APEC

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim member economies[1] that promotes free trade throughout the Asia-Pacific region. It was 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; to fears that highly industrialised Japan (a member of G8) would come to dominate economic activity in the Asia-Pacific region; and to establish new markets for agricultural products and raw materials beyond Europe.[2]

An annual APEC Economic Leaders' Meeting is attended by the heads of government of all APEC members except Taiwan (which is represented by a ministerial-level official under the name Chinese Taipei as economic leader[3]). The location of the meeting rotates annually among the member economies, and a famous tradition, followed for most (but not all) summits, involves the attending leaders dressing in a national costume of the host country.

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 ministers from twelve countries, the meeting concluded with commitments for future annual meetings in Singapore and Korea.

Countries of the Association of Southeast Asian Nations (ASEAN) opposed the initial proposal, instead proposing the East Asia Economic Caucuswhich would exclude non-Asian countries such as the United States, Canada, Australia, and New Zealand. This plan was opposed[why?] and strongly criticised 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 organisation.

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 industrialised 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.

In April 2001, the APEC, in collaboration with five other international organisations (Euro stat, IEA, OLADE, OPEC and the UNSD) launched the Joint Oil Data Exercise, which became rapidly the Joint Organization Data Initiative (JODI).

Member economies[edit]

Former South Korean President Roh Moo-hyun with Japanese Prime Minister Shinzo Abe and U.S. President George W. Bush at APEC 2006 in Hanoi, Vietnam.

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. APEC also includes three official observers: ASEAN, the Pacific Islands Forum and the Pacific Economic Cooperation Council.[1]

Member economy (name as used in APEC) Date of accession

 Australia November 1989

 Brunei Darussalam November 1989

 Canada November 1989

 Indonesia November 1989

 Japan November 1989

 South Korea November 1989

 Malaysia November 1989

 New Zealand November 1989

 Philippines November 1989

 Singapore November 1989

 Thailand November 1989

 United States November 1989

Member economy (name as used in APEC) Date of accession

 Republic of China (Taiwan)[4] November 1991

 Hong Kong[5] November 1991

 People's Republic of China November 1991

 Mexico November 1993

 Papua New Guinea November 1993

 Chile November 1994

 Peru November 1998

 Russian Federation November 1998

 VietnamNovember 1998

Business Facilitation[edit]

APEC has long been at the forefront of reform efforts in the area of business facilitation. Between 2002 and 2006 the costs of business transactions across the region was reduced by 6%, thanks to the APEC Trade Facilitation Action Plan (TFAPI). Between 2007 and 2010, APEC hopes to achieve an additional 5% reduction in business transaction costs. To this end, a newTrade Facilitation Action Plan has been endorsed. According to a 2008 research brief published by the World Bank as part of its Trade Costs and Facilitation Project, increasing transparency in the region's trading system is critical if APEC is to meet its Bogor Goal targets.[17] The APEC Business Travel Card, a travel document for visa-free business travel within the region is one of the concrete measures to facilitate business. In May 2010 Russia joined the scheme, thus completing the circle.[18]

Proposed Free Trade Area of the Asia-Pacific[edit]

APEC first formally started discussing the concept of a Free Trade Area of the Asia-Pacific (FTAAP) at its summit in 2006 in Hanoi. However, the proposal for such an area has been around since at least 1966 and Japanese economist Kiyoshi Kojima (ja)'s proposal for a Pacific Free Trade agreement proposal. While it gained little traction, the idea led to the formation of Pacific Trade and Development Conference and then the Pacific Economic Cooperation Council in 1980 and then APEC in 1989.

In the wake of the 2006 summit, economist C. Fred Bergsten advocated a Free Trade Agreement of Asia-Pacific, including the United States amongst the proposed parties to any agreement at that time.[19] His ideas convinced the APEC Business Advisory Council to support this concept. Relatedly, ASEAN and existing free trade agreement (FTA) partners are negotiating asRegional Comprehensive Economic Partnership (RCEP), not officially including Russia.[20] The Trans-Pacific Partnership (TPP) without China or Russia involved has become the US-promoted trade negotiation in the region. With the APEC summit in Beijing in 2014, the two-three plans are all in discussion.[21] President Obama hosted a TPP meeting at the US Embassy in Beijing in advance of the APEC gathering.[22]

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 "noodle bowl" effect created by overlapping and conflicting elements of the copious free trade agreements — there were approximately 60 free trade agreements in 2007, with an additional 117 in the process of negotiation in Southeast Asia and the Asia-Pacific region.[23] In 2012, ASEAN+6 countries alone had 339 free trade agreements - many of which were bilateral.[24]

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.[23][25] 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).[26] Some criticisms include that the diversion of trade within APEC members would create trade imbalances, market conflicts and complications with nations of other regions.[25] The development of the FTAAP is expected to take many years, involving essential studies, evaluations and negotiations between member economies. [23] It is also affected by the absence of political will and popular agitations and lobbying against free trade in domestic politics.[23][27]

At the 2014 APEC summit in Beijing, APEC leaders agreed to launch "a collective strategic study" on the FTAAP and instruct officials to undertake the study, consult stakeholders and report the result by the end of 2016.[28] APEC Executive Director Alan Bollard revealed in the Elite Talk show that FTAAP will be APEC's big goal out into the future.[29]

APEC Study Centre Consortium[edit]

In 1993, APEC Leaders decided to establish a network of APEC Study Centres among universities and research institutions in member economies.[30]

Notable centers include:

Australian APEC Study Centre, Royal Melbourne Institute of Technology, Australia[31]

Berkeley APEC Study Center, University of California, Berkeley, United States[32]

Chinese Taipei APEC Study Centre, Taiwan Institute of Economic Research, Taiwan[33]

HKU APEC Study Centre, University of Hong Kong, Hong Kong[34]

Kobe APEC Study Centre, Kobe University, Japan[35]

Nankai APEC Study Centre, Nankai University, China[36]

Philippine APEC Study Center Network, Philippine Institute for Development Studies, Philippines

The Canadian APEC Study Centre, The Asia Pacific Foundation of Canada, Vancouver, Canada[37]

Indonesian APEC Study Centre, APEC Study Centre University of Indonesia, Indonesia.[38]

APEC Business Advisory Council[edit]

This section does not cite any references or sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2015)

The APEC Business Advisory Council (ABAC) was created by the APEC Economic Leaders in November 1995 with the aim of providing advice to the APEC Economic Leaders on ways to achieve the Bogor Goals and other specific business sector priorities, and to provide the business perspective on specific areas of cooperation. [citation

needed]

Each economy nominates up to three members from the private sector to ABAC. These business leaders represent a wide range of industry sectors. ABAC provides an annual report to APEC Economic Leaders containing recommendations to improve the business and investment environment in the Asia-Pacific region, and outlining business views about priority regional issues. ABAC is also the only non-governmental organisation that is on the official agenda of the APEC Economic Leader's Meeting. [citation

needed]

Annual APEC Economic Leaders' Meetings[edit]

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[edit]

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.[39][40][41][42][43][44]

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 liberalisation 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 of Ayutthaya, Thailandby Thai police on August 11, 2003, before he could finish planning the attack.[citation needed] Chile became the first South American nation to host the Leaders' Meeting in 2004. The agent of that year was focused on terrorism and commerce, small and medium enterprise development, and contemplation of free 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, centred on reducing agricultural trade barriers. APEC leaders at the summit urged the European Union to agree to reducing 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 was 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.[45] 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.[46]

APEC Leaders' Family Photo[edit]

At the end of the APEC Economic Leaders' Meeting, the leaders in attendance gather for what is officially known as the APEC Leaders' Family Photo. A long-standing tradition for this photo involved the attending leaders dressing in a costume that reflects the culture of the host member. The tradition dates back to the first such meeting in 1993 when then-U.S. President Bill Clinton outfitted the leaders in leather bombardier jackets. However, at the 2010 meeting, Japan opted to have the leaders dress in smart casual rather than the traditional kimono.[47]Similarly, when Honolulu was selected in 2009 as the site for the 2011 APEC meeting, U.S. President Barack Obama joked that he looked forward to seeing the leaders dressed in "flowered shirts and grass skirts". However, after viewing previous photos, and concerned that having the leaders dress in aloha shirts might give the wrong impression during a period of economic austerity, Obama decided that it might be time to end the tradition. Leaders were given a specially designed aloha shirt as a gift but were not required to wear it for the photo. [48] However at the 2013 conference in Bali, Indonesia, leaders are toned with Batik outfit.

Meeting locations[edit]

The location of the meeting is rotated annually among the members.

Year # Dates Country City

1989 1st November 6–7  Australia Canberra

1990 2nd July 29–31  Singapore Singapore

1991 3rd November 12–14  South Korea Seoul

1992 4th September 10–11  Thailand Bangkok

1993 5th November 19–20  United States Seattle

1994 6th November 15–16  Indonesia Bogor

1995 7th November 18–19  Japan Osaka

1996 8th November 24–25  Philippines Subic

1997 9th November 24–25  Canada Vancouver

1998 10th November 17–18  Malaysia Kuala Lumpur

1999 11th September 12–13  New Zealand Auckland

Year # Dates Country City

2000 12th November 15–16  Brunei Bandar Seri Begawan

2001 13th October 20–21  China Shanghai

2002 14th October 26–27  Mexico Los Cabos

2003 15th October 20–21  Thailand Bangkok

2004 16th November 20–21  Chile Santiago

2005 17th November 18–19  South Korea Busan

2006 18th November 18–19  Vietnam Hanoi

2007 19th September 8–9  Australia Sydney

2008 20th November 22–23  Peru Lima

2009 21st November 14–15  Singapore Singapore

2010 22nd November 13–14  Japan Yokohama

2011 23rd November 12–13  United States Honolulu

Year # Dates Country City

2012 24th September 9–10  Russia Vladivostok

2013 25th October 5–7  Indonesia Bali

2014 26th November 10–11  China Beijing

2015 27th November 18-19  Philippines Manila

2016 28th November 2016  Peru Lima

Senior Officials Set APEC’s 2015 Agenda PrioritiesThe priorities to be advanced by APEC during the Philippines’ year as Chair in 2015 were set by Senior Officials from the region’s 21 member economiesat the conclusion of a key two-day planning meeting on Tuesday in Manila. Focus is on powering a new generation of trade, investment and sustainable growth amid changing global conditions while expanding the benefits for more of the region’s 3 billion people. 

Propelled by the breakthroughs achieved by APEC economies over the past year in China to bridge growth and sustainability gaps and guided by Philippines President Benigno Aquino III under the theme, “building inclusive economies, building a better world,” initiatives to be taken forward in 2015 will center on:

Enhancing Regional Economic Integration

Fostering SMEs' Participation in the Regional and Global Economy Investing in Human Capital Development Building Sustainable and Resilient Communities

"We are in a different phase," said Ambassador Laura Del Rosario, Philippine Undersecretary of Foreign Affairs, who announced the region's 2015 priorities confirmed during the APEC Informal Senior Officials' Meeting, or ISOM. "The nature of the trading system and business is changing, and economies must adapt accordingly to keep up with the pace of these changes and ensure the prosperity of our people." 

To enhance regional integration, APEC economies will organize and lead a task force to undertake a two-year collective strategic study on issues related to the realization of a Free Trade Area of the Asia-Pacific, as well as open a new technical capacity building initiative in pursuit of the FTAAP. Cooperation to reduce customs bottlenecks for goods at borders will also top the agenda—supporting the adoption of the global Trade Facilitation Agreement as well as APEC’s pursuit of a 10 per cent increase in regional supply chain performance by the end of 2015, from 2009 levels. Easing services trade barriers and strengthening financial institutions will also be points of emphasis.Additional measures to foster small and medium enterprise developmentwill include addressing hurdles to starting a business, getting credit, dealing with permits, enforcing contracts and trading across borders—in line with APEC’s goal to make it 25 per cent easier to do business in the region by the end of 2015, from 2009 levels, and facilitated by deeper cooperation in areas like structural reform and fighting corruption. Actions will moreover center on promoting SME sector modernization, standards conformance, commercial innovation, global production chain integration and increased value-added trade.   To strengthen investment in human capital development, further steps will be taken towards the goal of 1 million intra-APEC student exchanges annually by 2020, including advancement of a new APEC scholarship and internship initiative. Focus will also be on cultivating an APEC-wide women’s entrepreneurship network to drive women-led business growth; training in areas like financial services and internet use; and finalizing Information Technology Agreement expansion to widen access to products that support academic and professional development.  To build sustainable and resilient communities, APEC will endeavor toreduce tariffs on 54 “environmental goods” to 5 per cent or less by the end of 2015 and pursue further steps to double renewable energy in the region by 2030, from 2010 levels, cut carbon emissions and raise energy efficiency. Initiatives will also center on improving natural disaster risk reduction, food security and the management of health threats, and counter-terrorism, as well as implementing APEC’s Connectivity Blueprint and Multi-Year Plan on Infrastructure Investment and Development.   Adoption of the long-term Growth Strategy established by APEC Leaders in 2010 and APEC membership and observer status-related issues will also be reviewed. 

“The bottom line is that the Asia-Pacific must tap new sources of growth and work towards new growth goals,” concluded Ambassador Del Rosario, who will serve as Chair of the APEC Senior Officials’ Meeting tasked with driving member economies’ collaboration during the coming year.  

“We want to connect parts of our economies that haven’t been particularly well connected to traditional approaches to policies for globalization and development, and position them to take advantage of a framework that has increased trade and investment through the region so successfully to meet today’s growth and sustainability challenges.”  

The First APEC Senior Officials’ Meeting and related technical meetings will take place on 26 January-7 February 2015 in Clark, about 100km from Manila. 

2013 APEC Ministerial Meeting

1. We, the Asia-Pacific Economic Cooperation (APEC) Ministers, met on 4-5 October 2013, in Bali, Indonesia. The meeting was co-chaired by H.E. R.M. Marty M.

Natalegawa, Minister for Foreign Affairs of Indonesia and H.E. Gita Wirjawan, Minister for Trade of Indonesia.

2. We welcomed the participation in the meeting of Director General of the WTO, Chair of the APEC Business Advisory Council (ABAC), Secretary General of ASEAN, co-chairs of the Pacific Economic Cooperation Council (PECC), representative of the Pacific Islands Forum (PIF), and representative of the Melanesian Spearhead Group (MSG).

3. We assembled today to reiterate our shared commitment towards a seamless regional economy and to continue our course to integrate to grow and to innovate to prosper.  We reviewed the current state of affairs in the Asia-Pacific region, assessed the progress made this year, and discussed the way forward for APEC to ensure the Asia-Pacific region remains resilient and to fulfill our role as the engine of the global growth. Under the APEC 2013 theme of “Resilient Asia Pacific, Engine of Global Growth,” we are committed to deepen our efforts towards attaining the Bogor Goals, promoting connectivity, and achieving sustainable growth with equity.

State of the Region1. Our economies have taken a number of important policy actions that have helped to

contain key tail risks, improve financial market conditions and sustain the recovery. Nevertheless, global growth is too weak, risks remain titled to the downside, and the economic outlook suggests growth is likely to be slower and less balanced than desired. We recognized the importance of a comprehensive series of structural reforms so to increase productivity, labor force participation and high quality job creation.  We will work to achieve stronger and sustainable recovery by, among others, ensuring fiscal sustainability, building human capacity through education and training, boosting domestic sources of growth, increasing domestic savings, providing sources of trade financing and enhancing competitiveness.

Trade in Services

1. We recognized the critical contribution of services to global trade, and the importance of strong, open and competitive service sectors as drivers of economic activity, growth and job creation. We welcomed APEC’s ongoing work to increase the transparency of services trade-related regulations as well as to identify good practices to facilitate services trade and investment and foster the development of open services markets. We commended the practical, business-oriented work examining regulation, trade and investment in various services sectors across the APEC region, including in the areas of financial services, cross-border education, retail services and logistics services.

Promoting Green Growth1. We endorsed the Proposal on Capacity-Building Activities to Assist Implementation

of APEC’s Environmental Goods Commitments, and instruct officials to focus capacity-building where needed as economies implement the APEC Leaders’ commitment to reduce tariffs on the 54 products in the APEC List of Environmental Goods.

2. We established APEC Public-Private Partnership on Environmental Goods and Services (PPEGS), and instructed officials to use this new forum as a platform for enhanced dialogue in this sector.  We look forward to the first meeting of the PPEGS and to the dialogue on clean and renewable energy in 2014. 

Addressing Next Generation Trade and Investment Issues1. We remain committed to address the next-generation trade and investment issues

as one of the important steps to achieving the Bogor Goals and to our work to provide leadership and intellectual input into the process of developing Free Trade Area of the Asia-Pacific (FTAAP). We instructed officials to continue to address the 2011 and 2012 next generation trade and investment issues. including by finalizing the APEC Innovation and Trade Implementation Practices  as soon as possible. We also encouraged economies to identify additional next generation trade and investment issues for work in 2014 and beyond.

Promoting Connectivity1. We reiterated our Leaders’ commitment in 2010 that envisioned the realization of

an APEC community. We shared the view that seamless physical, institutional, and people-to-people connectivity are critical prerequisites to achieve the Bogor Goals

and attain the APEC community vision. We welcomed the progress made in promoting connectivity in APEC in 2013, and submitted a strategic and long-term APEC Framework on Connectivity to be adopted by Leaders.

2. We welcomed the study on the current state of our connectivity by the APEC Policy Support Unit (PSU). We encouraged economies to take into account the findings as the basis of future endeavor under the Framework.

Empowering Women and Small and Medium-Sized Enterprises (SMEs)1. We recognized the important role of women in the economy to generate

employment, drive production and innovation, and contribute to economic development and poverty alleviation. We encouraged work to facilitate women’s participation in the economy, by incorporating gender consideration in structural reform practices, developing ICT tools and services which enable women to better participate in the economy, expanding access to social protection programs, providing equal access to quality education and employment opportunities, and developing supporting infrastructure that facilitates women’s participation in the labour market at all levels including leadership positions. We welcomed the collaborative work undertaken to highlight the importance of women’s leadership in the transportation sector, and look to the work as a model for how women’s economic empowerment can be integrated into the objectives of broader APEC fora.

1. In supporting women in SMEs in their tremendous endeavor, we welcomed the first collaborative efforts by the Women and SME Ministers to encourage joint work in the areas of promotion of entrepreneurial culture and increasing access to finance and markets for women owned and operated SMEs and promotion of SME’s internationalization through financial education, financial literacy, and greater consumer protection and awareness. We recommended that greater collaborative work to expand financial inclusion to women be undertaken by the private sector and officials from finance, education, central banks, and telecommunication ministries. We recognized the policy and program recommendations to advance women's access to markets by leveraging government procurement opportunities and support greater work by both the public and private sector to build women entrepreneurs skills and capacity to obtain these opportunities.

Promoting Financial Inclusion1. We recognized the importance of financial inclusion to achieving equality and

enhancing growth potential in the region. We commit to promote awareness and enhance access, eligibility and capacity of poor households and small-and-medium sized enterprises (SMEs) to interact with financial institutions, together with efforts to develop financial literacy and strengthen consumer protection. We welcomed the guiding principles to implement optimal and innovative approaches to promote financial eligibility of the poor and SMEs through innovative distribution channels such as branchless banking.

Promoting Labour and Social Protection2. We reaffirmed our Leaders commitment in 2010 to promote inclusive growth in

APEC region by promoting job creation, human resource development and active labour market policies. We also recognized the importance of close consultation with all sectors of our societies, including business, labour, women, and youth. To this end, we will continue to achieve full and productive employment, and promoting social protection and decent work for all.

Mainstreaming Ocean-Related Issues1. We underlined the linkage of oceans to the economy, and highlighted in particular

that sustainably managed oceans resources contribute to long-term economic benefits. We welcomed the APEC initiative on mainstreaming ocean-related issues and the work plan to promote cross-cutting and cross-fora collaboration to achieve sustainable and inclusive growth. We instructed officials to develop and implement the work plan that will complement our efforts to promote ocean-related issues in APEC. We noted that the work plan will include cooperation on, among others, exchanging best practices in combating Illegal, Unreported and Unregulated (IUU) fishing; sustainable fisheries management and trade, including trade in sustainably harvested fisheries products and aquaculture; new and renewable energy; tourism; science and technology; transportation and marine connectivity.  We reaffirmed our commitments on oceans issues at Rio+20, and welcomed the work by the international community to address overfishing and overcapacity.

Strengthening APEC1. We reiterated our commitments to Economic and Technical Cooperation

(ECOTECH) and Manila Framework as APEC’s main pillar in attaining sustainable growth and equitable development in the Asia-Pacific region and in reducing economic disparities among APEC economies. We also reaffirmed our commitment to continue leveraging ECOTECH activities to help developing economies achieve the Bogor Goals by 2020. We welcomed efforts to maintain focus on ECOTECH and instructed officials to improve the effectiveness of SOM Steering Committee on ECOTECH (SCE)’s work, capacity-building and communication. We commended the progress made this year in advancing the ECOTECH agenda and endorsed the 2013 Senior Official's Report on Economic and Technical Cooperation.

1. We endorsed the 2013 Senior Officials’ Report on APEC’s work program, including the recommendations contained therein, noted the 2013 Annual Report of the APEC Secretariat Executive Director, and approved the 2014 APEC budget and member contributions. We welcomed preparations for APEC 2014 in China.

THERE WERE TOTAL OF 103 POINTS DISCUSSED IN THE 2013 APEC MEETING OUT OF WHICH THE ABOVE APONITS ARE SOME WHICH WERE DISCUSSED.

2014 Meeting of APEC Ministers Responsible for Trade

1. We, APEC Ministers Responsible for Trade (MRT), met on 17-18 May 2014 in Qingdao, China under the chairmanship of H.E. Mr. Gao Hucheng, Minister of Commerce of the People’s Republic of China.

2. We welcomed the participation in the meeting of the Director-General of the World Trade Organization (WTO) Mr. Roberto Azevêdo, the APEC Business Advisory Council (ABAC), the Pacific Economic Cooperation Council (PECC), the Pacific Islands Forum (PIF), and the APEC Secretariat.

3. Marking APEC’s 25th anniversary and guided by this year’s theme of “Shaping the Future through Asia-Pacific Partnership”, we are committed to building on our past

success and further accelerating our work towards a viable framework for shared economic progress and prosperity in the Asia-Pacific region. We commit to make joint efforts in fostering a forward-looking Asia-Pacific partnership that would continue to empower our APEC region to lead global economic growth, in the spirit of openness, inclusiveness, mutual benefit and win-win progress. We are determined to strengthen collective action in our push for strong, sustainable, secure, balanced, inclusive and innovative growth, as well as the advent of regional economic integration.

4. In the spirit of forging a more integrated, sustainable and mutually favorable future, our discussions in 2014 are aimed at achieving tangible results in the following priority areas: (I) Advancing regional economic integration; (II) Promoting innovative development, economic reform and growth; and (III) Strengthening comprehensive connectivity and infrastructure development.

The Global Economy: An Asia-Pacific Partnership that Looks into the Future and beyond the Region1. We convene here today at a time when global economic recovery still remains

modest and uneven. Levels of economic activity both between and within developed and developing economies continue to diverge. Acute risks to global growth have diminished but long-standing concerns remain, including rising protectionism, and risks of significant financial uncertainty.

Advancing Regional Economic Integration1. We emphasize our shared vision that regional economic integration should not

create unnecessary barriers between economies and lead to fragmentation of trade and investment flows. APEC economies are striving to put forward a comprehensive and high-quality approach to regional economic integration that would benefit our economies, support global commerce and adequately meet the needs of different stakeholders.

Free Trade Area of the Asia-Pacific (FTAAP)1. We recognize that APEC has a critical role to play in shaping and nurturing regional

economic integration, particularly through its work encouraging unilateral economic reforms and the conclusion of comprehensive and high quality RTAs/FTAs. We reaffirm our Leaders’ commitment to an eventual FTAAP as a major instrument to

further APEC’s regional economic integration agenda. In 2006, APEC economies agreed to examine the long-term prospect of an FTAAP. In 2010, APEC Leaders agreed on “Pathways to FTAAP” and instructed APEC to take concrete steps toward eventual realization of an FTAAP. In this regard, we reaffirm that APEC is expected to make an important and meaningful contribution as an incubator of an FTAAP by providing leadership and intellectual input into the process of its development. We agree to strengthen our cooperation with intensified focus on the foundation for APEC’s contribution to eventual realization of an FTAAP by taking concrete steps forward in 2014.

Supply Chain Connectivity1. We welcome the comprehensive Capacity Building Plan to Improve Supply Chain

Performance, which will guide our work to i) reach our Leaders’ goal of achieving a ten percent improvement in supply chain performance by 2015; ii)  deploy the resources in the Supply Chain Connectivity Sub-Fund; and iii)help developing economies overcome supply-chain obstacles and enhance trade facilitation in the region. We welcome the diagnostic reports for SCFAP chokepoints which will help guide the development of targeted capacity building; encourage economies to consider further contributions to the Supply Chain Connectivity Sub-Fund and to include additional targeted, focused capacity building projects in the plan. We also welcome the establishment of the APEC Alliance for Supply Chain Connectivity (A2C2), which will allow us to leverage the expertise and resources of the private sector, multilateral institutions, and non-governmental organizations in supply chain connectivity work.

Next Generation Trade and Investment issues1. We instruct officials to advance actions to address next generation trade and

investment issues as agreed in 2011 and 2012. We note discussions on promoting effective, non-discriminatory, and market-driven innovation policies. We welcome the endorsement of manufacturing related services in supply chains/value chains as a next generation trade and investment issue, and instruct officials to take actions to address this issue in 2014 and 2015, with possible input from PSU. We also encourage ABAC and PECC to continue discussions from business perspective.

2. We take note of the proposal to promote open and competitive services markets in support of the growth of global value chains.

Strengthening comprehensive connectivity and infrastructure development1. It is our common understanding that strengthening comprehensive connectivity and

infrastructure development plays a vital role in fostering trade facilitation in the region, realizing a more interconnected regional economy, and improving the competitiveness. We are convinced that work in this area will contribute substantially to the realization of the Bogor Goals and Asia-Pacific economic integration. We welcome interaction with the APEC Finance Ministers’ Process (FMP) on these issues.

1. We support a forward looking approach to travel facilitation issues and the End-to-End Review of the APEC Business Travel Card Scheme. We remain committed to further improvement of the Scheme through concerted efforts.

2. We encourage all member economies to implement efficient and effective visa policies, passenger processing and customs clearance measures, so as to further facilitate safe and secure travel in the region.

Strengthening APEC1. We are fully committed to maintaining APEC’s profile as the premier forum for

supporting sustainable economic growth and prosperity and advancing free and open trade and investment in the Asia-Pacific. We reaffirm the significant value that

public-private activities have contributed to APEC work, and recognize the private sector and stakeholder as a key driver in advancing APEC agenda. We welcome the active participation of ABAC and other private sector representatives in the process, and are committed to building a closer and broader interactive relationship with the business community.

2. We acknowledge the ongoing endeavors to streamline CTI sub-fora to marshal CTI’s resources towards achieving the outcomes most important to its members, and to maximize its contribution to the region. We welcome the recommendations to improve the efficiency and effectiveness of CTI sub-fora and encourage Senior Officials to further advance the work so as to avoid duplication of work, and maximize synergies.

Success of APEC

How Has the Region Benefited?

APEC has grown to become a dynamic engine of economic growth and one of the most important regional forums in the Asia-Pacific. Its 21 member economies are home to around 2.8 billion people and represent approximately 57 per cent of world GDP and 47 per cent of world trade in 2012.

As a result of APEC’s work, growth has soared in the region, with real GDP doubling from just USD 16 trillion in 1989 to USD 31 trillion in 2013. Meanwhile, residents of the Asia-Pacific saw their per capita income rise by 45 per cent, lifting millions out of poverty and creating a growing middle class in just over two decades.

Bringing the region closer together, reducing trade barriers, and smoothing out differences in regulations have boosted trade which, in turn, has led to this dramatic increase in prosperity. Average tariffs fell from 17 per cent in 1989 to 5.2 per cent in 2012. During that same time period, the APEC region’s total trade increased over seven times—outpacing the rest of the world with two-thirds of this trade occurring between member economies.

What are APEC’s Success Stories?

APEC implements a wide variety of initiatives to help integrate the region’s economies and promote trade while addressing sustainability and social equity.

Promoting Regional Economic Integration and Trade

Since 1989, APEC’s role in facilitating regional integration has proven essential to promoting trade and economic growth in the Asia-Pacific. For example, reducing trade barriers between members, harmonizing standards and regulations, and streamlining customs procedures have enabled goods to move more easily across borders.

Making it Easier to Trade Across Borders:

In 1994, APEC Leaders committed to achieving the ‘Bogor Goals’ of free and open trade and investment by 2020 through reducing trade barriers in the region and promoting the free flow of goods, services and capital among APEC economies. Since then, members have made measurable progress in achieving these goals. APEC’s Trade Facilitation Action Plan which includes streamlining customs procedures reached its target of region-wide reduction in costs at the border by 5 per cent between 2004 and 2006. A further 5 per cent decrease was achieved between 2007 and 2010, which saved businesses in the Asia-Pacific a total of USD 58.7 billion. Over time, the APEC agenda has broadened its focus to address behind-the-border barriers such as improving regulatory practices and the local business climate.

Making it Easier to do Business:

APEC launched its Ease of Doing Business Action Plan in 2009, with the goal of making it cheaper, easier and faster to do business in the region. Between 2009 and 2013,

member economies improved the ease of doing business in the Asia-Pacific by 11.3 per cent across all areas of the initiative, including starting a business, getting credit or applying for permits. For example, APEC has expedited the time it takes for a company to build a new factory or office building. Today, construction permits are issued at a faster pace, dropping 18.7 per cent from 169 days to 134 days in the last four years with APEC topping the charts globally for the shortest permit time. Starting a company in the Asia-Pacific is also simpler with the number of procedures falling by 20.2 per cent since 2009.

Faster Customs Procedures:At the border, APEC economies have centralized export-import processes online, accelerating the time it takes for goods to travel across borders. Known widely as Single Window, this virtual system links all government agencies involved in the export-import process, allowing companies to submit documents electronically one time from anywhere. Gone are the myriad forms, long queues, and visits to multiple agencies, while goods spoil in warehouses.  Since the APEC Sub-Committee on Customs and Procedures (SCCP) launched the Single Window initiative in 2007, APEC capacity building workshops have provided training on software coding or legal issues to help APEC members implement their own Single Window systems.  By 2013, 14 APEC economies had adopted various stages of the Single Window system, with the goal of all 21 members coming on board by 2020Structural Reform:

To improve behind-the-border barriers to trade, APEC has been working to foster transparency, competition and better functioning markets in the Asia-Pacific through regulatory reform, improving public sector and corporate governance, and strengthening the legal infrastructure. Since 2004, APEC has implemented predictable and transparent regulatory practices across the region. For example, APEC members have made great strides in ensuring new government laws are publicly communicated and their cost and benefits are appropriately assessed.

Connecting the Region

APEC is working to connect the region through improving physical infrastructure linkages, people mobility and institutional ties across the Asia-Pacific. APEC's Connectivity Blueprint maps out initiatives from improving information technology and transportation infrastructure to making it easier for students, business people, and tourists to travel around the region.

APEC Business Travel Card:

By making it simpler for business people to travel, APEC is enabling them to conduct their business, trade and investment more easily. Over 160,000 travellers use the APEC Business Travel Card which provides pre-approved frequent business travellers with visa clearance and fast-track entry through special APEC lanes at major international

airports in the region. 19 APEC members fully participate in the scheme with the United States and Canada as transitional members.APEC Supply Chain Connectivity:

APEC is also improving logistics and transport networks to enable component parts and final goods to travel across multiple borders, contributing to a more efficient regional supply chain. To improve efficiency, APEC is addressing eight 'chokepoints' from regulatory impediments to customs procedures and infrastructure bottlenecks with the goal of an APEC-wide 10 per cent improvement in supply chain performance in terms of time, cost and uncertainty by 2015. APEC has made progress towards achieving this goal. For example, between 2009 and 2013, the lead time to import goods dropped by an average 25 per cent while lead time to export fell by 21 per cent in the region, according to an APEC Policy Support Unit assessment.

A Sustainable Future for the Asia-PacificEnvironmental Goods List:

In a landmark agreement, APEC is encouraging the development of clean technologies and greener growth across the region by lower tariffs on environmental goods. In 2012 in Vladivostok, Russia, APEC Leaders agreed to reduce applied tariffs on 54 environmental goods to five per cent or less by the end of 2015. The APEC list of 54 products- from solar panels to wind turbines-accounts for around USD 600 billion in world trade. APEC member economies are currently moving forward with implementing the list.

Increasing Energy Efficiency and Renewables:

In 2011, member economies committed to reduce energy intensity in the region by 45 per cent by 2030. In 2014, members agreed to work toward doubling the share of renewables by 2030 in APEC's energy mix, including in power generation. Members are also committed to rationalizing and phasing out inefficient fossil fuel subsidies that encourage wasteful consumption. The APEC Energy Working Group's many projects help members reach these goals.

Green Towns in the Asia-Pacific:

Funded by a multi-year project under the APEC Energy Working Group, APEC helped urban planners develop low-carbon model town plans for a series of cities throughout the Asia-Pacific. These cities are reducing their carbon footprint by adopting a set of carbon emission reduction targets and energy efficient initiatives from solar panels to electric vehicles. APEC projects also support the development of smart electricity grids that enable sources of clean power to be seamlessly connected to existing structures and distributed to rural communities.

Inclusive Growth: Ensuring Everyone is On BoardNurturing Small Businesses

Nurturing the competitiveness of small and medium enterprises (SMEs) and their ability to participate in global supply chains have been critical elements of APEC's agenda. Over the years, APEC has launched a wide variety of initiatives that have helped stimulate SME development in the region.

In 2005, the APEC SME Innovation Center was established in Korea to help improve the competitiveness of SMEs in the region through hands-on business consulting. The APEC Start-up Accelerator Network was launched in 2013 to promote entrepreneurship and innovation by connecting technology start-ups with funding and mentors. In 2014, the Start-up Accelerator sponsored six Asia-Pacific start-ups to compete in the Intel Global Challenge and Siemens New Venture Forum in Silicon Valley, USA-successfully capturing both awards and venture capital interest.

Since 2011, APEC has worked to enhance SME business ethics, particularly in the healthcare sector. By 2014, APEC's initiative resulted in codes of ethics being adopted and implemented by around 60 biopharmaceutical and medical device industry associations and their member companies from 19 economies across the Asia-Pacific, representing more than 14,000 firms. SMEs are also more vulnerable to disasters with many companies going bankrupt in the aftermath of a disaster and wreaking havoc on global supply chains. To improve SME disaster resilience, APEC has trained more than 250 regional experts to assist SMEs with business continuity planning in order to minimize disruptions due to a disaster.

Enhancing Social Equity in the Region

In addition to supporting small businesses, APEC is working to ensure all members of the Asia-Pacific can participate in the growing economy. The APEC Digital Opportunity Center was established in 2004 to provide computer skills training to vulnerable rural and urban communities. With over a hundred centers in 10 APEC economies offering information technology (IT) training, the APEC Digital Opportunity Center (ADOC) is focused on transforming digital divides into digital opportunities. Over the last decade, these Centers have trained over half a million people throughout the APEC region, and almost half are female. Many men and women who received this digital training found jobs or started their own businesses, improving livelihoods and incomes for their families.

Criticism[edit]

APEC has been criticised for promoting free trade agreements that would trammel national and local laws, which regulate and ensure labor rights, environmental protection and safe and affordable access to medicine.[50] 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". [51] However, whether it has accomplished anything constructive remains debatable, especially from the viewpoints of European countries that cannot take part in APEC [52] and Pacific Island nations that cannot participate but will suffer its consequences.