APEC and Maritime Security Measures
International terrorism has made the world a far more dangerous place than when the Asia Pacific Economic Cooperation (APEC) was born in 1989. And the need to secure our region's economy and trade from terrorism has become an important and major focus of the APEC agenda. At the meeting of APEC leaders in Shanghai in 2001, counterterrorism efforts were placed firmly on the APEC agenda.
The simple reason for this is that terrorism is one of the most destructive threats to the APEC goals of free trade and investment in the Asia-Pacific region. Terrorism not only destroys lives and property, but undermines market confidence, inflates the cost of trade and reduces market activity.
At the same time, more stringent security measures have the potential to increase the cost of trading goods and services, and slow the movement of passengers across borders. Therefore, failure to act would have severe repercussions and puts APEC's economies at risk.
Following the tragic events of Sept. 11, 2001, the International Maritime Organization (IMO) has developed new measures relating to the security of ships and port facilities. In December 2002, the Diplomatic Conference on Maritime Security adopted new provisions for the 1974 International Convention of Safety of Life at Sea. The International Ship and Port Facility Security Code (ISPS Code) provides us measures and procedures to prevent acts of terrorism that threaten the security of passengers and crews and the safety of ships.
Implementing new counterterrorism measures will require a substantial investment in new infrastructure. In the case of shipping, the Organization of Economic Cooperation and Development (OECD) calculates that the cost to implement the IMO package of security measures contained in the Safety of Life At Sea (SOLAS) Convention and the ISPS Code to be over US$2 billion. The APEC economies believe that these costs should be viewed as an investment that will reduce the risk premiums and ensure continued economic growth.
APEC's comprehensive strategy to protect our region from terrorism was unveiled by APEC leaders in Los Cabos, Mexico, last October when they issued their statement on fighting terrorism and promoting growth. APEC's counterterrorism strategy includes the Secure Trade in the APEC Region (STAR) Initiative; preventing the flow of funds to terrorists; protecting critical infrastructure; and working in partnership with the private sector to implement these measures.
APEC represents about 60 percent of the world's GDP and half of its trade. Most of the world's largest seaports and busiest airports are located in APEC economies. The threat of terrorism not only reduces trade flow, but if terrorists were to successfully cause a shut down of major ports, this would severely affect the economies of the region.
To protect our trade, APEC leaders have committed their economies to implement the Standard Terminal Arrival Route (STAR) Initiative to strengthen security against terrorist threats while simultaneously boosting trade efficiency. The program involves protecting cargo, ships, aviation and people crossing borders.
APEC recognizes that considerable investment will be needed to fully implement the system. However, reducing the economic costs of terrorism while facilitating the more efficient movement of goods and people across borders, such investment is expected to result in significant economic returns.
APEC economies are also working to protect cargo by implementing a Container Security Regime. This initiative assures the in-transit integrity of containers and provides electronic information on a container's contents to customs, port and shipping officials as early as possible in the supply chain.
By the year 2005, the APEC economies have also agreed to implement common standards for an electronic customs reporting system developed by the World Customs Organization (WCO), which will provide the data necessary to target high-risk shipments for inspection and facilitate trade. APEC is pursuing a number of programs, including training, to simplify and harmonize customs procedures so as to improve the accuracy, certainty, uniformity and transparency of customs procedures.
APEC is also helping to build the systemic risk management capacity necessary to allow customs administrations to target resources where they are most needed. The main way that the STAR Initiative is anticipated to protect ships engaged in international voyages is through the promotion of ship and port security plans by July 2004. This will be followed by the installation of automatic identification systems on certain ships by December 2004.
The fight against pirates in the region is also being enhanced with increased cooperation between APEC fora and organizations such as the International Maritime Bureau's Piracy Reporting Center. It is also developing standards for detection equipment and other security technology. The Accreditation of Seafarer Manning Agencies in the APEC Region Project aims to develop a system for accrediting manning agents who provide employees to maritime companies in the Asia-Pacific region.
The Transport Working Group is also undertaking projects to assess the benefits of new technologies as they relate to the transportation industry. The working group agreed to a Pathfinder Initiative on the Global Navigational Satellite Systems. This will significantly enhance the safety of international shipping. Another project involves applying track and trace technologies to the logistics chain. These measures not only improve the visibility, quality and reliability of delivery of products to export markets, but also enhance the security of the supply chain.
The use of Intelligent Transportation Systems (ITS) will also enhance the end-to-end supply chain security and increase the efficiency of trade. These systems involve the use of smart container technologies such as electronic cargo seals and sensors, increased efficiency in inspecting seals and the use of electronic cargo manifests.
Some of the other components of APEC's comprehensive counterterrorism strategy are measures to deny terrorists access to the world's financial system, while at the same time, using the money trail to locate and apprehend terrorists. Last October, APEC Leaders agreed to ratify the International Convention for the Suppression of the Financing of Terrorism no later than October 2003, and to implement, as soon as possible, the measures called for in UN Security Council Resolutions 1373 and 1390.
These measures include the blocking of terrorist assets and making the financing of terrorism a criminal offense, promoting better monitoring of alternative remittance systems and to enhance information sharing and law enforcement activities.
Given the importance of cyber security to international trade, APEC leaders are also committed to protect the Internet from cyber criminals. By the end of this year, APEC members will endeavor to enact a comprehensive set of laws relating to cyber security and cyber crime.
These will be consistent with the provisions of international legal instruments, such as the United Nations General Assembly Resolution 55/63 (2000) and the Convention on Cyber-crime (2001). APEC has also undertaken a number of projects to protect the stable supply of energy required for economic growth in our region. One of these projects was a sea-lane disruption simulation exercise conducted by the Asia Pacific Energy Research Center last April.
This exercise highlighted the inadequacy of navigational aids in the straits of Sunda and Lombok in the event that a shipping incident blocked the Strait of Malacca. Work is also underway to create a real-time, emergency information-sharing network. The Energy Working Group will conduct a half-day workshop on oil supply emergency response arrangements to assist member economies to develop and implement energy emergency preparedness plans.
To facilitate the exchange of information between APEC member economies, in February 2003, APEC senior officials endorsed the completion of the Counter-Terrorism Action Plans (CTAP) by all member economies.
The CTAP lists specific objectives and expected outputs by each economy to secure cargo, protect people in transit, secure ships engaged in international voyages, secure international aviation, halt the financing of terrorism, enhance cyber security, secure energy supplies and protect the health of our communities.
Relevant APEC fora, including the Transport Working Group, are now looking at the CTAP to determine specific regional gaps in counterterrorism capacity relevant to their fields. It is proposed that next year, the completed CTAP and data provided by the APEC fora will form the basis of a rigorous qualitative cross-analysis by Asia-Pacific security experts.
This analysis would seek to identify linkages between the various CTAP objectives and regional needs to promote effective regional and multi-disciplinary/multi-agency approaches to shared challenges.
To oversee the implementation of these Action Plans, this February, APEC Senior Officials established a Counter-Terrorism Task Force. The aim of this high-level group is to coordinate the fight against terrorism; facilitate cooperation between APEC working groups and committees on counterterrorism issues; and coordinate regional and bilateral capacity building and technical assistance programs, including consultations with international financial institutions.
APEC recognizes that terrorists know no boundaries, and that members must work with other regional and international bodies to protect our maritime environment from terrorism. One of the key roles of the Counter-Terrorism Task Force is to cooperate with other international organizations such as the International Maritime Organization (IMO), the World Customs Organization (WCO) and the International Civil Aviation Organization.
Building the Asia Pacific into a region that is more secure and more efficient is a significant undertaking. To achieve this goal will require enhanced cooperation, new procedures and the greater use of advanced technology.
Capacity building, in particular the need to strengthen the institutional capacity of governments, is essential to the success of protecting the economy of the Asia Pacific. APEC's programs to secure efficient trade start with the identification of capacity building needs.
These needs will be coordinated internally within APEC and with other international organizations to match each target economy's unique situation. APEC members also consider that a partnership between the public and the private sectors is essential in the fight against terrorism. Private sector representatives, therefore, should be encouraged to work in partnership with APEC economies to implement necessary measures to secure trade.
The member economies are investing great efforts in undertaking reforms to protect our growing prosperity, and where possible, to use these reforms not only to protect, but also to enhance trade efficiency. As we have discovered through the APEC process, investment in security can result in significant economic efficiency gains, not only by reducing the economic costs of terrorism, but also by facilitating the movement of goods and people.
The APEC Counter-Terrorism Action Plan, APEC Counter-Terrorism Task Force, the Secure Trade in the APEC Region (STAR) Initiative and numerous programs that support these efforts are at the heart of our efforts to promote trade, to expand business opportunities and to create jobs in our region.
Further initiatives are being developed to build on the progress achieved to date, and to ensure that the region's maritime environment is protected. However, the goal set by APEC leaders of ensuring secure trade in the Asia Pacific will only be realized if we work closely together.