APEC Business Council Provides Leaders with Recommendations to Liberalize Regional Trade
Business leaders from APEC's 21 Member Economies have finalized the 2005 'Report and Recommendations to Leaders.' This is a set of recommendations intended to promote trade and investment liberalization and facilitation efforts in the region and help drive the global economy forward over the coming year.
Members of the APEC Business Advisory Council (ABAC) provide advice directly to heads of Asia-Pacific governments through an annual face-to-face meeting and delivery of a comprehensive report of recommendations.
ABAC Chair, Mr. Jae-Hyun Hyun, from Korea, said the council strongly believes that there is no issue of more urgent attention for the APEC region than the successful conclusion of the WTO Doha Development Agenda. ABAC outlined its position on potential outcomes in WTO negotiations in a separate news release (available at www.apec.org).
Mr. Hyun said that the ABAC report to Leaders covered the increasingly important trade facilitation area (designed to encourage business activity) as well as advice on the increasing number of Preferential Trade Agreements (PTAs) and Free Trade Agreements (FTAs) in the region.
Mr. Hyun said that the ABAC report to Leaders covered the increasingly important trade facilitation area (designed to encourage business activity) as well as advice on the increasing number of Preferential Trade Agreements (PTAs) and Free Trade Agreements (FTAs) in the region.
"ABAC suggests that APEC seek to further develop a common best practice approach to their bilateral PTAs, including preferential rules of origin." Mr. Hyun said at the conclusion of the ABAC Meeting.
"We restate our 2004 call to Leaders to launch the Trans-Pacific Business Agenda as a more structured and concerted approach to trade and investment facilitation in the region. We also call on the establishment of a high level task force to examine the feasibility of a Free Trade Area of the Asia-Pacific."
Mr. Hyun said ABAC has identified three critical issues in the area of finance which will be brought to the attention of APEC Economic Leaders.
"Of utmost importance to the region is the need for a robust outcome to the liberalization of financial services in the WTO Doha round to stimulate foreign direct investment flows. We urge Leaders to consider the financial implications and challenges of ageing societies, and ask them to consider how to finance the massive infrastructure needs of the region." Mr. Hyun said.
"Governments must give priority to strengthening and deepening the region's financial systems that support economic growth and development. Our recommendation is to implement best supervisory standards, liberalize investment regimes, develop the region's bond markets and implement capacity building programs.
"To that end, ABAC financial experts have developed a financial services liberalization best practices checklist for use in assessing offers made in WTO financial services negotiations. ABAC has also developed a checklist of impediments to foreign direct investment, which, if removed, would offer the most benefit to both host economies and investors."
Mr. Hyun said that ABAC members have also outlined steps to strengthen the capacity of the region's small businesses to compete in the global economy.
"ABAC plans to work with executive volunteer organizations in various APEC economies to coordinate the supply and demand of executive volunteers to assist SMEs in developing economies." Mr. Hyun said.
"At the meeting in Kuala Lumpur ABAC suggested that online e-Sourcing platforms can enhance the competitiveness of SMEs and widen their sourcing opportunities. ABAC continues to emphasize the importance of specific support mechanisms for SMEs in the services sector, including targeted training programs and awareness building in trade promotion agencies.
"Given that SMEs were hardest hit in last year's tsunami disaster, ABAC's call for the establishment of an APEC Regional Response Network includes the development of an SME preparedness checklist. ABAC will be sharing these proposals with APEC SME Ministers later this month in Korea."
Mr. Hyun also expressed concern over energy issues, which he said are immediate, grave and pervasive.
"There is an urgent need for action by APEC economies, individually and collectively, to address three prime areas of concern. These are the need to increase energy supplies, find better ways to conserve and diversify energy sources, and to encourage responsible energy uses. ABAC believes it would be appropriate in 2005 for APEC Leaders to commit to take firm measures in this crucial area." Mr. Hyun said.
"ABAC also wishes to highlight the innovative medical science and IT-supported work underway among businesses and research groups in APEC economies. These cover areas such as environmental monitoring, border control and biosecurity, food traceability and healthcare. ABAC urges relevant authorities to be aware of this work and explore capacity building measures to maximize the potential benefits.
"In the area of Intellectual Property Rights, ABAC recommends to Leaders to take the concrete step of launching an initiative on Patent Cooperation and Harmonization and to approve the set of Model Principles to control Online Piracy.
"ABAC will address issues in its 2006 work program on the commercial impacts, personal privacy and legal frameworks surrounding the global information society. ABAC will focus on means to ensure the new generation of communications services and capabilities can be delivered in ways that are compatible across APEC economies."
These issues will be included in the annual ABAC Report to APEC Economic Leaders, and together with discussion of WTO progress, will be foremost in discussions in face-to-face meetings between ABAC and APEC Economic Leaders in Busan, Korea. The meeting in Busan is scheduled for November 18 during the first day of the APEC Economic Leaders' Meeting.