Fourth Secure Trade in the APEC Region (STAR IV) Conference

Excellency Mr. Truong Dinh Tuyen, Minister of Trade of Viet Nam,
Mr. Le Cong Phung, Deputy Minister of Foreign Affairs of Viet Nam and APEC 2006 SOM Chair,
Ambassador Benjamin Defensor, Chair of the CTTF,
Madam Tran Thu Hang, Viet Nam's Senior Official to APEC,
Distinguished delegates,
Ladies and gentlemen,

It is my great honour to be invited to speak, on behalf of the APEC Secretariat, at this opening session of the Fourth Secure Trade in the APEC Region Conference.

As requested, my presentation will touch upon the main achievements of the STAR initiative since it was launched in 2002 and highlight the future work of APEC to ensure secure trade in the APEC region.

The mankind will never forget the horrible terrorist attack on the World Trade Centre in the United States on the 11th September 2001. Needless to repeat how serious and far-reaching the consequences and implications of terrorism are for human security, for trade and investment, as well as for our economic and social life. Over the past few years, a host of terrorist incidents across the world have confirmed this stark truth.

As a regional institution, APEC was among the first that has responded in the most decisive and comprehensive way to the bloody attack inflicted upon one of its members. Immediately after the September 11 incident, at their meeting in Shanghai, China, APEC's Leaders condemned international terror in the strongest terms and resolved to strengthen our cooperation in combating terrorism as "a direct challenge to APEC's goals of free, open and prosperous economies and an affront to the fundamental values that APEC members share."

Based on the Leaders' instructions, APEC members took immediate actions to launch a series of new counter terrorism initiatives, which were endorsed at the highest level in Los Cabos, Mexico, in 2002. In this regard, the launching of the Initiative for Secure Trade in the APEC Region (STAR Initiative) and the establishment of the Counter Terrorism Task Force (CTTF) were the most important landmarks in our common endeavour to protect our people, business and economic development.

With 21 member economies, spanning the four continents and being home to 2.6 billion consumers, APEC accounts for 57% of world GDP (US$20.7 trillion) and 45.8% of world trade (US$7.0 trillion). Trade is the most important source of economic growth and development but it heavily depends on the seamless networks of seaports and airports. As many as 30 of the world's top container seaports and 23 of the busiest airports are located in the APEC region. The sea lanes of communication in Southeast Asia are among the world's busiest shipping lanes. That is why to ensure secure trade is so vital for all APEC member economies. And the STAR Initiative is a timely response to securing and enhancing the flows of goods and people with various measures aimed at protecting cargo, ships, international aviation and people in transit.

Three STAR Conferences have taken place since 2002 with focus on policies and procedures to enhance security and efficiency in the APEC region's seaports, airports and other access points.

The First STAR Conference (Bangkok, Thailand, 2003) involved participation of all 21 APEC member economies, senior executives from major private sector companies, and representatives from international organizations such as the IMO, IATA, WCO and the World Bank. The Conference discussed how to advance trade efficiency and trade security in Asia-Pacific and set important directions of the future STAR activities in addressing maritime security, aviation security, passenger information processing technology, capacity building, project planning and financing as well as supply chain security. It was agreed by member economies that the successful implementation of STAR measures requires strong partnership between government and business. The meeting also recognized that all economies have different levels of resources and skills to implement these measures and that well-planned capacity building measures would be thus useful for certain economies.

The Second STAR Conference (Viña del Mar, Chile, 2004) had four panels: (i) Maritime security, which discussed the implementation of the ISPS Code; (ii) Air transportation security, which included the emerging threat of Man-Portable Air Defense Systems to civil aviation; (iii) The mobility of people including sessions on Regional Movement Alert System (RMAS); and (iv) The gradual establishment of Financial Intelligence Units (FIUs) in APEC member economies. An interactive session on public-private collaboration for secure trade building capacity also addressed the issue of increasing costs generated by security-related measures and its impact on trade facilitation. The Conference initiated a series of actions that were then endorsed by APEC Leaders. These included:

The Third STAR Conference (Incheon, Korea, 2005) further focused on development of trade while enhancing security as well as cooperation and capacity building through public-private partnership. The conference addressed the issues of aviation and maritime security, and encouraged the active participation by the business sector. The conference also recommended future programs that are intended to encourage greater private sector participation in trade and security issues. In 2005, APEC Member Economies continued their work to advance compliance with the International Maritime Organization's International Ship and Port Facility Security. Intensive efforts have been made to develop projects to strengthen anti-money laundering regimes in Indonesia, Thailand and the Philippines through the Asian Development Bank's Regional Trade and Financial Security Initiative. Member Economies have also made progress in implementing the STAR goal of ensuring 100 percent baggages screening for air passengers.

In order to implement the STAR Initiative, APEC has undertaken a number of projects, which help substantially strengthen our region's security and economic environment. They include:

In order to ensure secure trade in the APEC region, based on the Leaders' and Ministers' instructions in November 2005 and building on the achievements on this front, APEC will strive to achieve the following in 2006 and beyond:

The tasking statement shows that the work for ensuring secure trade in the APEC region for this year is quite heavy. Its implementation needs clear guidance from the Senior Officials and close cooperation among working groups/fora and all member economies.

As economic interdependence has been strengthened and become an important feature in the Asia-Pacific region given our achievements in trade and investment liberalization and facilitation, it is increasingly in all APEC member economies' stake to step up their efforts in working together to ensure secure trade in this region. The Fourth STAR Conference that we are opening today is another opportunity for business and government representatives to work together as genuine partners, striving for secure trade and development in our region. It is highly meaningful that this year, as the title of the Fourth STAR Conference suggests, Viet Nam continues to attach great importance to enhancing public-private partnership as an effective way in ensuring secure trade, human security and reducing any adverse impacts of anti-terrorism activities on the trade and investment development in the APEC region.

Together with free trade and investment, security has become an essential component of APEC's core goals. However, this does not imply a diversion from the APEC's main tasks of trade and investment liberalization and facilitation as well as economic and technical cooperation. Rather, it is an indication of APEC's determination to create a safe and secure business environment, which is essential for economic development and prosperity in the APEC region. In this sense, I wish the Fourth STAR Conference a great success.

Thank you.