including:

  • Report of the 6th Life Sciences Innovation Forum (2008/CSOM/009)
  • Study on Identifying Convergences and Divergences in APEC RTAs/FTAs (2008/CSOM/016 rev 1).

IAP Peer Review and 2008 IAPs

SOM approved the SOM Chair’s Report on 2008 IAP Improvements for submission to Ministers for information (2008/CSOM/015) and the List of Experts for IAP Peer Review (2008/CSOM014).

IV.Anti-Corruption and Transparency

ACT Chair briefed SOM on the ACT outcomes for this year and presented the annual report on the main ACT deliverables. He noted that since 2004 economies attached great importance to the anticorruption agenda and agreed to develop a course of action against it. In 2008 Senior Officials renewed the task force’s mandate for three more years. As part of its 2008 workplan, ACT endorsed three main outcomes:

  • The Lima Anti-Corruption Declaration on Financial Markets Integrity. It includes comprehensive anticorruption strategies including efforts to restore public trust, ensure government and market integrity and protect against the abuse of our financial system through financial intelligence and law enforcement cooperation.
  • The Guidelines on Private-Public Actions against Corruption (ANNEX 2). The guidelines are meant to promote the establishment and development of private sector participation within economies to strengthen their anti-corruption systems and service efficiency and transparency in the public administration, through the identification of anti-corruption priorities in administrative reform policies. It also stresses the importance of government participation in promoting best practices for entrepreneurial ethics.
  • Implementation of the Code of Conducts for Business. ACT approved Australia’s proposal for implementing a Code of Conduct for business that Chile and Vietnam volunteered to implement.

The Task force also requested SOM to endorse the outcomes of the ACT seminar on Special International Cooperation to Facilitate Asset Recovery held in Lima and the outcomes of the Vietnam Workshop on Anticorruption and Administrative Reform held in Hanoi.

ACT Chair requested that ACT outcomes be reflected in the AMM and AELM statement.

Russia intends to prepare a document next year on best practices to promote international cooperation. Thailand commended the work of the ACT and the progress report and highlighted the importance of including financial crimes in the scope of the ACT’s work and encourages cooperation with related international organizations.

Indonesia highlighted the importance of going forward in the implementation of the code of conduct for business including good corporate governance principles.

As incoming Chair of the Task Force, Singapore will address governance issues and monitor the implementation of the code of conduct for public and private officials. Singapore also will stress the importance of administrative reform as part of the efforts to reduce corruption and it will explore the relation between the improvement of public services and the reduction of corruption.

SOM endorsed the 2008 deliverables report(2008/CSOM/006) including:

  • The Lima Anti-Corruption Declaration on Financial Markets Integrity,
  • The Guidelines on Private-Public Actions against Corruption,
  • The implementation plan of the Code of Conduct for Business,
  • The outcomes and recommendations of the workshop on Anticorruption and Administrative Reform held in Vietnam and the seminar on Special International Cooperation to Facilitate Asset Recovery held in Lima.

V.Economic and Technical Cooperation (ECOTECH)

The Chair of SOM Steering Committee on ECOTECH (SCE) briefed the meeting on the 2008 SOM Report on ECOTECH (2008/CSOM/005). The highlights of the report include progress in reforming and strengthening the SCE policy role, the strategy on enhancing APEC’s cooperation with multinational organisations, the exploration of new ways of capacity building, the implementation of the independent assessment program and achievements made by SCE fora during the year 2008. In order to develop a forward-looking, longer-term workplan on capacity-building, SCE is undertaking a stock-take of capacity building activities undertaken by its fora. To complement this exercise, the SCE will also develop a framework to guide ECOTECH activities. SCE will streamline its number of meetings to two which are to take place at SOM1 and SOM2 in 2009.

SOM approved the 2008 SOM Report on ECOTECH presented by the SCE Chair and endorsed the strategies for enhancing APEC’s engagement with multilateral organisations. SOM also welcomed (1) the progress of work on reforming SCE’s Policy Agenda and encouraged economies to actively participate in this process; and welcomed Peru’s proposal on capacity building; (2) the achievements of the Working Groups and SOM Task Forces and the ongoing improvements that will be achieved through the Program of Independent Assessment of all SCE Fora.

VI.Human Security

On behalf of the CTTF Chair, Peru’s Senior Officialpresented the report on Counter Terrorism Task Force (CTTF) Deliverables in 2008 (2008/CSOM/004).

SOM welcomed Japan’s announcement that it was ready to assume the chairmanship of the taskforce for the years 2009 – 2010. Member economies commended the achievement of the taskforce and reaffirmed that counter terrorism is one of the priority areas of APEC.

Member economies underlined the need to cooperate with other regional and international organisations on counter-terrorism and emergency preparedness. United States reminded the meeting that food safety issues were still at the forefront of the APEC agenda and needed to be included in the Ministers and Leaders’ statements.

SOM noted and welcomed the 2008 CTTF Deliverables. SOM also noted the APEC Best Practices of Counter Terrorism Protection of APEC Critical Energy Infrastructure document and welcomed further capacity building steps undertaken on its basis. SOM encouraged member economies to continue implementing on-going and new initiatives, including pilot projects on Trade Recovery Program and APEC Food Defence.

On emergency preparedness, SOM endorsed the Peru-drafted Strategy for Disaster Risk Reduction and Emergency Preparedness and Response in the Asia Pacific Region 2009 – 2015 (2008/CSOM/021), and China’s proposal on APEC Principles on Disaster Response and Cooperation (2008/CSOM/020). SOM also noted the recommendations proposed by the Workshop on Large-Scale Disaster Recovery in APEC (2008/CSOM/002).

Disaster Prevention

Australia foreshadowed that Ministers of Australia and Indonesia would announce the launch of an Australia – Indonesia Joint Facility for Disaster Reduction that would focus on disaster reduction and strengthening national capabilities to self-manage disasters.

Food Security

SOM agreed to endorse in principle the workplan on food security subject to further consultation among economies to resolve remaining concerns and differences.

VII.APEC Reform

SOM Chair noted that the PSU’s first work plan will consider structural reform issues, trade and investment facilitation, and a project to examine whether structural reforms affecting food supply chains may contribute to lower prices. PSU Governing Board Members were invited to speak to this item.

Perunoted that the workplan was approved by the PSU Governing Board and provided deliverables for the CTI and SFOM, with a mixture of short term and long term projects. Peru welcomed projects undertaken by the PSU especially in the area of food prices, and encouraged member economies to suggest other areas of relevant work.

The PSU has developed a workplan in collaboration with the EC and CTI Chairs and the EC Chair emphasized his appreciation with the speed with which the PSU manager had initiated many of the projects.

Hong Kong, China noted that the successful operation of the PSU hinged upon the resources available to it, and advised that HK China will consider how to contribute to the work of the PSU through assistance in its research work.

SOM Chair noted that the Fixed Term Executive Director paper had been endorsed at SOM III. Once Ministers have approved the paper, the selection process will begin so that the new Executive Director will be in place by end 2009.

SOM noted the work of the FOTC on Communications and Outreach, and acknowledged Canada’s leadership and Hong Kong’s financial contribution in support of the FOTC.

VIII.Budget and Management Issues

The new BMC Chair, Mr. Andrew Todd briefed SOM on the outcomes of BMC III.

BMC Chair highlighted that the BMC this year had focussed not only on project approval but also on improving the overall project management processes within APEC. He thanked the US, NZ and Australia in particular for their hard work and contributions in this regard. Highlighting the dire situation of the APEC Secretariat’s budget in 2010, he noted that a small group has been formed to address this situation. He urged member economies to send to BMC Meetings senior officials with the authority to make decisions. Peru will be taking on the Chairmanship of the BMC in 2009.

Australia stressed the serious nature of the budget in 2010 and suggested that members should pay more attention to the budget situation. Members should consider taking out items from APEC’s overloaded workload whenever they add on new work for APEC in its work program.

Singapore shared that it has completed a draft paper incorporating the ideas to address the problems caused by exchange rate fluctuations as well as the APEC Secretariat’s budget situation. This paper has been circulated to members for their views. He urged members to join the small working group that currently has 7 members. BMC I will then meet at sidelines of SOM I to further discuss how to deal with the Secretariat’s financial situation.

Hong Kong, China expressed its concern with the Secretariat’s budget situation and expressed the hope that the review would be able to address the issue of the Secretariat’s financial sustainability in the long term.

SOM Chair proposed that SOM note the BMC Chair’s report; approve the adjusted 2008 Administrative Account budget; endorse the 2009 budget and Members’ contribution for Ministers’ approval; approve in principle a mechanism of mixed assessment of Members’ contribution; endorse the reforms to APEC's project management system and procedures; and note the outcome of the review of the COO position and to agree on the way forward.

IX.Sectoral Ministerial Meetings

SOM Peru briefed the members on the outcome of the SME and FMM Ministerial meetings.

Peru remarked that the 15th Small and Medium Enterprises Ministerial Meeting took place in the city of Chiclayo, Peru on August 28-29, under the theme “Sustainable Local Development to Foster SMEs Growth". This theme was directly related to the main objective of the Small and Medium Enterprises Working Group (SMEWG) which is “to encourage the development of SMEs in the APEC Region”.

The FMM Ministerial Meeting addressed thecurrentglobal financial crisis,consideredhow APEC could work collaboratively toaddress the turmoil in global financial markets from the perspective of both short-term immediate actions, as well as longer term reform of the regulatory and institutional regimes of the world’s financial sectors. Two key policy themes were also addressed: improving the quality of public expenditure, and capital markets.

SOM noted the report.

X.Reports to Ministers

The Deputy Executive Director presented the Secretariat Report on behalf of the Executive Director. He advised SOM that 2009 would be a transition year as the Secretariat moves to a Fixed Term ED. He urged SOM to send high caliber staff to the Secretariat so as to build capability and to have the Secretariat in a state in which the FT-ED would not have to address housekeeping issues.

SOM noted the 2008 Report of the Executive Director of the APEC Secretariat to the Twentieth APEC Ministerial Meeting (2008/CSOM/007) as well as the Update from Pacific Economic Cooperation Council (PECC): State of the Region 2008-2009 - Survey Results (2008/CSOM/012) and the ASEAN Statement to the 20th APEC Ministerial Meeting (2008/CSOM/023). SOM endorsed the APEC Economic Policy Report (2008/CSOM/013)

SOM Chair advised that the 2008 SOM Report to Ministers(2008/CSOM/018 rev1) was being circulated, for final comments and that it demonstrated significant work and advances on APEC’ agenda. As there were some outstanding issues Peru was tasked with ensuring that the final draft incorporated comments made by US and Philippines.

XI.Briefing on Future Meetings

SOM Chair noted that the recent symposium held in October in Singapore in preparation for APEC in 2009 was a huge success. He congratulated Singapore and invited Singapore to brief members on its preparations for 2009.

Singapore noted that in addition to making progress on various fronts in 2009, Singapore will be paying particular attention to two areas - a connected region and REI as well as a stronger APEC which would broaden and deepen the institutional reform to strengthen work processes, the APEC Secretariat and restoring financial sustainability to APEC. Singapore will be developing ideas discussed at the Symposium and will bring them to the attention of officials at SOM I. Singapore will also be working very closely with the two future hosts – the US and Japan - so that there is continuity in its efforts for 2010 and 2011.

New Zealand reminded SOMs of its invitation to SOMs to the ABAC SOM dialogue in Wellington in February in 2009, and noted that the ABAC meeting was timed to be back to back with SOM I in Singapore. NZ stressed the need for SOMs to think carefully with regard to the SOM dialogue with ABAC which presents a good opportunity for both sides to exchange views on topics of mutual interest. He expressed the hope that as many SOMs as possible would attend ABAC I so that there would be a strong dialogue between SOMs and ABAC.

XII.Finalisation of AMM & AELM Statements

SOM Chair also advised the meeting of the following:

  • Revised AMM statement to be circulated on Tuesday 18 November.
  • Revised AELM declaration to be circulated on Wednesday 19 November.
  • Finalversion of REI report tobe updated to reflect the outcomes of the model measures before forwarding itto AMM for consideration.

SOM Chair reminded members that there would be a drafting session for the stand alone statement on the 18th starting at 9 am. All economies were requested to send their negotiators.

He encouraged economies to exercise flexibility in finalising the draft APEC Ministerial and APEC Leaders Statements.

XIII.Other Business

SOM endorsed the final version of the Revised Consolidated Guidelines on Non-Member Participation in APEC Activities which will be submitted to Ministers for final approval.

SOM noted the following for information items:Recommendations of the Workshop of Large-Scale Disaster Recovery in APEC (2008/CSOM/002) Progress Report on the APEC Digital Opportunity Center (ADOC) (2008/CSOM/003) and the Report on APEC Sectoral Ministerial Meetings held in 2008 (2008/CSOM/011).

SOM agreed the Document Classification list as provided in 2008/CSOM/000.

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