apec paper resource

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Mission Statement

APEC is the premier Asia-Pacific economic forum. Our primary goal is to support sustainable economicgrowth and prosperity in the Asia-Pacific region.

We are united in our drive to build a dynamic and harmonious Asia-Pacific community by championing freeand open trade and investment, promoting and accelerating regional economic integration, encouragingeconomic and technical cooperation, enhancing human security, and facilitating a favorable andsustainable business environment. Our initiatives turn policy goals into concrete results and agreementsinto tangible benefits.

Member Economies

APEC has 21 members. The word 'economies' is used to describe APEC members because the APECcooperative process is predominantly concerned with trade and economic issues, with members engagingwith one another as economic entities.

APEC Members Date of Joining

Australia 6-7 Nov 1989

Brunei Darussalam 6-7 Nov 1989

Canada 6-7 Nov 1989

Chile 11-12 Nov 1994

People's Republic of China 12-14 Nov 1991

Hong Kong, China 12-14 Nov 1991

Indonesia 6-7 Nov 1989

Japan 6-7 Nov 1989

Republic of Korea 6-7 Nov 1989

Malaysia 6-7 Nov 1989

Mexico 17-19 Nov 1993

New Zealand 6-7 Nov 1989

Papua New Guinea 17-19 Nov 1993

Peru 14-15 Nov 1998



The Asia-Pacific region has consistently been the most economically dynamic region in the world. Since APEC's inception in 1989, APEC's total trade has grown 395%, significantly outpacing the rest of theworld.1 In the same period, GDP (in purchasing power parity terms) in the APEC region has tripled, whileGDP in the rest of the world has less than doubled.2

APEC's work under its three main pillars of activity, Trade and Investment Liberalisation, BusinessFacilitation and Economic and Technical Cooperation, has helped drive this economic growth and improveemployment opportunities and standards of living for the citizens of the region.

Trade and Investment Liberalisation

y APEC is the premier forum for trade and investment liberalisation in the Asia-Pacific and has set targetsdates for "free and open trade": no later than the year 2010 for industrialised economies, and 2020 for developing economies (the Bogor Goals).

y When APEC was established in 1989 average trade barriers in the region stood at 16.9%; by 2004 barriershad been reduced by approximately 70% to 5.5%.3

y As a consequence, intra-APEC merchandise trade (exports and imports) has grown from US$1.7 trillion in1989 to US$8.44 trillion in 2007 - an average increase of 8.5% per year; and merchandise trade within theregion accounted for 67% of APEC's total merchandise trade in 2007.4

y Similarly, trade with the rest of the world has increased from US$3 trillion in 1989 to US$15 trillion in 2007,an average increase of 8.3% per year. Trade in the rest of the world has increased at 7.6% over the sameperiod.

y Over 30 bilateral free trade agreements (FTAs) have been concluded between APEC Member Economies.y APEC is also pursuing trade and investment liberalisation through its Regional Economic Integration

agenda. Progress to date includes:y Investigating the prospects of and options for a Free Trade Area of the Asia-Pacific.y The development of 15 model measures for RTAs/FTAs that serve as a reference for APEC members to

achieve comprehensive and high-quality agreements.

The Philippines 6-7 Nov 1989

Russia 14-15 Nov 1998

Singapore 6-7 Nov 1989

Chinese Taipei 12-14 Nov 1991

Thailand 6-7 Nov 1989

The United States 6-7 Nov 1989

Viet Nam 14-15 Nov 1998



y APEC has also acted as a catalyst in the advancement of World Trade Organisation multilateral tradenegotiations over the past 20 years.

Business Facilitation

y As a result of the APEC Trade Facilitation Action Plan (TFAP I) the cost of business transactions across theregion was reduced by 5% between 2002 and 2006.y A second trade facilitation action plan (TFAP II), aims to reduce transaction costs by a further 5% between

2007 and 2010.y APEC initiatives that help facilitate trade include:y The introduction of electronic/paperless systems by all member economies, covering the payment of duties,

and customs and trade-related document processing.y The Single Window Strategic Plan, adopted in 2007, provides a framework for the development of Single

Window systems which will allow importers and exporters to submit information to government once,instead of to multiple government agencies, through a single entry point.

y Providing business with a concise one-stop repository of customs and trade facilitation related information

for all APEC economies through the APEC Customs and Trade Facilitation Handbooky The APEC Tariff Database pr ovi des users with eas y a ccess t o APEC me mber e conomies ' tariff s che dules ,

concessi ons , pr ohibiti ons a nd other i nf or mati on.y In 2008, a groundbreaking Investment Facilitation Action Plan was endorsed; it aims to improve the

investment environment in Member Economies.y The APEC Privacy Framework provides guidance and direction to both APEC Member Economies and

businesses on implementing information privacy protection policies and procedures. By facilitatinginformation flows it will facilitate trade and e-commerce.

y The APEC Business Travel Card (ABTC) provides substantial time and cost savings to business peopleand facilitates their travel in the region, by allowing visa free travel and express lane transit at airports inparticipating economies.

y APEC is also removing behind-the-border barriers to trade through its Structural Reform agenda, whichfocuses on reforming domestic policies and institutions that adversely affect the operation of markets, andthe capacity of businesses to access markets and to operate efficiently.

Economic and Technical Cooperation

y APEC's Economic and Technical Cooperation (ECOTECH) activities are designed to build capacity andskills in APEC Member Economies at both the individual and institutional level, to enable them toparticipate more fully in the regional economy and the liberalisation process.

y Since APEC first began to undertake capacity building work in 1993, more than 1200 projects have been

initiated; and in 2008, APEC was implementing a total of 212 capacity building projects with a total value of US$13.5m.y A particular focus has been reducing the digital pide between developed and developing economies:y In 2000, APEC set a goal of tripling internet usage in the region and that goal has now been achieved, as

recognised by the 2008 APEC Ministerial Meeting on the Telecommunications and Information Industry. APEC's new goal is to achieve universal access to broadband by 2015.

y A network of 41 APEC Digital Opportunity Centers (ADOC) now operate in seven Member Economies. ADOC's objective is to transform the digital pide into digital opportunities and the centres act as local



information and communication technology (ICT) resource centres, providing citizens and businesses of theregion with access to ICT technologies, education and training.

y APEC is also developing a Digital Prosperity Checklist that outlines specific steps economies can take toenable them to utilise ICT as catalysts for growth and development.

Other Achievements

APEC has also been able to evolve its agenda to include pressing regional priorities. Examples include:counter-terrorism (The Shanghai Statement in 2001, and the Counter-Terrorism Task Force); humansecurity (Health Working Group); emergency preparedness (Task Force for Emergency Preparedness);climate change, energy security and clean development (The Sydney Declaration in 2007); and the globalfinancial crisis (The Lima Statement in 2008).

1 The Department of Trade and Foreign Affairs (2008), The APEC Region Trade and Investment 2008,

Australia.

2 Op cit

3 APEC (2005), A Mid-Term Stocktake of the Bogor Goals

4 The Department of Trade and Foreign Affairs (2008), The APEC Region Trade and Investment 2008, Australia.

History

The idea of APEC was firstly publicly broached by former Prime Minister of Australia, Mr Bob Hawke,during a speech in Seoul, Korea in January 1989. Later that year, 12 Asia-Pacific economies met inCanberra, Australia to establish APEC. The founding members were: Australia, Brunei Darussalam,Canada, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and the

United States.China, Hong Kong, China and Chinese Taipei joined in 1991. Mexico and Papua New Guinea followed in1993. Chile acceded in 1994. And in 1998, Peru, Russia and Viet Nam joined, taking the full membership to21.Between 1989 and 1992, APEC met as an informal senior official and Ministerial level dialogue. In 1993,former United States President, Mr Bill Clinton, established the practice of an annual APEC EconomicLeaders' Meeting.



A moratorium on new membership stands until the end of 2010, at which point APEC member economieswill consider whether or not to lift the moratorium.

Key APEC Milestones

2010 - Yokohama, Japan APEC Leaders issued the Yokohama Vision to provide a roadmap for members to realize an economically-integrated, robust and secure APEC community. This includes the formulation of a comprehensive, long-term growth strategy . APEC completes an assessment of the progress towards the Bogor Goals and findssignificant gains in the areas of liberalizing trade in goods, services and investment, as well as tradefacilitation. APEC formulates the APEC Strategy for Investment and endorses the APEC New Strategy for Structural Reform. APEC holds its first-ever APEC Ministerial Meeting on Food Security.2009 - Singapore APEC resolves to pursue balanced, inclusive and sustainable growth, while Leaders agree to extend their

standstill commitment on protectionism until 2010. The first-ever joint meetings of APEC senior trade andfinance officials are held to address the economic crisis. APEC launches the Supply-Chain ConnectivityFramework and the Ease of Doing Business Action Plan to make doing business in the region 25 percentcheaper, faster and easier by 2015. Member economies also commence work on an APEC Services ActionPlan and an Environmental Goods and Services Work Program.2008 - Lima, Peru APEC focused on the social dimensions of trade and on reducing the gap between developing anddeveloped members, in accordance with the 2008 theme, "A New Commitment to Asia-PacificDevelopment". Leaders also addressed the global financial crisis in the Lima APEC Leaders' Statement onthe Global Economy. They committed to take all necessary economic and financial measures to restorestability and growth, to reject protectionism and to intensify efforts to advance WTO Doha Development Agenda negotiations.2007 - Sydney, AustraliaFor the first time, APEC Member Economies issue a Declaration on Climate Change, Energy Security andClean Development outlining future action in support of a new international climate change arrangementand announcing a forward program of practical, cooperative actions and initiatives. Leaders also adopted amajor report on closer Regional Economic Integration, including structural reform initiatives, and welcomedthe new APEC Trade Facilitation Action Plan which will reduce trade transaction costs by a further five per cent by 2010.2006 - Ha Noi, Viet Nam APEC Economic Leaders endorsed the Ha Noi Action Plan which identifies specific actions and milestonesto implement the Bogor Goals and support capacity-building measures to help APEC economies. They alsoissued a statement on the WTO Doha Development Agenda calling for ambitious and balanced outcomes.To prioritize its agenda, APEC takes a strategic approach to reform working groups and strengthen theSecretariat.2005 - Busan, Korea APEC adopts the Busan Roadmap, completes the Mid-Term Stocktake which has found that APEC is wellon its way to meeting the Bogor Goals, and the APEC Privacy Framework. Leaders issue a stand-alonestatement in support of a successful conclusion to the WTO's 6th Ministerial Meeting in Hong Kong, Chinaand agree to confront pandemic health threats and continue to fight against terrorism which could causedeep economic insecurity for the region.



2004 - Santiago, Chile APEC issues a strong statement of support for progress in the WTO Doha Development Agenda and sets atarget date for achieving a breakthrough in negotiations: December 2005, the convening of the Sixth WTOMinisterial Conference. APEC adopts Best Practices for RTAs and FTAs, the Santiago Initiative for Expanded Trade and a Data Privacy Framework. APEC reiterates its "unmistakable resolve" to confront the

threat of terrorism, and takes further action in this regard by identifying key elements of effective exportcontrol systems; establishing guidelines on the control of man-portable air defense systems (MANPADS),and continuing to implement the STAR initiative. APEC makes a political commitment to fight corruptionand ensure transparency, and endorses a specific Course of Action towards this end.2003 - Bangkok, Thailand APEC agrees to re-energize the WTO Doha Development Agenda negotiations and stresses thecomplementary aims of bilateral and regional trade agreements, the Bogor Goals and the multilateraltrading system under the WTO. APEC dedicates itself not only to promoting the prosperity of member economies, but also to improving the security of the peoples of the Asia-Pacific region. APEC pledges totake specific actions to dismantle terrorist groups, eliminate the danger of weapons of mass destruction andconfront other security threats. Members sign up to the APEC Action Plan on SARS and the Health

Security Initiative to further protect personal security. APEC also strengthens its efforts to build knowledge-based economies, promote sound and efficient financial systems and accelerate regional structural reform.2002 - Los Cabos, Mexico APEC adopts a Trade Facilitation Action Plan, Policies on Trade and the Digital Economy andTransparency Standards. APEC's second Counter-Terrorism Statement is delivered, along with theadoption of the Secure Trade in the APEC Region (STAR) Initiative.2001 - Shanghai, People's Republic of China APEC adopts the Shanghai Accord, which focuses on Broadening the APEC Vision, Clarifying theRoadmap to Bogor and Strengthening the Implementation Mechanism. The e-APEC Strategy is adopted,which sets out an agenda to strengthen market structures and institutions, facilitate infrastructureinvestment and technology for on-line transactions and promote entrepreneurship and human capacitybuilding. APEC's first Counter-Terrorism Statement is issued.2000 - Bandar Seri Begawan, Brunei Darussalam APEC establishes an electronic Individual Action Plan (e-IAP) system, providing IAPs online and commitsto the Action Plan for the New Economy, which, amongst other objectives, aims to triple Internet accessthroughout APEC region by 2005.1999 - Auckland, New Zealand APEC commits to paperless trading by 2005 in developed economies and 2010 in developing economies. APEC Business Travel Card scheme is approved and a Mutual Recognition Arrangement on ElectricalEquipment and a Framework for the Integration of Women in APEC is endorsed.1998 - Kuala Lumpur, Malaysia APEC agrees on the first nine sectors for EVSL and seeks an EVSL agreement with non-APEC membersat the World Trade Organization.1997 - Vancouver, Canada APEC endorses a proposal for Early Voluntary Sectoral Liberalization (EVSL) in 15 sectors and decidesthat Individual Action Plans should be updated annually.1996 - Manila, The PhilippinesThe Manila Action Plan for APEC (MAPA) is adopted, outlining the trade and investment liberalisation andfacilitation measures to reach the Bogor Goals and the first Collective and Individual Action Plans arecompiled, outlining how economies will achieve the free trade goals.



1995 - Osaka, Japan APEC adopts the Osaka Action Agenda (OAA) which provides a framework for meeting the Bogor Goalsthrough trade and investment liberalisation, business facilitation and sectoral activities, underpinned bypolicy dialogues, economic and technical cooperation.1994 - Bogor, Indonesia

APEC sets the Bogor Goals of, "free and open trade and investment in the Asia-Pacific by 2010 for developed economies and 2020 for developing economies."1993 - Blake Island, United States APEC Economic Leaders meet for the first time and outline APEC's vision, "stability, security and prosperityfor our peoples."1989 - Canberra, Australia APEC begins as an informal Ministerial-level dialogue group with 12 members.

APEC and Food Security

Why food security is important to APEC

In order for the benefits of free and open trade to be experienced throughout the region, food quality,availability and cost are critical. To this end, APEC has been a vehicle for cooperation on food andagricultural issues and is well-positioned to address current and emerging food security challenges in theregion.

How APEC addresses food security

APEC addresses food security by promoting productivity and growth in the agricultural sector, encouragingthe development and adoption of new agricultural technologies and enabling regional food trade:

y Agricultural productivity and growth: This includes initiatives that foster investment and finance in theagricultural sector (including micro-finance); raise awareness of environmentally sustainable agriculturalmethods (including land management, organic farming and use of advanced technologies); help economiesto learn about food storage, processing and management methods to allow more food to reach morepeople without spoiling; help members to build well-functioning markets and regulatory frameworks for sustaining robust agricultural sectors; improve surveillance and control of pests and diseases that harmagricultural production; foster improvements in worker health and safety, agricultural inspection andagricultural education and training.

y Food trade: This includes support for the successful conclusion of the World Trade Organisation DohaDevelopment Agenda negotiations; encouraging lower food export restrictions to avoid prolonging pressure

on global food prices and discouraging agricultural investment for greater production; examining the impactof economic liberalisation of agriculture with the goal of assisting regional economies to better adapt and tothrive in the global marketplace for food; exchanging best practices to develop better policies for fosteringhealthy agricultural sectors; helping to ensure that food products traded in the region are safe for consumption (including initiatives to enhance regulatory, inspection and certification systems, strengtheningof technical and human resources, encouraging adoption of international food safety standards andpromotion of regional communication on food safety).



y Development and adoption of new agricultural technologies: This includes efforts to improve farmers'income and productive capacities through agricultural technology transfer and training (including exchangeof best practices and identification of strategies to increase fiscal returns); create an environment conduciveto agricultural research and development as well as investment in trade technology; and foster development of agricultural biotechnology (including the development of regulatory frameworks and

strengthening public confidence in the field).

Groups through which APEC achieves these goals APEC advances regional dialogue and cooperation on a range of food and agriculture related issuesthrough several groups and initiatives within the APEC structures, including:

y Agriculture Technical Cooperation Working Group: This group facilitates cooperation to enhanceagriculture's contribution to the region's economic growth and social well-being. This is achieved throughthe sharing of technical expertise and experience in issues ranging from finance and investment to pestand disease control.

y High-Level Policy Dialogue on Agricultural Biotechnology: This forum brings together representatives frompublic and private sectors to discuss biotechnology policy issues and to promote the use of cropsdeveloped through biotechnology.

y Sub-committee on Standards and Conformance: A subgroup of the Committee on Trade and Investment,the SCSC is the focal point for efforts to harmonise regional standards regarding the safety of food andconsumer products. It oversees the Food Safety Cooperation Forum which manages food safety workamong various APEC groups.

y Fisheries Working Group: APEC economies account for 70 percent of global consumption of fish productsand 90 percent of global aquaculture production. The FWG facilitates cooperation to promote thesustainability and vitality of the fishing aquaculture industries, including the implementation of best practicesand the expansion of the seafood trade.

y APEC Food System: Originally proposed by the APEC Business Advisory Council (ABAC), this initiativeseeks to establish a comprehensive strategy to address food issues in APEC, based on principles of fostering development and growth of the rural sector, increasing trade in agriculture and promoting thedevelopment and dissemination of technological advances.

About APEC

What is Asia-Pacific Economic Cooperation? Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating economic growth,cooperation, trade and investment in the Asia-Pacific region.

APEC is the only inter governmental grouping in the world operating on the basis of non-bindingcommitments, open dialogue and equal respect for the views of all participants. Unlike the WTO or other multilateral trade bodies, APEC has no treaty obligations required of its participants. Decisions made within APEC are reached by consensus and commitments are undertaken on a voluntary basis. APEC has 21 members - referred to as "member economies" - which account for approximately 40percent of the world's population, approximately 54 percent of world GDP and about 44 percent of worldtrade.1



APEC's 21 Member Economies are Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; PapuaNew Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei;Thailand; United States of America; Viet Nam.

Purpose and Goals APEC was established in 1989 to further enhance economic growth and prosperity for the region and tostrengthen the Asia-Pacific community.Since its inception, APEC has worked to reduce tariffs and other trade barriers across the Asia-Pacificregion, creating efficient domestic economies and dramatically increasing exports. Key to achieving APEC'svision are what are referred to as the 'Bogor Goals' of free and open trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020 for developing economies. These goals wereadopted by Leaders at their 1994 meeting in Bogor, Indonesia.Learn more about the Bogor Goals in the 1994 Leaders' Declaration.Free and open trade and investment helps economies to grow, creates jobs and provides greater opportunities for international trade and investment. In contrast, protectionism keeps prices high and fosters

inefficiencies in certain industries. Free and open trade helps to lower the costs of production and thusreduces the prices of goods and services - a direct benefit to all. APEC also works to create an environment for the safe and efficient movement of goods, services andpeople across borders in the region through policy alignment and economic and technical cooperation.

Source:1. The Kyoto Report on Growth Strategy and Finance: 2010 APEC Finance Ministerial Meeting, Kyoto,Japan.

APEC Privacy Framework

Importance of privacy to APEC

The flow of information is fundamental to business in the global economy. The ability to network, exchangeideas and share knowledge can determine a company's likelihood of success. Conversely, the inability tocarry out private interactions can seriously impede business.

The APEC Privacy FrameworkThere is a fine line between protecting privacy and creating unnecessary barriers to the flow of information.Recognising this, APEC Ministers endorsed the APEC Privacy Framework in 2005, addressing both issuesof domestic and international implementation among APEC member economies. Essentially, theframework:

y Improves information sharing among government agencies and regulators;y Facilitates the safe transfer of information between economies;y Establishes a common set of privacy principles;y Encourages the use of electronic data as a means to enhance and expand business; andy Provides technical assistance to those economies that have yet to address privacy from a regulatory or

policy perspective.

Significance of this framework



Encouraging the flow of data ultimately benefits businesses, consumers and governments by makingtransactions safer, more efficient and less costly at every level. It is therefore a milestone in APEC'scontinuing efforts to facilitate free trade in the APEC region.

Climate Change

Why climate change is important to APEC APEC economies account for approximately 60 percent of world energy consumption. As the regionbecomes increasingly industrialised and the population shifts from rural to urban areas, these consumptionlevels will continue to rise.The use of fossil fuels to satisfy demand results in greenhouse gas emission and this causes climatechange - also known as "global warming." Climate change can cause extreme weather conditions, damageand deplete natural resources and accelerate the spread of disease. This impacts both individuals andeconomies, at large, with developing nations experiencing the most adverse effects. In addition, climatechange is believed to contribute to the increasing number of natural disasters, about 70 percent of whichoccur in the Asia-Pacific region.

The APEC commitment to climate changeIn 2007, APEC Leaders proposedi a regional goal to reduce energy intensity by at least 25 percentii by2030. To this end, APEC Ministers determined to improve energy efficiency and support the use of cleaner and more efficient energy technologies by setting individual goals and action plans; collaborating with theInternational Energy Agency (IEA) to develop energy efficiency indicators; sharing information on energyefficiency policies and measures; and encouraging APEC economies to contribute to and utilise the APECEnergy Standards Information System (ESIS).Economies are held accountable through the APEC Peer Review Mechanism on Energy Efficiency. Thispeer review is also a vehicle for economies to share their respective policies, experiences, information andultimately to improve energy efficiency.

How APEC assists economies to meet their climate change goalsMany established APEC Working groups assist economies meet climate change goals:

y The Energy Working Group : informs energy policymakers, draws advice from the business community andindustry experts, and collaborates with other international bodies, including the IEA, the Renewable Energyand Energy Efficiency Partnership and the Energy Charter Secretariat.

y The Asia-Pacific Network for Energy Technology : enables economies to collaborate in energy research inthe region, particularly in areas such as clean fossil energy and renewable energy resources.

y The Energy Security Initiative : comprises short-term measures and long-term policy responses to addressthe challenges facing the region's energy supply.

The Environmental Goods and Services Work ProgrammeThis year, as APEC Trade Ministers prepared for economic recovery, they recognised climate change as"one of the biggest challenges confronting the world" and determined to "ensure that economic growth isconsistent with environmental sustainability."In order to support the development of the Environmental Goods and Services (EGS) Sector and tocoordinate relevant APEC projects, the EGS Work Programme comprises four main components:



1. Developing new and better environmental goods and services through innovation, research anddevelopment;

2. Focus efforts and investment to increase the supply of cleaner and more energy efficient technologies;3. Support projects that facilitate and liberalise trade in environmental goods and services; and4. Create incentive for the market to increase research and development and investment in environmental

goods and services.

i. APEC Leaders' Declaration on Climate Change, Energy Security and Clean Developmentii. Using 2005 levels as a baseline for measurement

Energy

Why energy is important to APEC APEC Economies consume approximately 60 percent of the world's energy. As the region becomes

increasingly industrialised and the population shifts from rural to urban areas, consumption will increase.The use of fossil fuels to satisfy this demand results in greenhouse gas emission and this causes climatechange - also known as "global warming." Climate change can cause extreme weather conditions, damageand deplete natural resources and accelerate the spread of disease. This impacts both individuals andeconomies, at large, with developing nations experiencing the most adverse effects. In addition, climatechange is believed to contribute to the increasing number of natural disasters, about 70 percent of whichoccur in the Asia-Pacific region.

APEC's commitment to improving energy efficiencyIn 2007, APEC Leaders proposedi a regional goal to reduce energy intensity by at least 25 percentii by2030. To this end, APEC Ministers determined to improve energy efficiency and support the use of cleaner and more efficient energy technologies by setting individual goals and action plans; collaborating with theInternational Energy Agency (IEA) to develop energy efficiency indicators; sharing information on energyefficiency policies and measures; and encouraging APEC economies to contribute to and utilise the APECEnergy Standards Information System (ESIS).

How APEC assists economies to meet their climate change goalsMany established APEC Working groups assist economies meet climate change goals.

y The Energy Working Group : informs energy policymakers, draws advice from the business community andindustry experts, and collaborates with other international bodies, including the IEA, the Renewable Energyand Energy Efficiency Partnership and the Energy Charter Secretariat. The Energy Trade and InvestmentTask Force has been established under the EWG to facilitate relevant cooperation in EWG.

y The Asia-Pacific Network for Energy Technology : enables economies to collaborate in energy research inthe region, particularly in areas such as clean fossil energy and renewable energy resources.

y The Energy Security Initiative : comprises short-term measures and long-term policy responses to addressthe challenges facing the region's energy supply.

y The Joint Oil Data Initiative : is a collaborative oil information program undertaken by APEC, OPEC, theIEA, the International Energy Forum and the UN Environment Program.



y The APEC Peer Review Mechanism on Energy Efficiency : serves as a form of accountability whileproviding and opportunity for economies to share their respective policies, experiences, information andultimately to improve energy efficiency.

What APEC is doing right nowIn July 2009, in the Statement on Addressing the Economic Crisis and Positioning for Recovery, APECTrade Ministers determined to:"...ensure that our economic growth strategies are environmentally sustainable. We will use the opportunityprovided by our domestic stimulus measures to deploy climate-friendly technologies and encourage energyefficiency. These technologies and efforts can also create new opportunities for growth. We will study howtrade can be enhanced in ways that will ensure sustainable growth and development within the region."In the same month, Japan contributed JPY 120,000,000 (approximately US$1.3 million) to the APECSecretariat's Support Fund to promote energy efficiency activities throughout the APEC region. This is tofund the development and implementation of energy efficiency policies, goals and action plans. A team of energy efficiency experts from APEC member economies completed the first Peer ReviewMechanism on Energy Efficiency (PREE) reports on New Zealand and Chile, and these were presented in April. Viet Nam underwent the PREE in June and these results will be reported at the next EWG meeting.The EWG is strengthening collaboration with other international energy groups on issues, includingmaritime energy transport security, emergency preparedness, energy efficiency, clean energy technology.The IEA, the Renewable Energy & Energy Efficiency Partnership and the Energy Charter Secretariat havebeen granted guest status in the EWG.

i. APEC Leaders' Declaration on Climate Change, Energy Security and Clean Development

ii. Using 2005 levels as a baseline for measurement

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Fact Sheets

Gender Focal Point Network

Why gender equality is important to APECTo the extent that any economy subverts women, it effectively subverts half of its potential workforce andimpairs its own ability to realise its full economic potential. In the first-ever meeting on gender in 1996,Ministers declared as imperative "to jointly undertake economic and technical cooperation activities that willpromote the full participation of men and women in the benefits of economic growth."

How women are faring in the Asia-Pacific today Addressing the WLN in 2009, Dr. Noeleen Heyzer, United Nations Under-Secretary-General at theEconomic and Social Commission on Asia (ESCAP), told participants:"Women represent an untapped resource for most economies in Asia Pacific. ESCAP's research indicatesthat restricting women's access to work, education and health services comes at significant economiccosts. Our region loses between $42 and $47 billion dollars a year by restricting women's access toemployment. Up to $17 billion dollars a year are lost in the region due to gender gaps in education."



She explained that the global financial crisis exacerbates the situation, in general: "Women, as temporary,seasonal, contract labourers are unlikely to be covered by formal unemployment insurance or socialprotection schemes. Lacking education and skills, they tend to be less mobile across sectors than better educated workers. Their poverty only deepens when formal sector workers switch to the informal economyduring times of crises, depressing the wages of the informal economy.

What the Gender Focal Point Network doesThe Gender Focal Point Network (GFPN) supports gender equality as a means to contribute to theachievement of APEC goals. To achieve full and equal participation of women and men, the GFPN assists APEC groups and fora by:

y Providing policy advice on gender issues;y Assisting them to identify and address gender issues within their work;y Promotes and reports on women's representation across APEC and within individual APEC fora, including

the use of gender-specific criteria in APEC project proposals;y Collecting and sharing good practices in gender integration;y Supporting the implementation of gender integration within individual fora and across APEC economies;y Facilitating the provision of gender expert advice;y Assists in developing project proposals; andy Proposing recommendations on advancing gender integration in APEC.

The GFPN is comprised of focal points from each member economy. In addition, the group receives inputfrom the APEC Business Advisory Council (ABAC) and the Women Leaders' Network. These areindependent, non-governmental bodies and offer non-biased perspectives.

How APEC implements its commitment to gender equalityThe Framework for the Integration of Women in APEC is a practical and systematic approach to guide themainstreaming of women into APEC processes and activities. This framework comprises three

complementary elements:

y Gender analysis : methodology to examine the differences in the life experiences of women and men toidentify barriers to women's full participation in the economy

y Collection and use of sex-disaggregated data : data classified by sex, to monitor progress toward gender equality, raise awareness of enduring challenges and identify opportunities for positive change

y Involvement of women in APEC : increased participation of women in APEC group

GFPN recommendations to APEC for 2009Some of the GFPN's recommendations to APEC this year are that it should:

y Strengthen capacity building programmes, including education and vocational skills training for women incollaboration with the Human Resources Development Working Group (HRDWG);

y Promote employment generation programmes to level-up women particularly those in informal andvulnerable sectors in collaboration with the Human Resources Development Working Group (HRDWG) andthe Small and Medium Enterprises Working Group (SMEWG);



y Ensure access to financing especially for micro, small and medium enterprises in collaboration with theSenior Finance Officials' Meeting (SFOM) and the Small and Medium Enterprises Working Group(SMEWG);

y Enhance social safety nets for women in collaboration with the Senior Finance Officials' Meeting (SFOM)and the Human Resources Development Working Group (HRDWG);

y Facilitate women's access to ICT in collaboration with the Telecommunications and Information WorkingGroup (TELWG) and the Electronic Commerce Steering Group (ECSG);

y Ensure integration of gender perspective in disaster management strategies, policies and programmes incollaboration with the Task Force for Emergency Preparedness (TFEP);

y Share gender information amongst economies; andy Develop communications strategies to raise awareness of gender issues and responses

Human Security

What constitutes human securityHuman security refers to phenomena such as the random devastation caused by natural disasters, health

pandemics or terrorist attacks on people or supply chains. Regardless of genesis, when security is throwninto question, human well-being is compromised both in the short and long-term. APEC's human securityagenda deals with trans-boundary threats to people and economies from terrorism, pandemics, naturaldisasters and contamination of food supplies.

Why human security is important to APEC APEC's agenda emphasises the economic dimensions of human security: it recognises that threats maypotentially undermine APEC's efforts to raise living standards and reduce poverty in the region. APEC'sagendas for human security and the economy are complementary: human security is essential to growthand prosperity. Conversely, economic stability enables better preparation for, more efficient responses to,and quicker recovery after attacks or disaster.

How APEC contributes to human securityBroadly speaking, APEC's contribution to human security is associated with progress towards its goals of reducing border barriers and increasing trade, movement and interdependence among member economies.Between 2000 and 2005, APEC faced a number of challenges: the terrorist attacks of 9/11, the BaliBombings, the burst of the IT bubble, the SARS pandemic, the spread of bird flu, the Indian OceanTsunami and the sharp increase in the cost of energy. Yet, in the same period, APEC economiesexperienced a significant increase in Gross Domestic Product and import and export volumes. In fact,between 2000 and 2005, export rates grew by around 30 percent. Over the long-term, one can see that it ispossible to build strong networks and to recover quickly from such blows.

Targeted initiatives to address issues of human security

APEC recognises that human security threats require a coordinated and integrated response.

y Emergency preparedness and recovery : As an immediate response to the 2004 Indian Ocean Tsunamiand to collectively prepare for future natural disasters, Senior Officials adopted the APEC StrategyResponse to and Preparedness for Natural Disasters and Emergencies; and subsequently established theTask Force for Emergency Preparedness. In 2008, motivated by the Earthquake in the Sichuan province of China, a workshop was jointly-hosted by China and Chinese Taipei. This drew experts from across theregion, each sharing experiences and best practices in coping with emergency situations.



y Counter-terrorism : In October 2001, Leaders recognised the threat of terrorism to APEC's vision of free,open and prosperous economies and to the fundamental values that its members hold. The combat of terrorism has since remained a priority at all Leaders' Meetings. Resultant initiatives aim to counter terrorism and secure trade in the APEC region, and include cooperation on maritime and port security,customs and container security, and aviation security.

y Secure Trade in the APEC Region (STAR) : This initiative aims to secure and enhance the flow of goodsand people through measures that protect cargo, ships, international aviation and people in transit. STARprogrammes are designed to include the private sector, in recognition of the fact that the engagement andactive participation of business is fundamental to the success of APEC's secure trade agenda.

y Trade Recovery Programme : This programme identifies what economies need to do, in order to minimisedisruption to trade flows in the event of a major terrorist attack on the supply chain, and how to ensure therapid resumption of trade following such an attack.

Other counter-terrorism initiatives include workshops on cyber-security and terrorism, best practices inpost-blast scene management, and the development of a best practice document aimed at upgrading theProtection of Critical Energy Infrastructure.

Fact Sheets

Inclusive Growth

Why inclusive growth is important to APECThere is a growing consensus among APEC economies that an inclusive growth agenda would not onlymitigate the adverse impact of the economic crisis on individuals and families, but would shorten theeconomic down turn at large, strengthen recovery and put the global economy on a more sustainablegrowth path in the longer term.

What is inclusive growth?Inclusive growth is an approach to economic development that is anti-protectionist, fuelled by market-drivengrowth and facilitated by government.It is non-reactive. It does not just respond to immediate macro-economic concerns. It is a long-termstrategy, extending across sectors and strata and focuses on productive employment rather than justincome redistribution.Ultimately, inclusive growth empowers individuals so that they are better able to reap the benefits of globalisation and to withstand future economic shocks. It is therefore critical to poverty reduction as well asto sustainable economic growth.

APEC commitment to inclusive growthFrom the outset, as APEC Leaders established goals of free and open trade, they recognised the need to:

"...develop more effectively the human and natural resources of the Asia-Pacific region so as to attainsustainable growth and equitable development of APEC economies, while reducing economic disparitiesamong them and improving the economic and social well-being of our people."This year, as APEC Trade Ministers expressed notable determination to "ensure that the benefits of globalisation are more evenly spread" in positioning the region for economic recovery and sustainablegrowth.

Models for inclusive growthStrategies for inclusive growth may be viewed as compromising two broad thrusts:



y Facilitating economic restructuring : (or structural adjustment) to make economies more resilient andadaptable to competitive pressures; and

y Strengthening social resilience : to provide security for the vulnerable while rewarding effort.

Anticipated outcomesInclusive growth strategies will include investment and infrastructure that reach out to more people;education that enables more people to enter productive employment; and will ensure that these people canboth gain a stable income and become members of the consumer class.

These outcomes would in turn fuel recovery and create a virtuous cycle of increased employment andhigher living standards. At the same time, stronger safety nets will reduce the need for precautionarysavings and help to boost domestic demand in surplus economies, thereby addressing macroeconomicimbalances.

Regional Economic Integration AgendaHow APEC seeks to achieve Regional Economic IntegrationThe Regional Economic Integration (REI) Agenda is a multi-year programme for APEC's work toward theBogor Goals - that is, toward its goals of free and open trade and investment. As an ideal, APEC envisions a single, region-wide FTA. This is commonly known as the Free Trade Area of the Asia-Pacific (FTAAP) and analysis indicates that the establishment of such a comprehensiveagreement would both benefit member economies and stimulate world trade.

Progress toward Regional Economic IntegrationThe FTAAP is a long-term goal and requires extensive preparatory work. Nonetheless, APEC has madesignificant progress:

y Leveraging existing agreements: No less than 42 bilateral and regional free trade agreements have alreadybeen established among APEC member economies. The idea of enlarging, docking or merging theseagreements has been considered and next steps recommended.

y Analysis: Convergences and divergences among already existing RTAs and FTAs have been identified, astudy of bilateral investment agreements has been studied in order to develop a set of principles for futureinvestment agreements and ideas such as the possibility of enlarging, docking or merging existingagreements have been explored.

y Establishment of Model Measures: As they negotiate their own free trade agreements, economies refer tomodel measures in order to improve quality and transparency. Fifteen such measures have beencompleted to date, including trade in goods, technical barriers to trade, transparency, government

procurement, cooperation, dispute settlement, trade facilitation, electronic commerce, rules of origin andorigin procedures, sanitary and phyto-sanitary measures, environment, competition policy and temporaryentry of business persons.

y Adoption of Key Performance Indicators: As per a 2007 agreement, the Trade Facilitation Action Plan IIcalls for a reduction of trade transaction costs by an additional 5 percent before 2010. To this end, theaction plan recommends actions and measures to be considered in areas of customs procedures, businessmobility, standards and conformance and electronic commerce.



y Adoption of an Investment Facilitation Action Plan: This plan is a set of actions to be taken by member governments, in order to attract foreign investment and to maximise the effectiveness and efficiency of administration at all stages in the investment cycle. Ultimately, the purpose is to maximise the benefits of investment through transparency, simplicity and predictability.

y Establishment of the APEC Policy Support Unit: The APEC Policy Support Unit assists the implementation

of regional economic integration by providing policy and research. Currently, priority has been given tostructural (behind-the-border) economic reforms and at-the-border trade policy reforms.

Fact Sheets

Structural Reform

What is structural reform?Structural policies refer to domestic policies and institutions that affect the operation of markets and thecapacity of businesses to access those markets and operate efficiently.While APEC's economic focus has traditionally been on trade and investment liberalisation and facilitation,

"behind-the-border" policies (or "structural policies") are now recognised as significant factors in enabling or impeding regional economic integration. Structural policy impediments may take the shape of poorlydesigned domestic regulatory systems, competition frameworks or governance structures.

How structural reform benefits APEC member economiesExperience indicates that economies addressing domestic or behind-the-border impediments throughstructural reform are more resilient to economic shocks, achieve greater macroeconomic stability, realiseincreased productivity; and experience higher living standards over time.

The role of structural reform in the APEC Economic AgendaThe APEC Economic Committee may be considered in terms of three main focal points. These are: tradeand investment policies, macroeconomic and financial policies and structural policies. In fact, these threefocal points are synergistic and complementary, each reinforcing the other.



In 2004, APEC Leaders recognised the effects of behind-the-border impediments on economic growth andadopted the Leaders' Agenda to Implement Structural Reform T owards 2010 (LAISR 2010) whichaddresses five priority areas for reform:

1. Regulatory reform2. Competition policy3. Public sector governance

4. Corporate governance5. Strengthening economic and legal infrastructure

Structural reform efforts to dateT he first-ever Structural Reform Ministerial Meeting was held in Melbourne, Australia in August 2008. T hisprovided an opportunity for Minsters to share experiences on the political challenges of structural reform,strategies to support the reform process, and optimal institutional frameworks. Ministers endorsed a GoodPractice Guide on Regulatory Reform and initiated a process of voluntary self reviews of member economies institutional frameworks that support structural reform. In 2009, APEC continues to consult with

the business community to identify and address behind-the-border barriers, build capacity for reform andensure tangible benefits by using international tools and benchmarks such as the World Bank Ease of Doing Business Survey and the APEC-OECD Integrated Checklist on Regulatory Reform.

T he 2009 APEC Economic Policy Report, which will focus on the theme of regulatory reform, is currentlybeing prepared.

apec paper resource

Documents