APEC: From Vision to Action

Thank you very much for the warm welcome and the wonderful hospitality you have accorded to us. We are also thankful to our colleagues from the Ministry of Foreign Affairs of Russia without whom, this useful seminar would not take place, and without whom we would not be here in wonderful city of Novossibirsk talking to members of business community, sharing our knowledge and information on APEC, its activities and priorities next year.

What we hope to achieve by the end of the day is increase awareness of potential co-operation with APEC officials and members of the business community in other APEC economies, through exchanges of information, business input and participation in various APEC forums and activities.

I shall leave details of APEC works to my two other colleagues. I will focus on two topics of broader issues. The first is an Overview of Asia-Pacific Economic Co-operation - from vision to action. Second is APEC 2000 which happens to be in Brunei Darussalam and relations to its priorities next year.

Way back in 1989, a group of 12 like-minded Foreign and Trade Ministers met in Canberra to form a regional organisation. Their commitment was to the multilateral trading system and its further development. Those in the grouping were the six ASEAN, Australia, New Zealand, Japan, Korea, the United States of America and Canada. Today, the membership has expanded to 21 economies including Russian Federation. APEC present membership accounts for 55 percent of total world income and 46 percent of global trade.

Recognising our diverse political, economic and social background, APEC has always been based on commitment to consensus building and a goal of promoting economic growth through intensifying regional interdependence. APEC is an open regionalism and non-discriminatory. APEC is still not a trading block.

The initial works of APEC were largely on exchanges of views and economic concerns and project - based initiatives. Today, APEC is more than that. APEC's agenda has grown in substance and its direction is very clear with higher purpose. The first milestone was achieved in Blake Island, Seattle in 1993, when APEC Economic Leaders pronounced their vision to build an Asia-Pacific community through achieving economic growth and equitable development through trade and economic co-operation. That community is to be based on the spirit of openness and partnership, of co-operative efforts to solve the challenges of change, of free exchange of goods, services and investment, of higher living and educational standards and of sustainable growth.

A year later in Bogor, Indonesia, the Leaders translated those visions into a very ambitious goal of free and open trade in investment in the Asia-Pacific Region by 2010 for developed economies and 2020 for developing member economies.

In subsequent year of 95, in Osaka, the Leaders translated those ambitious goals into concrete action plan also known as Osaka Action Agenda. With that plan, a clear framework and objectives of APEC's work have been laid down. Thus, APEC has the bases of going forward by measures of trade and investment liberalisation, of business facilitation and economic and technical co-operation - the three pillars of OAA

In Manila in 1996, APEC Economic Leaders adopted the Manila Action Plan (MAPA) - its first action phase. MAPA contained the first steps of a continuous and evolutionary process of trade and investment liberalisation and facilitation; aimed at achieving our Bogor goals by 2010/2020.

APEC has by now become a household name and so does expectation of it has risen over the years especially when every time APEC Ministers and Leaders meet. There are challenges for APEC. APEC therefore needs to stay ahead and relevant.

There is always a fear that APEC members are losing steam and they may not be reaching its target, the Bogor goals at the intended time. To ensure that the Bogor goals are within sight, members progress through annual submission of reports of the planned and already implemented trade liberalisation activities. These annually updated Individual Action Plans (IAPs) and voluntary peer reviews allow check against possible rollback and standstill. The Economic Ministers meeting at Auckland this year acknowledged this be the case, despite the unfortunate financial crisis affecting the region in 97.

To ensure the action plan is relevant to business, the Ministers and Leaders in addition agreed that the IAPs should be made easier or user-friendly for business to use as tools for future planning.

In many areas of liberalisation, you may say that APEC has taken many leads. We contributed to the successful conclusion of the GATT Uruguay Round and took leadership in WTO Information Technology Agreement. We also led in WTO basic Telecommunications Agreement. These are among many of APEC success stories.

Business is engine of growth. Partnership with business is therefore crucial. Naturally, APEC is also addressing business' concern about the non-tariff measures . APEC trade facilitation works are also progressing well through the Collective Action Plan. Substantial progress has been in facilitating trade between member economies and across borders. Next year Leaders and Ministers want to see more concrete outcome and principles on business facilitation.

Having said that it is important to note that APEC does things differently from other international organisations. APEC encourages its members to put in place sound policies that will provide for future growth and prosperity. APEC achievements, therefore, tend to me incremental.

Though APEC means business, it is also seriously concerned about issues affecting community. In fact, interaction with community - how community is affected by trade and investment liberalisation and how it can benefit from APEC process, are now being addressed at various levels. I should add that next year in Brunei, as this year in New Zealand, broadening support for APEC would be given strong emphasis.

There is growing support in promoting participation of women in APEC activities. This year APEC Economic Ministers approved the Framework on Gender Integration A Gender Expert Workshop and Women Business Meeting are scheduled to take place just before the SME Ministerial Meeting in June next year.

APEC has also addressed many other issues affecting the community including, among others, study on impact of trade liberalisation, ensuring developing economies to participate successfully in global economy, addressing social safety net issues, and encourage efforts to maintain employment and environmentally sustainable growth.

On other fronts that concern the public, APEC is communicating the impact of trade liberalisation. Study on the impact on various sectors and selected economies have been implemented. This involved qualitative research on attitude to trade and investment liberalisation as well as implementation of pilot activities. Next year, ministers and leaders wish to see reports by economies on this issue.

APEC is also committed to ensure that it is taking a leading role in enabling developing economies to participate successfully in global economy, through enhancing human and institutional capacities and progressively opening markets. Leaders welcome efforts by APEC economies to address social safety net issues, and encourage further efforts to maintain employment and environmentally sustainable growth. Ministers agreed on the high priority for further works in this area. Reports on works aimed at strengthening social safety nets in the region and at better understanding the social impacts of the financial crisis should be submitted to the ministers in year 2000.

In the area of Human Resources, a project to share expertise on measures to monitor and evaluate labour markets programs - all involving experts from member economies, regional and international organisations will be developed by HRD Working Group. Another project of significance is exchange of information on best practices for eliminating the worst forms of child labour and to promote educational opportunities for youth in the region.

Similarly Ministerial Meetings of Education, Telecommunication, Energy, Tourism and Finance, beside the Economic Ministers and Leaders, have already been planned. All these would address various issues across the board affecting the community.

Though there is growing consensus that the worst of the financial crisis is over, there is no room for complacency. As Chair next year, Brunei Darussalam will continue to advance APEC trade and investment liberalisation process.

As one of strong supporters of open market, Brunei will also continue works on strengthening of markets. APEC, next year, is set to prepare road map that sets out future works to strengthen markets. These include works in the areas of economic and corporate governance, strengthening market infrastructures, development of APEC's analytical works, application of the strengthening markets framework on ecotech and market principles including e-commerce, to name a few.

Brunei's participation would help to shape the regional agenda for economic growth and benefit through the extensive personal and institutional relationships at all levels in APEC's dealings with key issues of co-operation. Among priorities announced by Brunei Darussalam is Small and Medium Enterprises (SME). At the SME Ministerial Meeting in Auckland last June, Ministers agreed to two further initiatives - to facilitate access by SMEs to information and advise on regulatory and administrative requirements - feasibility of electronically linking existing and new SME related information services across APEC economies; and feasibility study on linking economies data bases required by exporters on tariff, non-tariff and other requirements.

Being a developing economy and with young population, Brunei Darussalam Darussalam is also putting human resources development as another priority. At working group level, HRD Working Group will develop a program of work for capacity building and exchange of information in areas of labour and market system, social safety nets, and building workplace of the 21st century. The latter include unemployment insurance, pensions; income support systems for people not covered by formal plans and programs to enhance employability, empower individuals and mitigate social assistance dependency.

The third pillar or supporting pillar of Osaka Action Agenda - Economic and Technical Co-operation would also be given appropriate attention. There is growing attention by developed members of APEC that not enough works have been done in this area. Brunei Darussalam next year hopes to advance works in this third pillar especially in the area of capacity building.

Recognising how information technology has changed the life of the community and the conduct of doing business today, Brunei Darussalam too would advance works in the area of Information and Communication Technology. APEC must continue its efforts to create a favourable environment for e-commerce in co-operation with the private sector. High priority is given for achieving paperless trading, as stipulated in the Blueprint for Action on Electronic Commerce, by 2010. Brunei is also keen to progress works on Knowledge Based Economy which will be a major deliverable for APEC in 2000.

As I said, our mission is to share with you what APEC and its works are about and hope that more and better understanding would develop into a more co-operation. Our APEC web site is always available to provide you with information. It contains e-mail addresses of 21 program directors responsible for many economic activities APEC could possibly cover. Please do not hesitate to contact them or me for additional information.

With that I conclude by saying APEC is looking forward to see stronger participation from the business community of Novossibirsk region in APEC activities. I sincerely thank local administration for the hospitality accorded to the three of us throughout our stay here.

Thank you