Securing Trade in the APEC Region - Concrete Outcomes from Second STAR Conference

Over 200 leading business and government representatives met in Viña del Mar, Chile, recently to look at ways to improve regional security while facilitating the free cross-border movement of legitimate goods, finances and passengers.

The Second Secure Trade in the APEC Region (STAR) Conference on March 5-6 covered topics in the four areas of maritime security, air transportation security, the mobility of people and measures to prevent terrorist financing.

Delegates from APEC's 21 Member Economies agreed that public-private sector collaboration is essential for the successful implementation of new security measures.

However, there were concerns about the impact that security measures could have on trade facilitation. The conference agreed that a global approach towards the full implementation of security measures is vital and it was in every economy's interest to see trading partners also proceed to meet common security goals. A high priority was also placed on international technical cooperation and the inIssue vement of international financial institutions.

Breaking off into working groups covering the main four areas of the conference, a series of recommendations were agreed and these will be presented to APEC Senior Officials, Ministers and Leaders.

The Working Group on Maritime Security focused on implementing the new code on International Ship and Port Facility Security (ISPS) by APEC Member Economies by the 1 July 2004 deadline. Challenges faced by some economies were discussed, including issues relating to applying the code to a large number of small ports. Ports with a high Issue ume of traffic and sensitive cargos such as natural gas, chemicals and petrochemicals were also covered. Experts agreed that measures to meet the ISPS code requirements can both enhance security and facilitate trade.

Participants noted the importance of governments passing and enforcing laws and regulations; using information technology such as the Geographic Information System (Grafimar) developed by the Chilean Navy's Maritime Authority; and continuous capacity building. The private sector also offered to help APEC governments identify solutions that may simultaneously advance their objectives such as the Global Cargo Information Clearinghouse. A report on the STAR BEST project, to secure trade between the ports of Thailand and Seattle, Washington State, indicated that secure trade can be achieved while reducing costs and increasing efficiency at the same time.

When they meet in Beijing in April, 2004 APEC's Transport Security Group will discuss how to take advantage of technical cooperation systems already being implemented such as sharing information between ports that have developed models to implement the ISPS Code with other APEC Member Economies.

The group on air transportation security welcomed measures already implemented by airlines to protect passengers, personnel, and passengers' belongings. It was agreed by the working group that security measures should be addressed in such a way that their costs did not hinder the air transportation industry. As a major component of trade and development, delegates concluded that further measures were needed to deliver an effective approach to air transportation security in the APEC region.

These measures include training in areas relating to the monitoring of suspicious activities, cargo security programs to ensure the legitimacy of shippers, air cargo data validation systems, and methods for the identification of high-risk cargos by means of effective canine detection services. Other measures cover enhanced risk assessment methodologies, the establishment of security teams to consider intelligence information collection and coordinated action not only within air companies but among them and civil aviation authorities, incident reporting, monitoring and continuous surveillance systems, and the use of air marshals to prevent international terrorism.

Man Portable Air Defence Systems (MANPADS) were also covered at the meeting as they continue to pose a substantial threat to international commercial aviation. Private sector delegates told the conference that equipment used by the military to counter MANPADS attacks was not feasible for commercial aviation applications. This was primarily because military equipment requires high levels of maintenance that would be difficult to meet in a civilian environment. Given the range of these missiles, it was also difficult to secure areas surrounding airports. Experts reported that although large jetliners have been hit by MANPADS in the past, they had been able to land safely. However, the threat that a missile might destroy a commercial jetliner was real and it was agreed that strict controls were required on the export and transfer of these missiles. The timely exchange of information among APEC Member Economies on MANPAD threats was seen as one of the most effective measures to prevent possible attacks.

In the workshop on business mobility and biometrics, participants were briefed on several biometric systems currently being used in the APEC region. These include facial recognition using computer analysis, fingerprint checking and the identification of iris features. However, because these new measures often require substantial resources and highly specialised skills for their implementation, capacity building and funding from major donors are needed for their implementation.

The workshop on business mobility and biometrics discussed the expanded use of Advanced Passenger Information (API) programs in the APEC Region. These programs enable passenger information to be checked against warning lists and other security databases before a passenger boards an international flight. This allows security agencies at the destination to process immigration details even before passengers depart from their original location. The API system also serves to speed up the movement of passengers through immigration at the destination as pre-processing has already taken place. API and APP are useful tools which can combine control with facilitation. However, the private sector considered that it would be advantageous and save time and money if both systems could be combined into one platform.

API is currently part of an "APEC Pathfinder Initiative" in which economies are Issue untarily operating the system or undertaking feasibility studies. The establishment of a Regional Immigration Alert System that could be linked to Interpol's new criminal database was also discussed by the participants.

The Working Group on Financial Intelligence Units (FIUs) agreed that all APEC economies should have an operational FIU. It was also agreed that there is a need to enhance and facilitate cooperation among APEC economies in the area of financial security, counter terrorist financing and prevention of money laundering. APEC economies are expected to fully implement relevant international conventions and recommendations; provide FIUs with broad access to a wide variety of financial information, including bank accounts and tax information; consider imposing Anti Money Laundering/Countering the Financing of Terrorism (AML/CFT) obligations on independent legal professionals; and develop comprehensive national AML/CFT strategies that articulate in detail the goals of the public and private sector as partners in AML/CFT regimes and the timetable for accomplishing those goals.

The STAR Conference hosted by Chile follows from the success of the First STAR Conference that was held in Bangkok, Thailand, in 2003.