[asia-apec 912] APEC Ministerial Joint Statement

[Gatt Watchdog]

Tenth APEC Ministerial Meeting Joint Statement
 Monday, 16 November 1998, 5:19 pm
   Press Release:

      TENTH APEC MINISTERIAL MEETING JOINT STATEMENT
      KUALA LUMPUR, MALAYSIA

      14 - 15 NOVEMBER 1998

      The Tenth Asia-Pacific Economic Cooperation (APEC)
      Ministerial Meeting was attended by Ministers from:

      Australia New Zealand
      Brunei Darussalam Papua New Guinea
      Canada Peru
      Chile Republic of the Philippines
      The People's Republic of China Russia
      Hong Kong, China Singapore
      Indonesia Chinese Taipei
      Japan Thailand
      The Republic of Korea United States of America
      Malaysia Vietnam
      Mexico

      Members of the APEC Secretariat were also present. The
      Association of South-East Asian Nations (ASEAN) Secretariat,
      the Pacific Economic Cooperation Council (PECC) and the
      South Pacific Forum attended as observers.

      The meeting was chaired by the Honourable Dato' Seri Rafidah
      Aziz, Minister of International Trade and Industry,
      Malaysia. On behalf of the meeting, she welcomed new members
      - Peru, Russia and Vietnam.

      Financial Stability

      2. Ministers reviewed recent developments in the world
      economy. They welcomed the 1998 APEC Economic Outlook, with
      its particular focus and comprehensive review of the current
      economic developments and prospects of the region. Ministers
      expressed concern that the financial crisis with its
      associated contagion effects has had serious socio-economic
      implications for growth, employment and poverty levels in
      member economies. Ministers tasked Senior Officials to
      intensify APEC's efforts to address the social impacts of
      the crisis as a high priority.

      3. Ministers agreed that the major challenge before APEC is
      to advance policies and collaborative efforts directed at
      early recovery and sustainable growth in the region. Each
      economy, both industrialised and developing, has an
      important stake in this objective and a role in achieving it
      by implementing appropriate growth-oriented macro-economic
      policies and structural reforms. Ministers welcomed the
      efforts of affected economies to overcome the crisis. They
      also stressed the critical role of open markets in
      underpinning economic recovery.

      4. Ministers supported the work programme of APEC Finance
      Ministers in strengthening the international and domestic
      financial systems, developing capital markets, liberalising
      capital accounts and formulating measures to build social
      safety nets in affected economies.

      5. Ministers concurred that capacity building initiatives
      were integral in enhancing the resilience of domestic
      economies and their ability to withstand future economic
      turbulence. In this context, Ministers endorsed the Economic
      Governance Capacity Building Initiative and welcomed the
      work on corporate governance in the Finance Ministers'
      process. Ministers looked forward to progress on these
      initiatives.

      Trade and Investment Liberalisation and Facilitation (TILF)

      6. Ministers reaffirmed their commitment to achieve APEC's
      trade and investment liberalisation goals through the
      process of individual and collective actions. Ministers
      viewed trade and investment liberalisation as an important
      element in restoring confidence in the region and in
      stimulating economic growth.

      7. Individual Action Plans: Ministers endorsed the
      submission of improved 1998 Individual Action Plans (IAPs)
      and welcomed IAPs of the three new members. Ministers were
      encouraged by the continued implementation and improvements
      to the Plans, particularly by economies affected by the
      financial turmoil. Ministers commended the commitment to
      specific action and timelines, adherence to the 1997 revised
      format guidelines and consideration given to the APEC
      Business Advisory Council's (ABAC) recommendations.
      Ministers also welcomed the voluntary inclusion in a number
      of IAPs of financial sector reforms and other measures taken
      in response to the situation of financial instability.
      Ministers noted the usefulness of the current process of
      bilateral consultations and voluntary peer review in
      providing feedback for further improvements. In this regard,
      Ministers welcomed Korea's and Malaysia's submission of
      their IAPs for voluntary peer review and the offer from
      Australia, Brunei, Japan, Philippines, Chinese Taipei and
      United States to do so in 1999. Ministers agreed that Senior
      Officials should undertake a review, in 1999, to assess
      overall progress in IAPs in accordance with the principles,
      objectives and guidelines of the Osaka Action Agenda.
      Ministers reaffirmed the role of the IAPs as the primary
      mechanism for progressing APEC's trade and investment
      liberalisation and facilitation towards the Bogor goals.

      Trade and Investment Facilitation:

      8. Ministers welcomed and endorsed the 1998 Committee on
      Trade and Investment (CTI) Annual Report to Ministers. They
      commended the CTI's work in facilitating a more open
      environment for trade and investment as well as in
      implementing activities to improve the flow of goods,
      services, capital, and technology that will be relevant to
      business. Ministers agreed that emphasis be given to
      action-oriented and focussed outcomes that will provide
      tangible benefits to members.

      Ministers welcomed the 1998 achievements of the CTI and the
      Working Groups and their work on:

      * alignment of member economies standards with international
      standards on electrical and electronic equipment in respect
      of safety and electromagnetic compatibility by 2004/2008

      * agreement on the part of exchange of information of MRA
      for electrical and electronic equipment;

      * development of a menu of options for investment
      liberalisation and facilitation;

      * development of non-binding principles pertaining to value
      for money, open and effective competition, and fair dealing
      in government procurement;

      * implementation of phase 2 of the APEC Business Travel Card
      trial and collective commitment to expand the availability
      of multiple entry visas or permits for business purposes;

      * set of policy recommendations on the development of
      natural gas and promotion of energy efficiency;

      * development of comprehensive customs work programme on
      common data elements, risk management and express
      consignment clearance;

      * launch of the APECNet for business search and
      opportunities;

      * enhancement of information exchange and policy dialogue
      through the publications on APEC Energy Supply and Demand,
      IPR administration systems and the Business Residency
      Handbook;

      * comprehensive range of training and technical cooperation
      programmes undertaken in 1998; and

      * .the development of an APEC Directory of Professional
      Services that facilitates the provision of trade in
      services.

      9. Ministers called for further development of Collective
      Action Plans (CAPs) and their implementation in 1999. In
      particular, Ministers called for intensified work on trade
      facilitation which encourages the use of technologies and
      techniques that will help members to build up expertise,
      reduce costs and lead to better movement of goods and
      services. They agreed that officials should examine how
      competition and regulatory reforms can contribute towards
      facilitating trade and investment. Ministers stressed the
      importance of the completion of TRIPs Implementation by APEC
      WTO member economies in 2000. In addition, they directed
      that priority be given in 1999 to the implementation of the
      multiyear training and technical cooperation programmes,
      including on standards and conformance, customs procedures,
      intellectual property, competition policy and business
      mobility as a means of enhancing members capacity in the
      TILF area and in implementing CAPs.

      10. Ministers welcomed the actions taken by CTI and its
      sub-fora to invite, as appropriate, business/private sector
      contributions, including from ABAC in accordance with the
      agreed guidelines. Minsters encouraged actions by APEC fora
      that will increase benefits to SMEs. They further directed
      APEC fora to consider ways to enhance business/private
      sector support and contributions for APEC activities.

      11. Early Voluntary Sectoral Liberalisation (EVSL): Minsters
      recognised the Early Voluntary Sectoral Liberalisation
      (EVSL) initiative as a significant step to advance the pace
      of liberalisation in APEC. The EVSL initiative, undertaken
      through the APEC principle of voluntarism, is an integrated
      approach to liberalisation through the incorporation of
      facilitation and economic and technical cooperation
      measures.

      12. Ministers noted the progress made in 1998 in finalising
      the EVSL package:

      i. Participation by 16 economies in the EVSL process* ;

      ii. Results of the Kuching meeting on a framework for
      addressing EVSL, encompassing tariffs, facilitation and
      ECOTECH, and with respect to tariffs, end-rates, end dates
      and product coverage (including subsequent work) as well as
      guidelines on flexibility provisions;

      iii. Conformity with the end-rates and end-dates, as
      reflected in Table 1 in SOM Chair's report; and

      iv. Flexibility requests for end rates and end-dates as
      reflected in Table 2 of the SOM Chair's report.

      13. Ministers agreed that APEC economies may implement
      immediately the tariff commitments on a voluntary basis.

      14. Ministers agreed to commence implementation of
      facilitation, ECOTECH and other initiatives according to the
      agreed schedule in all 9 sectors. Additional facilitation
      and ECOTECH initiatives will be developed and implemented on
      a continuous basis.

      15. Ministers of the 16 participating economics also agreed
      to improve and build on this progress in 1999;

      i. by broadening the participation in the tariff element
      beyond APEC to maximise the benefit of liberalisation. In
      this regard, the WTO process would be initiated immediately
      on the basis of the framework established in Kuching and
      subsequent information provided by economies, having regard
      to the flexibility approaches as contained in the status
      reports with a view towards further improving their
      participation and endeavouring to conclude agreement in the
      WTO in 1999; and

      ii by working constructively to achieve critical mass in the
      WTO necessary for concluding agreement in all 9 sectors.

      16. This process of expanding participation beyond APEC will
      not prejudice the position of APEC members with respect to
      the agenda and modalities to be agreed at the Third WTO
      Ministerial Conference.

      17. Ministers agreed to review progress at the Trade
      Ministerial Meeting in June 1999.

      18. Elements in the other six sectors shall be further
      developed for review by Ministers Responsible for Trade in
      June 1999. Implementation of NTMs, facilitation and ECOTECH
      and other initiatives that have been agreed shall commence
      in accordance with the work programmes in each sector.

      19. Impact of liberalisation: Ministers acknowledged the
      importance of promoting a broad-based and balanced
      understanding within APEC communities of the rationale for
      APEC's trade and investment liberalisation goals. Ministers
      noted that the case studies provide useful overview of the
      adjustment costs and benefits as well as the broader impact
      of liberalisation. Ministers tasked officials to develop
      effective communication strategies to build community
      understanding for liberalisation, including through the
      holding of a keynote seminar on communicating the impact of
      trade liberalisation in Auckland in June 1999.

      20. Multilateral Trading System: Ministers reiterated their
      commitment to strengthen the multilateral trading system
      through further trade liberalisation and be ensuring the
      adequacy of trade rules, at a time of globalisation and
      rapid technological advancement, in a manner which will
      enhance the capacity of developing economies to integrate
      into the global economy and achieve the benefits of
      liberalisation.

      Ministers pledged their support for WTO's work on trade and
      investment liberalisation and rule making. In this regard,
      APEC member economies would actively participate and
      contribute to the WTO preparatory process to develop a
      substantive agenda for the Third WTO Ministerial Conference,
      with a view to pursing further broad-based multilateral
      market access and other liberalisation, to respond to the
      range of interests and concerns and of all members.

      Ministers also stressed the importance of full
      implementation of existing WTO commitments. Ministers also
      reaffirmed their commitment to maintain the momentum of
      multilateral trade liberalisation. Ministers encouraged
      acceleration of accession negotiations in accordance with
      WTO rules and based on effective market access commitments
      with a view to achieving universality of WTO membership.

      Ministers commended the on-going contribution by APEC to
      support work undertaken by the WTO in areas such as the
      interaction between trade and competition policy,
      transparency in government procurement and investment. In
      this respect, APEC work in such areas as competition policy,
      deregulation, government procurement and investment was of
      particular relevance. Ministers encouraged such work be
      continued. Ministers also directed that technical
      cooperation activities be enhanced to assist member
      economies to implement WTO Agreement.

      Economic and Technical Cooperation (ECOTECH)

      21. Ministers commended the efforts to further strengthen
      economic and technical cooperation in APEC under the Manila
      Framework for Strengthening Economic Cooperation and
      Development. Capacity building initiatives which contribute
      towards reinforcing foundations for sustainable growth have
      become a priority in the light of the economic crisis.
      Ministers welcomed the SOM 1998 Report on ECOTECH Activities
      and called for the report to be submitted annually.

      Ministers expressed satisfaction with progress on the broad
      spectrum of ECOTECH activities in pursuit of the six
      priority themes, particularly the focus on
      capacity-building, and commended the efforts of the SOM
      Sub-committee on Economic and Technical Cooperation to
      improve coordination and management and ensure focussed
      outcomes. Ministers called for intensified work to further
      improve the effectiveness of economic and technical
      cooperation activities.

      22. Developing Human Capital: Human resources development is
      a key factor for sustained economic growth and investments
      in human resources now will assist in economic recovery.
      Skills upgrading of the region's workforce will enhance the
      flexibility of economies to cope with the challenges in the
      new millennium. Ministers approved the Kuala Lumpur Action
      Programme on Skills Development to further intensify efforts
      towards upgrading the skills of the region's human capital
      and instructed APEC fora, particularly the HRD Working
      Group, to implement the Action Programme. Ministers welcomed
      the members' efforts to expand or initiate programmes for
      skills development following the Action Programme. Ministers
      recognised the importance of private sector contributions in
      skills development and welcomed the proposed seminar to
      share experiences on public-private/business sector
      partnership in skills development be held in 1999. Ministers
      encouraged greater contribution from the private sector in
      progressing the relevant projects of the HRD Working Group.

      Ministers recognised the importance of fully harnessing the
      vast potential of the human capital in the region,
      especially among youth and women, and reiterated their
      support for continued efforts to integrate them into APEC
      activities. Ministers endorsed all the recommendations of
      the Ministerial Meeting on Women in Economic Development in
      Cooperation in APEC, particularly the development of a
      Framework for the Integration of Women in APEC. Ministers
      noted the success of the APEC Youth Science Festival in
      Seoul in generating the involvement of youth in science and
      communication.

      23. Stable, Safe and Efficient Capital Markets: Ministers
      noted the efforts to promote the development and resilience
      of APEC's financial and capital markets undertaken by APEC
      Finance Ministers. In tandem with this, efforts are being
      undertaken by member economies to reform and strengthen
      their domestic financial systems. Ministers agreed that
      APEC's approach towards accelerating an early recovery and
      restoring confidence in the region involved positive
      linkages and cooperation with the on-going efforts of the
      international financial institutions and other international
      fora to alleviate the crisis.

      Ministers noted that APEC fora have during the course of the
      year considered the impact of the financial crisis on labour
      markets, infrastructure development, SME, trade, investment,
      women, tourism and the energy sector. Members welcomed the
      report of the task force on human resources and the social
      impact of the financial crisis.

      24. Economic Infrastructure: Ministers welcomed the APEC
      Infrastructure 1998 Report on activities to implement the
      1997 Vancouver Framework for Enhanced Public-Private
      Partnerships In Infrastructure Development. Minsters
      recognised that investment in infrastructure development can
      contribute to economic recovery in the region and called for
      further progress in the five areas of:

      * creating an Asia-Pacific Information Society; * creating
      an Integrated Asia-Pacific Transportation System; *
      economically viable and environmentally sustainable energy
      infrastructure which includes the Natural Gas Initiative
      endorsed by Energy Ministers; * infrastructure for
      Sustainable Cities; and * infrastructure to Support Rural
      Integration and Diversification, including innovative ideas
      for financing rural infrastructure development.

      25. Harnessing Technologies of the Future: In recognising
      the potential of scientific and technological advancements
      in promoting economic growth, Ministers endorsed the APEC
      Agenda for Science and Technology Industry Cooperation into
      the 21st Century approved by the Ministers Conference on
      Regional Science and Technology Cooperation. The 'Agenda'
      encourages enhanced collaboration and cooperation through
      the creation of strong open innovation systems and
      development of sustainable regional science and technology
      networks and partnerships. Ministers called for an annual
      progress report on implementation of the Agenda. Ministers
      also welcomed progress in the APEC cleaner production
      Initiative and encouraged member economies to actively
      participate in cleaner production projects.

      26. Environmentally Sound Growth: Pursuant to the call by
      Leaders for an action-oriented report on the impact of
      population and economic growth on food, energy and the
      environment, Ministers welcomed and endorsed the 1998 FEEEP
      Report which outlines joint actions in the areas of food,
      energy and the environment, including the establishment of
      an interdisciplinary network of research institutions.
      Minsters instructed that work be progressed in 1999.
      Ministers endorsed the APEC Framework For Capacity Building
      Initiatives On Emergency Preparedness, which aims to
      strengthen joint cooperative efforts to enhance capacities
      of APEC member economies to respond to natural disasters and
      emergencies, and look forward to initiatives to improve
      preventive and responsive measures through
      information-sharing and capacity building. Ministers
      welcomed the decision of Energy Ministers to improve the
      efficiency of energy use, in particular through
      implementation of a voluntary pledge and review programme.
      Ministers reiterated the importance of APEC's work on
      sustainable development in following up on the initiatives
      of Environment Ministers in respect of clean oceans, cleaner
      production and sustainable cities, and directed the
      appropriate APEC fora to progress work in these areas.

      27. Strengthening the dynamism of Small and Medium
      Enterprises: Ministers recognised the crucial role of small
      and medium enterprises (SMEs) in enhancing the resilience of
      economies in a rapidly evolving competitive business
      environment. Ministers welcomed the Integrated Plan of
      Action for SME (SPAN) approved by the SME Ministerial
      Meeting. The SPAN provides guidelines for the development of
      SMEs through action at the domestic level and collaboration
      efforts at the regional level.

      28. Ministers also noted the work of the APEC Working Groups
      and other APEC fora in furthering APEC's objectives of
      promoting economic growth and cooperation. Ministers
      directed these fora to continue the implementation of the
      Framework for Strengthening Economic Cooperation and
      Development through coordinated activities.

      Electronic Commerce

      29. Ministers endorsed the work of the APEC Electronic
      Commerce Task Force in promoting greater understanding of
      electronic commerce issues through exchanging and sharing of
      information and developing substantive recommendations to
      ensure that APEC as a region benefits from this new
      technology. This work programme covers Y2K, "Paperless
      Trading", authentication issues such as cross certification,
      collection of case studies, survey of impediments, "Virtual"
      Electronic Commerce/Multimedia Resource Network and ECOTECH
      activities. Ministers recognised that whilst the business
      sector has a leading role in the development of electronic
      commerce technology and applications, the government has an
      important role in providing a favourable environment for
      electronic commerce to flourish and to create confidence
      from using it.

      In order to increase the uptake of electronic commerce in
      APEC, Ministers endorsed the APEC Blueprint for Action on
      Electronic Commerce setting out the broad themes relating to
      cooperation on electronic commerce within APEC and specific
      future activities for the APEC-wide electronic commerce work
      programme and agreed that it be transmitted to APEC Economic
      Leaders for endorsement. They recognised that technical
      cooperation would enhance the capacity of member economies
      for the uptake of electronic commerce within APEC. To ensure
      continued coordination in pursuit of the Blueprint for
      Action, Ministers agreed that a Steering Group, comprising
      representatives from member economies would be established
      involving relevant working groups and sub-fora as well as
      business sector experts, in accordance with APEC guidelines
      on business/private sector participation. Ministers
      recognised the urgency to deal with the Y2K and welcomed the
      proposed Y2K Regional Contingency Planning Experts Meeting
      in early 1999. Ministers tasked official to collaborate to
      intensify regional preparations to deal with the Y2K
      problem. Ministers expressed appreciation to PECC for its
      contribution to APEC's work on electronic commerce.

      Analytical Work

      30. Ministers welcomed and endorsed the Economic Committee's
      Annual Report, including the attached report of the Task
      Force on Food and the Infrastructure Workshop's Year-end
      Report. Ministers commended the Committee for its work in
      preparing the 1998 APEC Economic Outlook and the extensive
      progress made in finalising its initial research agenda.
      Ministers noted and endorsed the Economic Committee's
      revised terms of reference that focus the Committee's future
      endeavours on demand-driven analytical work in support of
      the Ministers and Leaders meetings as well the
      policy-oriented work of other APEC fora.

      Ministers also commended the Committee and its Task Force on
      Food for the work in developing the FEEEP Report to Leaders,
      the supporting analytical work on food and the Proceedings
      of the FEEEP Symposium, which addressed the crosscutting
      aspects of this issue.

      Ministers also commended the Infrastructure Workshop for
      advancing the work in this priority area. Including the
      results of the 1998 Public/Private-Sector Dialogue, which
      afforded the business sector an important opportunity to
      discuss the role of infrastructure investment in supporting
      recovery in growth.

      Management Process

      31. Ministers welcomed the interim report on the three-year
      review of APEC's management process with a view to
      streamlining its work and making it coherent and lean so as
      to respond better to current challenges. The review
      collaboratively led by Malaysia, New Zealand and Brunei
      Darussalam is built upon the work done by the Task Force on
      Management Issues in 1997.

      Ministers endorsed a set of common guidelines to be used in
      reviewing the mandates of APEC fora and directed Senior
      Officials to forward their recommendations to Ministers in
      September 1999. In order to demonstrate their resolve to
      reform APEC's management process, Ministers agreed on the
      following initial actions:

      * dissolution of the Trade and Investment Data and Review
      Working Group (TIDWG) and Small Group on Information
      Gathering and Analysis;

      * adoption of common review guidelines for self-review by
      APEC fora;

      * moratorium on the creation of new fora during the review
      period. If necessary, only ad hoc task forces with a
      definite life span would be created; and

      * redesignating the Budget and Administrative Committee
      (BAC) as the Budget and Management Committee (BMC).

      Private Sector/Business Participation

      32. Ministers held a dialogue with representatives of ABAC
      and encouraged greater interaction with the business/private
      sector in APEC activities. Ministers noted the positive
      response to ABAC's 1997 recommendations in APEC's Individual
      and Collective Action Plans.

      Organisational and Budget Issues

      33. Ministers noted:

      * Outcomes of the Sectoral Ministerial Meetings on Finances;
      Trade; SMEs; Telecommunications an Information Industry;
      Energy; and Science and Technology;

      * Report of the APEC Study Centres; and

      * Statements of ASEAN Secretariat, PECC and South Pacific
      Forum.

      34. Ministers endorsed the SOM Chair Report on Budget Issues
      and approved the 1999 budget of US$6,811,559 and
      contribution of member economies amounting to US$3,338,000.

      35. Ministers took note of the Report of the APEC
      Secretariat and expressed appreciation for the work done by
      the Executive-Director, Ambassador Dato' Noor Adlan Yahaya
      Uddin and staff of the APEC Secretariat, as well as for the
      high level of professionalism and support provided to the
      APEC Committees and Working Groups and the APEC process as a
      whole.

      Future Meetings

      36. Ministers thanked New Zealand for the briefing on the
      preparations for the 11th APEC Ministerial Meeting and
      looked forward to their next meeting in Auckland in 1999.
      Ministers also thanked Brunei Darussalam for its update on
      plans for the 12th Ministerial Meeting. The 13th Meeting
      will be hosted by the People's Republic of China. Ministers
      welcomed Mexico's offer to host the 14th Ministerial Meeting
      in 2002.

      * Australia; Brunei; Canada; People's Republic of China;
      Hong Kong, China; Indonesia; Japan; Korea; Malaysia; New
      Zealand; Papua New Guinea; Philippines; Singapore; Chinese
      Taipei; Thailand and USA