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 ministeriallevel 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 nonAsian 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

Vietnam

November 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 AsiaPacific (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 29 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 813 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 67

Australia

Canberra

1990

2nd

July 2931

Singapore

Singapore

1991

3rd

November 1214

South Korea

Seoul

1992

4th

September 1011

Thailand

Bangkok

1993

5th

November 1920

United States

Seattle

1994

6th

November 1516

Indonesia

Bogor

Year

Dates

Country

City

1995

7th

November 1819

Japan

Osaka

1996

8th

November 2425

Philippines

Subic

1997

9th

November 2425

Canada

Vancouver

1998

10th

November 1718

Malaysia

Kuala Lumpur

1999

11th

September 1213

New Zealand

Auckland

2000

12th

November 1516

Brunei

Bandar Seri Begawan

2001

13th

October 2021

China

Shanghai

2002

14th

October 2627

Mexico

Los Cabos

2003

15th

October 2021

Thailand

Bangkok

2004

16th

November 2021

Chile

Santiago

2005

17th

November 1819

South Korea

Busan

2006

18th

November 1819

Vietnam

Hanoi

2007

19th

September 89

Australia

Sydney

Year

Dates

Country

City

2008

20th

November 2223

Peru

Lima

2009

21st

November 1415

Singapore

Singapore

2010

22nd

November 1314

Japan

Yokohama

2011

23rd

November 1213

United States

Honolulu

2012

24th

September 910

Russia

Vladivostok

2013

25th

October 57

Indonesia

Bali

2014

26th

November 1011

China

Beijing

2015

27th

November 18-19

Philippines

Manila

2016

28th

November 2016

Peru

Lima

Senior Officials Set APECs 2015 Agenda

Priorities

The priorities to be advanced by APEC during the Philippines year as Chair in 2015 were set
by Senior Officials from the regions 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 regions 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 APECs 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 bordersin line with APECs 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 womens
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 APECs
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 havent 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 todays 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 Region

1.
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 APECs 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 Growth
1.
We endorsed the Proposal on Capacity-Building Activities to Assist
Implementation of APECs 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 Issues

1.
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 Connectivity
1.
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 womens
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 womens participation in the
labour market at all levels including leadership positions. We welcomed the
collaborative work undertaken to highlight the importance of womens leadership in
the transportation sector, and look to the work as a model for how womens
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
SMEs 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 Inclusion

1.
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 Protection

2.
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 Issues
1.
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 APEC
1.
We reiterated our commitments to Economic and Technical Cooperation
(ECOTECH) and Manila Framework as APECs 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 APECs 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 Peoples Republic of China.

2.

We welcomed the participation in the meeting of the Director-General of the

World Trade Organization (WTO) Mr. Roberto Azevdo, the APEC Business
Advisory Council (ABAC), the Pacific Economic Cooperation Council (PECC), the
Pacific Islands Forum (PIF), and the APEC Secretariat.

3.

Marking APECs 25th anniversary and guided by this years 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 Region
1.
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 Integration

1.

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 APECs 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 APECs contribution to eventual realization of an FTAAP
by taking concrete steps forward in 2014.

Supply Chain Connectivity

1.
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 issues

1.
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 development

1.
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 Endto-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 APEC
1.
We are fully committed to maintaining APECs 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

CTIs 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 APECs 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 regions total trade increased over seven
timesoutpacing the rest of the world with two-thirds of this trade occurring between
member economies.
What are APECs Success Stories?
APEC implements a wide variety of initiatives to help integrate the regions economies
and promote trade while addressing sustainability and social equity.
Promoting Regional Economic Integration and Trade
Since 1989, APECs 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. APECs 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 2020
Structural 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-Pacific
Environmental 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 Board
Nurturing 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.