Asia Pacific Economic Cooperation

 ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 

Master of Commerce

(M.Com-I)

Semester I

(2012-13) 

Submitted by

VARSHA CHAWLA

SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS

BANDRA (W)

MUMBAI-50 

ASIA-PACIFIC ECONOMIC COOPERATION (APEC) 

Master of Commerce

(M.Com-I)

Semester I

(2012-13) 

Submitted

In Partial Fulfillment of the requirements

For the Award of Degree of Master of

Commerce (Part-I) 

By

VARSHA CHAWLA

SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS

BANDRA (W)

MUMBAI-50 

SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS

BANDRA (W)

MUMBAI-50 

CERTIFICATE

(2012 – 2013)

This is to certify that VARSHA CHAWLA of M.Com (I) Semester I (2012-13)

has successfully completed the project on “ASIA-PACIFIC ECONOMIC

COOPERATION (APEC)” under the guidance of Prof. MANI IYER & Prof.

Dr. K. SHASHIKUMAR.

Date:- 03/10/2012

Place:- Mumbai

(Prof. Mrs. Megha Somani) (Dr. Ashok Vanjani)

Course Co-ordinator Principal

(Prof. Mr. MANI IYER) (Prof. Dr. K. SHASHIKUMAR)

Project Guide Project Guide

External Examiner

DECLARATION 

Date: 03/10/2012

I, Miss. VARSHA CHAWLA the student of M.Com (I) Semester I (2012-13)

hereby declare that I have completed the project on “ASIA-PACIFIC

ECONOMIC COOPERATION (APEC)” successfully. 

The information submitted is true and original to the best of my knowledge. 

Thank you, 

                                                                                              Yours faithfully,

VARSHA CHAWLA

ACKNOWLEDGEMENT

At the beginning, I would like to thank Almighty God for his shower of blessing.

The desire of completing this dissertation was given a way by my guides Mr.

MANI IYER & Dr. K. SHASHIKUMAR. I am very much thankful to them for

the guidance, support and for sparing their precious time from a busy and hectic

schedule.  

I am thankful to Dr. ASHOK VANJANI, Principal of Smt. M.M.K. College. My

sincere thanks to Prof. MANI IYER & Prof. Dr. K. SHASHIKUMAR who

always motivated and provided a helping hand for conceiving higher education. 

I would fail in my duty if I don’t thank my parents who are pillars of my life.

Finally, I would express my gratitude to all those persons who directly and

indirectly helped me in completing dissertation.

VARSHA CHAWLA                      

DECLARATION 

                                                          Date: 03/10/2012

I the undersigned Mr. MANI IYER & Dr. K. SHASHIKUMAR, have guided

VARSHA CHAWLA for her project, she has completed the project “ASIA-

PACIFIC ECONOMIC COOPERATION (APEC)” successfully. 

I hereby, declared that information provided in this project is true as per the best of

my knowledge. 

Thank you, 

 Yours faithfully, 

Mr. MANI IYER

Dr. K. SHASHIKUMAR

Asia-Pacific Economic Cooperation (APEC)

Introduction:

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries (formally

Member Economies) that seeks to promote free trade and economic cooperation throughout

the Asia-Pacific region. Established in 1989 in response to the growing interdependence of Asia-

Pacific economies and the advent of regional trade blocs in other parts of the world, initially,

with the notion to the likely dominance of the sphere of economic influences of the highly

industrialized Japan (a member of G8) in the Asia-Pacific region and for the economic interests

of Australian agricultural/raw material products to search for new buyers other than the demand-

declining European market, APEC works gradually (to include members of Newly industrialized

economy at the time, although the agenda of free trade was a sensitive issue for the developing

NIEs, and for ASEAN economies to explore new export market opportunities of the natural

resources such as natural gas and seek regional economic integration(industrial integration) by

means of foreign direct investment on the behalf of ASEAN) to raise living standards and

education levels through sustainable economic growth and to foster a sense of community and an

appreciation of shared interests among Asia-Pacific countries. Members account for

approximately 40% of the world's population, approximately 54% of the world's gross domestic

product and about 44% of world trade.

An annual APEC Economic Leaders' Meeting is attended by the heads of government of all

APEC members except Republic of China (represented under the name Chinese Taipei) by

a ministerial-level official. The location of the meeting rotates annually among the member

economies, and until 2011, a famous tradition involved the attending leaders dressing in

a national costume of the host member.

History:

In January 1989, Australian Prime Minister Bob Hawke called for more effective economic

cooperation across the Pacific Rim region. This led to the first meeting of APEC in

the Australian capital of Canberra in November, chaired by Australian Foreign Affairs

Minister Gareth Evans. Attended by political ministers from twelve countries, the meeting

concluded with commitments for future annual meetings in Singapore and South Korea.

Countries of the Association of South East Asian Nations (ASEAN) opposed the initial proposal,

instead proposing the East Asia Economic Caucus which would exclude non-Asian countries

such as the United States, Canada, Australia, and New Zealand. This plan was opposed and

strongly criticized by Japan and the United States.

The first APEC Economic Leaders' Meeting occurred in 1993 when U.S. President Bill Clinton,

after discussions with Australian Prime Minister Paul Keating, invited the heads of

government from member economies to a summit on Blake Island. He believed it would help

bring the stalled Uruguay Round of trade talks back on track. At the meeting, some leaders

called for continued reduction of barriers to trade and investment, envisioning a community in

the Asia-Pacific region that might promote prosperity through cooperation. The APEC

Secretariat, based in Singapore, was established to coordinate the activities of the organization.

During the meeting in 1994 in Bogor, Indonesia, APEC leaders adopted the Bogor Goals that

aim for free and open trade and investment in the Asia-Pacific by 2010 for industrialized

economies and by 2020 for developing economies. In 1995, APEC established a business

advisory body named the APEC Business Advisory Council (ABAC), composed of three

business executives from each member economy.

Mission Statement:

APEC is the premier Asia-Pacific economic forum. Their primary goal is to support sustainable

economic growth and prosperity in the Asia-Pacific region.

They are united in their drive to build a dynamic and harmonious Asia-Pacific community by

championing free and open trade and investment, promoting and accelerating regional economic

integration, encouraging economic and technical cooperation, enhancing human security, and

facilitating a favourable and sustainable business environment. Their initiatives turn policy goals

into concrete results and agreements into tangible benefits.

Member Economies:

APEC currently has 21 members, including most countries with a coastline on the Pacific Ocean.

However, the criterion for membership is that the member is a separate economy, rather than a

state. As a result, APEC uses the term member economies rather than member countries to refer

to its members. One result of this criterion is that membership of the forum

includes Taiwan (officially the Republic of China, participating under the name "Chinese

Taipei") alongside People's Republic of China (see Cross-Strait relations), as well as Hong

Kong, which entered APEC as a British colony but it is now a Special Administrative Region of

the People's Republic of China.

Member economy (name as used in

APEC)Date of accession

 Australia 6-7 Nov,1989

 Brunei (Brunei Darussalam) 6-7 Nov,1989

 Canada 6-7 Nov,1989

 Chile 11-12 Nov,1994

 China (People's Republic of China) 12-14 Nov,1991

 Hong Kong (Hong Kong, China)[4] 12-14 Nov,1991

 Indonesia 6-7 Nov,1989

Member economy (name as used in

APEC)Date of accession

 Japan 6-7 Nov,1989

 South Korea (Republic of Korea) 6-7 Nov,1989

 Mexico 17-19 Nov,1993

 Malaysia 6-7 Nov,1989

 New Zealand 6-7 Nov,1989

 Papua New Guinea 17-19 Nov,1993

 Peru 14-15 Nov,1998

 Philippines 6-7 Nov,1989

 Russia 14-15 Nov,1998

 Singapore 6-7 Nov,1989

 Republic of China (Chinese Taipei)[5] 12-14 Nov,1991

 Thailand 6-7 Nov,1989

Member economy (name as used in

APEC)Date of accession

 United States 6-7 Nov,1989

 Vietnam14-15 Nov,1998

How APEC operates:

APEC - A Multilateral Economic Forum

Asia-Pacific Economic Cooperation (APEC) operates as a cooperative, multilateral economic

and trade forum. It is the only international intergovernmental grouping in the world committed

to reducing barriers to trade and investment without requiring its members to enter into legally

binding obligations. APEC achieves its goals by promoting dialogue and arriving at decisions on

a consensus basis, giving equal weight to the views of all members.

APEC Member Economies report progress towards achieving free and open trade and

investment goals through Individual Action Plans (IAPs) and Collective Action Plans (CAPs).

Host Economy 

Every year one of the 21 APEC Member Economies plays host to APEC meetings and serves as

the APEC Chair. The APEC host economy is responsible for chairing the annual Economic

Leaders' Meeting, selected Ministerial Meetings, Senior Officials Meetings, the APEC Business

Advisory Council and the APEC Study Centres Consortium. Until 2009, the host has also filled

the Executive Director position at the APEC Secretariat. From 2010, the appointment will be

made on a fixed-term basis (3 yrs) and will be open to candidates from all Member Economies.

Funding 

APEC is not a donor organisation. Instead, APEC activities are centrally funded by small annual

contributions from APEC Member Economies - since 1999 these have totalled US$3.3 million

each year. From 2009 onwards, members' contribution will increase by 30% to a total of US$5

million. These contributions are used to fund a Secretariat in Singapore and various projects

which support APEC's economic and trade goals. Since 1997, Japan has provided additional

funds - between US$ 1.6 and 4.6 million annually - for projects which support APEC's trade and

investment liberalisation and facilitation goals. Projects generally -

Relate to the priorities of APEC Economic Leaders and APEC Ministers

Cover the interest of at least several APEC Member Economies

Build capacity

Improve economic efficiency, and

Encourage the participation of the business sector, non-governmental institutions and women.

APEC's Project Database contains information about all APEC projects.

APEC Member Economies also provide considerable resources to assist the operation of APEC.

These include the secondment of professional staff to the Secretariat; the hosting of meetings;

and partial or full funding of some projects. 

The Budget and Management Committee (BMC) advises the Senior Officials' Meeting

(SOM) on budgetary, administrative and managerial issues. Its key responsibility is to prepare

the budget for APEC and approve and recommend APEC funding for projects.

The BMC also monitors and evaluates APEC's project management systems. It takes decisions

and makes recommendations to Senior Officials to improve project efficiency and effectiveness.

It also works closely with APEC's other Committees to ensure projects remain relevant to

APEC's core goals and objectives.

Policy Level

Policy Development

Asia-Pacific Economic Cooperation (APEC) policy direction is provided by the 21 APEC

Economic Leaders. Strategic recommendations provided by APEC Ministers and the APEC

Business Advisory Council are considered by APEC Economic Leaders as part of this process.

The following meetings are conducted each year, which help shape APEC's policy direction.

APEC Economic Leaders' Meeting

APEC Economic Leaders' Meetings are held once a year in the APEC host economy.

Declarations from these meetings set the policy agenda for APEC.

 Since its formation in 1989, APEC has held annual meetings with representatives from all

member economies. The first four annual meetings were attended by ministerial-level officials.

Beginning in 1993, the annual meetings are named APEC Economic Leaders' Meetings and are

attended by the heads of government from all member economies except Taiwan, which is

represented by a ministerial-level official. The annual Leaders' Meetings are not called summits.

Meeting developments

In 1997, the APEC meeting was held in Vancouver. Controversy arose after officers of

the Royal Canadian Mounted Police used pepper spray against protesters. The protesters

objected to the presence of autocratic leaders such as Indonesian president Suharto.

At the 2001 Leaders' Meeting in Shanghai, APEC leaders pushed for a new round of trade

negotiations and support for a program of trade capacity-building assistance, leading to the

launch of the Doha Development Agenda a few weeks later. The meeting also endorsed the

Shanghai Accord proposed by the United States, emphasising the implementation of open

markets, structural reform, and capacity building. As part of the accord, the meeting committed

to develop and implement APEC transparency standards, reduce trade transaction costs in the

Asia-Pacific region by 5 percent over 5 years, and pursue trade liberalization policies relating to

information technology goods and services.

In 2003, Jemaah Islamiah leader Riduan Isamuddin had planned to attack the APEC Leaders

Meeting to be held in Bangkok in October. He was captured in the city Ayutthaya, Thailand by

Thai police on August 11, 2003, before he could finish planning the attack. Chile became the

first South American nation to host the Leaders' Meeting in 2004. The agenda of that year was

focused on terrorism and commerce, small and medium enterprise development, and

contemplation of free trade agreements and regional trade agreements.

The 2005 Leaders' Meeting was held in Busan, South Korea. The meeting focused on the Doha

round of World Trade Organization (WTO) negotiations, leading up to the WTO Ministerial

Conference of 2005 held in Hong Kong in December. Weeks earlier, trade negotiations

in Paris were held between several WTO members, including the United States and

the European Union, centered on reducing agricultural trade barriers. APEC leaders at the

summit urged the European Union to agree to reduce farm subsidies. Peaceful protests against

APEC were staged in Busan, but the meeting schedule was not affected.

At the Leaders' Meeting held on November 19, 2006 in Hanoi, APEC leaders called for a new

start to global free-trade negotiations while condemning terrorism and other threats to security.

APEC also criticised North Korea for conducting a nuclear test and a missile test launch that

year, urging the country to take "concrete and effective" steps toward nuclear disarmament.

Concerns about nuclear proliferation in the region were discussed in addition to economic topics.

The United States and Russia signed an agreement as part of Russia's bid to join the World

Trade Organization.

The APEC Australia 2007 Leaders' Meeting was held in Sydney from 2–9 September 2007. The

political leaders agreed to an "aspirational goal" of a 25% reduction of energy intensity

correlative with economic development. Extreme security measures including airborne

sharpshooters and extensive steel-and-concrete barricades were deployed against anticipated

protesters and potential terrorists. However, protest activities were peaceful and the security

envelope was penetrated with ease by a spoof diplomatic motorcade manned by members of the

Australian television program The Chaser, one of whom was dressed to resemble the Al-

Qaeda leader Osama bin Laden.

The APEC USA 2011 Leaders' Meeting was held on Honolulu, Hawaii 8–13 November 2011.

APEC Ministerial Meeting

Annual APEC Ministerial Meetings of foreign and economic/trade ministers are held

immediately prior to APEC Economic Leaders' Meetings. Ministers consider the year's activities

and provide recommendations for APEC Economic Leaders' consideration.

Sectoral Ministerial Meetings

Sectoral Ministerial Meetings are held regularly covering areas such as education, energy,

environment and sustainable development, finance, human resource development, regional

science and technology cooperation, small and medium enterprises, telecommunications and

information industry, tourism, trade, transportation and women's affairs. Recommendations from

these meetings are also provided to APEC Economic Leaders for their consideration.

APEC Business Advisory Council (ABAC)

ABAC provides APEC Economic Leaders with a business perspective on APEC issues through

an annual meeting and a formal report. The annual report contains recommendations to improve

the business and investment environment in the APEC region. ABAC also meets four times per

year and a representative attends Ministerial Meetings.

Competition Policy and Law Group

The implementation of competition policy and deregulation provides markets with a framework

that encourages market discipline, eliminates distortions and promotes economic efficiency.

APEC's Competition Policy and Law Group (CPLG) therefore works to promote an

understanding of regional competition laws and policies, to examine the impact on trade and

investment flows, and to identify areas for technical cooperation and capacity building among

member economies.

The CPLG, formerly known as Competition Policy and Deregulation Group, was established in

1996, when the Osaka Action Agenda (OAA) work programmes on competition policy and

deregulation were combined. In 1999 APEC Ministers endorsed the APEC Principles to

Enhance Competition and Regulatory Reform and approved a "road map" which established the

basis for subsequent work on strengthening markets in the region.

In 2008 members agreed to change the name of the group to the Competition Policy and Law

Group to reflect the fact the regulatory aspects of competition are now being discussed within

the framework of the Economic Committee (EC).

The CPLG meets once annually and its most recent meeting was held in March 2011 in

Washington DC, the United States. At CPLG meetings, member economies have the opportunity

to update other members on their respective competition policies and laws, including recent

cases. Challenges to competition policy and competition advocacy efforts are also discussed.

Members’ Dialogue on Competition Advocacy are also held where views are exchanged on

topics related to institutions, objectives and priorities; challenges and obstacles and strategies to

effective competition advocacy; use of tools developed by international organizations; and

assessment of the effectiveness of competition advocacy efforts.

Utilising the APEC-OECD Integrated Checklist on Regulatory Reform 

Organised by Indonesia, this seminar explored ways to apply the "APEC-OECD Integrated

Checklist on Regulatory Reform." The Checklist provides instruction on a range of public sector

reforms that include regulations, competition policy and market openness. The seminar covered

the two core areas of regulatory reform and competition policy and law. The outcomes were

recommendations for actions that would enable APEC member economies to make better use of

the Checklist in policy harmonisation.

APEC Training Course on Competition Policy 

A training course addressing selected aspects of competition policy is run by CPLG on an annual

basis. The first of these courses was held in 2005, and the fifth and last in this series was held in

August 2009. The training courses, which are aimed at contributing towards the "APEC

Principles to Enhance Competition and Regulatory Reform", provide technical cooperation and

assistance focused on building capacity, especially in developing economies. The courses are

designed to be attended by the staff of competition agencies in APEC economies.

The training courses run from 2005 to 2009 have focused on the following competition issues: 

(1) Abuse of Dominant Position, Organisation and Function of Competition Agency; 

(2) Regulation of Business Combination, Competition Advocacy;

(3) Competition Policy and Small and Medium Sized Enterprises (SMEs), Effective

Implementation of Competition Policy and Law;

(4) Challenges for Cartel Cases in Domestic/International Markets, Competition Policy and

Industrial Policy;

(5) Vertical Restraints and Interrelations between Competition Policy and Consumer Protection

Policy.

In 2009, the CPLG agreed to hold a series of three new training courses on competition policy

over the period of 2010 to 2012.Two training courses have been organised thus far. They

include:

APEC Training Course on Competition Advocacy, which was held in September 2010 in Viet

Nam;

APEC Training Course on Effective Mechanisms Against Cartel Offences, which was held in

Penang, Malaysia in October 2011.

The next training course, “APEC Training Course on best practices in dealing with abuse of

dominant practices in Competition Policy”, is being proposed for 2012 by Indonesia and Japan.

The Competition Policy and Law Database

This Competition Policy and Law Database is managed by Chinese Taipei and covers all APEC

member economies. The database gives effect to the Osaka Action Agenda which, inter alia,

calls on APEC economies to "gather information and promote dialogue on and study ... the

objectives, necessity, role and operation of each APEC economy's competition policy and/or

laws and administrative procedures, thereby establishing a database on competition policy.

Working Level

APEC's working level activities and projects are guided by APEC Senior Officials from the 21

APEC Member Economies. These activities and projects are carried out by four high level

committees:

1. Committee on Trade and Investment

2. Senior Officials' Meeting Committee on Economic and Technical Cooperation

3. Economic Committee

4. Budget and Management Committee

Sub-Committees, Experts' Groups, Working Groups and Task Forces all support the activities

and projects led by these four high level committees.

Senior Officials' Meeting (SOM) 

Working under direction from APEC Ministers, Senior Officials guide the activities of the

Committees, Working Groups and Task Forces. Senior Officials develop recommendations for

APEC Ministers and APEC Economic Leaders. Senior Officials' Meetings are held three to four

times a year with the chair from the host economy.

Committee on Trade and Investment (CTI) 

The Committee on Trade and Investment coordinates APEC's work on the liberalisation and

facilitation of trade and investment. The Committee on Trade and Investment also works to

reduce impediments to business activity through its Sub-Committees and Experts' Groups.

Trade and investment liberalisation and facilitation are the cornerstones of APEC's mission and

activities, and the Committee on Trade and Investment (CTI) is the coordinating body for all of

APEC's work in these areas. 

The CTI provides a forum for APEC's 21 member economies to deliberate trade and policy

issues. It works to reduce impediments to business activity in the areas outlined by the Osaka

Action Agenda, with the objective of helping APEC economies achieve the Bogor Goals of free

and open trade and investment.

The CTI oversees:

Eight sub-groups: Business Mobility Group (BMG), Electronic Commerce Steering Group

(ECSG), Group on Services (GOS), Intellectual Property Experts' Group (IPEG), Investment

Experts' Group (IEG), Market Access Group (MAG), Sub-Committee on Customs Procedures

(SCCP), Sub-Committee on Standards Conformance (SCSC); and

Three industry dialogues: Automotive Dialogue (AD), Chemical Dialogue (CD) and Life

Sciences Innovation Forum (LSIF).

The CTI was established in November 1993 by the Declaration of an APEC Trade and

Investment Framework. APEC Leaders and Ministers direct its work and APEC Senior Officials

provide guidance. The scope of the CTI's work was expanded and further clarified by the Osaka

Action Agenda in 1995.

Average applied tariffs in APEC economies have been reduced from 16.9 percent in 1989, when

APEC was established, to around 5.8 percent in 2010. APEC's total trade (goods and services)

has increased from US$3.1 trillion in 1989 to US$16.8 trillion in 2010. Intra-APEC merchandise

trade (exports and imports) has grown from US$1.7 trillion in 1989 to US$9.9 trillion in 2010,

accounting for 67 percent of APEC's total merchandise trade.

In 2011, the CTI focused its work around the APEC 2011 priorities of (i) strengthening regional

economic integration (REI) and expanding trade; (ii) promoting green growth; and (iii)

advancing regulatory convergence and cooperation.  The 2011 CTI Annual Report to

Ministers contains an overview of CTI’s work in 2011 and outlines advances made by the

Committee to take forward its work program. Those advances and achievements include: 

A set of guidelines for implementing recommendations and measures to track progress of APEC

economies towards achieving Bogor Goals in 2010; 

The final assessment of the implementation of APEC’s Second Trade Facilitation Action Plan

(TFAPII) with the assistance of the Policy Support Unit, which shows that trade costs within

APEC were reduced by 5% in real terms during the 2007-2010 periods. The reduction represents

total savings for business of US$58.7 billion;

An agreement on a methodology to use internal and external indicators for measuring progress

towards the 10% improvement of supply-chain performance (i.e. improving the flow of goods

and services within the APEC region in terms of reduced time, cost and uncertainty) by 2015;

The identification of three next generation trade and investment issues: (i) facilitating global

supply chains; (ii) enhancing small and medium-sized enterprises (SMEs) participation in global

production chains; and (iii) promoting effective, non-discriminatory, and market-driven

innovation policy and the specific work to address these issues;

A proposed set of actions to address the next generation trade and investment issues of

“Enhancing SMEs participation in Global Production Chains”;

The development of a list of nine barriers that SMEs face in trading in the region, in

collaboration with the APEC SME Working Group. The CTI worked with APEC economies to

identify concrete actions to address those barriers related to trade and investment liberalization;

The identification of “interoperability standards for smart grid” as the first emerging regulatory

issue to be worked on in 2011 under the APEC Regulatory Cooperation Advancement

Mechanism on Trade Related Standards and Technical Regulations (ARCAM) and agreed on a

set of recommendations to promote interoperable standards for smart grid.

The development of two new pathfinders: Pathfinder to enhance Supply Chain Connectivity by

Establishing a Baseline De Minimis Value that seeks to exempt express and postal shipments

from customs duties or taxes and from certain entry documentation requirements for shipments

and Pathfinder on Facilitating Trade in Remanufactured Goods that ensures participating

economies do not apply measures specifically concerning used goods to remanufactured goods.

The substantive progress made in the implementation of the action plans endorsed in 2010 to

address the eight chokepoints under the Supply-Chain Connectivity (SCI) Framework as they

relate to regulatory impediments, customs inefficiencies and inadequate transport networks and

infrastructure.

The contribution to the development of a set of policies economies would adopt to promote

innovation without distorting global markets.   The set of policies was adopted by APEC Leaders

and attached as Annex A to their statement in 2011.

The advancement of work on liberalizing the trade and investment in environmental goods and

services (EGS).  The CTI discussed a proposal for an APEC EGS Technology Dissemination

Action Plan. The Committee also contributed to the development of Annex C of the 2011

Leaders’ Statement on Trade and Investment in Environmental Goods and Services. 

Sub-Committee on Standards and Conformance

Harmonised standards and conformance procedures improve the efficiency of production and

facilitate the conduct of international trade, resulting in more rapid trade flows, reduced costs

and greater integration of production networks.

The Sub-Committee on Standards and Conformance (SCSC) was established in 1994 to help

reduce the negative effects that differing standards and conformance arrangements have on trade

and investment flows in the Asia-Pacific region. In this way, the SCSC assists the Committee on

Trade and Investment (CTI) to achieve APEC's trade and investment liberalisation and

facilitation agenda.

The SCSC also promotes open regionalism and market-driven economic interdependence by

encouraging greater alignment of APEC member economies' standards with international

standards.

SOM Committee on Economic and Technical Cooperation 

The SOM Committee on Economic and Technical Cooperation assists APEC Senior Officials in

coordinating and managing APEC's economic and technical cooperation agenda, as well as

identifying initiatives for cooperative action by member economies.

APEC economies engage in economic and technical co-operation to attain sustainable growth

and equitable development in the Asia-Pacific region, to reduce economic disparities among

members and to improve overall economic and social well-being.

The Senior Officials' Meeting (SOM) Steering Committee on Economic and Technical

Cooperation (SCE) coordinates and manages APEC's economic and technical cooperation

(ECOTECH) agenda, which is outlined in the Osaka Action Agenda. In 1996, an APEC

Framework for Strengthening Economic Cooperation and Development was adopted to guide

members in implementing the Osaka Action Agenda.

The objectives of the SCE are to:

Strengthen the implementation of APEC's ECOTECH activities by prioritising work based on

Leaders' and Ministers' commitments, and coordinating and providing oversight to the work of

APEC fora

Provide policy guidance on ways to contribute to APEC's ECOTECH goals

Coordinate ECOTECH objectives and priorities between the APEC Economic Leaders' Meeting

and Ministerial Meetings

In 2010, Senior Officials endorsed a new Framework to Guide ECOTECH activities to guide the

APEC-funded capacity building and all ECOTECH activities. This framework adopted a holistic

approach by:

1. Revising the APEC ECOTECH priorities

2. Introducing a uniform set of criteria for all project funding, where funding is based on the

link between proposals and APEC’s core objectives.

Within this new framework, five areas have been identified as medium-term ECOTECH

priorities:

1. Regional economic integration

2. Addressing the social dimensions of globalisation (inclusive growth)

3. Safeguarding the quality of life through sustainable growth

4. Structural reform

5. Human security

The medium-term priorities will be reviewed again by 2015.

The SCE was first established as the SOM Sub-Committee for Economic and Technical

Cooperation (ESC) in 1998. In 2002, this was elevated to the SOM Committee on Economic and

Technical Cooperation. In 2005, the ESC was strengthened and transformed into the SOM

Steering Committee on ECOTECH (SCE). In 2012, the SCE conducted an internal review of its

working mechanisms and new Terms of Reference were endorsed.

Economic Committee (EC) 

The Economic Committee (EC) has a mandate to promote structural reform within APEC by

undertaking policy analysis and action-oriented work. The EC progresses this mandate in close

coordination with other relevant APEC fora; for instance, the Competition Policy and Law

Group (CPDG) and the Finance Ministers' Process (FMP)

As tariffs have declined in the APEC region, attention has gradually shifted to the structural and

regulatory obstacles that inhibit cross-border trade and investment by creating behind-the-border

barriers to doing business. 

The Economic Committee (EC) works to remove these obstacles by promoting structural reform

within APEC. Structural reform consists of improvements made to institutional frameworks,

regulations and government policies so that the efficient functioning of markets is supported and

behind-the-border barriers are reduced.

In 2004, APEC Leaders endorsed an ambitious work programme called the Leaders' Agenda to

Implement Structural Reform 2010 (LAISR). The agenda covers five areas for structural policy

reform: regulatory reform, competition policy, public sector governance, corporate governance,

and strengthening economic and legal infrastructure.

The EC was established in 1994 and meets twice a year. The EC also works closely with other

relevant APEC fora including the Competition Policy and Law Group and the Finance Ministers'

Process.

Structural Reform Ministerial Meeting 2008 

An inaugural Structural Reform Ministerial Meeting (SRMM) was held in August 2008 in

Melbourne, Australia. Ministers explored strategies for successful implementation of structural

reforms and stressed the importance of robust legislative and institutional frameworks. They also

engaged in a dialogue with business and considered the importance of structural reform to the

private sector. 

Economic Committee Initiatives in 2010 and 2011

The EC undertook various activities in the areas of structural reform, including LAISR and the

APEC New Strategy on Structural Reform (ANSSR), the Ease of Doing Business (EoDB) plan

and regulatory reform, among others.

The EC had in 2009 identified five priority areas for regulatory reform in APEC economies,

namely: starting a business, getting credit, trading across borders, enforcing contracts, and

dealing with permits. These priority areas are the focus of the APEC "Ease of Doing Business

(EoDB) Action Plan," which was launched by Leaders in 2009. The Action Plan sets an APEC-

wide aspirational target to make it 25 percent cheaper, faster and easier to do business within

APEC economies by 2015, with an interim target of a 5 percent improvement by 2011. Led by

"champion economies," a number of capacity building programmes were carried out in 2010 and

2011 focusing on the necessary regulatory reforms in the five priority areas. Awareness-building

workshops (Phase I) have been conducted on each of the priority areas (see below), and current

attention is on developing more customised capacity building measures in those economies that

have sought specific assistance on their reform efforts (Phase II). The EoDB Phase I seminars

and workshops held in 2010 and 2011 included: Workshop on  "Reducing Start-up and

Establishment Time of Businesses"; Workshop on “Enforcing Contracts”; Seminar on "Getting

Credit for Small and Medium Enterprises"; "Reforming the Regulatory System for Construction

Permits”;  “APEC Seminar on the First Steps of Successful Reform in Doing Business”;

and “APEC Seminar on the First Steps of Successful Reform in Doing Business”.

On structural reform, a seminar on "Impacts of Structural Reform and LAISR Stocktake", was

held in Hiroshima, Japan, in February 2010, discussing three areas: first, the issue of structural

reforms in the telecommunications, transport and energy sectors in APEC; second, an

examination of the impacts of those reforms, drawing on the findings of a PSU research project;

and third, a stocktake of the progress that has been made in implementing the LAISR. Since

2011, a series of capacity building events have been held to build specific understanding of what

ANSSR will seek to accomplish, including: Symposium on APEC's New Strategy for Structural

Reform 2011 (ANSSR Symposium) in May 2011; ANSSR Residential Training on Structural

Reformin August 2011; and Workshop on Assessing Approaches to Structural Reform in

September 2011. The workshop in September 2011 was the final series of ANSSR activities held

earlier in 2011 and assisted members in their selection of assessment indicators for their

domestic ANSSR priorities.

With regard to the area of regulatory reform, an "APEC-OECD Joint Seminar on the APEC-

OECD Integrated Checklist on Regulatory Reform on Japan" was held in Hiroshima, Japan, in

February 2010. This Seminar shared the results of Japan's self-assessment under the Integrated

Checklist among the EC members and discussed the further utilisation of the Checklist to

facilitate regulatory reform in the Asia-Pacific region. Aside from Japan, the other APEC

economies to have conducted an assessment are the United States; Hong Kong, China; Chinese

Taipei; Australia; and Korea. The workshop on “Using Regulatory Impact Analysis to Improve

Transparency and Effectiveness in the Rulemaking Process” was held in Washington DC in

March 2011, focusing on how regulatory impact analysis (RIA) can be used to help develop

more effective and transparent regulations, which can also contribute to improved public

consultation in the rulemaking process.

The workshop on “Advancing Good Corporate Governance by Promoting Utilization of the

OECD Principles of Corporate Governance” was held in Washington DC in March 2011 and

discussed the 2010 APEC Economic Policy Report on Corporate Governance specific steps that

can be taken to enhance regimes for corporate governance with reference to the OECD

Principles for Corporate Governance.

Budget and Management Committee (BMC) 

The Budget and Management Committee advises the SOM on budgetary, administrative and

managerial issues. It also monitors and evaluates project management aspects of the operations

of Committees and Working Groups and makes recommendations to SOM for improved

efficiency and effectiveness. In 2011, the BMC approved 138 projects at a total value of

US$14.5 million. These include activities which aim to promote trade facilitation; access to

finance; strengthen small, medium and micro enterprises; improve knowledge and information

sharing in areas such as climate change, agricultural productivity and energy efficiency; improve

human resource development; and promote capacity building. 

A key reform progressed by the BMC in 2011 includes the commencement of more strategic,

higher value, multi-year APEC projects. Following the BMC’s approval of the policy guidelines

and templates for Multi-Year Projects (MYP) in March 2011, the pilot phase MYPs commenced

in November-December 2011 with a review of the pilot scheduled for 2013. A total of six MYP

projects have been approved in the last two project approval sessions.

The BMC also approved a range of policies and procedures relating to APEC projects in 2010

and 2011. The current edition of the Guidebook (Edition 8) incorporating these changes took

effect in June 2012. A digitized version of the new guidebook will be available in July 2012.

The BMC approved the scope, timing and approach for conducting longer term evaluations of

APEC projects to improve the existing system for tracking project progress and reporting on

project results. Work on the proposed evaluations will commence in 2012 following the

establishment of the BMC Small Working Group on Evaluations to guide this process.

Further strengthening of the capacities of the Secretariat’s Project Management Unit (PMU) is

proposed through the upgrading of the Project Database.

Working Groups 

Working Groups carry out APEC's work in specific sectors as directed by APEC Economic

Leaders, APEC Ministers, APEC Sectoral Ministers and Senior Officials. There are currently 11

Working Groups.

Business Mobility Group

The mobility of business people is a key factor in the promotion of free and open trade. APEC

member economies are committed to enhancing business mobility by exchanging information on

regulatory regimes and streamlining immigration processes for business travellers and temporary

residence of business people. It is one the areas of the Osaka Action Agenda (OAA), adopted by

APEC Economic Leaders in 1995.

In response to the OAA, the Business Mobility Group (BMG) was formed in 1997 when

the APEC Business Advisory Council (ABAC) made the facilitation of business travel a priority.

Since its establishment, the group maintains close consultation with the business community,

represented by the ABAC, in the development of the APEC Business Travel Card (ABTC)

scheme and other BMG initiatives.

The recognition of the importance of mobility in the region is reiterated in the 2011 APEC

Economic Leaders’ Declaration which endorsed the APEC Travel Facilitation Initiative to

explore ways to make travel in the region faster, easier, and more secure. The BMG is dedicated

to working on initiatives that improve the efficiency and comfort of APEC business travelers,

while ensuring passenger safety and border security. In so doing, the group is to enhance

cooperation with other relevant APEC working groups.

SOM Special Task Groups/Ad-hoc Groups 

Senior Officials set Special Task Groups to identify issues and make recommendations about

important areas for APEC's consideration. Ad-hoc Groups have also been established in APEC

to provide topical and relevant information or to fulfill important tasks not being covered by

other groups.

Electronic Commerce Steering Group 

The amount of trade conducted electronically has grown exponentially and electronic commerce

has transformed many industry sectors and the way business is done. 

The Electronic Commerce Steering Group (ECSG) promotes the development and use of

electronic commerce by creating legal, regulatory and policy environments in the APEC region

that are predictable, transparent and consistent. It performs a coordinating role for APEC e-

commerce activities, based on the principles set out in the 1998 APEC Blueprint for Action on

Electronic Commerce. 

The ECSG also explores how economies may best develop legal, regulatory and policy

environments that are predictable, transparent and optimised to enable economies across all

levels of development to utilise Information and Communication Technologies (ICTs) to drive

economic growth and social development. 

The ECSG recognises the importance of public-private collaboration in developing an

environment conducive to e-commerce and encourages the active participation and contribution

of the private sector to its meetings and activities. Reports presented by guest organisations to

the group, including the Global Business Dialogue on e-Society, the International Chamber of

Commerce, the Pan Asian E-Commerce Alliance, the United Nations Centre for Trade

Facilitation and Electronic Business, the Organisation for Economic Co-operation and

Development (OECD), and the Internet Society are a welcome contribution to the ECSG. 

Originally established in 1999 as an APEC Senior Official's Special Task Force, the ECSG was

aligned to the Committee on Trade and Investment (CTI) in 2007. This alignment enhances the

coordinating capacity of the ECSG by ensuring a stronger focus on trade and investment issues.

Intellectual Property Rights Experts Group 

Intellectual property rights (IPR) protection and enforcement is a key factor for promoting

foreign trade and investment, as well as for boosting economic development. 

In recognition of its importance, IPR was included in the 1995 Osaka Action Agenda - APEC's

strategic roadmap for achieving free and open trade and investment in the region. 

In 1996, the Committee on Trade and Investment (CTI) established an Intellectual Property

Rights Get-Together (IPR-GT), The aim was to ensure adequate and effective protection,

through legislative, administrative and enforcement mechanisms, of intellectual property rights

in the Asia-Pacific region based on the principles of the World Trade Organization's Agreement

on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) and other related

agreements. In 1997, the CTI made the IPR-GT an official APEC group with explicit terms of

reference, and renamed it the Intellectual Property Rights Experts' Group (IPEG). 

The IPEG implements a work program which aims to: 

Deepen the dialogue on intellectual property policy.

Survey and exchange information on the current status of IPR protection and administrative

systems.

Study measures for the effective enforcement of IPR.

Fully implement the TRIPS Agreement.

Facilitate technical cooperation to help economies implement TRIPS

Investment Experts' Group

Investment drives economic production, creates jobs, raises incomes, strengthens trade flows and

spreads technical knowhow and best practices. Investment is therefore integral to economic

growth and development in the Asia-Pacific region and is the driving force of growth for

developing economies.

The Investment Experts' Group (IEG) was established by the Committee on Trade and

Investment (CTI) in 1994 to develop a set of Non-Binding Investment Principles. It continues to

assist the CTI with its efforts to encourage and facilitate free and open investment in the region.

The IEG comprises experts on investment and officials responsible for investment policies in all

APEC member economies, and it creates opportunities for the private and public sectors to

exchange views on investment issues.

Market Access Group

Trade liberalisation through the elimination of tariff and non-tariff measures (NTMs) encourages

greater trade and investment flows; creates new business opportunities and jobs in the Asia-

Pacific; and contributes to APEC's goal of advancing free and open trade and investment in the

region.

Established in 1998 by the Committee for Trade and Investment (CTI), the Market Access

Group's (MAG) mandate is to advance and integrate the CTI's objectives on tariffs and NTMs.

These are two of the 15 specific areas outlined in the Osaka Action Agenda through which

APEC member economies are working to eliminate barriers to trade.

In order to involve business in its work, the MAG invites representatives from the business

community, including the APEC Business Advisory Council (ABAC), the International Centre

for Trade and Sustainable Development (ICTSD), and the World Customs Organization (WCO),

to its meetings and workshops.

The MAG also works with other APEC groups including: the Sub-Committee on Standards and

Conformance (SCSC); the Group on Services (GOS); the Energy Working Group / Expert

Group on Energy Efficiency and Conservation [on environmental goods and services (EGS)];

and the Sub-Committee on Customs Procedures (SCCP) and the Electronic Commerce Steering

Group (ECGS) [on simplifying documents and procedures relating to rules of origin].

Group on Services

The services sector generates significant employment, economic growth, trade and investment in

the Asia-Pacific region. To encourage further growth and development in this sector, APEC's

Group on Services (GOS) works on trade and investment liberalisation and facilitation (TILF)

issues related to trade in services, and coordinates APEC's work in this area. GOS works in close

collaboration with four service-related APEC Working Groups: Telecommunications and

Information; Transportation;Tourism; and Energy.

The Group on Services (GOS) was established by the Committee on Trade and Investment in

1997 to address the TILF tasks in the area of services as mandated in the Osaka Action

Agenda and instructed by APEC Leaders, Ministers, Senior Officials and the CTI.

Action Plans

In order to meet APEC's Bogor Goals for free and open trade and investment in Asia-Pacific,

APEC Member Economies follow the strategic roadmap as agreed by APEC Economic Leaders

in Osaka, Japan. This roadmap is known as the Osaka Action Agenda.

APEC Member Economies report progress towards achieving free and open trade and

investment goals through Individual Action Plans (IAPs) and Collective Action Plans (CAPs),

submitted to APEC on an annual basis. Individual and Collective Action Plans are available

through the dedicated e-IAP website. This site provides the ability to search individual APEC

Member Economy IAPs,compare IAPs across years and view CAPs.

Osaka Action Agenda

The Osaka Action Agenda provides a framework for meeting the 'Bogor Goals' through trade

and investment liberalisation, business facilitation and sectoral activities, underpinned by policy

dialogues and economic and technical cooperation. As part of this framework, General

Principles have been defined for Member Economies as they proceed through the APEC

liberalisation and facilitation process.

The following General Principles are provided in the Osaka Action Agenda and are applied to

the entire APEC liberalisation and facilitation process -

Comprehensiveness  - addressing all impediments to achieving the long-term goal of free and

open trade.

WTO-consistency  - measures undertaken in the context of the APEC Action Agenda are

consistent with the principles of the World Trade Organization (WTO).

Comparability  - APEC Member Economies endeavor to have comparable trade and investment

liberalisation and facilitation, taking into account the general levels achieved by each APEC

economy.

Non-discrimination  - reductions in barriers to trade achieved through APEC are available to all

APEC Member Economies and non-APEC economies.

Transparency  - the laws, regulations and administrative procedures in all APEC Member

Economies which affect the flow of goods, services and capital among APEC Member

Economies are transparent.

Standstill  - APEC Member Economies do not take measures which have the effect of increasing

levels of protection.

Simultaneous start, continuous process and differentiated timetables  - APEC Member

Economies began simultaneously the process of liberalisation, facilitation and cooperation and

continuously contribute to the long-term goal of free and open trade and investment.

Flexibility  - APEC Member Economies deal with the liberalisation and facilitation process in a

flexible manner, taking into account differing levels of economic development.

Cooperation  - Economic and technical cooperation contributing to liberalisation and facilitation

is actively pursued.

Individual Action Plans

Every Member Economy submits annually an Individual Action Plan (IAP). This is a record of

actions taken to meet its stated goals for free and open trade and investment. APEC Member

Economies set their own timelines and goals, and undertake these actions on a voluntary and

non-binding basis.

As specified in the Osaka Action Agenda, reporting is based on 15 issue areas:

Tariffs

Non-tariff measures

Services

Investment

Standards and Conformance

Customs Procedures

Intellectual Property

Competition Policy

Government Procurement

Deregulation/Regulatory Review

WTO Obligations (inc. Rules of Origin)

Dispute Mediation

Mobility of Business People

Information Gathering and Analysis

Each year, several APEC Member Economies volunteer to have their IAPs reviewed. Known as

Peer Reviews, this process involves a formal review team considering each volunteer economy's

IAP. Experts conducting independent in-country research and analysis and the involvement of

the independent private sector body, the APEC Business Advisory Council (ABAC) are also part

of the process.

Collective Action Plans

Collective Action Plans (CAPs) detail the collective actions of all APEC Member Economies in

the 15 issue areas outlined in the Osaka Action Agenda. The 15 issue areas mirror the IAP's.

CAPs are used by APEC to outline actions and objectives to meet the free trade and investment

goals, as well as to monitor and report on progress.

More details about CAPs can be found in the Committee on Trade and Investment Annual

Report to Ministers publication, and in the APEC Groups section of this website.

Rules of Origin

Rules of Origin (ROO) are the laws and regulations used in international trade to define where a

product was made. ROO are important when implementing trade policy tools such as anti-

dumping and countervailing duties, and in the context of Regional Trade Agreements (RTAs)

and Free Trade Agreements (FTAs). Globalisation of the supply chain has, however, made it

increasingly difficult to determine where a product 'originally' comes from, since raw materials

and parts used to make finished goods are drawn from all over the world. The Committee on

Trade and Investment (CTI) has therefore agreed to work towards harmonisation of these rules

among APEC member economies.

Automotive Dialogue

The APEC Automotive Dialogue (AD) serves as a forum for APEC member economy officials

and senior industry representatives to work together to map-out strategies for increasing the

integration and development of the automotive sector within the region.

The AD was established in recognition of the crosscutting nature of the automotive industry and

of the broad benefits to many economies of trade liberalisation and facilitation in this sector. It

allows the public and private sectors to work together to improve policy development, to identify

barriers to growth and to develop effective cooperation mechanisms for APEC economies to

address and reduce impediments.

The goals of the AD are to engage participants in cooperative efforts to foster the growth and

development of the regional auto industry and to provide actionable recommendations to APEC

Trade Ministers.

The AD first met in 1999 in Indonesia and has continued to meet every year since then. Current

active members include Australia, Canada, China, Indonesia, Japan, Korea, Malaysia, Mexico,

the Philippines, Chinese Taipei, Thailand, Viet Nam and the United States.

The 16th Automotive Dialogue (AD) Meeting was held on 28-29 May 2012 in Kazan, Russia.

The AD commended the World Forum for Harmonization of Vehicle Regulations (WP.29) for

proactively pursuing the harmonization of automotive regulations for electric vehicles (EV)

before different national standards get established. It was noted that this proposal is consistent

with the recommendations made last year at both the Washington and San Francisco AD

meetings. It was proposed that more collaboration take place between the WP.29 and the AD.

In support of sustainable transportation and regulatory harmonization, the AD endorsed the

development of harmonized electric vehicle safety requirements within the context of a Global

Technical Regulation (GTR) under the 1998 agreement, with the inclusion of a harmonized plug

and communication protocol as part of the EV-GTR currently under development.

The AD members also supported the proposal that economies share information on updates to

their policies in Facilitating the Diffusion of Advanced Technology and Alternative-Fuelled

Demonstration Motor Vehicles. Further detailed discussion should be considered as a priority for

the next AD meeting.

Chemical Dialogue

The chemical industry is a cross-cutting sector that contributes to most industrial and many non-

industrial sectors - its products are widely traded across borders, and it is a key economic

building block in APEC economies.

The Chemical Dialogue (CD) serves as a forum for regulatory officials and industry

representatives to find solutions to challenges facing the chemical industry and users of

chemicals in the Asia-Pacific region. It reflects APEC members' recognition of the importance

of engaging with the private sector and building public-private sector dialogue and cooperation

for mutual benefit.

Issues addressed include chemical sector liberalisation, chemical trade facilitation and capacity

building. The CD also focuses on improving regulatory policies and practices: it seeks workable

regulatory programmes which ensure that regulatory, safety, and environmental goals can be

implemented by both governments and business.

The CD has been active in promoting implementation of the United Nation's Globally

Harmonized System of Classification and Labeling of Chemicals (GHS) by APEC member

economies. The GHS is a set of guidelines aimed at simplifying regulations and labeling

requirements, as well as improving safety and environmental protection. Over the years the CD

has conducted numerous workshops to provide economies with information on the GHS and to

build capacity to facilitate its adoption.

In 2008, APEC Ministers endorsed the report of the CD's Virtual Working Group on GHS

implementation issues entitled Developing Clarity and Consistency in the Implementation of the

Globally Harmonized System for the Classification and Labelling of Chemicals as an APEC

contribution to the UN's Strategic Approach to International Chemicals Management (SAICM).

The SAICM is a policy framework aimed at promoting chemical safety around the world and is

an initiative of the United Nations Environment Program.

APEC has also shown regional leadership by contributing the groundbreaking APEC Best

Practices for Chemical Regulation to the SAICM. The guidelines were formulated by APEC

officials and industry representatives, and endorsed by APEC Ministers.

Representatives of the CD presented the Best Practices for Chemical Regulation and the GHS

Virtual Working Group reports to the second session of the International Conference on

Chemicals Management in Geneva, Switzerland in May 2009.

The CD is also addressing APEC member economies' and regional manufacturers' concerns

about the potentially trade-distorting effects of the European Union's system of Registration,

Evaluation and Authorisation of Chemicals (REACH) legislation. The CD has undertaken to

coordinate APEC engagement with the EU on these issues, and in 2008, the CD endorsed and

transmitted to the European Commission a set of questions and letters on REACH

implementation.

Chemical Dialogue Regulators' Forum 

To support and complement the work of the CD, a Chemical Dialogue Regulators' Forum has

been established with regular meetings commencing in 2009. The objectives of the Forum are to:

1. Facilitate risk reduction and the sound management of chemicals across the APEC region

and as an APEC contribution to broader SAICM implementation;

2. Share information and knowledge on chemicals management more broadly in the region

with the increased and direct involvement of regulators;

3. Bridge principles and practice - sharing tools and experience with best practices and plan

opportunities for collaboration to address common concerns; and

4. Discuss the nexus between chemicals management and competitiveness (including for small

and medium enterprises), with a view to facilitating trade while protecting human health

and the environment.

In 2012, the CD Regulators’ Forum was held in Singapore on March 30, back to back with the

OECD Clearing House on New Chemical event. The next CD Regulators’ Forum is scheduled to

be held in Jakarta, Indonesia in February 2013.

In May 2011, APEC Trade Ministers in Big Sky, Montana welcomed the continued active

commitment to regulatory cooperation for chemicals through a strategic framework that

contributes to regional economic integration and regulatory convergence, including progressing

the UN’s GHS.

The Strategic Framework contains three shared goals: (1) expand and support cooperation and

mutual recognition among chemical regulators in the region to facilitate trade; (2) enhance

understanding of the chemical industry’s role as an innovative solutions industry; and (3)

encourage chemical product stewardship, safe use and sustainability.  Chemical regulators

routinely participate in the work of the Chemical Dialogue, especially through its Regulators

Forum.

The work items in the revised CD Strategic Framework and the current action items include the

following: 

1. To establish multi-party virtual working group to develop concept note on conducting

Chemical Management Best Practice Seminar;

2. To involve participation of the European Chemical Agency (ECHA) in the CD meeting in

2012;

3. To establish virtual working group to develop case studies for GHS implementation for

consumer products;

4. To explore options to refine reporting template to be placed on G.R.E.A.T. website;

5. To draft concept note for industry workshop and the CD regulators’ forum and training

workshop; and

6. To encourage member economies to provide case studies for use in Rio+20 and SAICM

Life Sciences Innovation Forum

Life sciences innovation is critical to growth and socio-economic development as healthy people

produce healthy economies. Efficient and effective delivery of patient focused products and

services can improve a population's longevity, wellness, productivity and economic potential.

Established by APEC Leaders in 2002, the Life Sciences Innovation Forum (LSIF) has since

grown to become APEC's leading initiative on health and health sciences innovation.

It is a tripartite forum that engages representatives from the highest levels of government,

industry and academia to create the right policy environment for life sciences innovation. The

LSIF brings together scientific, health, trade, economic and financial considerations to address

the challenges of infectious and chronic disease and ageing populations. Guiding principles

include transparency, meaningful dialogue with stakeholders and recognition of due process.

The LSIF forum also acknowledges that capacity building is critical to successful

implementation.

In March 2011, the LSIF held its first joint meeting with the Health Working Group (HWG) in

Washington DC, the United States to explore possible cooperation areas. The second joint event

with HWG was held in St. Petersburg, Russia with the theme "Health and the Economy:

Investing in a Healthy Life Course." LSIF members acknowledged that health is an economic

asset that should be preserved and enhanced to drive sustainable growth. The cooperation with

HWG will be continued in 2013 with a joint event to be held in Indonesia.

Sub-Committee on Customs Procedures

Customs organisations implement government policies that help to facilitate trade at the border.

In an era of trade globalisation, it is important that trade is secured in an internationally

consistent manner and that customs rules and procedures are kept to a minimum to reduce trade

transaction costs.

The APEC Sub-Committee on Customs Procedures (SCCP) was established in 1994. Its main

objectives are to simplify and harmonise regional customs procedures to ensure that goods and

services move efficiently, effectively and safely through the region, and to reconcile and

facilitate border control.

The SCCP holds to the following basic guiding principles:

1. Facilitation: while ensuring proper enforcement of customs law and regulations, APEC

customs administrations should strive to improve customs clearance procedures

2. Accountability: customs administrations should be accountable for their actions through a

transparent and accessible process of administrative and/or judicial review

3. Consistency: customs law, regulations, administrative guidelines and procedures should be

applied in a uniform manner within each economy

4. Transparency: customs law, regulations, administrative guidelines and procedures should be

publicly available in a prompt and easily accessible manner

5. Simplification: customs law, regulations, administrative guidelines and procedures should

be simplified to the greatest extent possible so that customs clearance can proceed without

undue burdens.

Stakeholder Participation

Strong and vibrant economies are not built by governments alone, but by partnerships between

government and its key stakeholders including the business sector, industry, academia, policy

and research institutions, and interest groups within the community. APEC actively involves

these key stakeholders because it welcomes participation that -

Facilitates the attainment of APEC goals through appropriate partnerships

Strengthens the quality of APEC's work by drawing on relevant insight and expertise

Strengthens understanding and support for APEC's goals through openness, transparency and a

broad-based partnership that seeks multiple perspectives from the community.

In general, non-member economies, organisations, business/private sector representatives,

academic bodies and other experts may apply or be invited to APEC activities subject to

guidelines.

Business Participation 

APEC fully appreciates the key role that business plays in driving economic growth and involves

the international business community at all levels of the APEC process. At the highest level,

APEC has created the APEC Business Advisory Council (ABAC). ABAC comprises up to 3

high-level business representatives from each of APEC's 21 Member Economies and it meets 4

times a year. In an annual dialogue with APEC Economic Leaders ABAC presents

recommendations to improve the business and investment environment in the APEC region and

outlines business views about priority regional issues. ABAC also has a representative at APEC

sectoral Ministerial Meetings, and advises APEC officials on business sector priorities and

concerns throughout the year.

At the working level, representatives from the private sector are invited to join APEC working

groups and expert groups. This process provides an important opportunity for industry to provide

input into various areas of APEC's ongoing work. Example of where this arrangement has been

formalised include the APEC Automotive Dialogue and the APEC Chemical Dialogue.

Academic and Research Institution Participation 

Through the APEC Study Centres (ASC) Consortium, APEC Member Economies actively

engage academic and research institutions in the APEC process. Amongst a range of key

activities, the ASC Consortium facilitates cultural and intellectual exchanges in the Asia-Pacific

region and assists the APEC process by undertaking advanced, collaborative interdisciplinary

and policy-relevant research from an independent and long-term perspective. There are ASCs in

20 APEC Member Economies, comprising some 100 universities, research centres and centres of

academic excellence across the APEC region.

Academics and research institutions also participate in the working level of APEC through

meetings, seminars and other activities.

APEC Study Center Consortium

In 1993, APEC Leaders decided to establish a network of APEC Study Centres among

universities and research institutions in member economies.

Notable centers include:

Australian APEC Study Centre, Royal Melbourne Institute of Technology, Australia

Berkeley APEC Study Center, University of California, Berkeley, United States

Chinese Taipei APEC Study Center, Taiwan Institute of Economic Research, Taiwan

HKU APEC Study Center, Hong Kong University, Hong Kong, China

Kobe APEC Study Center, Kobe University, Japan

Nankai APEC Study Center, Nankai University, China

Philippine APEC Study Center Network, Philippine Institute for Development

Studies, Philippines

The Canadian APEC Study Centre, The Asia Pacific Foundation of Canada, Vancouver,

Canada

Indonesian APEC Study Centre, APEC Study Center University of Indonesia, Indonesia.

Women's Participation 

APEC actively encourages and seeks the input and participation of women in the APEC process.

Currently, the Gender Focus Network Point, which comprises government representatives from

all 21 APEC Member Economies, encourages the consideration of gender issues within APEC,

provides gender-based analysis training for APEC officials, and is a resource for gender-related

information and advice for the integration of gender perspectives in APEC. APEC projects and

activities are monitored to ensure that gender issues are considered. In addition, the Women

Leaders' Network (WLN), a public-private network of women representing academia, civil

society, business and government from all APEC member economies, holds a yearly conference.

Each APEC Member Economy has a contact person that serves as the conduit for information

about the Network.

The APEC Policy Partnership on Women and the Economy (PPWE) provides a mechanism to

integrate gender considerations into APEC activities. It also provides policy advice on gender

issues and supports gender equality where relevant to the APEC process. 

In 1998 APEC Leaders endorsed the recommendations of the first Ministerial Meeting on

Women in Makati City, Philippines, and this resulted in the formation of the Senior Officials'

Meeting (SOM) Ad-Hoc Advisory Group on Gender Integration (AGGI). The AGGI was tasked

to assist with the implementation of the "Framework for the Integration of Women in APEC"

within APEC groups, and to provide recommendations on gender integration. Its mandate

expired in 2002 and Ministers then endorsed the establishment of the APEC Gender Focal Point

Network (GFPN) to continue to advance the implementation of the Framework and to sustain the

AGGI's achievements in maintaining awareness on gender issues. 

The PPWE was established at the second Senior Officials’ Meeting in May 2011 held at Big

Sky, Montana, the United States. It combined the former APEC Gender Focal Point Network

(GFPN) and the private sector-oriented Women’s Leadership Network (WLN) – creating a

single public-private entity to streamline and elevate the influence of women’s issues within

APEC. The PPWE effectively acts as an institutional mechanism for reporting to the SOM

Steering Committee on Economic and Technical Cooperation (SCE) on APEC gender activities

and outcomes. The broad goal of the PPWE is to provide linkages between APEC working

groups, APEC economies and the APEC Secretariat to advance the economic integration of

women in the APEC region for the benefit of all members.

Scope of Work

Asia-Pacific Economic Cooperation (APEC) works in three broad areas to meet the Bogor Goals

of free and open trade and investment in the Asia-Pacific by 2010 for developed economies and

2020 for developing economies.

Known as APEC's 'Three Pillars', APEC focuses on three key areas:

1. Trade and Investment Liberalisation

2. Business Facilitation

3. Economic and Technical Cooperation

The outcomes of these three areas enable APEC Member Economies to strengthen their

economies by pooling resources within the region and achieving efficiencies. Tangible benefits

are also delivered to consumers in the APEC region through increased training and employment

opportunities, greater choices in the marketplace, cheaper goods and services and improved

access to international markets.

Trade and Investment Liberalisation:

Trade and Investment Liberalisation reduce and eventually eliminate tariff and non-tariff barriers

to trade and investment. Protectionism is expensive because it raises prices for goods and

services. Thus, Trade and Investment Liberation focuses on opening markets to increase trade

and investment among economies, resulting in economic growth for APEC Member Economies

and increased standards of living for all. This goal is also now furthered by APEC's Regional

Economic Integration agenda, which includes work on model measures for bilateral and regional

trade agreements and an examination of the prospects for a Free Trade Area of the Asia-Pacific.

Business Facilitation:

Business Facilitation focuses on reducing the costs of business transactions, improving access to

trade information and aligning policy and business strategies to facilitate growth, and free and

open trade. Essentially, Business Facilitation helps importers and exporters in Asia Pacific meet

and conduct business more efficiently, thus reducing costs of production and leading to

increased trade, cheaper goods and services and more employment opportunities due to an

expanded economy. APEC's Structural Reform agenda addresses this area: it focuses on

reforming domestic policies and institutions that adversely affect the operation of markets, and

the capacity of businesses to access markets and to operate efficiently.

Proposed Free Trade Area of the Asia-Pacific:

APEC is considering the prospects and options for a Free Trade Area of the Asia-Pacific

(FTAAP), which would include all APEC member economies. Since 2006, the APEC Business

Advisory Council, promoting the theory that a free trade area has the best chance of converging

the member nations and ensuring stable economic growth under free trade, has lobbied for the

creation of a high-level task force to study and develop a plan for a free trade area. The proposal

for a FTAAP arose due to the lack of progress in the Doha round of World Trade

Organization negotiations, and as a way to overcome the "spaghetti bowl" effect created by

overlapping and conflicting elements of the umpteen free trade agreements—there are

approximately 60 free trade agreements, with an additional 117 in the process of negotiation

in Southeast Asia and the Asia-Pacific region. The FTAAP is more ambitious in scope than the

Doha round, which limits itself to reducing trade restrictions. The FTAAP would create a free

trade zone that would considerably expand commerce and economic growth in the region. The

economic expansion and growth in trade could exceed the expectations of other regional free

trade areas such as the ASEAN Plus Three (ASEAN + China, Japan, and South Korea). Some

criticisms include that the diversion of trade within APEC members would create trade

imbalances, market conflicts and complications with nations of other regions. The development

of the FTAAP is expected to take many years, involving essential studies, evaluations and

negotiations between member economies. It is also affected by the absence of political will and

popular agitations and lobbying against free trade in domestic politics.

Economic and Technical Cooperation (ECOTECH):

ECOTECH is dedicated to providing training and cooperation to build capacities in all APEC

Member Economies to take advantage of global trade. This area builds capacity at the

institutional and personal level to assist APEC Member Economies and its people gain the

necessary skills to meet their economic potential.

APEC Secretariat

The APEC Secretariat is based in Singapore and operates as the core support mechanism for the

APEC process. It provides coordination, technical and advisory support as well as information

management, communications and public outreach services.

The APEC Secretariat performs a central project management role, assisting APEC Member

Economies and APEC fora with overseeing more than 250 APEC-funded projects. APEC's

annual budget is also administered by the APEC Secretariat.

Staffing 

The APEC Secretariat is headed by an Executive Director, currently Ambassador Muhamad

Noor Yacob. 2009 marks the last year when the position will be held on an annually rotating

basis by an officer of Ambassadorial rank from the host economy. From 2010 the appointment

will be made on a fixed-term basis (3 years) and is open to professional candidates from any of

APEC's 21 member economies.

The APEC Secretariat is staffed by a small team of program directors, seconded from APEC

Member Economies. In addition, professional staff fulfill specialist and support functions at the

APEC Secretariat.

ISO Certification 

In 2002, the APEC Secretariat obtained ISO 9001 Quality Management Certification. This

recognises the continuous efforts made by the APEC Secretariat to provide improved

administrative and support activities. The APEC Secretariat is the first multilateral trade-related

secretariat to attain ISO certification.

APEC Secretariat CORE Values

COMMUNITY 

We achieve high quality results by working together to recognize, support, and build on each

other's unique strengths and contributions.  We inspire teamwork through coaching, guiding, and

motivating one another.  We nurture a sense of inclusiveness for our staff and our stakeholders. 

We enhance linkages in the wider APEC community by effectively supporting policy-makers

and efficiently facilitating implementation. 

OPEN 

We are honest, accessible, and transparent in sharing information, managing processes, and

communicating with internal and external stakeholders.  We are open to different points of view

and new ideas, and we are prepared to successfully adapt to change.  We are open to input from

a diverse range of contributors.  We address issues openly and proactively, anticipating the needs

of the organization, our colleagues, and our stakeholders.

RESPECT 

We gain trust and build productive relationships through mutual respect.  We seek to understand,

listen to, and involve others, always acting with consideration and empathy.  We value our

diversity as a source of strength.  We appreciate different values and perspectives, accepting

each other as equals.  We recognise that respect forms the basis of our dealings with our fellow

workers and our external stakeholders. We prize integrity highly as it allows us to be true to

ourselves, our colleagues and our organization

EXCELLENCE

We strive to enhance individual and organizational knowledge, skills, and capacity in support of

APEC’s goals.  We take pride in our work and keep our commitments.  We are passionate about

seeking progress and are constantly learning and improving ourselves.  We are honest,

trustworthy and straightforward in all our dealings.  We use time, money, and resources

entrusted to us wisely, and for the benefit of APEC.

Executive Director

Curriculum Vitae: Ambassador Muhamad Noor Yacob

Ambassador Muhamad Noor Yacob is the Executive Director of the APEC Secretariat based in

Singapore, the coordinating, technical and advisory body that supports sustainable economic

growth and prosperity in the Asia-Pacific region. In this role, Ambassador Noor advances

APEC’s agenda by effectively executing APEC’s work programmes as mandated by Leaders

and Ministers who meet annually. He is the first appointee to be recruited through an open

selection process and holds this appointment until December 31, 2012.

Ambassador Noor has also held several senior positions within the Malaysian public service.

Prior to taking up his current position, Ambassador Noor was Malaysia’s Permanent

Representative to the World Trade Organisation in Switzerland until 2009.  He was appointed in

October 2003 and was elected Chair of the following WTO bodies:

General Council (2007) which is the highest decision-making body of the WTO

outside of the Ministerial Conference;

Dispute Settlement Body (2006); and

Negotiating Group on Trade Facilitation (2004 – 2005).

Before moving to Geneva, for two years Ambassador Noor served as Deputy Secretary General

of the Ministry of Women, Family and Community Development.

Ambassador Noor began his career in Malaysia’s Public Service at the Ministry of Plantation

Industry and Commodities in 1974. During this stint, including as Trade Commissioner in the

United Kingdom, he represented Malaysia extensively in international trade fora, including

ASEAN, the United Nations Conference on Trade and Development (UNCTAD) and various

international commodity organisations. Notably, Malaysia was then the world’s leading producer

of a number of commodities, including of rubber, tin, tropical timber, cocoa and palm oil. At the

same time, these industries then accounted for more than 60 per cent of Malaysia’s GDP, which

attests to the importance of the negotiating tasks involved.

The suspension of buffer stock operations by the International Tin Council in October 1985, in

particular, required participation in complex and intensive negotiations involving industry as

well as banks and brokers. At the same time, it provided practical exposure to public

international law and its interface with municipal commercial law and trade finance.

Ambassador Noor was honoured to have been elected:

Vice-Chairman, International Cocoa Council (1995);

Chairman, Management Board of the International Tin Research Institute (1986);

Chairman, Executive Committee, International Rubber Study Group (1985); and

Vice-Chairman, International Tin Council (1984).

In recognition of service to Malaysia, Ambassador Noor was awarded the ‘Kesatria Mangku

Negara’ in 1998 by HM the King of Malaysia, ‘Darjah Indera Mahkota Pahang’ in 2006 by

HRH the Sultan  of Pahang and the Excellent Public Service Award by the Ministry of

Plantation Industry and Commodities in 1995.

Ambassador Noor graduated with honours in economics from the University of Malaya in 1974.

He took leave to seek a Master of Public Policy at the University of Wisconsin at Madison in

1981-82 and attended the Advanced Management Program at Harvard Business School in 2002.

Departments under APEC

Agricultural Technical Cooperation

Agriculture makes a substantial economic contribution to most APEC member economies, and

the issues of food security and safety are of critical importance to the region.

The objective of the Agricultural Technical Cooperation Working Group (ATCWG) is to

enhance agriculture's contribution to the region's economic growth and social well-being by

promoting agricultural technical cooperation between APEC members. The ATCWG's

objectives are to improve the capacity of agriculture and its related industries and to share

information and experiences in the areas of agriculture, biotechnology, and animal and

biogenetic resource management. Priority is given to projects and activities that build members'

capacities to increase trade in agricultural products.

This work contributes to APEC's trade facilitation agenda by reducing business transaction costs,

enhancing marketing capacity and improving the implementation of agriculture-related

provisions in free trade agreements (FTAs).

In recent years, APEC Leaders have charged the ATCWG with: strengthening food safety

standards; responding to food security challenges; promoting the development of next-

generation sustainable biofuels; enhancing agriculture's ability to adjust and mitigate the impact

of climate change; and strengthening technological cooperation in the strategic planning of

ATCWG projects. The development of capacity building programmes in these areas is now a

core ATCWG activity.

The ATCWG is composed of government officials and experts from academia.

Energy

Accounting for around 60 percent of world energy demand, the APEC region is a net energy

importer and its demand for energy is on the rise. According to the International Energy Agency

(IEA) forecasts, global energy demand would increase by 40 percent between 2007 and 2030

(World Energy Outlook 2009). These factors make energy cooperation an important agenda item

for APEC. 

The Energy Working Group (EWG), launched in 1990, seeks to maximize the energy sector's

contribution to the region's economic and social well-being, while mitigating the environmental

effects of energy supply and use. 

The EWG is assisted by four Expert Groups (Clean Fossil Energy, Efficiency & Conservation,

Energy Data & Analysis, New & Renewable Energy Technologies) and two Task Forces: one on

Biofuels and the other on Energy Trade and Investment (ETITF). 

The ETITF was established to facilitate cooperation and promote regional energy trade and

investment liberalization, and in particular to consider climate change policies and approaches to

reducing greenhouse gas emissions which includes carbon pricing across the region. 

Recognizing that business can make an important contribution to the development and

implementation of its work programme, the EWG established its own public-private sector

dialogue mechanism - the EWG Business Network (EBN)-. The EBN advises the EWG on

energy policy issues from an industry perspective and facilitates regular dialogues between

energy policy-makers and business sector representatives. 

Anti-Corruption and Transparency Working Group

Corruption is a major obstacle to social and economic development and increases the cost of

doing business.

APEC Leaders acknowledged the threat that corruption poses to good governance and economic

growth in the Asia-Pacific when they met in Santiago, Chile in 2004. They agreed that APEC

economies should nurture and sustain good governance, economic development and prosperity

by working together to fight corruption and ensure transparency.

To advance this work, Leaders endorsed the Santiago Commitment to Fight Corruption and

Ensure Transparency and theAPEC Course of Action on Fighting Corruption and Ensuring

Transparency.

The following year an Anti-Corruption and Transparency Experts' Task Force (ACT) was

established. Recognizing the importance of its work, the ACT was upgraded in status to a

working group in March 2011. The purpose of the ACT is to coordinate the implementation of

the Santiago Commitment, the APEC Course of Action and the APEC Transparency Standards.

It also promotes cooperation in areas such as extradition, legal assistance and judicial/law

enforcement (especially asset forfeiture and recovery).

The ACT is open to anti-corruption experts and law enforcement officials from all interested

APEC member economies, APEC Observers (namely ASEAN, the Pacific Islands Forum, and

the Pacific Economic Cooperation Council), and representatives from the APEC Secretariat and

the APEC Business Advisory Council.

Emergency Preparedness

The Asia-Pacific region comprises 52 percent of the earth's surface area and 40 percent of the

world's population, and experiences over 70 percent of the world's natural disasters.

Disturbingly, scientists warn that the intensity and frequency of disasters in the Asia-Pacific

region will increase in the decades ahead, exacerbated by unplanned urbanisation, poor land-use

management, and climate change. 

Emergency preparedness is one of the key elements of APEC's human security agenda, along

with countering terrorism and pandemics. Disasters that affect one member economy can have

significant spill-over effects in other economies. 

Catastrophes in the region - such as the 2004 Indian Ocean Tsunami, the 2008 earthquake in

China's Sichuan province, the 2010 earthquake in Chile, and the 2011 earthquakes in New

Zealand and Japan - are critical reminders of the importance of APEC's emergency preparedness

work.

APEC's Emergency Preparedness Working Group (EPWG) was first established as APEC's Task

Force for Emergency Preparedness (TFEP) by APEC Senior Officials in 2005.  Originally called

the Virtual Task Force for Emergency Preparedness, the TFEP carried out much of its work via

electronic communications. Pursuant to its Terms of Reference, the Task Force is mandated to

coordinate and facilitate emergency and disaster preparedness within APEC. 

In 2009 APEC Leaders reaffirmed the importance of enhancing human security and reducing the

threat of disruptions to business and trade in the Asia-Pacific region. Recognizing the

importance of its work, in 2010 the TFEP was upgraded in status to a working group. 

Now the EPWG continues to play a constructive role in enabling the region to better prepare for

and respond to emergencies and disasters by helping to reduce the risk of disasters and building

business and community resilience. By sharing expertise and collaborating on emergency

preparedness issues, APEC members strengthen their capacity to mitigate emergencies and

disasters. 

Health

The emergence of regional and global health epidemics - including Severe Acute Respiratory

Syndrome, avian influenza and H1N1 influenza - has highlighted the impact that threats to

public health can have on a broad range of sectors including agriculture, trade, tourism,

transportation and business. APEC's leadership in the region and its wide-ranging economic

work programmes make it uniquely suited to address the multi-sectoral impact of today's health

threats.

In October 2003 APEC established the Health Task Force (HTF) to address health-related

threats to economies' trade and security, focusing mainly on emerging infectious diseases,

including naturally occurring and man-made diseases. In 2007, as a result of a review of the

APEC fora, the HTF was upgraded in status to become the Health Working Group (HWG).

In 2010, a new Terms of Reference (TOR) for the SOM Steering Committee on Economic and

Technical Cooperation (SCE) was endorsed by APEC Senior Officials. The mandated work

areas of the HWG include:

Coordinate and supervise the HWG and provide policy guidance on the Economic and Technical

Cooperation (ECOTECH) agenda;

Assess and direct realignment of work plans of the HWG with the APEC-wide medium-term

ECOTECH Priorities and annual objectives as outlined in the ECOTECH framework;

Approve and rank all ECOTECH-related projects proposals ahead of presentation to the BMC;

Evaluate the progress of the HWG in implementing and achieving APEC's ECOTECH priorities;

Compile progress and evaluation reports of the HWG for review and report to Senior Officials;

and

Review the role and operations of the HWG, with a view to making recommendations to Senior

Officials on establishing merging, disbanding or reorienting this body.

To respond to the recommendations of the SCE, the first HWG and Life Sciences Innovation

Forum (LSIF) joint meeting was held in March 2011 in Washington DC, the United States with

a purpose of exploring possible cooperation areas. The second HWG-LSIF joint event on Health

& the Economy: “Investing in a Healthy Life Course” was  held in Saint Petersburg, Russia on

June 27, 2012.

Human Resource

 The goal of human resources development in APEC is to promote the well-being of all people

and achieve sustainable and inclusive economic growth in the region.

The Human Resources Development Working Group (HRDWG), established in 1990, has

played an important role in building the region’s human capacity and achieving this goal.

The HRDWG conducts work programs on education, labor and capacity building to develop

human resources. It derives its mandate from taskings from APEC Leaders and Ministers as well

as Labor and Education Ministers. The group’s mission is to share knowledge, experience, and

skills to strengthen human resource development and promote sustainable economic growth.

The HRDWG conducts its work program through three networks:

Capacity Building Network (CBN)

Education Network (EDNET)

Labour and Social Protection Network (LSPN)

The following objectives guide the three HRDWG networks in achieving the HRDWG’s

mission:

Develop 21st Century Knowledge and Skills For All

Integrate HRD into the Global Economy

Address the Social Dimensions of Globalization

Recognizing that human resources development is a cross-cutting issue, the HRDWG has been

coordinating with several APEC working groups including the Committee on Trade and

Investment (CTI), the Economic Committee (EC), the Small and Medium Enterprises Working

Group (SMEWG), the Emergency Preparedness Working Group (EPWG), and the APEC

Business Advisory Council (ABAC).

Points of collaboration include building human capital for business sectors; implementing the

APEC New Strategy for Structural Reform (ANSSR); conducting disaster reduction education;

and conducting skills mapping research exercises in the APEC region.

The HRDWG also cooperates with other international organizations such as the Organisation for

Economic Co-operation and Development (OECD) and Southeast Asian Ministers of Education

Organization (SEAMEO) in the areas of labor and social protection and foreign language

education and training.

Experts Group on Illegal Logging and Associated Trade

Forests and forest resources provide critical economic, social, and environmental benefits for

APEC economies and the world as a whole. The United Nations estimates that over 1.6 billion

people worldwide depend directly on forests for food, clothing and shelter. 

Importantly, APEC economies account for approximately 53 percent of the world’s forests, 60

percent of global production of forest products, and 80 percent of global trade in forest products,

according to data provided by the UN Food and Agriculture Organization. APEC forest products

trade was valued at over $150 billion in 2010. 

Forest resources are therefore important to APEC economies, businesses and citizens. Illegal

logging and associated trade, however, have brought about adverse economic, environmental,

and social impacts and is a significant problem facing the Asia-Pacific region. 

In 2011, APEC Ministers Responsible for Trade directed officials to establish an experts group

in order to promote trade in legally harvested forest products, combat illegal logging and

associated trade, and build capacity. In Honolulu, Hawaii in 2011, APEC Leaders committed to

work to implement appropriate measures to prohibit trade in illegally harvested forest products

and undertake additional activities in APEC to combat illegal logging and associated trade. 

Thus in 2011, the APEC Experts Group on Illegal Logging and Associated Trade was created to

enhance the efforts of member economies to take concrete steps to combat illegal logging and

associated trade, promote trade in legally harvested forest products, and support capacity

building activities in member economies. 

The Experts Group directly supports the overarching goals envisaged by APEC Leaders and

Ministers. Specifically, in Yokohama, Japan in 2010, APEC Leaders pledged to seek growth that

is compatible with global efforts for protection of the environment and to transition to a green

economy. APEC Leaders further agreed to enhance cooperation to address concerns with illegal

logging and associated trade and to promote sustainable forest management and rehabilitation.

APEC Leaders reaffirmed this commitment in Vladivostok, Russia in 2012.

Industrial Science and Technology

The APEC Industrial Science and Technology Working Group (ISTWG) recognizes its critical

and strategic role in helping member economies achieve positive gains by encouraging

widespread access to, and increase in, knowledge about industrial science and technology.

The ISTWG’s objective is therefore to achieve innovative growth and to fulfill the APEC vision

for the 21st century; that is, to be a dynamic and prosperous region built on the development and

application of industrial science and technology that improves the quality of life, while

safeguarding the natural environment and achieving sustainable development.

The policy directions of ISTWG are set by APEC Economic Leaders and are guided by APEC

Ministers responsible for science and technology.

The Terms of Reference and the 2010-2015 Work Plan set out the ISTWG’s goals.

They are:

Enhanced economic growth, trade and investment opportunities in harmony with sustainable

development, through policies, innovative R&D and technologies, and knowledge sharing;

Better quality of life and a cleaner environment;

Safe and secure society, emphasizing the importance of measures for infectious diseases and

natural disasters;

Human resource capacity building;

Enhanced international science and technology networks;

Improved level of connection between research and innovation, involving and encouraging the

potential of SMEs; and

Strengthened technological cooperation and achievement of best practices in strategic planning

for IST projects and programs.

Originally the ISTWG was known as the Working Group on Expansion of Investment and

Technology Transfer, which was initiated at the APEC Ministerial Meeting in Singapore in

1990.

Ocean and Fisheries

According to Harvesting Currency - The Importance of Fisheries and Aquaculture for APEC

Economies, APEC members account for over 80 percent of global aquaculture production

and more than 65 percent of the world’s capture fisheries. the consumption of fishery products in

the APEC region is 65 percent higher than the world average. Significantly, APEC economies

represent nine of the top ten fish producers in the world. 

Given these figures, APEC economies are an important voice internationally on fishery-related

issues and collectively have a significant impact on the global sustainability of fisheries and

responsible practices in the fish trade. 

Healthy marine and coastal environments support marine-related industries like aquaculture

production and tourism, and the associated employment it creates contribute significantly to

economic growth, as well as to food security. 

Sound environmental conservation and proper marine resources management are critical to

addressing challenges including overfishing and the loss of marine biodiversity. And this is

effectively addressed through international and regional cooperation. 

Recognizing these issues, APEC established the Marine Resource Conservation Working Group

(MRCWG) in 1990 to promote initiatives to facilitate balanced and integrated domestic and

regional policies and programs leading to the sustainability of the marine and coastal

environments in the APEC region. The following year, APEC created the Fisheries Working

Group (FWG) to achieve well-managed fisheries and aquaculture to yield optimal economic

value and support of local communities and livelihoods. 

In 2011, the MRCWG and the FWG jointly decided to merge and form the Ocean and Fisheries

Working Group (OFWG). This merger cultivates synergy and efficiency between the two

groups. 

For over twenty years, these groups have actively implemented projects and engaged in annual

meetings and other activities. The groups’ focus was on marine pollution, including the

transportation of hazardous substances, pollution generated by land-based activities, and red tide

and toxic algae, among other issues. More recently, the focus has expanded to activities such as

illegal, unreported and unregulated (IUU) fishing and the sustainable development of

aquaculture.  

In 2012 in Vladivostok, Russia, APEC Leaders reaffirmed their commitment to “Enhancing

cooperation to combat illegal, unreported and unregulated fishing and associated trade; working

towards sustainable management of marine ecosystems; improving capture fisheries

management and sustainable aquaculture practices; and facilitating sustainable, open and fair

trade in products of fisheries and aquaculture.” 

Tourism

Sustainable tourism is a key economic driver for the Asia-Pacific region, creating jobs and

promoting investment and development.

To help promote growth in travel and tourism in the region, the Tourism Working Group (TWG)

was formed in 1991. It brings tourism administrators together to share information, exchange

views and develop areas of cooperation on tourism trade and policies.

The TWG's objective is to foster economic development in the Asia-Pacific region through

sustainable tourism, recognizing that: tourism is one the region's fastest growing industries and

is of significant importance to the economic development of APEC economies; tourism is

important in fostering regional understanding and cooperation; the tourism industry in member

economies is at different levels of development; and member economies share the common goal

of quality development and services.

The APEC Tourism Charter, endorsed at the 1st Tourism Ministerial Meeting in Korea in 2000,

constitutes the basis for APEC tourism cooperation. The Charter reflects a collective

commitment to improve the economic, cultural, social and environmental well-being of APEC

member economies through tourism. It establishes four key policy goals and an agreed process

for realising these aims:

Removal of impediments to tourism business and investment 

Increase mobility of visitors and demand for tourism goods and services 

Sustainable management of tourism outcomes and impacts 

Enhance recognition and understanding of tourism as a vehicle for economic and social

development

Transportation

The efficient and safe transportation of goods and people is key to APEC's goal of free and open

trade in the Asia-Pacific region.

The Transportation Working Group (TPTWG) aims to achieve the liberalisation of

transportation services and works to enhance the safety of APEC transport systems to encourage

economic development in the Asia-Pacific region. It aims to balance security, safety and

environmental requirements with trade facilitation and its efforts are focused on: the facilitation

of domestic policy regulations; the development of intermodal supply chains and secure

transport activity; the integration of Corporate Social Responsibility; and building the capacity

of all stakeholders to help them reach the eventual goal of free and open trade. At the same time,

parallel measures are being undertaken by individual economies to strengthen the security of all

transportation modes - land, sea and air.

The TPTWG has a clearly defined set of priority action areas based on the 2006 Leaders'

Declaration, the 2007 Transportation Ministerial Meeting Statement and the TPT strategic

direction paper. In the 2007 Statement Ministers agreed to:

Aggressive road safety strategies tailored to the special circumstances of each economy.

Prioritise the harmonisation of security measures, noting that differences in security processes

across the region have implications for both passengers and industry, and in particular to work

together on mass transit security measures.

Help developing economies comply with global security requirements such as the International

Ship and Port Facility Security Code.

Develop timetables and strategies to work towards the liberalisation of air services.

Work together on a balanced package of options for addressing greenhouse gas emissions from

aviation.

Counter-Terrorism Task Force

Terrorism poses a direct threat to APEC's vision of secure, open and prosperous economies.

APEC Leaders have pledged to help secure the region's people and its economic, trade,

investment and financial systems from terrorist attack or abuse and trade-based money

laundering. Their commitments to undertake individual and joint actions to counter terrorism are

expressed in two principle statements - the 2001 APEC Leaders Statement on Counter-

Terrorismand the 2002 Statement on Fighting Terrorism and Promoting Growth - and in every

subsequent annual Leaders' Declaration.

Bearing in mind Leaders' instructions to monitor progress and build capacity in counter-

terrorism, the APEC Counter-Terrorism Task Force was established in May 2003 to:

coordinate the implementation of Leaders' Statements and commitments on fighting terrorism

and enhancing human security

assist members to identify and assess counter-terrorism needs

coordinate capacity building and technical assistance programs

cooperate with relevant international and regional organisations

facilitate cooperation between APEC fora on counter-terrorism issues.

Given the continuing threat the region faces, APEC Senior Officials have extended the CTTF

mandate for the period 2009-2010.

APEC Leaders also emphasise the important role played by the UN and its Global Counter-

Terrorism Strategy, and have stressed the need for implementation, where applicable, of UN

counter-terrorism measures and the Financial Action Task Force's (FATF) Special

Recommendations on Terrorist Financing.

Mining Task Force

The mining, mineral and metal industries are very important to APEC member economies as the

majority of global trade and investment in these commodities occurs in the APEC region. Some

APEC members are significant producers and consumers of minerals and metals, and many

APEC economies derive important economic and social benefits from the development, use and

trade of minerals and metals.

From 1996 until 2005, APEC dealt with mining issues through the Group of Experts on Mineral

and Energy Exploration and Development (GEMEED). From 2005 until 2007, mining was

considered through the Non Ferrous Metals Dialogue (NFMD).

In 2007, APEC Ministers endorsed the establishment of the Mining Task Force (MTF). The

MTF derives its mandate from priorities set by APEC Leaders and Ministers and from directions

provided by Ministers Responsible for Mining.

At the 15th APEC Economic Leaders' Meeting in Sydney in 2007, Leaders endorsed further

economic integration in the Asia-Pacific region and agreed to accelerate efforts towards this

objective by, "facilitating integration in sectors such as transportation, telecommunications,

mining and energy."

The 2007 Ministers Responsible for Mining Meeting Statement gave direction to economies and

the MTF regarding future work. Ministers agreed to APEC Mining Policy Principles, including:

Pursue policies that enhance the sustainable production, trade and consumption of minerals and

metals thereby improving the economic and social wellbeing of our people.

Foster regular exchange between member economies about experiences with regulations,

policies and practices and about significant developments in each economy's minerals and

metals sector.

Foster investment certainty in the APEC minerals sector through the pursuit of open minerals

and metals markets and the articulation of clear and predictable investment policies.

Promote cost effective, evidence based, transparent and objective-based measures which

improve the efficiency in the regulation of the minerals industry to contribute to economic,

environment and social development outcomes.

Encourage, support and promote initiatives by the minerals and metals industry and stakeholders

that contribute to national and international sustainable development goals.

Support capacity building activities for sustainable development so that all APEC Economies are

able to maximise the benefits and minimise the impacts from minerals resource development.

Achievements and Benefits:

The Asia-Pacific region has consistently been the most economically dynamic region in the

world. Since APEC's inception in 1989, APEC's total trade has grown 395%, significantly

outpacing the rest of the world.1 In the same period, GDP (in purchasing power parity terms) in

the APEC region has tripled, while GDP in the rest of the world has less than doubled.2

APEC's work under its three main pillars of activity, Trade and Investment Liberalisation,

Business Facilitation and Economic and Technical Cooperation, has helped drive this economic

growth and improve employment opportunities and standards of living for the citizens of the

region.

Trade and Investment Liberalisation:

APEC is the premier forum for trade and investment liberalisation in the Asia-Pacific and has set

targets dates for "free and open trade": no later than the year 2010 for industrialised economies,

and 2020 for developing economies (the Bogor Goals).

When APEC was established in 1989 average trade barriers in the region stood at 16.9%; by

2004 barriers had been reduced by approximately 70% to 5.5%.3

As a consequence, intra-APEC merchandise trade (exports and imports) has grown from US$1.7

trillion in 1989 to US$8.44 trillion in 2007 - an average increase of 8.5% per year; and

merchandise trade within the region accounted for 67% of APEC's total merchandise trade in

2007.4

Similarly, trade with the rest of the world has increased from US$3 trillion in 1989 to US$15

trillion in 2007, an average increase of 8.3% per year. Trade in the rest of the world has

increased at 7.6% over the same period.

Over 30 bilateral free trade agreements (FTAs) have been concluded between APEC Member

Economies.

APEC is also pursuing trade and investment liberalisation through its Regional Economic

Integration agenda. Progress to date includes:

Investigating the prospects of and options for a Free Trade Area of the Asia-Pacific.

The development of 15 model measures for RTAs/FTAs that serve as a reference for APEC

members to achieve comprehensive and high-quality agreements.

APEC has also acted as a catalyst in the advancement of World Trade Organisation multilateral

trade negotiations over the past 20 years.

Business Facilitation:

As a result of the APEC Trade Facilitation Action Plan (TFAP I) the cost of business

transactions across the region was reduced by 5% between 2002 and 2006.

A second trade facilitation action plan (TFAP II), aims to reduce transaction costs by a further

5% between 2007 and 2010.

APEC initiatives that help facilitate trade include:

The introduction of electronic/paperless systems by all member economies, covering the

payment of duties, and customs and trade-related document processing.

The Single Window Strategic Plan, adopted in 2007, provides a framework for the development

of Single Window systems which will allow importers and exporters to submit information to

government once, instead of to multiple government agencies, through a single entry point.

Providing business with a concise one-stop repository of customs and trade facilitation related

information for all APEC economies through the APEC Customs and Trade Facilitation

Handbook

The APEC Tariff Database provides users with easy access to APEC member economies' tariff

schedules, concessions, prohibitions and other information.

In 2008, a ground-breaking Investment Facilitation Action Plan was endorsed; it aims to

improve the investment environment in Member Economies.

The APEC Privacy Framework provides guidance and direction to both APEC Member

Economies and businesses on implementing information privacy protection policies and

procedures. By facilitating information flows it will facilitate trade and e-commerce.

The APEC Business Travel Card (ABTC) provides substantial time and cost savings to business

people and facilitates their travel in the region, by allowing visa free travel and express lane

transit at airports in participating economies.

APEC is also removing behind-the-border barriers to trade through its Structural Reform agenda,

which focuses on reforming domestic policies and institutions that adversely affect the operation

of markets, and the capacity of businesses to access markets and to operate efficiently.

Economic and Technical Cooperation:

APEC's Economic and Technical Cooperation (ECOTECH) activities are designed to build

capacity and skills in APEC Member Economies at both the individual and institutional level, to

enable them to participate more fully in the regional economy and the liberalisation process.

Since APEC first began to undertake capacity building work in 1993, more than 1200 projects

have been initiated; and in 2008, APEC was implementing a total of 212 capacity building

projects with a total value of US$13.5m.

A particular focus has been reducing the digital pide between developed and developing

economies:

In 2000, APEC set a goal of tripling internet usage in the region and that goal has now been

achieved, as recognised by the 2008 APEC Ministerial Meeting on the Telecommunications and

Information Industry. APEC's new goal is to achieve universal access to broadband by 2015.

A network of 41 APEC Digital Opportunity Centres (ADOC) now operates in seven Member

Economies. ADOC's objective is to transform the digital pide into digital opportunities and the

centres act as local information and communication technology (ICT) resource centres,

providing citizens and businesses of the region with access to ICT technologies, education and

training.

APEC is also developing a Digital Prosperity Checklist that outlines specific steps economies

can take to enable them to utilise ICT as catalysts for growth and development.

Other Achievements

APEC has also been able to evolve its agenda to include pressing regional priorities. Examples

include: counter-terrorism (The Shanghai Statement in 2001, and the Counter-Terrorism Task

Force); human security (Health Working Group); emergency preparedness (Task Force for

Emergency Preparedness); climate change, energy security and clean development (The Sydney

Declaration in 2007); and the global financial crisis (The Lima Statement in 2008).

Key APEC Milestones

1989 - Canberra, Australia

APEC begins as an informal Ministerial-level dialogue group with 12 members.

1993 - Blake Island, United States 

APEC Economic Leaders meet for the first time and outline APEC's vision, "stability, security

and prosperity for our peoples."

1994 - Bogor, Indonesia

APEC sets the Bogor Goals of, "free and open trade and investment in the Asia-Pacific by 2010

for developed economies and 2020 for developing economies."

1995 - Osaka, Japan 

APEC adopts the Osaka Action Agenda (OAA) which provides a framework for meeting the

Bogor Goals through trade and investment liberalisation, business facilitation and sectoral

activities, underpinned by policy dialogues, economic and technical cooperation.

1996 - Manila, The Philippines 

The Manila Action Plan for APEC (MAPA) is adopted, outlining the trade and investment

liberalisation and facilitation measures to reach the Bogor Goals and the first Collective and

Individual Action Plans are compiled, outlining how economies will achieve the free trade goals.

1997 - Vancouver, Canada 

APEC endorses a proposal for Early Voluntary Sectoral Liberalization (EVSL) in 15 sectors and

decides that Individual Action Plans should be updated annually.

1998 - Kuala Lumpur, Malaysia 

APEC agrees on the first nine sectors for EVSL and seeks an EVSL agreement with non-APEC

members at the World Trade Organization.

1999 - Auckland, New Zealand

APEC commits to paperless trading by 2005 in developed economies and 2010 in developing

economies. APEC Business Travel Card scheme is approved and a Mutual Recognition

Arrangement on Electrical Equipment and a Framework for the Integration of Women in APEC

is endorsed.

2000 - Bandar Seri Begawan, Brunei Darussalam 

APEC establishes an electronic Individual Action Plan (e-IAP) system, providing IAPs online

and commits to the Action Plan for the New Economy, which, amongst other objectives, aims to

triple Internet access throughout APEC region by 2005.

2001 - Shanghai, People's Republic of China

APEC adopts the Shanghai Accord, which focuses on Broadening the APEC Vision, Clarifying

the Roadmap to Bogor and Strengthening the Implementation Mechanism. The e-APEC Strategy

is adopted, which sets out an agenda to strengthen market structures and institutions, facilitate

infrastructure investment and technology for on-line transactions and promote entrepreneurship

and human capacity building. APEC's first Counter-Terrorism Statement is issued.

2002 - Los Cabos, Mexico 

APEC adopts a Trade Facilitation Action Plan, Policies on Trade and the Digital Economy and

Transparency Standards. APEC's second Counter-Terrorism Statement is delivered, along with

the adoption of the Secure Trade in the APEC Region (STAR) Initiative.

2003 - Bangkok, Thailand 

APEC agrees to re-energize the WTO Doha Development Agenda negotiations and stresses the

complementary aims of bilateral and regional trade agreements, the Bogor Goals and the

multilateral trading system under the WTO. APEC dedicates itself not only to promoting the

prosperity of member economies, but also to improving the security of the peoples of the Asia-

Pacific region. APEC pledges to take specific actions to dismantle terrorist groups, eliminate the

danger of weapons of mass destruction and confront other security threats. Members sign up to

the APEC Action Plan on SARS and the Health Security Initiative to further protect personal

security. APEC also strengthens its efforts to build knowledge-based economies, promote sound

and efficient financial systems and accelerate regional structural reform.

2004 - Santiago, Chile 

APEC issues a strong statement of support for progress in the WTO Doha Development Agenda

and sets a target date for achieving a breakthrough in negotiations: December 2005, the

convening of the Sixth WTO Ministerial Conference. APEC adopts Best Practices for RTAs and

FTAs, the Santiago Initiative for Expanded Trade and a Data Privacy Framework. APEC

reiterates its "unmistakable resolve" to confront the threat of terrorism, and takes further action

in this regard by identifying key elements of effective export control systems; establishing

guidelines on the control of man-portable air defense systems (MANPADS), and continuing to

implement the STAR initiative. APEC makes a political commitment to fight corruption and

ensure transparency, and endorses a specific Course of Action towards this end.

2005 - Busan, Korea 

APEC adopts the Busan Roadmap, completes the Mid-Term Stocktake which has found that

APEC is well on its way to meeting the Bogor Goals, and the APEC Privacy Framework.

Leaders issue a stand-alone statement in support of a successful conclusion to the WTO's 6th

Ministerial Meeting in Hong Kong, China and agree to confront pandemic health threats and

continue to fight against terrorism which could cause deep economic insecurity for the region.

2006 - Ha Noi, Viet Nam 

APEC Economic Leaders endorsed the Ha Noi Action Plan which identifies specific actions and

milestones to implement the Bogor Goals and support capacity-building measures to help APEC

economies. They also issued a statement on the WTO Doha Development Agenda calling for

ambitious and balanced outcomes. To prioritize its agenda, APEC takes a strategic approach to

reform working groups and strengthen the Secretariat.

2007 - Sydney, Australia 

For the first time, APEC Member Economies issue a Declaration on Climate Change, Energy

Security and Clean Development outlining future action in support of a new international

climate change arrangement and announcing a forward program of practical, cooperative actions

and initiatives. Leaders also adopted a major report on closer Regional Economic Integration,

including structural reform initiatives, and welcomed the new APEC Trade Facilitation Action

Plan which will reduce trade transaction costs by a further five per cent by 2010.

2008 - Lima, Peru

APEC focused on the social dimensions of trade and on reducing the gap between developing

and developed members, in accordance with the 2008 theme, "A New Commitment to Asia-

Pacific Development". Leaders also addressed the global financial crisis in the Lima APEC

Leaders' Statement on the Global Economy. They committed to take all necessary economic and

financial measures to restore stability and growth, to reject protectionism and to intensify efforts

to advance WTO Doha Development Agenda negotiations.

2009 - Singapore

APEC resolves to pursue balanced, inclusive and sustainable growth, while Leaders agree to

extend their standstill commitment on protectionism until 2010. The first-ever joint meetings of

APEC senior trade and finance officials are held to address the economic crisis. APEC launches

the Supply-Chain Connectivity Framework and the Ease of Doing Business Action Plan to make

doing business in the region 25 percent cheaper, faster and easier by 2015. Member economies

also commence work on an APEC Services Action Plan and an Environmental Goods and

Services Work Program.

2010 - Yokohama, Japan 

APEC Leaders issue the Yokohama Vision to provide a roadmap for members to realize an

economically-integrated, robust and secure APEC community. This includes the formulation of

a comprehensive, long-term growth strategy . APEC completes an assessment of the progress

towards the Bogor Goals and finds significant gains in the areas of liberalizing trade in goods,

services and investment, as well as trade facilitation. APEC formulates the APEC Strategy for

Investment and endorses the APEC New Strategy for Structural Reform. APEC holds its first-

ever APEC Ministerial Meeting on Food Security.

2011 - Honolulu, United States 

APEC Leaders issue the Honolulu Declaration in which they commit to taking concrete steps

toward a seamless regional economy; addressing shared green growth objectives; and advancing

regulatory cooperation and convergence. To reach these goals, APEC resolves to reduce, by the

end of 2015, applied tariff rates of environmental goods to 5 percent or less, taking into account

economies' economic circumstances, without prejudice to APEC economies' positions in the

WTO. APEC sets the goal to reduce aggregate energy intensity by 45 percent by 2035. And

APEC commits to take specific steps by 2013 to implement good regulatory practices by

ensuring internal coordination of regulatory work; assessing regulatory impacts; and conducting

public consultation. 

APEC Projects:

Projects are a vital part of the APEC process. They help translate APEC Ministers' and

Economic Leaders' policy directions into actions and create tangible benefits for people living in

the Asia-Pacific region.

Projects assist member economies in building a dynamic and harmonious Asia-Pacific region by

championing free and open trade and investment, promoting and accelerating regional economic

integration, encouraging economic and technical cooperation, enhancing human security, and

facilitating a favourable and sustainable business environment. 

APEC contributes funding to around 100-150 projects each year, with a total value of over $23

million committed by APEC to projects in 2010-2011. Over 1600 projects have been undertaken

since 1993, when APEC initiated project work. At any moment in time, up to 170 projects may

be in implementation, The majority of projects are focused on transferring knowledge and skills

between members and building capacity so that each economy can move closer towards

the Bogor Goals of free and open trade and investment. 

APEC projects include workshops, symposia, publications, and research. They are open to

participation from all 21 member economies. As well as engaging with public and government

sector organisations in the 21 economies, external stakeholder engagement is encouraged.

APEC also works to maximise the benefits of globalisation. In particular, APEC supports

projects that: promote public health; improve the skills of workers; contribute to green growth;

reduce the risks of and improve responses to natural disasters and emergencies; and that help

small, medium and micro-sized enterprises to grow and access markets. 

APEC Project Focus and Themes

In 2010-2011, APEC approved funding for 235 projects, focusing on trade-related issues, with

particular focus on areas of relevance to APEC’s fora. 

Projects cover a wide range of priority sectors. Each year APEC defines the key policy priorities

and projects aim to contribute to these directions. Please see the Funding Criteria for APEC-

Funded Projects in 2012. 

In addition to cooperation for trade liberalisation, APEC also supports projects that seek to make

trade and doing business easier and more efficient such as: agreeing to common standards for

product testing and labeling, developing safer and more efficient transportation routes, and

providing information on each member's regulatory and legislative requirements for imports and

exports.

Recent themes launched as APEC projects include:

Regional economic integration: energy management standardization, intellectual property rights,

traditional knowledge protection, self-certification of origin

Green growth:  low-carbon model town , green finance , phasing out fossil fuel subsidies, smart

grids

Structural reform:  regulatory impact analysis, principals of corporate governance, competition

law and policy

Capacity building for APEC’s developing members: ship and port security, trade of second

generation biofuels, best practices for green ICT, infectious disease prevention

Information about individual projects can be found through the APEC Project Database. 

Development of APEC’s Projects

APEC began funding projects in 1993 with three self-funded projects. Since then, the number of

projects funded each year has increased to up to 150 per year.  Over the same period, the funds

APEC committed to projects increased from just under $1 million to over $14 million per year,

depending on members’ contributions.

To implement BMC-led project management reforms and effectively build project management

skills and knowledge among APEC members, the Secretariat established the Project

Management Unit in 2007. The PMU brings a professionalised approach to projects and helps

capacity in project management within the Secretariat and the wider APEC community. The

PMU provides specialised advice and guidance to  both internal and external APEC

stakeholders.  It provides the main link between members, Program Directors, Program

Executives and the Executive Office and the Budget Management Committee (BMC) regarding

project matters.

Multi Year Projects

In 2011 APEC launched a Multi-Year Project (MYP) initiative, for on-going, phased projects

that continue for three to five years. MYPs focus strategically on building capacity in members

so that they can take full advantage of trade opportunities. 

Possible enlargement

India has requested membership in APEC, and received initial support from the United States,

Japan and Australia. Officials have decided not to allow India to join for various reasons.

However, the decision was made not to admit more members until 2010. Moreover, India does

not border the Pacific Ocean, which all current members do. However, India has been invited to

be an observer for the first time in November 2011.

In addition to India, Mongolia, Pakistan, Laos, Bangladesh, Costa Rica, Colombia, Panama

and Ecuador, are among a dozen countries seeking membership in APEC by 2008. Colombia

applied for APEC's membership as early as in 1995, but its bid was halted as the organization

stopped accepting new members from 1993 to 1996, and the moratorium was further prolonged

to 2007 due to the 1997 Asian Financial Crisis. Costa Rica, Colombia and Ecuador had hoped to

become members by 2010. Guam has also been actively seeking a separate membership, citing

the example of Hong Kong, but the request is opposed by the United States, which currently

represents Guam.

Criticism/ Conclusion

APEC has been criticized for failing to clearly define itself or serve a useful purpose. According

to the organization, it is "the premier forum for facilitating economic growth, cooperation, trade

and investment in the Asia-Pacific region" established to "further enhance economic growth and

prosperity for the region and to strengthen the Asia-Pacific community". However, whether it

has accomplished anything constructive remains debatable, especially from the viewpoints of

European countries that cannot take part in APEC.

Although there have been developments in enhancing trade, business, services in and between

the member economies, there is still a need for further advancement and constant research and

technological development, new policies, to maintain a certain level of economic activity

amongst the member countries.

Bibliography/ References

www.wikipedia.com

www.apec.org

Advanced Micro & Macro Economics – Michael Vaz.

Advanced Economics Part I- Andrew Benstein.