[asia-apec 30] APEC Watch #6

[daga]

APEC WATCH #6
June 1996
A publication of the ad hoc International Convenors Committee of the
November MANILA PEOPLE'S FORUM ON APEC '96


NEWS ON THE OFFICIAL APEC
The APEC Business Forum: A Business Sector Parallel
	
	The Philippine Government is taking the initiative in the holding of the
APEC Business Forum (ABF) on 22-24 November 1996 to parallel the APEC
Ministerial Meeting in Subic.
Taking the lead role in the ABF are the APEC Business Advisory Council
(ABAC) and the other business leaders from the 18 member economies of the
APEC. The ABAC is the formal  group for private business within the APEC
structure that replaced the Eminent Persons Group (EPG). It consists of five
committees that are in charge of drafting proposals for policy advocacy and
private sector direction within APEC. ABAC counts among its committee chairs
Gordon Wu, CEO of Hopewell Holdings, and Robert Denham, chair of Salomon Inc.
The ABF is envisoned as the business sector's own forum/venue that will draw
up and design projects for private sector participation within the APEC
community. It is expected to discuss and propose APEC-wide projects in four
areas: (1) small and medium enterprises (SMEs); (2) information technology
and telecommunications; (3) capital markets, and, (4) infrastructure. These
projects will constitute APEC's agenda at the firm level.
Philippine President Fidel V. Ramos appointed former Philippine foreign
affairs secretary Roberto Romulo convenor and chairperson of the November
ABF. Henry Esteban, chairperson of the ABAC, was appointed co-convenor. The
other business sector personalities who will attend the ABF will be
determined by respective leaders of the 18 APEC member economies after they
have made their appointments for their representatives to the ABAC.
The local (Philippine) business community will organize the November ABF
Conference through the newly created ABF Foundation. Comprising the
Foundation are the different heads of local business groups which include
the Makati Business Club, the Management Association of the Philippines,
Financial Executives Institute of the Philippines, Bankers Association of
the Philippines, and the Federation of Filipino Chinese Chambers of Commerce
and Industry.  

Box: More Assurance for Business?

At APEC, an Asia-Pacific Investment Code (APIC) is being proposed, although
APEC member economies have not arrived at any consensus on the issue.  APIC
is aimed at protecting investors from policy reversals, reducing their need
for "policy shopping", and creating a mechanism for resolving disputes
between investor firms and governments.
In a related development, the Pacific Economic Cooperation Committee (PECC),
a private think tank which enjoys observer status in APEC, urged the APEC
leadership to take consideration of the private sector's  concern over
obstacles that hamper international trade and investment. According to the
group, differences in, or lack of transparency in domestic regulatory and
administrative systems or product standards push up the costs of
international commerce.


APEC Members Submit Individual Action Plans

	The APEC Senior Officials' (SOM) and Ministerial Meetings (MM) held in
Cebu, Philippines in May 1996 were highlighted by contentious concerns and
touchy issues. Particularly problematic were the discussions on membership,
customs procedures and regulations, and the harmonization of the valuation
system. The failure of the meetings to resolve much of these issues
concretely and speedily pose a question on APEC's ability to consolidate its
members' agenda towards its grand vision of free trade by the year 2020.
Despite various disagreements on the floor, however, all of the 18 members
submitted their individual action plans (IAPs) last May. The Philippine
delegation, host of the 1996 APEC Summit, was pleasantly surprised with the
submissions. As host to the 1996 APEC, the Philippines is responsible for
integrating the IAPs into the Manila Action Plan for APEC that will be
presented during the Economic Leaders' Summit in November in Subic.
The Manila People's Forum on APEC tried to secure copies of the IAPs from
the ofiicial hosting committee. As of this writing, however, the MPFA has
yet to get these, as the IAPs are up for compilation yet.


INSIGHTS

China on APEC and Open Regionalism
"China stands for open regionalism in APEC and it does not believe that APEC
should be institutionalized and made into a EU-type community.  However,
APEC can play a useful role in strengthening economic cooperation between
Asia, in particular East Asia and the Western hemisphere, especially NAFTA
countries...The regionalization and grouping of the world economy should not
be considered    as an end by itself but as a transitional phase of world
economic integration, which whatever forms it may take, should be an open
regionalism favorable to world economic integration.  The rules governing
regional cooperation should be WTO-consistent."
 _  Long Yongtu,  Assistant Minister of Foreign Trade and Economic
Cooperation, PROC at the "Regional Cooperation and Integration in Asia"
Conference, July 1995, Paris, France

Philippines on the Private Sector 
"Private sector participation is crucial to the APEC process."
_ Fidel Ramos, President of the Philippines, upon offering to host a
permanent APEC Business Advisory Council (ABAC)

Private Business on APEC 
"Our leaders are much more likely to take advice and listen to the voice of
the market and the voice of individual business... ABAC can really have a
role.  We will have an opportunity to dialogue directly with the leaders."
_ Victor Fung of Hongkong's Trade Development Council, quoted by Reuter

OECD on Asian Regionalism 
"Some people call the changes in Asia `open regionalism'.  Formal
institutional arrangements have not yet played a significant role; rather,
the main engine driving the process appears to be market forces unleashed by
economic liberalization."    
_ Jean Bonvin, President, OECD Development Centre (See Box 1)

ASEAN Business on Country Policies
"Competition policies or laws of developed countries should not be linked to
trade and must not be imposed on the ASEAN."
_ ASEAN Chamber of Commerce and Industry, quoted by the Philippine Daily
Inquirer. ASEAN-CCI is chaired by Filipino industrialist Jose Concepcion.
The statement was issued in opposition to the inclusion of competition and
foreign investment policies in the WTO fora.


Box: Regional vs Multilateral

Is there a place for regionalization in a globalized economic system? 
Prominent world economic leaders think so, as long as regionalization remain
compatible with the multilateral system.
According to Renato Ruggiero, World Trade Organization (WTO) chief, there is
a risk of splitting global trade into several blocs with  the "open
regionalism" concept espoused by regional blocs. At the two-day WTO Congress
in April (preparatory to the WTO Ministerial Meeting in December), Ruggiero
said that the main challenge is to ensure that national barriers are not
replaced by regional ones.
In a separate occasion, Asian Development Bank (ADB) President Sato warned
that the rise of regional trading blocs may threaten global free trade.
Speaking before  the Emerging Global Trading Environment and Developing Asia
Conference in Manila, Sato said that "it is not a foregone conclusion that
these [regional] arrangements will necessarily complement the multilateral
process.  Being discriminatory between members and non-members, these
arrangements liberalize trade among member countries but also make them less
open to outsiders." (quoted from thePhilippine Daily Inquirer)
The following questions raised by OECD Development Centre President Jean
Bonvin during the first conference of the International Forum on Asian
Perspectives entitled "Regional Cooperation and Integration in Asia" best
sum up the concerns over the growing trend towards regionalism in the face
of a global setup.
What would be the relationship between regional liberalization and
multilateral liberalization of trade under the auspices of the WTO?
Should individual countries be expected to make binding commitments or only
voluntary undertakings to liberalize their trade?
What sort of timetable  for trade liberalization is appropriate for
countries   at very different levels of development?
The International Forum on Asian Perspectives is a joint activity of the ADB
and the OECD. The first conference was held on 03-04 July 1995 in Paris,
France.  A second conference will be held in July this year.


AT THE PHILIPPINE FRONT
Getting Rid of "Eyesores": Shades of Old?

Philippine President Fidel V. Ramos instructed all Metro Manila mayors to
rid the metropolis of so called "eyesores." Aside from strewn uncollected
garbage and graffiti, these "eyesores" incidentally count warm bodies
including street children, vagrants and slum-dwelling communities. The
clean-up operation is in preparation for the country's hosting of the APEC
Summit in November this year.
On the one hand, the instruction should be a welcome development. Metro
Manila residents can expect an intensified and regular garbage collection,
speedy repairs of broken and defective pipes that cause flooding in the
streets, and a generalized "clean and green" atmosphere. Urban poor
communities can expect to be resettled to more friendly environs where they
will have access to basic services. Street children meanwhile will be taken
into the care of the Department of Social Welfare and Development.
On the other hand, Filipinos should be bothered by the telling statement of
former Armed Forces chief Lisandro Abadia, Chair of the APEC Organizing
Committee. Abadia was quoted by a local newspaper saying that the "challenge
to our local leaders is the delicate handling and removal of the squatters
from major routes to be used by the (APEC) leaders, including the squatters
within the CCP complex... To have a festive atmosphere, street lighting
should all be operating, and Christmas lighting should already be on by the
first week of November..."
It is a big question whether President Ramos' instruction really intends the
protection of the welfare of Metro Manila residents. It is clear, however,
that the Philippine Government will do everything at its disposal to ensure
the pageantry entailed by the hosting of the APEC Summit. This is a grim
reminder of the pomp that accompanied every major event hosted by the
country during the time of Marcos. Wide walls were erected to screen the
slums from sight; vagrants and beggars were unceremoniously rounded up only
to be released to the streets again after the affair; and millions of pesos
spent to render cosmetic beauty to the city.
Sixteen thousand urban poor families, and thousands more of beggars and
street urchins, are expected to be affected by the presidential instruction. 

What About the Children?

Philippine-based children's rights activivt, Fr. Shay Cullen, protested a
power transmission project in Olongapo City, claiming that the project can
only harm the children whom he seeks to protect. The project, a 69-kilovolt
transmission line from Olongapo City to Subic Bay, will service the
electricity needs of the city and the free port. It was put up as part of
preparations for the APEC Summit in November.  
Fr. Shay Cullen said that the electromagnetic currents coming from the
transmission lines would harm the children of the PREDA orphanage which he
manages. Still, the project was given a clearance by the Department of
Environment and Natural Resources.
Fr. Shay also protested the police's brutal behaviour toward him and his
supporters. He said that the police beat him up after his arrest.
Nevertheless, he vowed to continue his protest for the sake of the children.

Fr.  Shay Cullen can be contacted at:

Preda Foundation, Inc.
Human Development Center
Upper Kalaklan, Olongapo City 2200
Tel (63) (47) 222 4994 
Tel/Fax (63) (47) 222 5573

Careful Now...

The Philippine Government has plans to engage the MPFA, or at least its
Philippine component. It is exploring the possibility of creating a special
panel that will facilitate this engagement, especially in the area of agenda
formulation. The Philippine Government is in the process of selecting and
organizing the members of the panel.


ORGANIZING FOR NOVEMBER
International Convenors' Committee Meeting
Thursday, 27 June 1996, HongKong
sponsored by regional groups/ICC members based in HongKong 
	
AGENDA:
1.	Drawing up the regional agenda for MPFA
2.	Developing a gender agenda for MPFA
3.	Indentifying country delegations and representation to MPFA
4.	Relations between the ICC and the PHC
5.	Other organizational and administrative matters

Twelve NGOs based in HongKong and the following overseas groups are expected
to attend the meeting:

·	Philippine Hosting Committee (PHC) 
·	Asian NGO Coalition for Agrarian Reform and Rural Development (ANGOC,
Manila)  
·	Focus on  the Global South (FOCUS, Bangkok)
·	Pacific Asia Resource Center  (PARC, Tokyo)
·	Asia Pacific Solidarity Workers' Links (APSWL, New Zealand)
·	World Council of Churches Unit III J.P.C. (WCC, Geneva)
·	International Centre for Human Rights and Democratic Development (ICHRDD,
Canada)

Due to financial constraints, however, the ICC is unable to extend financial
support for air travel and local expenses for overseas participants.

Further information can be obtained from:

Mr. Ed Tadem
ARENA/ICC Secretariat-HongKong
P.O. Box 31407, Causeway Bay P.O. 
HONGKONG
Telefax: (852) 2504 2986.

Philippine NGO-PO Summit on APEC
Institute of Social Order
Ateneo de Manila University
Quezon City, Philippines
04-05 July 1996
sponsored by the Philippine Hosting Committee of the MPFA

THEME: 	"The Hidden Costs of Free Trade"
OBJECTIVES:
1.	To study the implications of trade liberalization on the Philippine economy;
2.	To identify options and alternatives necessary for policy reform agenda
focusing on the impact on the environment, people's lives and communities; and,
3.	For the Philippine groups to put forward substantial input in the
formulation of the parallel NGO APEC agenda.

Invited to speak during the Philippine Summit are Representative Wigberto
Tanada (APEC: Implications to the Philippine Economy), Dr. Walden Bello
(FOCUS, to speak on APEC and Economic Globalization), and Mr. Ed Tadem
(ARENA,  on The Hidden Costs of Free Trade). Another expert will speak on
Gender and Globalization. The Summit will feature six concurrent workshops
on (1) growth and equity under a liberalized economy, (2) trade and people's
rights, (3) trade and environmental protection, (4) free trade, employment,
labor rights and security, (5) democratization and governance in a global
economy, and (6) women's and gender issues. 

Philippine groups hope to be able to consolidate their positions and
analyses on APEC as it affects Philippine social, political and economic
life. The Philippine Hosting Committee (PHC), on the other hand, considers
the July Summit a crucial activity that will facilitate the integration of
the Philippine agenda into the international NGO-PO agenda on Asia Pacific
Economic Cooperation and the APEC process. 

Local Hosting Committees (LHCs) Organized 
Local hosting committees were formed in the country's major island
groupings_Luzon (Central Luzon and Southern Tagalog), Visayas and
Mindanao_to ensure effective participation of Philippine grassroots
organizations in the MPFA processes. The LHCs are in the process of drawing
up their respective agenda in preparation for the 04-05 July National
Summit. Prior to the National Summit, the committees will hold regional
conferences/consultations with local groups/peoples on the following dates:
14-16 June, Davao City (Mindanao); 19-20 June, Central Luzon (Luzon); and,
28-29 June, Cebu City (Visayas).

The local committees will also help the PHC in the hosting of the five
international pre-forum conferences and APEC-related activities scheduled
for 18-20 November. The Southern Tagalog Hosting Committee, home to the
CALABARZON Industrial Estate (a "model" of enclave industrialization), will
receive the participants of the pre-forum conferences on Ecology and
Environment, Labor and Migrant Rights and, Democratization and Governance.
The Visayas and Mindanao Hosting Committees will be hosting the pre-forum
conferences  on People's Rights, and on Economic and Social Development,
respectively. The Hosting Committee in Central Luzon will help coordinate
the People's Caravan during the Leaders Summit in Subic on 24-25 November.
 

SUMMARY REPORT
Experts Meeting on Innovative Approaches to Environmentally Sustainable
Development

In preparation for the APEC Senior Officials' Meeting (SOM, 09-10 July) and
the Ministerial Meeting (MM, 11-12 July) on Sustainable Development, an
experts meeting was held on 06-07 June 1996. 
The highlight of the meeting, which was attended by environment experts from
the Asia Pacific region, was the recommendation that APEC economies
introduce environment and natural resources accounting (ENRA) into their
national income accounts.
Aside from the adoption of the ENRA, the experts meeting also recommended
that the July SOM and MM take up the following:

·	utilization of market-based instruments in addressing market failures;
·	sharing of information and expertise in promoting, adapting, and adopting
innovative approaches to sustainable development;
·	application of participatory approaches in planning, determining, and
implementing innovative approaches to environment and natural resources
management;
·	building the capacities of environment and natural resources users and
managers in planning, determining, and implementing innovative approaches
for sustainable development; and,
·	complementing market-based instruments with regulatory measures to ensure
optimal resource utilization.

Many creditor governments (from APEC) were silently hoping that the green
aid plan which includes debt relief instruments as the debt-for-nature swaps
would be among the main items on the experts' meeting's recommendations.
However, since Japan is against the green aid plan, and any form of debt
forgiveness for that matter, this hope was dashed from the very start.

Nevertheless, the recommendation to adopt ENRA in the APEC economies'
national income accounting is a bit of good news for many. But, as APEC is
trying zealously to avoid the linking of trade with environment issues, it
remains a big question how far this recommendation can go.


APEC Watch Editorial Team
Violeta Perez-Corral, ANGOC
Pamela Asprer-Grafilo, PHC
Jenina Joy Chavez-Malaluan, FOCUS

Lay-out:  Allen M. Mariano, PPI


ANNOUNCEMENTS!!!

*	Regular mail and shortened faxed versions of FOCUS-on-APEC are available
upon request.  Due to our budget constraints, however, we are unable to
airmail the bulletin to many people/ groups, so we kindly ask you  to print
the e-mail version and regular mail it to interested groups in your country
who do not have access to e-mail.  Thank you.

* 	Focus on the Global South has offices at: 
	c/o CUSRI, Wisit Prachuabmoh Bldg., Chulalongkorn University, Phyathai
Road, Bangkok 10330, THAILAND
	Tels.: (662) 218-7363, 64 & 65  
	Fax : (662) 255-9976  
	E-mail: focus at ksc9.th.com
	URL: http://www.nautilus.org/focusweb/focus.html.


We have limited copies of the APEC Watch.  Please share your copy with
others who might be interested. This APEC Watch is produced by the
Manila-based Secretariat of the International Convenors Committee (ICC)
which holds offices at the Manila PFA'96 Philippine Hosting Committee
Secretariat Office (please see address below).

Information on the PFA and the ICC can also be obtained from:

Asian NGO Coalition for Agrarian Reform and Rural Development (ANGOC)
No. 14-A 11th Jamboree St., Brgy. Sacred Heart, Kamuning, Quezon City 1103,
PHILIPPINES
Tel. Nos. (632) 9283315/9293019 r  Fax No. (632) 9215122 
r E-mail: angoc at philonline.com.ph or angoc at igc.apc.org


BE COUNTED!
If you want to participate in the PFA '96 activities, please write and tell
us so. We will be glad to send you information, and will be more than happy
to receive inputs from you.  Please address all inquiries re: PFA '96 to:

The Secretariat
Philippine Hosting Committee 
Manila People's Forum on APEC 1996
Room 209, PSSC Building, Commonwealth Avenue, Diliman, Quezon City, PHILIPPINES
Tels.: (63-2) 929-6211/(63-2) 922-9621 loc. 315
Fax: (63-2) 924-3767
E-mail: omi.apec at gaia.psdn.phil.net