[asia-apec 1210] NZ Govt Propaganda on APEC

[Gatt Watchdog]

More New Zealand Government "spin" on APEC



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RT HON JENNY SHIPLEY
PRIME MINISTER
Keynote address to

APEC SYMPOSIUM ON THE ASIAN ECONOMIES



Dai-ichi Hotel, Tokyo, Shimbashi
9.40am Friday 23 July 1999 (Japan Time)


Mr Chairman, =20
Ambassadors,=20
Representatives of the media,=20
Ladies and Gentlemen.=20

Good morning.

I should like to extend my thanks to the organisers and sponsors of this
significant Symposium.  It is a great pleasure to be in Tokyo once more.

Yesterday I had the pleasure of having very productive discussions with
Prime Minister Obuchi and key Japanese Ministers.

I am delighted on this, my second visit to Japan as Prime Minister of New
Zealand, to address this Symposium on APEC and the Asian economies.

I welcome this opportunity to outline New Zealand=92s view of APEC and the
Asian Economies.

The Governments of Thailand and Japan are to be congratulated, for the
initiative you have taken to bring together this group of speakers and
delegates.

You have challenged yourselves to consider and discuss the role that APEC
can play in the recovery of Asian economies.  It is an important and
exciting challenge.

In less than five months we enter a new millennium.  It is right that we
look back as we look ahead with confidence and enthusiasm.

There is much upon which we can build.

Just last week, I had the pleasure of launching a study of the way the
relationship between New Zealand and Japan has unfolded over the last 150
years.  But it has been only over the last 30 years that it has expanded
and matured.

This study, funded by former Prime Minister Murayama=92s Peace Friendship an=
d
Exchange programme, reminded me how much all of us, as Asia Pacific
economies, have systematically developed our links over recent decades. =20

In the case of New Zealand and Japan we have moved from two countries who
hardly knew each other, to regional partners.

Around the region, we are entering a new millennium woven together by a
wide and colourful fabric of people to people links, trade, investment and
an emerging sense of being an Asia Pacific community.

We are enriched both by our diversity and the values and policies we
increasingly hold in common. =20

Ten years ago this year, the enlightened development of APEC was
established to be an engine for closer cooperation between all our members
economies.

APEC=92s goal of a region bound together by free and open trade and
investment has, during this decade, brought real improvement in the
standard of living for our people.

In the past two years, however, APEC has been severely tested by the
financial crisis that hit all our economies.

I believe that the responses we have made to the crisis- individually and
together - have  proved the worth of the consensus and cooperation which
underpins all of APEC=92s work.

Once economies got past the shock of the crisis, much effort has been put
into finding durable solutions.

When APEC Leaders met last year in Kuala Lumpur they emphasised the
important role of open markets in reinvigorating economic growth in the
APEC region.  This is the right approach which is well supported by
empirical research.

A recent IMF study of 110 developing countries for the period 1985-95 found
that countries with open trade positions, stable macro economic policy
settings and relatively small government tended to grow faster.

Reflecting this emphasis, one of New Zealand=92s goals this year, as Chair o=
f
APEC, is to expand opportunities for people to do business in the region.
This means opening markets and keeping them open, as well as reducing
barriers to trade and investment within and between our economies. =20

APEC members have agreed that they will take individual actions to open
their markets.  Through these actions, which form the cornerstone of APEC=92=
s
liberalisation agenda, APEC has made good progress.  Far more than many
commentators gave credit for.

This year, for example, 14 members have implemented tariff reductions, 14
have liberalised their investment regimes and 17 have announced measures in
the area of competition policy and/or deregulation.=20

Given the importance of open and strong markets to the prosperity of us
all, I want to acknowledge today the strong support our host, Japan, is
giving to the pursuit of APEC=92s goals.

Japan=92s economic size and strength, and the success of its domestic
reforms, will be critical in the return of sustainable growth to the rest
of the region.  Much is expected.

As the world=92s second largest economy, Japan=92s support for the launching=
 of
new broad based multilateral trade negotiations is also crucial in keeping
the world trading system open and dynamic.

Collectively, APEC members are helping that task by working to make trade
easier.  For example, by the end of this year most APEC members will have
automated their export and import customs clearance procedures.  This will
speed up the process of customs clearance and reduce the associated costs. =
=20

Studies suggest that the gains from these types of initiatives may outweigh
the gains from opening markets by a factor of about two to one.  APEC
Ministers will consider in September options for broadening and deepening
APEC=92s work in this area, to the mutual benefit of member economies.

At the global level, APEC Ministers =96 who met just last month in Auckland =
=96
have called for the launch of new broad-based negotiations to further
liberalise global trade.

Ministers also agreed that industrial products should be included in these
negotiations and that we should aim to conclude the process within three
years.

This is an important and powerful development.  When APEC speaks with one
voice it is a powerful voice indeed - for together we represent half the
world=92s output and population, and its leading industrialised and
developing economies. =20

The inclusion of industrial goods to the other areas where APEC has sought
early voluntary sectoral liberalisation in the WTO, now adds critical mass
as APEC engages other WTO members =96 and in particular the European Union =
=96
in steps towards further global trade liberalisation.

Ensuring the support and participation of developing countries in the new
WTO Round is crucial.=20

Ensuring economies are able to participate through access to markets is
critical if we are to bring many people into the real economy who are
currently excluded.

The alleviation of poverty through increased per capita incomes, secured
through trade, new jobs, and increased development, must be the social
dividend which the new Round delivers, particularly for developing=
 countries.

APEC=92s work programme can and must help developing countries lift their
growth, incomes and employment in the new WTO Round.

The announcement, last night from Geneva of the split-term appointment of
Mike Moore and Dr Supachai, respectively, as Director-General of the WTO is
also good news for world trade, and for APEC.

Two excellent candidates, both from the Asia-Pacific region will now, in
succession, be responsible for leading the WTO=92s work through the new=
 Round.

APEC economies can be well satisfied with the calibre of these appointments.

The APEC Food System proposal is another important focus for APEC this year.=
 =20

The proposal, developed initially by the business sectors of APEC, seeks a
robust regional food system that supports rural infrastructure development,
sharing of new technology and promotion of trade in food products.=20

Over time we hope that the food systems proposal, alongside strengthened
economic and technical co-operation between our economies, will help us
achieve the full gains in prospect from APEC=92s free and open trade and
investment goal.=20

Opening markets and keeping them open is an essential factor in
reinvigorating growth.

But no less significant =96 as illustrated by the events of the financial
crisis =96 is ensuring that markets function effectively.  This is the aim o=
f
New Zealand=92s second theme for 1999: Strengthening the role of markets.

New Zealand hopes that this work will help APEC economies with the process
of structural reform.=20

As a first step, I will be proposing, when we meet in September, that
Leaders endorse a set of voluntary competition and regulatory principles. =
=20

These principles will stress the need for markets to be open, transparent
and well governed.  We see such principles as forming an economic policy
"toolbox" - a set of policy approaches that economies can use in developing
domestic regulatory policy in an increasingly globalised economic=
 environment.

Japan=92s own experience underlines the value of competitive markets. =
 Strong
domestic competition within Japan played an important role in helping its
household electronics and car industries become world leaders.  In the US
the same point can be made in respect of aviation, telecommunications,
financial services, and computers. =20

Our strengthening markets initiative in APEC seeks to foster the benefits
of a strong competitive process in all sectors of the economy, recognising
that each has different circumstances.=20

As a second step, APEC is working to strengthen financial markets. =20

APEC has an important complementary role to play alongside the work
underway in the G-7 and elsewhere to reform the global financial system. =20

Given APEC=92s unique membership and experience, New Zealand as Chair will
want to ensure that there are opportunities for contributing our region=92s
perspectives to the debate. =20

If the recent financial crisis has taught us anything it is that the real
issues are as much domestic as they are international.  More than anything
else, the stability of the global financial system will flow from policies
and practices in our domestic economies. =20

Thirdly, strong corporate governance has an important role, that needs to
be emphasised.=20

I understand that private sector leaders in Japan have recently formed a
group to pursue reform of Japanese corporate governance arrangements,
strengthen the relationship between shareholders and managers, and improve
corporate accountability and accounting in line with  international best
practice. =20

These and other areas of progress are exactly the approach we seek to
encourage through APEC - positive peer review to improve market
functioning.  Through co-operation, the strengthening of information,
technical assistance, and practical experience, progress can be made.


When we look back on 1999 I expect it will be seen as the year that we all
turned the corner towards sustainable economic recovery in the Asia Pacific
region. =20

Already, the signs are emerging that the worst of the crisis that engulfed
us in 1997 is over.  Indeed, some very positive signs are emerging.  But,
we must not be complacent for there is still much to be done.

I have no doubt that APEC has helped governments in particular to find the
policy measures, and the political encouragement, to press ahead with
needed reforms.

All of us =96 be we in government or business =96 have had to take difficult
decisions since 1997.  We now have some satisfaction in the success that is
now apparent.

We have had to change the ways we govern and do business, and change is
never easy. =20

But we are seeing results.  The growth, confidence and investment which is
now returning to our economies is, I believe, more soundly and sustainably
based than at any time in the past 30 years.  We must work to lock this
progress in by action across APEC and with member economies.

Much hard work lies ahead if we are to consolidate these hard won gains. =20

We can look ahead with a growing sense of confidence in the strength of the
links between us, and the realisation that if we keep to the path of
increased links between our economies, and strengthened markets, then we
will all benefit.

The Government sector and private sector both have an important role to
play.  Governments will often only act when third party support for such
action is apparent.

Equally, the private sector will only retain its confidence in Governments
if we are capable of responding within our respective economies in a way
that is relevant and effective.  This is the challenge.

At APEC this year, which in addition to the Economic Leader=92s meeting we
hope to have greater contact and interaction between leaders and the
private sector CEOs than ever before.

Just as your Symposium is meeting the challenge, so, I believe, will APEC=
 =9299.

I look forward to the presentation of the results of this Symposium to this
year=92s Economic Leaders=92 meeting, which I=92m sure will illustrate the=
 point.

As Chair of APEC for 1999, you can be assured of New Zealand=92s support and
determination, and interest in spreading the word of the discussions you
are engaged in today, and the innovative ideas and solutions you may=
 propose.

I wish you well in your deliberations.

Thank you.


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	       Peace Movement Aotearoa
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