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1. Ministers from Australia; Brunei Darussalam; Canada; Chile; the People's Republic of China; Hong Kong, China; Indonesia; Japan; the Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; the Republic of the Philippines; Singapore; Chinese Taipei; Thailand; and the United States of America participated in the Ninth Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting convened in Vancouver, Canada on 21-22 November 1997. Members of the APEC Secretariat were also present. The Association of Southeast Asian Nations (ASEAN) Secretariat, the Pacific Economic Cooperation Council (PECC), and the South Pacific Forum attended as observers. The meeting was co-chaired by the Honourable Lloyd Axworthy, Minister of Foreign Affairs of Canada and the Honourable Sergio Marchi, Minister for International Trade for Canada. Ministers welcomed the first "APEC Results Report" which highlights the achievements of all APEC fora in 1997.
2. In reviewing these results and achievements, Ministers underscored the value of cooperation in strengthening economic growth and prospects for the region. They reaffirmed their commitment to pursue trade and investment liberalization, facilitation initiatives, and economic and technical cooperation. They agreed that the recent financial turbulence in the region reinforced the importance for APEC economies to lay the foundation to realize their longer-term growth potential which remains exceptionally strong. To this end, Ministers strongly endorsed a forward-looking approach to ensure that the benefits of open economies are fully realized.
TRADE AND INVESTMENT LIBERALIZATION AND FACILITATION
3. Ministers welcomed progress made in continuing the liberalization momentum through a mix of individual and collective actions as well as through identification of sectors for early voluntary liberalization.
Individual Action Plans (IAPs): Ministers reaffirmed that Individual Action Plans (IAPs) are key to the implementation of APEC's trade agenda for free and open trade and investment in the Asia-Pacific region by the year 2010 for developed economies and 2020 for developing economies.
Ministers endorsed the individual and collective initiatives completed by member economies in 1997, the first year of implementation of the Manila Action Plan for APEC;
Ministers welcomed the improvements in 1997 shown in members' IAPs, and reaffirmed their commitment to progressive and continuous improvements to their IAPs with due consideration to the views of the broad business community in order to reach the Bogor goals.
Ministers welcomed and encouraged the ongoing process of bilateral consultations to exchange views on areas of interest and possible improvements in IAPs. Ministers also commended and encouraged the continuation of voluntary peer reviews in 1997 as an additional opportunity for members to demonstrate their commitment to advancing their IAPs.
Ministers commended the Committee on Trade and Investment (CTI) for improving the format of the IAPs which will contribute to greater transparency, facilitate review and assessment, and enhance their usefulness to the business community. Ministers agreed to adhere to the improved format guidelines in preparing economies' revised IAPs.
Ministers welcomed the recommendations of the APEC Business Advisory Council (ABAC) on how future plans could more effectively meet the needs of business in terms of value-added to commitments made elsewhere, transparency, specificity, and commitment to action. Ministers agreed to take account of the recommendations in revising their IAPs and Collective Action Plans (CAPs) in 1998 and future years, and directed officials to report to them in this regard by the June 1998 Meeting of Ministers responsible for trade.
4. Early Voluntary Sectoral Liberalization: Ministers recalled the instructions of the Leaders in Subic to identify sectors for early voluntary liberalization, and welcomed progress made by Ministers responsible for trade in May 1997 to accelerate this process. Ministers agreed to pursue initiatives for early voluntary sectoral liberalization in accordance with the attached statement, and welcomed the fact that many of the proposals include measures that will promote facilitation as well as economic and technical cooperation, illustrating again the integrated nature of APEC's work. Ministers also agreed that other actions should be taken so that the progress remains consistent with, and promotes, further broad-based multilateral liberalization. Ministers underscored the importance of progressing toward the Bogor goals, and in demonstrating APEC's leadership in liberalizing global trade.
5. Trade and Investment Facilitation: Ministers welcomed the achievements under the Collective Action Plans (CAPs), which will significantly lower costs and reduce barriers to the movement of goods and services, capital, and business people. Ministers endorsed work in these areas, including:
Ministers welcomed the annual report of the Committee on Trade and Investment (CTI), and commended APEC fora both for their implementation and improvement of CAPs, and for the comprehensive range of short-term deliverables contained in the report. They called for renewed efforts on trade facilitation in the CTI and relevant Working Groups through 1998, having particular regard to the priorities of the business sector. Ministers called for intensified work on simplification and harmonization of customs procedures; standardized approaches to reduce and simplify documentary requirements (both print and electronic) for businesses, particularly small and medium-sized enterprises; and encouraged participation by additional members in the Asia-Pacific Laboratory Accreditation Conference Mutual Recognition Arrangement recently signed among accreditation bodies in five APEC economies. Ministers also called for implementation by member economies of the mutual recognition arrangement developed by the Telecommunications Working Group for certification of telecommunications equipment.
6. Contribution to World Trade Organization (WTO) Process: Ministers discussed the continuing contribution of APEC to supporting the multilateral trading system, and noted in particular the dynamic and catalytic role that APEC plays by virtue of its broad membership, embracing both developed and developing economies, and its continuing commitment to liberalization. Ministers agreed to work to ensure that regional and multilateral trade and investment initiatives complement and support each other. Ministers reaffirmed the primacy of an open, rules-based multilateral trading system under the World Trade Organization (WTO), and reiterated their support for the prompt accession to the WTO of applicants in accordance with WTO rules and based on effective market access commitments with a view to achieving universality of WTO membership.
Ministers reiterated the importance of implementing fully all existing WTO commitments as a foundation for further multilateral trade liberalization, particularly through fulfillment of the built-in agenda of the WTO according to agreed timetables. Ministers accordingly welcomed the successful conclusion of the WTO Agreement on Basic Telecommunications. Ministers of economies committed to participating in the Information Technology Agreement (ITA) agreed to work together to achieve broader participation and expanded product coverage in the next phase of the ITA negotiations. Ministers agreed that the second WTO Ministerial Conference, to be held in May 1998, provides a timely opportunity to take stock of progress in the implementation of existing commitments and on the built-in agenda and to provide instructions to WTO bodies on the work necessary to prepare a substantive agenda for the WTO Ministerial Conference to be held in late 1999, with a view to pursuing further broad-based multilateral market access and other liberalization.
Ministers endorsed the efforts of negotiators from many APEC economies to reach a successful conclusion to the negotiations on financial services underway in the World Trade Organization by the deadline of December 12, 1997. As agreed by Finance and Trade Ministers, a successful conclusion would encompass an MFN agreement based on significantly improved commitments. Such an outcome would enhance competition within financial systems, foster development of regional capital markets, promote financial integration, improve the regional capacity to intermediate savings and strengthen the global trading system.
To maintain and strengthen APEC's leadership in multilateral trade liberalization and facilitation, Ministers reaffirmed their intention to continue to pursue APEC initiatives that support work in the WTO, including with respect to competition policy, trade facilitation, transparency in government procurement and dispute mediation. They agreed that the 50th anniversary of the multilateral trading system in May 1998 provides a unique opportunity to highlight the benefits that the system has provided during its first half-century. Building on this record, Ministers agreed to continue to work together to identify and pursue all areas where APEC can complement and support the multilateral trading system.
7. Impact of Trade Liberalization: Ministers reaffirmed their strong belief that continued trade and investment liberalization and facilitation is essential to economic growth and equitable development in the region. They noted that studies undertaken within APEC's Economic Committee confirm that timely implementation of commitments made by member economies under the Manila Action Plan for APEC will significantly increase trade and output in the APEC region and in the world more generally. Ministers acknowledged the need to expand the assessment of the impact of liberalization and facilitation, in order to promote a broad-based and balanced understanding of this issue within domestic communities. Ministers requested that further work be undertaken, and asked for a report on progress at the meeting of APEC Ministers responsible for trade in June 1998.
ECONOMIC AND TECHNICAL COOPERATION
8. Ministers committed to further strengthen economic and technical cooperation by fully implementing the Framework for Strengthening Economic Cooperation and Development which was agreed to in 1996. Ministers also reaffirmed the importance of economic and technical cooperation activities to strengthen economic fundamentals and welcomed the efforts made this year in this regard. Ministers endorsed the establishment of a SOM Subcommittee on Economic and Technical Cooperation.
Ministers emphasized that progress on all six priority areas (developing human resources; developing sound, safe and efficient capital markets; strengthening economic infrastructure; harnessing technologies for the future; safeguarding the quality of life through environmentally sound growth; and strengthening the dynamism of small and medium enterprises) is essential to reduce economic disparity among APEC economies, to improve the economic and social well-being of people, and to achieve sustainable growth and equitable development in the Asia-Pacific region.
They welcomed the particular emphasis given through 1997 on two priority areas: strengthening economic infrastructure and promoting environmentally sustainable growth, which served to accelerate progress on meeting the challenges in these two areas.
Ministers commended APEC fora for engaging the private sector and other experts in the implementation of the Framework for Strengthening Economic Cooperation and Development, including through the convening of public/private dialogue sessions, business workshops and expositions in 1997, and the Symposium on the impact of expanding population and economic growth on food, energy, and the environment (FEEEP) which brought together government, academic, non-government and business experts.
The following summarizes progress in 1997 on the six priorities of the Framework:
i) Economic Infrastructure: Improved infrastructure is a pressing need in the region. Ministers noted that public funds alone cannot meet the enormous infrastructure needs of the region, and reaffirmed the need for greater private/business sector involvement to meet the infrastructure requirements in the region. Ministers endorsed the development of the Vancouver Framework for Enhanced Public-Private Partnerships in Infrastructure Development and recommended it to Leaders for their consideration. Ministers commended the work of APEC Working Groups, the Economic Committee's Infrastructure Workshop, and its associated public/private dialogue process, in contributing to the implementation of the Framework. Ministers also recognized that infrastructure is a cross-cutting issue and acknowledged the contribution to the implementation of the Framework by several sectoral Ministerial processes. Ministers supported the proposal for a feasibility study on an APEC network of infrastructure facilitation centres as a focal point for infrastructure development. Ministers welcomed the mutual cooperation protocol signed by participating Export Credit Agencies and Export Financing Institutions to enhance, on a project by project basis, the attractiveness of infrastructure investment for private sector participants. Ministers called on all APEC fora to continue to participate actively in addressing the infrastructure development needs in the region including:
Creating an Asia-Pacific Information Society: Ministers recognized that telecommunications and information technology is transforming societies and economies, and that the Asia-Pacific Information Infrastructure (APII) is an essential foundation to ensure the competitiveness of the Asia-Pacific region for the new era. Ministers called on APEC economies, as well as the Telecommunications Working Group to implement actions necessary to make the Asia-Pacific information society a reality. Ministers welcomed Singapore's offer to host a Telecommunications and Information Industry Ministerial Meeting in 1998.
Creating an Integrated Asia-Pacific Transportation System: An efficient, safe, and integrated regional transportation system is critical to support growth. Ministers welcomed the results from the APEC Transportation Ministerial Meeting held in Victoria, June 1997, including the Declaration of Principles affirming commitment to harmonization of Civil Aviation Safety Rules. Ministers encouraged the implementation of these principles in support of civil aviation safety and efficiency. Ministers welcomed the completion of the transport congestion points study and the establishment of an Intermodal Task Force to develop an integrated transport system in the region.
Energy Infrastructure: Ministers noted that energy infrastructure is key to the region's development needs and acknowledged that planned future work will create an institutional and regulatory framework conducive to business and investment, and promote environmentally responsible practices. Ministers noted the results from the APEC Energy Ministerial Meeting held in Edmonton, August 1997, and congratulated their colleagues on producing a "Manual of Best Practice Principles for Independent Power Producers" which focuses on promoting a predictable, transparent framework for tendering, bidding, evaluation and approval processes. Ministers welcomed initiatives to promote environmentally sound regulatory practices, the development of natural gas infrastructure, and the multilateral recognition of energy efficiency testing facilities, methods, and results. Ministers welcomed Japan's offer to host the next Energy Ministerial in Okinawa, October 1998, which will discuss wide ranging energy challenges and policies.
Infrastructure for Sustainable Cities: Ministers welcomed progress made in 1997 in developing a greater understanding of the role that infrastructure plays in the development of cities that are economically viable, environmentally sustainable, and socially healthy. In particular, Ministers noted the Public/Private Dialogue in Los Cabos, June 1997, the Seminar on Environment and Economic Policies towards Sustainable Cities in Beijing, September 1997, and the upcoming workshop on the use of Economic Instruments towards Sustainable Cities in Taipei, December 1997.
Infrastructure for rural diversification and integration: Ministers noted that improving infrastructure in rural communities, including roads, telecommunications, power generation, and capacity building, is critical to the region's development and cannot be overlooked. Ministers directed APEC fora to work with the private sector and include in their efforts infrastructure initiatives for promoting integration and diversification of rural communities.
ii) Environmentally Sustainable Growth: Ministers recalled the decision to address sustainable development across all of APEC work programs and applauded the APEC Cleaner Production Strategy, the Strategy for the Sustainability of the Marine Environment, and the Sustainable Cities Program of Action as examples of coordinated approaches to integrate economic, social, and environmental considerations into work programs. Ministers noted that specific action items were identified for implementation during the APEC Environment Ministerial Meeting on Sustainable Development in Toronto, June 1997, and instructed all APEC fora to rapidly implement these initiatives. Ministers also recognized the challenge to sustainable growth posed by emerging infectious diseases, and concurred on the need for further collaboration.
Ministers endorsed the pledge by Environment Ministers that APEC economies must do their part to implement global commitments, with full consideration of domestic priorities and conditions. In this context, Ministers recognized the importance of effective action to deal with global emissions of greenhouse gases, and emphasized their strong support for constructive dialogue and successful results at the Third Conference of the Parties (COP 3) to the United Nations Framework Convention on Climate Change (UN-FCCC) as an important step towards meeting the objectives of the Convention. Ministers also shared the recognition of Energy Ministers that enhancing energy efficiency is key to addressing climate change.
FEEEP: Ministers commended the work of the Economic Committee and its Task Force on Food, in collaboration with the Energy Working Group, Senior Environment/Economic Officials, and other APEC fora in addressing sustainability through examining the impact of fast-expanding population and rapid economic growth on food, energy, and the environment ("FEEEP"). Ministers welcomed the results of the FEEEP Symposium held in September 1997, Saskatoon, Canada which analyzed linkages among the elements of sustainability and cross-cutting themes. Ministers welcomed the Interim FEEEP Report to Leaders and agreed that the ability to adapt to changing technological conditions and economic constraints along with building partnerships and capacity building are key factors for success in the new millennium. Ministers called for further work in 1998 to lay the foundation for discussion by Leaders of possible joint actions.
Managing resources: In their 1993 Statement, APEC Leaders envisioned a community which could provide for a more secure future by protecting the quality of air, water and green spaces. Ministers commended the Tourism, Fisheries, Marine Resource Conservation, Human Resources Development, Industrial Science and Technology, Transportation, and Energy Working Groups in fostering technical cooperation, and promoting sustainable practices which facilitate investment and promote environmental protection. Ministers welcomed the establishment of the APEC Environmental Protection Centre in China. Ministers also noted the coordination of work in respect of the marine environment by a group of networks, including the Ocean Research Network for the Pacific, the Sustainable Development Training and Information Network, the Ocean Model and Information System for the APEC Region, the APEC Virtual Centre for Environmental Technology Exchange, and the Education-Network (Edu-Net) under the APEC Study Centres Consortium. Ministers applauded this coordination and called on other APEC fora to adopt similar inclusive approaches.
Emergency preparedness for disasters: Ministers noted that APEC should define its value-added role in formulating emergency preparedness and disaster recovery measures. Ministers called for strengthening cooperative efforts to ensure an effective and integrated approach to deal with this key issue. Ministers tasked Senior Officials to explore measures for joint action, taking into account the programs of other regional and international bodies, and to provide an inter-sessional report by June 1, 1998.
iii) Small and Medium Sized Enterprises (SMEs): Ministers welcomed the results of the APEC Small and Medium Sized Enterprises (SMEs) Ministerial Meeting in Ottawa, September 1997, and applauded the commitment of SME Ministers to make changes at the domestic and APEC level to create business environments that will address the special needs of SMEs and encourage the creation of enterprises. Ministers also welcomed the Framework and Guide for APEC SME Activities which will help ensure that APEC is attuned to SME needs and will keep SMEs abreast of measures and activities undertaken across APEC fora to improve access to markets, technology, human resources, financing, and information. Ministers asked that all APEC fora integrate the Framework for APEC SME Activities into their programs. Ministers welcomed Malaysia's offer to host the next SME Ministerial Meeting in 1998.
iv) Developing Human Resources: Ministers welcomed the results of the Human Resources Development Ministerial Meeting in Seoul, September 1997, which emphasized that life-long learning and school-to-work transition are essential to creating an adaptable workforce as well as providing individuals with relevant skills; that skills development is one of the most important instruments for adjusting to the changes in the labour market and economic environment; and that the roles and contributions of labour and management in attaining APEC's objectives of promoting sustainable growth and the overall well-being of the people in the region are important. Ministers noted the United States proposal to host the next HRD Ministerial Meeting by the year 2000. Ministers invited officials to place special emphasis on human resource development in 1998.
v) Harnessing Technologies for the Future: Ministers noted the many initiatives to promote technological modernization of APEC member economies. In particular they welcomed:
Ministers agreed that electronic commerce is an important technological breakthrough. Recognizing the opportunities it presents as a tool for economic and social growth, Ministers called for a work plan to study a wide range of issues on electronic commerce, with a view to developing a predictable and consistent environment that enables all APEC economies to reap the benefits and foster growth of electronic commerce. Ministers recognized that the private sector should take the lead role as innovators and developers of this important medium. The work plan should be reviewed at the June 1998 Meeting of Ministers responsible for trade to consider further steps.
Recognizing the vital contribution that biotechnology can make toward expanding agricultural and food production, Ministers encouraged the Agricultural Technical Cooperation Experts Group to intensify science-based approaches to the introduction and use of bio-technology products. Ministers welcomed Mexico's offer to host the third Science and Technology Ministerial in October 1998. Ministers directed officials to place special emphasis on this theme in 1998.
vi) Developing Capital Markets: Ministers acknowledged the continuing work of the APEC Finance Ministers on the critical importance of sound macroeconomic policies for financial market stability and sustained growth. Ministers welcomed the Finance Ministers' work to develop voluntary principles to guide financial and capital market development and their collaborative initiatives to deepen and broaden domestic financial and capital markets. Recognizing the impact that recent currency and financial market instability has had on the economies of the region, the Ministers welcomed the results of the 18-19 November 1997 meeting in Manila of Finance and Central Bank Deputies from several APEC member economies that discussed a New Framework for Enhanced Asian Regional Cooperation to Promote Financial Stability. They welcomed the collective efforts to address the problems caused by the region's currency turbulence. The Ministers noted that similar meetings, involving ASEAN, several Asian economies, and G-15 member countries will be convened in Kuala Lumpur in early December.
In view of the prevailing currency volatility, the Ministers agreed to recommend to Leaders that they consider the timing of the next meeting of APEC Finance Ministers in order to adopt mechanisms for the enhancement of financial stability in the region.
DEEPENING THE SPIRIT OF COMMUNITY
9. Ministers recalled that deepening the spirit of community in accordance with the APEC approach is critical in exercising a positive influence in the region and in the world. This vision of community requires that all sectors of society develop a stake in the success of APEC.
APEC Business Advisory Council (ABAC) Report: Ministers discussed the importance of public/private dialogue and increased interaction of ABAC in the overall process, including sectoral Ministerial Meetings. Ministers welcomed the evidence on how APEC is responding to the recommendations made in ABAC's 1996 report. Ministers directed that all APEC fora continue efforts to work in refining recommendations, defining priorities, and implementing the necessary actions.
10. Input from the business/private sector: Understanding concerns of businesses operating in the region is central to APEC's work. In this regard, Ministers noted that sectoral Ministerial Meetings in 1997 on Finance, Trade, Sustainable Development, Transportation, Energy, and Small-Medium Sized Enterprises all included dialogue sessions with business. Ministers also recognized that initiatives by APEC fora, such as the business symposia on customs and investment organized by subgroups of the Committee on Trade and Investment, the Economic Committee's Infrastructure Workshop Public/Private Dialogue and the FEEEP Symposium, the Energy Working Group's Ad Hoc Business Forum, and the APEC-PECC dialogue involving the Telecommunications Working Group, were innovative ways to obtain input from the private sector. To ensure APEC activities benefit business in a practical way, Ministers commended the involvement of the private sector to date in Working Group activities and encouraged APEC fora to continue to broaden engagement of the private sector, including young entrepreneurs and women leaders.
11. Youth: Ministers applauded the involvement of youth in APEC activities throughout 1997 and noted that sectoral Ministerial Meetings on Trade, Sustainable Development, Transportation, Energy, and SMEs had provided forums for meaningful dialogue with youth. Ministers welcomed the initiatives recognized by the HRD Ministerial Meeting which commended youth delegations for creating an Electronic Sourcebook on work, study and exchange opportunities in the APEC region, and the proposal to inaugurate an APEC Youth Skills Camp. Ministers encouraged member economies to support these initiatives.
12. Women: Ministers noted the attention paid to gender issues in APEC fora, including in the Industrial Science and Technology, Human Resources Development, Tourism, and Transportation Working Groups, as well as the Policy Level Group on SMEs and Senior Environment Officials. Ministers welcomed the offer of the Philippines to host a Ministerial Meeting on Women in 1998 in Manila, focusing on women and economic development and integrating women into the mainstream of APEC activities.
13. People-to-People linkages: Ministers noted that involving all sectors of society, particularly those in education and business is important in policy-making to promote sustainable growth and equitable development. In this regard, they welcomed the accomplishments in 1997 including the participation of such stakeholders at a number of APEC fora meetings, the opening of the APEC Education Foundation's Grants and Program Secretariat in Seoul, Korea and its administrative office in Monterey, USA. Ministers also noted the 1997 contributions of the APEC Study Centers to APEC's work program, including the Consortium Meeting which helped focus analysis more closely on issues important to APEC.
Ministers discussed the question of APEC's engagement with broader sectors of society that are affected by impacts of economic growth and liberalization. Ministers agreed in general that economic adjustment and growth can be most effectively addressed when governments and concerned sectors of society work together in harmony. Ministers noted related activities underway in the Human Resource Development (HRD) Working Group as endorsed by the recent HRD Ministerial Meeting, and called on the Working Group to continue its work in addressing these issues.
14. Ministers endorsed:
i) the 1997 annual report of the Committee on Trade and Investment and agreed with its recommendations. Ministers commended the Committee and its sub-groups for their comprehensive work in advancing the trade and investment liberalization and facilitation agenda;
ii) the 1997 annual report of the Economic Committee and commended the work of the Committee and its sub-groups on the Economic Outlook, the Trade and Investment Liberalization and Facilitation related studies, and progress on examining the impact of expanding population and economic growth on food, energy, and environment and the contributions to the infrastructure initiative;
iii) the 1997 annual report of the Budget and Administrative Committee and commended the committee for its work during the year in evaluating project proposals, streamlining procedures, and enhancing operation and administrative efficiency and effectiveness, including the de-classification of APEC documents for public access.
Ministers also noted the results of 1997 work from the ten APEC Working Groups and other APEC fora, namely the Energy, Fisheries, Human Resources Development, Industrial Science and Technology, Marine Resource Conservation, Telecommunications, Tourism, Trade and Investment Data Review, Trade Promotion, and Transportation Working Groups; as well as the Policy Level Group of Small-Medium Enterprises, Agricultural Technical Cooperation Experts Group, and Senior Environment/ Economic Officials, and directed these fora to continue the implementation of the Framework for Strengthening Economic Cooperation and Development through coordinated initiatives.
15. Ministers endorsed the SOM Chair's Report on Organizational Issues and instructed officials to implement the recommendations contained in the report and supporting documents. Ministers approved the 1998 budget of $ 7,551,139. Ministers also approved the 1998 contribution of member economies of $US 3,864,000.
16. Report of the APEC Secretariat: Ministers expressed appreciation for the work done by the Executive Director, Ambassador Jack Whittleton, and staff of the APEC Secretariat in supporting the various APEC Committees and Working Group and the APEC process as a whole.
MEMBERSHIP AND PARTICIPATION ISSUES
17. Membership: Ministers endorsed the Guidelines on APEC Membership and undertook to consider them in future deliberations on this matter. A variety of views were expressed on the number of new members to be included and the timing. However, the final decision on this matter was left to Leaders.
18. Non-member participation in APEC fora: Ministers noted the increased non-member participation in Working Group activities following the adoption of the Consolidated Guidelines on Non-member Participation in Working Group Activities last November. Ministers further endorsed the SOM decisions on application of the Consolidated Guidelines.
OTHER MATTERS
19. Future Meetings: Ministers thanked Malaysia for the valuable briefing on the preparations for the Tenth APEC Ministerial Meeting, and look forward to their next meeting in Kuala Lumpur in 1998. Ministers also thanked New Zealand and Brunei Darussalam for their updates on plans for the Eleventh and Twelfth Annual Meetings, which will be held in their respective economies. Ministers welcomed the announcement that the People's Republic of China will host the Thirteenth Meeting in the year 2001.
EARLY VOLUNTARY SECTORAL LIBERALIZATION
ANNEX TO THE MINISTERS' JOINT STATEMENT
In Montreal, the APEC Ministers Responsible for Trade affirmed that APEC should continue to act as a catalyst for promoting trade and investment liberalization globally. Recalling the leadership role that APEC played in ensuring the successful conclusion of the Information Technology Agreement, they also reaffirmed their determination to continue APEC's leadership and credibility in trade liberalization in accordance with the general principles set out in the Osaka Action Agenda.
They therefore agreed to identify in 1997 potential sectors for early voluntary liberalization, responding to the challenge presented by APEC Economic Leaders in Subic "to identify sectors where early voluntary liberalization would have a positive impact on trade, investment, and economic growth in the individual APEC economies as well as in the region, and submit recommendations to us on how this can be achieved".
They directed officials to examine the merits of pursuing liberalization in sectors, including those that support enhanced infrastructure and sustainable development, having regard to:
This initiative complements the Individual Action Plan (IAP) process, which they agreed in Montreal is key to the implementation of APEC's trade and investment agenda. The launch of this process signals APEC members' clear commitment to promote economic growth based on a substantial programme of trade liberalization in the region. Ministers agreed that other actions should be taken so that the process remains consistent with, and promotes, further broad-based multilateral liberalization.
In response to the instructions of Ministers Responsible for Trade, 41 sectors were proposed for our review and consideration. The breadth of participation by APEC members and the diverse range of sectors nominated is indicative of the high level of support in the region for further trade liberalization. We have closely examined the merits of these proposals and have given full consideration to the levels of support for, the economic significance of, and the internal balance that has been developed within, specific proposals. Fifteen proposals have been identified as enjoying the most support among member economies.
These are:
We agree to pursue an ongoing programme of voluntary liberalization with respect to these sectors. We affirm our commitment to continue developing liberalization initiatives among APEC members, and to build on APEC's early voluntary liberalization in these sectors as a basis for extending participation beyond our region and, where appropriate, for incorporation into the WTO.
Recognizing the need for a balanced and mutually beneficial package, and recalling that the process of early liberalization is conducted on the basis of the APEC principle of voluntarism, whereby each economy remains free to determine the sectoral initiatives in which it will participate, we therefore call for the development of appropriate agreements or arrangements for market-opening and facilitation and economic and technical cooperation measures, based on existing proposals in the following sectors:
We recommend that Leaders endorse members beginning immediately to complete the work on these proposals through finalizing the scope of coverage, flexible phasing, measures covered and implementation schedule, including choice of measures and instruments for implementation based on the existing proposals, for each of these sectors. We would like this work to be concluded in the first half of 1998 with a view to commencing implementation wherever possible in 1999. We will maintain under review our progress, and will use all appropriate opportunities to do so throughout the first half of 1998, including at the meeting of Ministers Responsible for Trade in Kuching, Malaysia, in June, 1998.
We note that there is broad interest among APEC members in the remaining 6 sectors. Liberalization initiatives in these sectors would also produce economic benefits for member economies, and contribute to a balanced and mutually beneficial outcome, but they require further preparatory work. We therefore direct Senior Officials to further develop proposals from these remaining candidates for our assessment and review next June, and possible recommendation to Leaders next November. We also remain open to considering other sectors for early voluntary liberalization as opportunities arise.
We welcome the initiatives of some members to substantially reduce all tariffs or to eliminate "nuisance tariffs" (of less than two per cent). We recommend to Leaders that members be encouraged to commit in their IAP to review options for undertaking such initiatives.
We also note the significant support and interest of a number of member economies in advancing work relating to a number of horizontal or cross-cutting issues, such as competition policy, government procurement, intellectual property rights and investment. We therefore direct Senior Officials to entrust the appropriate existing APEC fora to discuss these proposals for possible inclusion in their work programmes.
1. We, APEC's Economic Leaders, met today in Vancouver, Canada, to reaffirm our commitment to work together to meet the challenge of sustaining regional prosperity and stability. Certain of the dynamism and resilience of the region, we underline our resolve to achieve sustainable growth and equitable development and to unlock the full potential of the people who live here. We agree that the prospects for economic growth in the region are strong, and that Asia-Pacific will continue to play a leading role in the global economy. The goals we have set, including the achievement of free and open trade and investment in the region by the dates set out in the Bogor Declaration, are ambitious and unequivocal.
2. We take note of the rapid expansion of APEC's activities in recent years, and the increasing leadership role it plays in global economic affairs. Flowing from commitments embodied in the Osaka Action Agenda and the Manila Action Plan for APEC, we welcome the designation of 1997 as APEC's Year of Action. We have reflected on the concrete results that APEC cooperation has generated throughout the year, and set out a vision of how we may build upon these achievements in the years ahead. As the year draws to a close, we note with satisfaction that we have met and surpassed all the tasks we set for ourselves at our last meeting in Subic.
3. APEC -- Addressing shared challenges: We have had a thorough discussion of recent financial developments in the region. Our economies and the international community as a whole have a strong interest in seeing a quick and enduring restoration of financial stability and healthy and sustainable growth. These events reflect new challenges in the international financial system that require new responses. The global dimensions of these problems suggest the need for a global response, with regional initiatives to complement and support these efforts. We are resolved to work together to address these shared challenges.
There is no doubt that the fundamentals for long-term growth and prospects for the region are exceptionally strong. We remain convinced that open markets bring significant benefits and we will continue to pursue trade and investment liberalization that fosters further growth. Prudent and transparent policies, particularly sound macroeconomic and structural policies, human resource development strategies, and effective financial sector regulation are key to restoring financial stability and realizing this growth potential.
But we need to go further. We believe it is critically important that we move quickly to enhance the capacity of the international system to prevent or, if necessary, to respond to financial crises of this kind. On a global level, the role of the IMF remains central. Therefore, we welcome and strongly endorse the framework agreed to in Manila as a constructive step to enhance cooperation to promote financial stability: enhanced regional surveillance; intensified economic and technical cooperation to improve domestic financial systems and regulatory capacities; adoption of new IMF mechanisms on appropriate terms in support of strong adjustment programs; and a cooperative financing arrangement to supplement, when necessary, IMF resources. We urge rapid implementation of the Manila Framework. We also look forward to the conclusions of the IMF study already underway on the role of market participants in the recent crises.
We recognize that as the region’s most comprehensive economic forum, APEC is particularly well suited to play a pivotal role in fostering the kind of dialogue and cooperation on a range of policies and develop initiatives to support and supplement these efforts. We ask our Finance Ministers, working closely with their Central Bank colleagues, to accelerate their work launched in Cebu in April on the collaborative initiatives to promote the development of our financial and capital markets, and to support freer and stable capital flows in the region. APEC can play a particularly valuable role in exploring ways, in cooperation with the World Bank, the IMF, and the Asian Development Bank, of intensifying its economic and technical cooperation, giving priority to upgrading financial systems, enhancing cooperation among market regulators and supervisors and other measures to help improve the integrity and functioning of financial markets. A good example of private-public partnership in these areas is the recently-announced Toronto Centre for Executive Development of Financial Sector Supervisors.
We look to our Finance Ministers to report on progress on all of these initiatives early in the new year and to concrete outcomes at their next meeting.
4. APEC must play an increasing role in addressing such challenges. We are resolved to work together to achieve concrete results through dialogue and problem-solving. Recognizing the diverse interests and circumstances of its membership, APEC has given rise to entirely new approaches to international economic cooperation. Based on three mutually supportive pillars -- trade and investment liberalization, business facilitation, and economic and technical cooperation -- the APEC approach addresses regional challenges and opportunities in an integrated fashion so that all members develop the capacity to participate fully in and benefit from this cooperation. By connecting the community APEC has helped us to build relationships and share knowledge to improve the well-being of our citizens. These partnerships enhance our prosperity and progress, enrich our lives and foster the spirit of the APEC community.
A Year of Action -- Key Results
5. We welcome the concrete results achieved this year in implementing the trade and investment liberalization commitments we set out at Subic Bay. We recognize efforts made by members to improve the commitments in their Individual Action Plans. APEC's collective achievement in enhancing the comparability and transparency of these plans is important in ensuring that our undertakings are well understood in the marketplace. The views of the private sector are critical to ensuring that APEC's efforts remain focused and on target. In this regard, we welcome the review of the Manila Action Plan for APEC which was carried out by the APEC Business Advisory Council, and instruct our ministers to take ABAC's views into consideration in the preparation of future plans. As Individual Action Plans remain the core mechanism for APEC's trade and investment liberalization activity, we reaffirm our commitment to their annual improvement.
6. APEC's liberalization proceeds on a voluntary basis, propelled by commitments taken at the highest level. In this regard, we welcome the action taken to accelerate by two years the time table for the identification of sectors for early voluntary liberalization, a decision that underlines our determination to advance the pace of liberalization in the region and globally. We endorse the agreement of our Ministers that action should be taken with respect to early voluntary liberalization in 15 sectors, with nine to be advanced throughout 1998 with a view to implementation beginning in 1999. We find this package to be mutually beneficial and to represent a balance of interests. We instruct Ministers responsible for trade to finalize detailed targets and timelines by their next meeting in June 1998. To sustain this momentum, we further instruct that the additional sectors nominated by members this year to be brought forward for consideration of additional action next year. We underline our commitment to comprehensive liberalization, as stated in the Osaka Action Agenda.
7. Among multilateral and regional fora, APEC is a pioneer in the area of trade and investment facilitation. Our business community tells us that this is the area of APEC activity of most immediate relevance to them. Lowering costs, eliminating red-tape and delay, promoting regulatory reform, developing mutual recognition arrangements on standards and conformance, and increasing predictability are clear benefits, especially to operators of small and medium-sized enterprises. The Blueprint for APEC Customs Modernization, which puts forward a comprehensive program to harmonize and simplify customs clearances by the year 2000, provides a model. We urge the acceleration of trade and investment facilitation through APEC's Collective Action Plans and direct Ministers to use APEC's economic and technical cooperation activities to build capacity, adapt procedures and incorporate new technologies.
8. On the eve of the 50th anniversary of the GATT we reflected on the rich legacy it has conferred through the encouragement of open trade regimes. We reaffirm the primacy of the open, rules-based multilateral trading system under the WTO and reiterate our commitment to APEC's activity proceeding on the basis of open regionalism. We invite trading partners outside APEC to follow suit.
Full and active participation in and support of the WTO by all APEC economies is key to our ability to continue to strengthen the global trading system. We encourage the acceleration of substantive negotiations on protocol issues and market access with a view to achieving universality of WTO membership. We reaffirm our undertaking to implement fully all existing WTO commitments and the built-in agenda of the WTO according to agreed timetables. We also challenge the WTO to build on APEC's efforts towards further broad-based multilateral liberalization. We note with pleasure the leadership that APEC has demonstrated in advancing in the WTO the conclusion of Agreements on Information Technology and Basic Telecommunications. We undertake to work in a determined fashion to achieve a successful conclusion to WTO negotiations on financial services by the agreed deadline of December 12, 1997. As agreed by our finance and trade Ministers, a successful conclusion would include an MFN agreement based on significantly improved commitments. This result will enhance competition within our financial systems, foster development of regional capital markets, promote financial integration, improve the regional capacity to intermediate savings and strengthen our economies' resilience in the face of external shocks.
9. We are pleased with the progress that has been made in implementing the 1996 Framework for Strengthening Economic Cooperation and Development in APEC, and call on Ministers and officials to focus on addressing the key challenges identified therein. We direct Ministers to give all elements of the Framework equal weight and attention, and to be mindful of its indivisibility as an integrated set of objectives requiring coordination and communication across the APEC agenda. We applaud the effort in 1997 to apply this Framework approach to APEC's work on two key challenges in the region -- infrastructure and sustainable development. We direct Ministers to focus further efforts on capacity-building in 1998 through work on developing human resources and harnessing technologies of the future to enable all members of the APEC community to benefit more fully from trade liberalization.
10. Meetings of Ministers responsible for finance and trade provided early impetus for APEC's work in 1997. We commend their activities as a direct contribution to our goal for sustainable growth and equitable development. We are also gratified by the substantial contributions that Ministers responsible for environment, transportation, energy, small and medium-sized enterprises, and human resource development have made in 1997 to APEC's work. We welcome the progress of APEC fora in involving business, academics and other experts, women and youth in 1997 activities, and encourage them to continue these efforts.
11. APEC members share a belief in the contribution of free markets to achieving our growth and employment objectives. While they have a clear role in managing the impacts of economic transition, governments alone cannot solve the complex questions posed by our interconnected world. We are pleased to note a leap in business involvement in all levels of APEC activity this year. As Leaders, we have profited from our dialogue with the APEC Business Advisory Council. We commend their initiative in increasing their exchanges with Ministers and Senior Officials. We will reflect on recommendations set out in ABAC's 1997 Call to Action. We also welcome ABAC's intention to establish a Partnership for Equitable Growth, and express appreciation for recommendations on diverse and important issues such as standards, business mobility and capital market development. We stress the need for APEC to broaden its outreach to a wider segment of the business community.
Noteworthy in 1997 has been the wealth of APEC activities and initiatives in support of small and medium-sized enterprises (SMEs). Although ours is a region of traders, many SMEs encounter obstacles to their full participation. We stress the importance of strengthening our SME sectors, to allow them to take advantage of linkages into regional trade and investment opportunities by promoting a business environment that stimulates creation of new enterprises. We commend the fact that many specialized APEC fora have developed programs to address the needs of SMEs. We take note of the priorities and approaches set out in APEC's 1997 Framework for SMEs, and instruct Ministers to ensure they are applied.
A Vision for the 21st Century
12. Connecting APEC's instruments -- Intense growth in the economies of Asia-Pacific over the past decade has had far reaching impacts on our societies. Growth and employment, as well as improved incomes and quality of life, are welcome benefits. In all of our societies these positive outcomes have been accompanied by structural and environmental pressures. Globalization has emerged as a reality. Rapid urbanization and advances in information technology are transforming our cityscapes, as well as the way in which we interact. Our ability to adapt to new developments will determine our success in achieving sustainable and equitable development among and within societies in the region. We applaud the efforts made this year to integrate APEC's instruments -- liberalization, facilitation and economic and technical cooperation -- in addressing emerging challenges.
13. Connecting with our constituents: We stress our common belief that ongoing and ambitious trade and investment liberalization remains indispensable to the health of our economies. To underpin our efforts, support among the people of the region for continuing trade and investment liberalization is essential. We welcome the decision by Ministers to develop an APEC-wide work program to assess the full impacts of trade liberalization, including its positive effects on growth and employment, and to assist members in managing associated adjustments.
14. Connecting our economies: Our discussions today have focussed on regional infrastructure requirements in support of economic and social development. We endorse the work that has been carried out this year on infrastructure applications to make city life more sustainable, in particular the Sustainable Cities Program of Action. The rapid growth of urban centres poses daunting challenges such as bottlenecks, supply constraints, as well as health and environmental concerns. Governments must strive to ensure adequate access to infrastructure for people in all walks of life, urban or rural. Capacity building through economic and technical cooperation is essential to ensure the ability of all economies to address these critical challenges.
Infrastructure is inextricably linked to the questions of financial stability that we have addressed. In addressing regional infrastructure decisions, governments and business must work together to ensure that long-term financial sustainability is adequately considered. Cooperation with business and international financial institutions and development banks can be critical to achieving optimal project planning. We endorse the attached Vancouver Framework for Enhanced Public-Private Partnerships for Infrastructure Development. We also are pleased by the agreement to enhance cooperation among Export Credit Agencies and Export Financing Institutions in support of regional infrastructure development, as well as agreement to undertake a feasibility study on a Network of Infrastructure Facilitation Centres to encourage information sharing and transparency. Recognizing the importance of telecommunications and information technology for building an Asia-Pacific information society, we agree that the Asia-Pacific Information Infrastructure is an essential basis for ensuring the competitiveness of the region in the 21st Century.
15. Connecting electronically: We agree that electronic commerce is one of the most important technological breakthroughs of this decade. We direct Ministers to undertake a work program on electronic commerce in the region, taking into account relevant activities of other international fora, and to report to us in Kuala Lumpur. This initiative should recognize the leading role of the business sector and promote a predictable and consistent legal and regulatory environment that enables all APEC economies to reap the benefits of electronic commerce.
16. Connecting science and technology: In view of the growing role of science and technology in promoting economic growth and its close linkages to trade and investment flows, we direct Ministers to formulate an APEC Agenda for Science and Technology Industry Cooperation into the 21st Century, and present it to us in Kuala Lumpur. We also welcome other regional networks to strengthen science and technology linkages, including the Association of Pacific Rim Universities (APRU).
17. Connecting the issues: Achieving sustainable development remains at the heart of APEC's mandate. Equity, poverty alleviation and quality of life are central considerations, and must be addressed as an integral part of sustainable development. We have made a commitment to advance sustainable development across the entire scope of our workplan. We welcome the results of the multi-sectoral symposium on relationships among food and energy and the environment under the pressures of rapid economic and population growth, as well as the interim report we have received. We look forward to presentation of a more detailed and action-oriented report in 1998.
18. Connecting efforts on climate change: We recognize the importance of accelerating action on a global level to deal with emissions of greenhouse gases. We affirm that this issue is of vital significance, and that it requires cooperative efforts by the international community, in accordance with the principle of common but differentiated responsibilities. We emphasize our strong support for a successful outcome to the Third Conference of the Parties in furthering the objectives of the UN Framework Convention on Climate Change (UN-FCCC). We note that all APEC members can make important contributions to this effort. We also agree that the enhancement of energy efficiency plays an important role in addressing climate change. We affirm the importance of flexible and cost-effective cooperative approaches to reducing greenhouse gas emissions, including by promoting the development and diffusion of beneficial technologies. We recognize the legitimate needs of developing economies to promote their sustainable development in furthering the objectives of the UN-FCCC and, in this respect, the importance of enhancing the availability of beneficial technologies.
19. Connecting emergency response: We recognize that unexpected disasters which affect one of us can affect all of us, and that we can benefit from sharing expertise and collaborating on emergency preparedness and response. We welcome the initiative of Ministers in this regard.
20. Connecting the people of Asia-Pacific: Continued prosperity in the region will depend heavily on our willingness and our ability to vest the next generation of leaders of the region with the skills and knowledge they require. We applaud the initiative to involve youth throughout APEC's 1997 activities. Education and skill-building remain key objectives for long-term employment of our youth, and we call on Ministers to work with young people, academics, workers and business to share approaches on successful transitions from the learning environment to the work force. We welcome the Electronic Source Book on work, study and exchange opportunities in the region, the establishment and development of the APEC Education Foundation, and the APEC Youth Skills Camp and the APEC Youth Science and Technology Festival, both to be held in 1998, in Seoul. We appreciate the offer by Singapore to establish an APEC Education Hub, which includes the granting of scholarships to APEC students. We welcome the holding of a Ministerial Conference on Education in 1999 in Singapore to explore the possibility to expand this initiative, offering quality programmes to students in the region.
We believe APEC should take specific steps to reinforce the important role of women in economic development. We welcome the offer of the Philippines to host a Ministerial Meeting on Women in 1998 in Manila, to take stock of progress to date in involving women in APEC's agenda and to determine next steps to integrate women into the mainstream of APEC's activities.
21. Spanning twelve time zones from St. John's to Sumatra, APEC bridges both distance and diversity. Through a combination of concrete results and renewed vision, the spirit of community which unites us has been strengthened and broadened this year. The people of the region remain its greatest asset. As Leaders, we are accountable for safeguarding and improving their economic and social well-being. Our people are the foundation on which the APEC community is built. We commit ourselves to ensuring that APEC remains responsive to their concerns.
APEC Economic Leaders' Meeting
Strengthened partnerships between the public and private sectors are needed to put in place and manage the infrastructure required by the APEC region to meet its economic, environmental and social goals. To this end, we declare the following:
Voluntary Principles
We reaffirm the Voluntary Principles for Facilitating Private Sector Participation in Infrastructure developed by Finance Ministers, namely:
(i) To establish and maintain a sound macroeconomic environment.
(iii) To adopt sectoral policies that promote, where applicable, competitive and efficient provision of infrastructure services.
(iv) To increase the availability of long-term capital required for infrastructure investments by accelerating efforts to broaden and deepen domestic financial and capital markets.
(vi) We encourage Finance Ministers to continue to implement the specific initiatives launched in Cebu to facilitate, in collaboration with multilateral financial institutions and the private sector, the development of domestic financial and capital markets. In this regard, we ask them to continue to work with private sector financiers and providers of risk coverage and investment ratings to promote the development of robust and liquid domestic bond markets, including markets for asset-backed securities which, as noted by ABAC, will enhance private investment in large-scale infrastructure projects.
(vii) We welcome the mutual cooperation Protocol signed by participating Export Credit Agencies and Export Financing Institutions to enhance, on a project-by- project basis, the attractiveness of infrastructure investment for private sector participants.
Improving capacities is key to accelerating the development of economically viable infrastructure projects that the private sector can support. To this end, we affirm the need for action in the following areas:
(ix) To develop domestic capacities so that public officials involved in infrastructure development in agencies dealing with private investors have appropriate expertise and an understanding of commercial approaches to infrastructure investment, and by promoting technological cooperation, including through private-private and public-private partnerships.
(x) To promote the application of state of the art practices in risk mitigation and management, including by promoting the most effective use of private and public sector capacities.
(xi) To promote transparent, predictable and accountable procedures, including for bidding and selection processes, and to encourage the use of international competitive tendering.
(xii) To ensure that infrastructure supports the achievement of economic, environmental and social goals by incorporating sustainable and equitable development principles in the design and operation of infrastructure facilities.
We recognize the importance of information in supporting the participation of the private sector, especially small and medium-sized enterprises, in infrastructure projects and commit to engaging the broad public in building on the outcomes achieved in key sectors such as information infrastructure, intelligent and integrated transportation systems, economically and environmentally sustainable energy infrastructure, sustainable cities, and infrastructure to support rural integration and diversification.
To these ends, we call on Ministers:
(xiv) To foster effective consultations to ensure that planned infrastructure meets our communities' needs.
APEC MINISTERIAL STATEMENT ON MEMBERSHIP
November 1997
Asia-Pacific Economic Cooperation (APEC) is an Asia-Pacific regional forum. It is an open forum in terms of its membership and guest participation.
Since its formation in 1989 APEC has:
In addition, under its information policies, APEC publishes, or makes publicly available, all key documents, decisions and statements.
While APEC has not set a permanent ceiling on the number of members, it will remain limited in size both on account of its Asia-Pacific regional character and because of the need for the group to remain manageable and effective.
Within the overriding considerations of open regionalism and of remaining manageable and effective in size, APEC has adopted the following guidelines to assist in considering the admission of additional members:
Decisions on the admission of additional members to APEC require a consensus of all existing members.