3^rdAPEC TRANSPORTATION MINISTERIAL MEETING

LIMA, PERU
6-9 MAY 2002

CONNECTING APEC: PATHWAYS TO PROSPERITY

JOINT STATEMENT

• For the third time, the APEC Ministers responsible for Transportation have met to exchange views, and consider options for continued progress toward achieving our Economic Leaders? Bogor Declaration Goals, especially the goal to achieve free and open trade and investment in Asia-Pacific by 2010/2020. Our meeting took place at a critically important time for the Region's transportation industry as it attempts to cope with the impacts of the terrorist attacks of September 11, 2001. Accordingly, we paid particular attention to enhancing regional cooperation on safety and security, while at the same time considering ways and means of reducing impediments to trade and investment, including through liberalizing transportation services as well as economic and technical cooperation, and human capacity building.
• First in Washington DC, United States of America in 1995, and then in Victoria, Canada in 1997, we developed a constructive and forward-looking approach to addressing transportation impediments in the APEC region. This has resulted in substantial progress on issues relevant to transportation and trade.
• At this, and our previous two meetings, we have benefited from an open dialogue with senior representatives of the region's transportation industry. We appreciate the interest of those public and private sector industry representatives who joined with us in Lima, Peru. We acknowledge the continued importance of industry in all efforts to improve transportation in the region and call upon industry and our officials in the Transportation Working Group to continue to work together to reach the desired goals of continued economic development and prosperity for all APEC economies. In this regard, we commend the Group for its initiative in expanding the guest participation of several intergovernmental and non-governmental transport organizations in its regular meetings, and expect that this cooperative approach will continue in the future. We expect the Group to encourage the participation in economy delegations of appropriate transport industry representatives wherever possible. Such partnership will ensure that the Group's work will continue to bring benefits to the providers and users of transport services in the region.
• We note the report of the activities of the Transportation Working Group and express our satisfaction with the work that it has accomplished since our meeting in 1997. The Working Group is the instrument by which both APEC Leaders? and Ministers? goals and directions in the transport field are implemented collectively. The Transportation Working Group is to be commended for determining a strategic direction in 2000, aimed at facilitating the continued improvement of living standards throughout the APEC community by contributing to free and open trade and investment; economic and technical cooperation; human resources development; and the safe, secure, efficient and environment-friendly movement of passengers and goods throughout the region. At the working level, we expect that the Group will further develop its Operational Plan towards implementing APEC Leaders? and Ministers? goals and the strategic directions.
• As the theme for our meeting suggests, transportation in the APEC region is key to economic development and prosperity in the region. A seamless and safe transportation system is important in the facilitation of trade, and the provision of basic services throughout any society. The trade and social goals of APEC cannot be pursued without consideration being given to transport issues in the Region. We therefore commit ourselves to ?connecting APEC?, to strengthen the ability of APEC economies to prosper in the global economy through efficient, integrated and safe transportation.
• On the 11^th of September 2001, the world encountered the utterly unacceptable and vicious terrorist attacks, which occurred in the United States. We express our deepest and sincerest condolences to the victims and their relatives, which included the people of more than 80 economies. We condemn in the strongest terms, the misuse of any part of an economy's transport system or its infrastructure for acts of terrorism. There is no place in civilized society for the conversion of civil aircraft, vehicles, vessels and trains into weapons aimed at innocent targets. Therefore, in accordance with the Leader's Statement on Counter-Terrorism, we fully support the actions and initiatives being taken by ICAO and IMO in aviation and maritime security and resolve to take all necessary measures to prevent a reoccurrence of such terrorist attacks.

Our priorities for the future:

7. In their annual statements since 1993, APEC Leaders have placed their principal emphasis on the voluntary achievement of comprehensive free and open trade and investment in Asia-Pacific, by various means including the removal of barriers and discriminatory treatment, promoting competition, and regulatory reform. We therefore reaffirm that the principal focus of cooperation in APEC is trade and investment liberalization and facilitation as well as economic and technical assistance, and resolve to continue to work towards that purpose, with the participation of the private sector. We accord an equally high priority to ensuring a safe, secure, efficient, integrated and environmentally sustainable transportation system for the Region, and that the capacity constraints of our transportation systems be dealt with as a high priority so our people, goods and services can move freely and work effectively throughout the economies. We also affirm the wish of APEC Leaders to build the ?human capacity? of people in the region.
8. Accordingly, we state our priorities for transportation as being:

• to eliminate barriers to a more competitive transportation operating environment across all modes, ensuring safe and sustainable transport complying with international safety and security standards;

• to promote economic and technical cooperation especially for developing economies, to assist them in achieving the Bogor Goals;

• to promote measures, taking into account advancements in technology, to enhance safety, security, environmental protection and energy efficiency;

• to promote timely rational investment in the region's transport infrastructure, and to encourage efficient use of existing infrastructure through the application of appropriate technology, trade and transport facilitation techniques;

• to cooperate to address institutional constraints affecting the efficient provision of transportation services in the region, including cross-border facilitation; and

• to build human capacity in productivity, skills and efficiency of labor and management in the transport sector.

9. To accomplish this we will move positively forward in the areas of more competitive transportation, safe and environment-friendly transportation, and human resources development. In the following paragraphs we review the leading accomplishments of the Transportation Working Group, state our objectives for the future, and provide a mandate for the Group to implement our objectives in the above areas, as follows:

More Competitive Transportation

10. We note the progress of the Transportation Working Group in its work towards developing recommendations for achieving more competitive air, intermodal and maritime transportation, together with work on electronic commerce, port efficiency and road transport harmonization. We endorse the continuation of that work, together with new work to identify non-tariff measures in the transport sector, and facilitate trade.
11. In accordance with our determination to make progress in trade and investment liberalization and facilitation in the transport sector, the focus of the Transportation Working Group must continue to be the identification of barriers to market access and other institutional constraints upon the natural growth of more competitive transport services. Together with the development of appropriate policy recommendations and an economic and technical cooperative mechanism to address impediments, the Group can positively assist economies in their implementation of transparent and equitable competition policies that will achieve the Bogor Goals. Such work should not be seen as a series of ?one off? exercises but more a continuum of inter-related activities leading to a successful conclusion. The Group should regularly monitor the status of implementation in economies, including through the Individual Action Plan (IAP) process, and where appropriate, revise or renew its work.
12. While not limiting the ability of the Transportation Working Group to use its initiative in future, we:

• welcome the progress made towards implementing the Group's recommendations for more competitive air services with fair and equitable opportunity in accordance with our Leaders? declarations of 1999 and 2000. We look forward to active continuation of the excellent results achieved on a voluntary basis including a bilateral and/or plurilateral approach. We look forward to receiving annual reports which will also be sent to APEC Ministers, and Leaders through Senior Officials Meetings. We instruct the Group to continue to develop for voluntary implementation by economies, recommendations for more competitive air services with fair and equitable opportunity;

• commend and endorse the Group's initiative in developing a project identifying non-tariff restrictions to trade in the transport sector, and developing a best practice model which can serve as a guide to the elimination or reduction of the existing barriers;

• commend and endorse the activities to date by the Maritime Initiative (MI), including the elaboration of a Maritime Mission Statement, and encourage the MI to proceed with further activities seeking more competitive maritime transport, such as: promotion of mutual understanding; facilitation of WTO negotiations; regional liberalization and technical cooperation;

• commend the work of the Road Transport Harmonization Project (RTHP) and endorse the efforts of economies to harmonize their vehicle regulations, in a manner consistent with improved safety and environmental protection, and through participation in the activities of the United Nations? World Forum for the Harmonization of Vehicle Regulations, including accession to the 1958 Agreement and/or the 1998 Global Agreement;

• endorse the Principles of Automotive Technical Regulations Harmonization developed jointly by the RTHP and the Automotive Dialogue of the APEC Committee on Trade and Investment, and encourage, where appropriate, mutual recognition arrangements for the certification of automotive products by using the Model Mutual Recognition Arrangement developed by the RTHP;

• welcome the Group's successful electronic commerce work; endorse the target of eliminating the requirements for paper documents (both regulatory and institutional) for the key messages relevant to international transport and trade by 2005 for developed, and 2010 for developing economies, or as soon as possible thereafter; and encourage the Group to continue to assist economies with appropriate advice and capacity building projects towards this achievement;

• commend and endorse the work completed by the Port Experts Group (PEG), including the development of an APEC Port Database. We also encourage the PEG in its work to improve port capacity and operational efficiency; and

• note that the Group has already considered earthquake countermeasures in relation to port operations, acknowledge that natural disasters are a recurring concern in several economies, and request the Group to consider further prevention and recovery or mitigation work to tackle impact of natural disasters across all modes when developing its Operational Plan.

Safe and Environment-friendly Transportation

13. We commend the progress of the Group in the areas of enhancing safety, efficiency, security and in facilitating transportation and trade. We note the progress of its work on safety and security across all modes, including environmental considerations and the adoption of new technologies such as Satellite Navigation and Communications (SN&C) systems, and Intelligent Transport Systems (ITS). We understand that SN&C and ITS can contribute much to the Region's most significant transportation needs relating to saving lives, time, money, energy and the environment through more effective use of the existing transportation systems and related infrastructure. We endorse the continuation and development of that work with emphasis placed on the recognition of the fast pace of technology advancements, taking advantage of the benefits which will accrue to the transportation industry.
14. We reiterate our ambition, first expressed in Washington DC, for achieving harmonization of transport regulatory practices, or where applicable, mutual recognition or reciprocal acceptance of such practices. We and the transportation industry have a shared interest in streamlining, and ultimately removing requirements for ?multiple? certification of carriers engaged in transport services between economies, or of organizations providing repair and maintenance services for carriers based in other economies. This should be accomplished in a manner consistent with international safety and security standards. This cannot, and should not, be regarded as only a governmental responsibility. The region's transport operators, users, and service providers also have a stake in ensuring safe and sustainable transport complying with international safety standards. By working together we can identify areas for industry-government cooperation for our mutual safety benefit.
15. Without limiting the ability of the Transportation Working Group to use its initiative in the future, we:

• commend the work of the Group in preparing a framework for the development of standards for implementation of ITS in economies and addressing ITS interoperability and standards issues in the Region. We note that aspects of this work are being coordinated with the Group's work on intermodal transport and electronic commerce;

• commend the Group's work on Satellite Navigation and Communications Systems and its intentions to facilitate the implementation of rapidly evolving SN&C systems in the Region. We agree to collectively support, in the World Radiocommunications Conference in 2003, the retention of the current frequency spectrum for the exclusive use of aeronautical radionavigation and radionavigation-satellite services, ensuring safe and sustainable transport complying with international safety standards;

• recognize the efforts of the International Civil Aviation Organization and the international aviation community to encourage the implementation of Global Navigation Satellite Systems (GNSS) to promote aviation safety and efficiency. We also endorse the continuation and development of that work especially the implementation of GNSS for all transportation modes and its use by other industries. To that end, we fully support the Group's establishment of the GNSS Implementation Team and its role in facilitation of the implementation of satellite based navigation and timing capabilities in all economies, including the development of space based augmentation systems (SBAS) and ground based augmentation systems (GBAS), including regional augmentation systems;

• commend the Group's work in transportation security, and its swift reaction to APEC Leaders Shanghai Statement on Counter-Terrorism. We endorse its efforts to strengthen and harmonize the aviation security framework, and to promote international cooperation among appropriate entities for the suppression of piracy and armed robbery;

• encourage cooperation among economies to improve aviation safety and security oversight capability in the region by assisting economies to meet international safety standards, and that official aviation personnel are properly trained and have the necessary resources to carry out their aviation responsibilities;

• encourage APEC economies to work within appropriate international fora for the purpose of further strengthening the security standards that apply to international transportation; and

• encourage APEC economies to accelerate their implementation of transportation security standards adopted within ICAO, IMO and other international organizations.

• commend the Group for its efforts to identify major road transportation safety problems as a first step to improve road safety in the APEC region, and recognize the importance of the improvements in road safety and environment as one of the Group's priorities; encourage the Group to consider enhancing its work by seeking cooperation with public and private sectors to address road safety as well as environmental concerns through, among other things, development of economically feasible and highly effective measures, and assisting economies to implement these measures;

• commend the Group's work on Intelligent Transportation Systems, including the report on a framework for the development of standards previously submitted to us, and direct it to address ITS interoperability and standards concerns in the region;

• direct the Transportation Working Group to establish a project that will demonstrate the effectiveness of ITS technology and facilitate development of ITS standards that enhance interoperability amongst economies. The project should include elements of tracking container freight movements through intermodal port facilities and to their ultimate destination and the provision of port clearance through customs using E-commerce;

• commend the work of the Experts Group on Maritime Safety (EGMS) in promoting safety in the Region, note that the group held the International Symposium on Safer Shipping in the APEC Region in Sydney, Australia in 2001, and direct the group to take into account the recommendations arising from the Symposium in the future work of the group with respect to maritime safety and security issues;

Human Resources Development

16. APEC Ministers and Leaders, concerned to see globalization as an opportunity for all, have endorsed ?capacity building? across the broad range of APEC activities, with a particular emphasis on human resources development, including skills development and technological upgrading. Leaders have also developed a framework for the integration of women in APEC. We acknowledge the efforts of the Transportation Working Group to meet the thrust of these top-level initiatives, as well as our own prior directives. We expect the Group to develop projects to address specific training and education needs, enhance the mobility of transport professionals in the region through mutual recognition, and assist the full integration of women in the transport sector.
17. Without limiting the ability of the Transportation Working Group to use its initiative in future, we:

• commend the work of the Group in developing a gender ?toolkit? to make it easier for the Group to implement APEC Leaders? objectives through the women's framework. We expect the Group to apply the women's framework at all stages of its work on HRD;

• commend the Group for its work towards developing a model mutual recognition framework for recognition of transport professional qualifications, and encourage economies to enter into such arrangements when this work is completed;

• commend the work of the Group in identification of seafarers? training needs and training towards compliance with the international Convention on Standards of Training, Certification and Watchkeeping for Seafarers; and

• commend the group for its work with respect to intermodal skills development and training and endorse plans to hold an intermodal transportation symposium.

Closing Remarks

18. We commend the Group for developing an operational plan and we instruct it to take into account in its future work program calls by our Leaders in the Shanghai Accord to promote sustainable development and narrow disparity by ensuring the effective implementation of various economic and technical cooperation initiatives.
19. We agree to meet again in Bali, Indonesia in 2004 and we instruct the Group to provide an annual progress report on the implementation of our priorities listed in paragraph 8.

Finally, Ministers thank the Government of Peru for hosting the 3 ^rd APEC Transportation Ministerial Meeting and for the warm hospitality provided. They also thank the Chair for the efficient management of the meeting and the APEC Secretariat for the supportive work.