Outcomes for APEC 2007
Strengthening the Multilateral Trading System
APEC 2007 began and ended at equally challenging times for the WTO Doha Development Agenda (DDA).
APEC economies agree that a substantive outcome on all aspects of the DDA negotiations is the best way to advance their economic and important development objectives. They also agree that the negotiations offer unparalleled potential to create a better trading environment, to lower barriers to trade and to create a freer, fairer and more secure global market in which all can compete.
In their stand-alone statement Leaders made it clear that political will for an ambitious outcome remains substantial, but that renewed flexibility and determination will be necessary to secure an early and successful conclusion. Leaders agreed that members would work together in Geneva to support the Director General and Chairs of the key negotiating groups on agriculture and non-agricultural market access, in their efforts to secure a successful outcome to the round.
Economic Reform and Trade Facilitation
The Report on Regional Economic Integration adopted by Leaders and Ministers sets out a substantial APEC work program on trade, investment and economic reform for the next three years. It contains a range of concrete measures to accelerate regional economic integration, including:
- practical steps to examine the prospects for a Free Trade Area of the Asia Pacific (FTAAP);
- a commitment to new emphasis on structural reform and to addressing "behind the border" impediments to trade, economic growth and productivity improvement.
- developing an Investment Facilitation Action Plan
- a mandate for developing principles for investment agreements; and
- measures to advance the protection of intellectual property rights in the region, the strengthening of regional financial markets and the promotion of good governance.
Three more chapters of RTA/FTA model measures were endorsed, on e-commerce, rules of origin and sanitary/phytosanitary measures. This brings to ten the number of chapters agreed over the past three years. The model measures are intended to encourage a coherent and consistent approach to the design and content of free-trade agreements. They are not binding.
Trade facilitation, remains a core focus for APEC. Leaders and Ministers endorsed APEC's Second Trade Facilitation Action Plan, setting out a framework and timetable to reduce business transaction costs by a further 5 per cent by 2010.
Improving the Business Environment
In line with a strong commitment to improve the business environment, this year saw major outcomes on anti-corruption and transparency. Leaders and Ministers endorsed a model Code of Conduct for Business, a model Code of Conduct Principles for Public Officials and complementary Anti-Corruption Principles for the private and public sectors. While all economies were encouraged to implement these codes Australia, Chile and Viet Nam agreed to pilot the Code of Conduct for Business in their small and medium enterprise (SME) sectors.
Further enhancing business mobility within the APEC region, two new economies joined the APEC Business Travel Card scheme in 2007, bringing participation to over 90 per cent of all member economies. This remains one of the most tangible and popular products of APEC cooperation - delivered directly into the hands of regional business travelers, and making a real difference to time spent in airport queues, managing visa paperwork and easing the cost of doing business across the Asia-Pacific.
Sydney Declaration Climate Change, Energy Security and Clean Development
The Sydney Declaration by APEC Leaders reflects a new level of consensus in the region on climate change, which will help shape a more effective international approach to this pressing issue. APEC economies represent around 60 per cent of world energy demand, with APEC's energy imports set to double between 2000 and 2020. Addressing this issue as part of the APEC 2007 agenda was a very timely regional recognition of this current global imperative.
The agreed APEC-wide goals on energy intensity and forests are therefore significant, both for the political benchmarks they establish and for the fact that, for the first time, these goals are now shared by both key developed and developing economies in the region. The declaration includes key principles for future global action on climate change, looking ahead to a new international framework which should include:
- comprehensiveness, flexibility, and respect for domestic differences;
- the need for climate change and trade policies to be mutually reinforcing and
- recognition of the important roles of technology, forests and land use.
Throughout 2007, contributions to addressing climate change and energy issues in APEC were also made by APEC Ministers for Transport, Energy and Finance. These discussions and initiatives encompassed energy security; aviation emissions control; alternative and low carbon energy uses and market-based mechanisms for promoting energy efficiency and greenhouse gas reductions.
Human Security
In 2007, Leaders and Ministers reaffirmed that economic prosperity requires regional stability, and reaffirmed the importance of APEC's human security agenda. Threats from terrorism, natural disasters, contamination of the food supply and pandemics, such as avian influenza, and other health-related challenges have the potential to undermine efforts to sustain economic growth, raise living standards and reduce poverty in the region. Outcomes of APEC's efforts in these areas this year included:
- practical work to address the nexus of health and economic development and security. APEC Health Ministers took this forward and endorsed the creation of an APEC Health Working Group.
- cooperation on emergency preparedness and response through the meeting for the first time of Emergency Management CEOs in Cairns in August. Emergency Management CEOs agreed to build further capacity and to improve coordination in the event of an emergency in the region..
- mitigating the threat of terrorism through the endorsement by Leaders of the APEC Trade Recovery Program that will facilitate the resumption of trade after a major terrorist attack, and endorsement of voluntary APEC Food Defense Principles to protect the food supply from deliberate contamination;
- Leaders also endorsed a number of new counter-terrorism initiatives dealing with bomb disposal, public-private partnerships on countering terrorism, cyber-terrorism, critical energy infrastructure and further work on counter terrorist financing building on capacity-building in this area in 2007. APEC Transport Ministers also agreed to further capacity building to improve security in the region's airports, ports and land transport networks.
Institutional Reform of APEC
APEC has made strengthening the Secretariat a key platform in 2007, and consensus was reached on a number of major reforms. Leaders and Ministers agreed to establish a Policy Support Unit attached to the APEC Secretariat. The unit, to be funded by voluntary contributions from members, will provide analytical capacity and policy support to APEC's trade, investment, energy and economic reform work, as well as related economic and technical cooperation.
Leaders and Ministers also agreed that the time had come to consider the appointment of an Executive Director for a fixed-term and instructed officials to develop proposed conditions, responsibilities and accountability mechanisms.
Another important development this year was the commitment by APEC economies to increase members' contributions by 30 per cent from 2010 which will allow the organization to better service an agenda which has broadened considerably since the last real increase in dues in 1998. In endorsing this increase, ministers agreed that there was a need to further improve accountability and efficiency in the APEC Secretariat and to strengthen financial management. The recruitment this year of a Chief Operating Officer to oversee the corporate areas of the Secretariat and measures to enhance project management will make an important contribution to this ongoing task.