ABAC Recommendations to APEC Leaders

The APEC Business Advisory Council (ABAC) has published its annual report of recommendations that it will present to and discuss with Leaders of APEC's 21 Member Economies when they meet in Santiago, Chile, in two weeks.

Among the recommendations in "Bridging the Pacific: Coping with the Challenges of Globalization," are a proposal to study the concept of a Free Trade Area of the Asia-Pacific (FTAAP), a call for increased regional anti-corruption measures, and consideration of the costs imposed on business by compliance with new security measures.

ABAC has also made a number of suggestions intended to increase progress towards the Bogor Goals of regional free trade and investment in the APEC region by 2010 for industrialized economies and 2020 for developing economies.

In presenting the report to the President Ricardo Lagos of Chile, who will Chair this year's Leaders' Meeting, ABAC Chair, Hernan Somerville said the range of recommendations focus on what ABAC feels needs to be done to reinvigorate APEC's agenda and its relevance to business.

"In our Report, we are asking you (APEC Leaders) to consider an ambitious new Trans-Pacific Business Agenda - to enhance the scope and effectiveness of APEC's trade facilitation initiatives - and to direct officials to conduct a joint scoping study with a view to launch this initiative by 2005," Mr. Somerville advised the President.

"We also explored the idea of a Free Trade Area of the Asia-Pacific (FTAAP) that potentially could bring significant economic benefit to the region as a whole. We believe that the idea has merits, and is worth further study. We therefore recommend that APEC Leaders establish a high-level task force to examine the concept in more detail."

Concentrating on areas that are central to the needs of business and economic prosperity, the report argues for a deepening of the consultative processes between public and private stakeholders in the regional economy.

"We examine the impact of new security threats, and the costs of countermeasures, on business, we stress the need to strengthen financial systems and the urgent need to address the debilitating effects of corruption. In these key areas and others, we offer recommendations to Leaders on ways to enhance APEC's effectiveness and relevance."

The six key issue areas covered in the report are:

The report will be presented to APEC Leaders when they meet with ABAC Members on November 20. This meeting is part of the program of the Annual APEC Economic Leaders Meeting that is scheduled to take place in Santiago, Chile on November 20-21.

ABAC meets four times each year and its work is compiled into its annual report of recommendations to Leaders. Additional details about ABAC can be found at: www.abaconline.org