APEC's Contribution to Effective Hemispheric Strategies for the Prevention, Detection, and Eradication of Terrorism, Taking into Account Particular Subregional and National Circumstances
Mr. Chairman,
As a representative of the 2004 APEC Chair I am grateful for the opportunity to be here today and to be able to contribute APEC's experience to this dialogue on critical issues of mutual concern to the global fight against terrorism. Like the Inter American Committee Against Terrorism, APEC recognises that success in the fight against terrorism will require enhanced international cooperation - particularly when terrorists are able exploit the communication systems and travel afforded by globalisation.
The focus of APEC's agenda is particularly relevant to the theme of this session. And today I will outline some of the programs APEC member economies are undertaking to improve security, while facilitating trade and tourism.
What is APEC?
Before I do that, let me tell you that APEC or Asia Pacific Economic Cooperation is a forum that promotes trade and investment among its 21 member economies. Its members include six members of ASEAN, China, Japan, Russia and the United States, Canada, México, Perú and Chile in the american region. Its work program covers issues ranging from agriculture to telecommunications and our Leaders meet informally every year.
This year Chile has the honour to host APEC.
Why APEC is concerned about terrorism
Mr. Chairman,
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 tragic events of September 11, 2001, highlighted the need to secure the world's citizens and economies against terrorism. As such, the protection of Asia-Pacific economies and trade from terrorist threats has become a major focus of APEC's agenda. Most recently, in October 2003, in Bangkok, APEC Leaders restated the commitment their predecessors had made at the first APEC Leaders' meeting in 1993, to a shared vision of achieving stability, security and prosperity for the people of the Asia-Pacific region.
In addition to securing APEC's trade, APEC Leaders have also agreed to dismantle, fully and without delay, transnational terrorist groups that threaten APEC economies; to eliminate the threat posed by weapons of mass destruction; to strengthen domestic controls on Man Portable Air Defence Systems; and to confront other direct threats to the security of our region.
We have been asked why APEC, as a traditionally economic forum, has engaged in the mounting counter-terrorism dialogue. The response is simply 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 the lives and property of individuals, but also attacks entire economies, undermining market confidence, inflating the cost of trade and reducing market activity.
APEC's 21 member economies represent 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. 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 put APEC's economies at risk. For example, the economic cost of a terrorist attack on US ports could be up to $58 billion for the US and reduce nominal GDP in Hong Kong, Singapore and Malaysia by 1.1 per cent. In the case of Indonesia, the Bali bombings resulted in a dip of about half a percentage point in our GDP growth but its major impact was on small and medium sized enterprises and the tourist industry.
Research by Australia presented to APEC has shown that the threat of terrorism reduces investment and lowers economic growth. Increased risk perceptions undermine investor confidence. Higher risk premiums increase the required rates of return on investments thereby discouraging investment and retarding economic growth. The currencies of economies with high risk premiums may also experience higher exchange rate volatility.
APEC recognizes that the cost to implement new counter-terrorism measures will require a substantial investment in new infrastructure. In the case of shipping, the OECD calculates that the global cost to implement the International Maritime Organizations package of security measures contained in the SOLAS Convention and the ISPS Code to be over $US2 billion. It is important that such investment also facilitates trade.
APEC's Strategy to counter terrorism
APEC's contribution to global efforts to counter terrorism includes several elements. First, working with other international organizations, APEC can help build political will and generate the support needed for the implementation of new security-related norms and standards. While providing security is a primary role of government, it is not the only priority of governments: involvement in APEC brings member economies together in a dialogue which focuses on building a secure environment that also facilitates trade. One of the first steps to doing this is for relevant member economies to ratify and implement the 12 UN Conventions and Protocols related to counter-terrorism, a measure that APEC Leaders supported in 2001. Together with UN Security Council Resolution 1373, these instruments form the international legal framework necessary to facilitate the prevention, detection and eradication of terrorist activity.
Second, APEC has established a Counter-Terrorism Task Force, chaired by Ambassador Wibisono of Indonesia, with a mandate to coordinate and enhance cooperation in combating international terrorism. APEC recognizes that terrorists know no boundaries, and that only comprehensive and consistent global action will succeed in defeating them.
That is why APEC works with other regional and international partners to protect all our citizens and economies from terrorism. We cannot afford to duplicate the work of others, nor can we leave gaps for the terrorists to exploit. One of the key roles of the Counter-Terrorism Task Force is to cooperate with other international organizations such as the CICTE and the G8's affiliated Counter Terrorism Action Group.
APEC's Counter-Terrorism Task Force is also making the connections between the capacity building needs of economies and the agencies with the relevant expertise such as the International Maritime Organization (IMO), the World Customs Organization (WCO) and the International Civil Aviation Organization (ICAO).
To facilitate the exchange of information on their security needs, each APEC member economy has prepared a Counter-Terrorism Action Plan (CTAP). These plans list 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. The Action Plans also encourages all APEC members to both identify their capacity building needs and outline what assistance they can offer in the area of capacity building.
Relevant APEC fora are now looking at the CTAPs to determine specific regional gaps in counter-terrorism capacity relevant to their fields. It is proposed that this year, the completed CTAPs 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 and facilitate effective regional and multi-disciplinary/multi-agency responses to shared challenges. For that purpose CTTF will meet on March 1st, in Santiago de Chile.
APEC's Programs of interest to the CICTE
A. STAR Initiative
In October 2002, APEC Leaders agreed to implement a new initiative to Secure Trade in the APEC Region (STAR). The STAR Initiative seeks to strengthen security against the terrorist threat while simultaneously boosting trade efficiency. The program involves protecting cargoes, ships, aviation and people crossing borders. To be successful STAR will require the use of new technologies and new partnerships to be forged between the government and business sectors.
In October 2002, APEC Leaders agreed to implement a new initiative to Secure Trade in the APEC Region (STAR). The STAR Initiative seeks to strengthen security against the terrorist threat while simultaneously boosting trade efficiency. The program involves protecting cargoes, ships, aviation and people crossing borders. To be successful STAR will require the use of new technologies and new partnerships to be forged between the government and business sectors.
APEC recognises that considerable investment will be needed to fully implement the system. However, facilitating the more efficient movement of goods and people across borders is also expected to result in savings. To give an example in dollar terms of how these reforms can produce positive results for business, a report by APEC in 2001 found that the adoption of paperless trading could reduce the landed costs of goods traded between APEC economies by three per cent each year. This is an annual saving of around 60 billion US dollars each year.
To provide the data necessary to target high-risk shipments for inspection and facilitate trade, APEC economies are working to implement common standards for an electronic customs reporting system developed by the World Customs Organization (WCO). APEC is also undertaking 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 building the systemic risk management capacity necessary to allow customs administrations to target resources where they are most needed. Other programs are helping to raise the level of integrity of customs administrations in the region and to facilitate the electronic lodgement and processing of customs related information by importers and exporters. This will reduce or eliminate the need for paper documents in customs administration and make it easier for law enforcement personnel to target suspicious cargos or traders.
The STAR Initiative is also helping to protect ships engaged in international voyages through capacity building programs to assist economies adopt the International Maritime Organization's international ship and port security codes (ISPS) by July, first 2004. This will be followed by the installation of automatic identification systems on certain ships by December 2004. APEC's Transportation Working Group is also developing standards for detection equipment and other security technology. The Interamerican Ports Commision (IPC) is a relevant OAS fora for these issues. We look forward to its forthcoming meeting that will take place in Miami, on February 25, 26 and 27.
The fight against pirates in the Asian region is also being enhanced with increased cooperation between APEC fora and organisations such as the International Maritime Bureau's Piracy Reporting Centre. The Transport Working Group is also developing standards for detection equipment and other security technology.The Accreditation of Seafarer Manning Agencies in the APEC Region Project, which is currently underway, aims to develop a system for accrediting manning agents who provide employees to maritime companies in the Asia-Pacific Region. Such accreditation will both improve the quality of seafarers and ensure that only bona fide seafarers are employed on vessels.
The APEC Transportation Working Group is also supporting the development and use of Intelligent Transportation Systems (ITS) to enhance supply chain security and increase the efficiency of trade. These systems involve the use of electronic cargo seals and sensors, increased efficiency in inspecting seals, the use of electronic cargo manifests and Global Navigational Satellite Systems.
In addition to maritime trade, the STAR Initiative is enhancing the safety and security of airline passengers and crew. APEC economies have agreed to introduce highly effective screening procedures and equipment at all APEC international airports no later than 2005. Programs are underway to help economies meet international safety standards and to ensure that aviation personnel are properly trained and have the necessary resources to carry out their responsibilities. A particular concern for APEC member economies are MANPADS (Man Portable Air Defense Systems) an issue that demands cooperation with all the regions of the world.
The STAR Initiative also seeks to ensure the safety and security of people in transit in the APEC region through the development of standards for the implementation of Advance Passenger Information systems, the application of biometrics and to improve the security of travel documentation, and through ensuring the highest levels of integrity of all border officials. These three core issues as well as the establishment of Financial Intelligence Units (FIUs) will be discussed at the forthcoming II Conference on Secure Trade in the APEC Region to be held in Chile on 5 and 6 March.
Advance Passenger Information (API) systems provide the important benefit of giving advance notice to border control agencies of who is travelling to their borders, enabling passenger details to be pre processed and checked against relevant alert lists, and for appropriate arrangements to be made for high risk persons on their arrival by law enforcement personnel.
The implementation of API systems across the region will provide significant benefits for all economies by maximising the security of travel for genuine travellers and by reducing opportunities for travel by unauthorised or improperly documented persons, and persons otherwise suspected of being involved in illegal activities, such as terrorism. APEC standards for the implementation of API systems have been agreed and it is expected that an API system will become operational in most APEC economies over the next few years.
Border security is also being strengthened through the development of an APEC Regional Migration Alert System (RMAS) that will detect persons of concern and lost, stolen and fraudulent travel documentation. And APEC is strengthening the capacity of border security agencies with a range of projects covering: document examination and fraud detection; travel document security; and standard codes of professional conduct and service for immigration officers.
II STAR Conference
The next formal meeting relating to the STAR Initiative, during which these measures will be discussed in a formal business and government sector forum, will be held in Viña de Mar, Chile on 5 and 6 March.
The next formal meeting relating to the STAR Initiative, during which these measures will be discussed in a formal business and government sector forum, will be held in Viña de Mar, Chile on 5 and 6 March.
As host, Chile is inviting representatives of all 21 APEC member economies, senior executives from major private sector companies, and officials from international organizations such as the IMO, Interpol, IATA, FAFT and the World Bank. The Conference will focus on improving air cargo screening and avoiding MANPADS threats and attacks; the implementation of the ISPS Code and technical cooperation for maritime safety; biometrics identification, APPs and APIs and on the establishment of Financial Intelligence Units in the APEC region.
One of the key themes of the conference will be the necessity of coordinating efforts between public and private entities at both the national and international level to counteract terrorist threats. As an example of that kind of cooperation, following STAR I Conference last year, Thailand and the US developed a pilot demonstration project, the STAR:Bangkok/Laem Chabang Efficient and Secure Trade (BEST) port. This project uses e-seal technology to track shipments of secured containers via satellite from the Port of Laem Chabang to the Port of Seattle. The success of this demonstration project could build up confidence for exporters and consumers through enhanced supply chain security in the region.
B. Cyber security
Given the importance of the internet to international trade and commerce, in October 2002, APEC Leaders committed to implement measures to strengthen cyber-security. These include: (a) enacting comprehensive legal frameworks needed to combat cybercrime consistent with the provisions of international legal instruments such as the United Nations General Assembly Resolution 55/63 (2000) and the Convention on Cybercrime (2001); (b) establishing law enforcement points of contact to allow for swift cooperation in investigating cybercrimes; and (c) developing an international network of Computer Emergency Response Teams (CERTs) to share information on the threats to our information infrastructures. APEC Ministers also endorsed the APEC Cyber security Strategy, an action plan for APEC's work to enhance information security throughout the region.
Given the importance of the internet to international trade and commerce, in October 2002, APEC Leaders committed to implement measures to strengthen cyber-security. These include: (a) enacting comprehensive legal frameworks needed to combat cybercrime consistent with the provisions of international legal instruments such as the United Nations General Assembly Resolution 55/63 (2000) and the Convention on Cybercrime (2001); (b) establishing law enforcement points of contact to allow for swift cooperation in investigating cybercrimes; and (c) developing an international network of Computer Emergency Response Teams (CERTs) to share information on the threats to our information infrastructures. APEC Ministers also endorsed the APEC Cyber security Strategy, an action plan for APEC's work to enhance information security throughout the region.
The APEC e-Security Task Group has implemented several initiatives to fulfill the Leaders' commitments, including the Cyber crime Legislation and Enforcement Capacity Building Project and the Computer Emergency Response Team (CERTs) Awareness Raising and Capacity Building Project. These programs are helping to establish the laws and institutions that will enhance cyber security and allow for the investigation and deterrence of cyber terrorism. A workshop on forensic investigations will also be held in Hong Kong at the end of March.
This is another area where APEC and the OAS could work together, taking into account the Declaration of Mexico on Security in the Americas, recently adopted.
C. Protecting Tourism
Tourism is the largest employer in the Asia-Pacific region and provides substantial income and employment, as well as stimulating regional economic growth. However, it is particularly affected by terrorist attacks. In 2001, international tourist arrivals fell by 0.6 per cent. And, following the Bali tragedy in 2002, Indonesia?s tourist arrivals fell by 38% and by 58% for Bali alone . As tourism accounts for 3.4 per cent of Indonesia's GDP, financial market analysts placed the expected cost of lost tourist receipts at around 1 per cent of Indonesia's GDP in 2003.
Tourism is the largest employer in the Asia-Pacific region and provides substantial income and employment, as well as stimulating regional economic growth. However, it is particularly affected by terrorist attacks. In 2001, international tourist arrivals fell by 0.6 per cent. And, following the Bali tragedy in 2002, Indonesia?s tourist arrivals fell by 38% and by 58% for Bali alone . As tourism accounts for 3.4 per cent of Indonesia's GDP, financial market analysts placed the expected cost of lost tourist receipts at around 1 per cent of Indonesia's GDP in 2003.
To reduce the impact of terrorist attacks on the industry, last December the APEC International Centre for Sustainable Tourism published a practical risk management study for governments and tourist operators . The study found that protecting tourism is only possible through cooperation across nations, between and within governments and all groups in the global tourism industry. In this regard APEC has effectively used the expertise of the Pacific Asia Travel Association (PATA) and the World Tourism Council (WTO) to help it prepare for the impact of terrorist attacks on the tourist industry.
The APEC Centre's study highlighted that, to adequately prepare for a terrorist attack requires a risk management process that supports effective decision-making and more than adequately covers the step-by-step approach required by the tourism industry. This process involves risk identification, having comprehensive plans in place and skilled people with authority able to respond immediately should a crisis arise. Leadership by governments, media and information management and business continuity plans are also essential in responding to crises.
The study also proposed protecting the tourism industry by establishing a dedicated research and monitoring capacity to deliver strategic knowledge and information on risk and threats to tourism in the Asia Pacific region.
Conclusion
Building a global community that is both more secure and more efficient is a significant undertaking. To achieve this goal will require enhanced cooperation between relevant international and regional organisations, new procedures and the greater use of advanced technology. There is also value added in closer collaboration between APEC fora working on counter terrorism issues and their counterparts in the Americas, as CICTE, and the other fora on cybersecurity.For APEC's part, the Counter-Terrorism Action Plan, Counter-Terrorism Task Force and the Secure Trade in the APEC Region (STAR) Initiative are at the heart of our efforts to counter terrorism.