- Ministers from Australia, Brunei Darussalam, Canada, the People's
Republic of China, Hong Kong, Indonesia, Japan, the Republic of Korea,
Malaysia, Mexico, New Zealand, Papua New Guinea, the Republic of the
Philippines, Singapore, Chinese Taipei, Thailand, and the United States
of America participated in the Fifth Asia-Pacific Economic Cooperation
(APEC) Ministerial Meeting convened in Seattle, Washington November
17-19, 1993. The ASEAN Secretariat, the Pacific Economic Cooperation
Council (PECC) and the South Pacific Forum (SPF) attended as observers.
Members of the APEC Secretariat also were present.
- The meeting was chaired by the Honorable Warren Christopher.
Secretary of State of the United States.
- In his opening remarks, Secretary Christopher stated trade and
investment within Asia and the Pacific are weaving a new web of human and
commercial relationships. He indicated APEC can play a crucial role in
developing these Asia-Pacific networks. The Secretary also stressed
APEC's development depends on its ability to promote more open trade and
investment in the region, increase cooperation on issues that require
regional solutions, and improve regional infrastructure.
- The Ministers noted with great anticipation the meeting of APEC
leaders to be held in Seattle, November 20, 1993. The Ministers agreed
this meeting offers a unique opportunity for leaders to articulate a
shared vision for the region into the next century and further develop
economic ties in the region.
- Ministers held discussions on a range of topics, including:
- The Report of the Eminent Persons Group
- Economic Trends and Issues
- Trade and Investment Issues
- The APEC Work Program
- Participation Issues
- Organizational Issues
- As the former Chairman of APEC and the current Chairman of the ASEAN
Standing Committee, H.E. Foreign Minister Prasong Soonsiri of Thailand
expressed satisfaction with the progress made since the Bangkok
Ministerial meeting. He stated APEC's priority tasks are to push for the
successful conclusion of the Uruguay Round by the target date and to
further enhance technical cooperation and trade facilitation in APEC. The
Foreign Minister stressed the achievement of regional trade
liberalization must be made through consultation in a manner consistent
with the principles of GATT and open regionalism, with full recognition
of members' differences in levels of economic development. APEC must
retain its consensual and flexible character, which continues to be its
fundamental strength.
REPORT OF THE EMINENT PERSONS GROUP
- Ministers expressed their great appreciation for the initial Report
of the Eminent Persons Group, which assessed the current position and
outlook of the APEC region, developed a long term vision for open trade
in the APEC region and proposed a program of initiatives to implement the
vision. The EPG chair, Dr. C. Fred Bergsten, presented the Group's
unanimous Report which emphasized that APEC must accelerate and expand
cooperation in order to respond to three threats to the continued
vitality of the region: erosion of the multilateral global trading
system; evolution of inward looking regionalism; and risk of
fragmentation within the Asia Pacific region. The EPG recommended APEC
undertake initiatives in four areas: regional and global trade
liberalization; trade facilitation programs; technical cooperation; and
institutionalizing APEC.
- Ministers warmly welcomed the Report's broad thrust and direction,
pointing out the Report's bold vision of open trade, investment and
economic development in the region provides an important foundation and
catalyst for future regional cooperation. In a wide-ranging discussion
Ministers noted the contribution of the EPG in promoting vigorous debate
on the economic challenges facing the Asia-Pacific region, reaffirmed the
central value of a strengthened open multilateral trading system to
continued growth in APEC economies, urged acceleration and extension of
APEC's trade and investment facilitation and technical cooperation, and
expressed their desire to enhance APEC's role as a vehicle for regional
and global trade and investment liberalization. They also noted the EPG
vision reflected the strengthening of economic relationships and a
growing sense of cohesion and community in the Asia-Pacific region,
reflecting APEC's commitment to consultation and consensus building.
Ministers directed the APEC Secretariat to give broad distribution to the
Report. They also suggested EPG members might wish to discuss the Report
with the business community, academia, and the general public, and APEC
members might wish to encourage this process.
- Ministers discussed several approaches to addressing the EPG
recommendations, noting in particular that those recommendations closely
linked to ongoing work should be implemented promptly; those
recommendations related to the outcome of the Uruguay Round would require
additional study and consideration; and those recommendations related to
longer term trade liberalization would require further elaboration by the
EPG, on the advice of Senior Officials.
- In light of the above, Ministers instructed Senior Officials to
develop pragmatic programs to implement the EPG recommendations on trade
liberalization and facilitation, technical cooperation, and the
development of the APEC structure and decision-making process. Ministers
further requested Senior Officials prepare a strategy and program to
advance regional and global open trade, identify mechanisms to achieve
that goal, and report to Ministers at the next ministerial meeting.
- Ministers asked the Eminent Persons Group, on the advice of Senior
Officials, to present further more specific proposals on how the
recommended long-term vision might be realized. Ministers wish to
consider these proposals at their meeting in Indonesia in 1994.
ECONOMIC TRENDS AND ISSUES
- Ministers emphasized the central role which sound economic analysis
plays in developing both national policies and regional cooperative
initiatives. The growing interdependence within the region is producing
shared goals and aspirations and fostering a spirit of common purpose and
of community among APEC members. The work of the Ad Hoc Group on Economic
Trends and Issues is, therefore, crucial to promoting open trade and
investment throughout the region and increasing the economic well-being
of all our peoples. Ministers directed the Group to strengthen further
its capability to prepare assessments of long-term economic trends and
studies of specific sectoral issues. Ministers directed Senior Officials
to explore the possibility of transforming the Group into the APEC
Economic Committee before the next ministerial meeting.
- Ministers thanked Thailand for the excellent economic outlook paper
prepared for Ministers' review. Ministers discussed the key issues
analyzed in the report, including the prospects for continued economic
growth in the region and the near-term outlook for inflation. Ministers
also considered several emerging economic issues the paper identified,
including the growth of infrastructure bottlenecks in some member
economies and changes in the labor markets of several member economies.
- Ministers welcomed the valuable analysis contained in Japan's paper
on a vision of the region in the year 2000. They noted the importance of
continued analysis of the major topics in the report, including trade and
investment liberalization, developing human resources and meeting
environmental and energy resource challenges.
- Ministers endorsed the proposal to initiate regular exchange among
APEC members of key economic statistics. Such exchange will facilitate
policy formulation and enhance future Ministerial discussion of economic
developments in the region.
- Ministers endorsed the Group's mission statement and instructed
Senior Officials to advance work on one or more of the proposals to:
assess the study on investment flows throughout the region; examine the
interrelation of trade liberalization and privatization; study the means
of sustaining economic growth in the context of sound energy and
environmental policies; and over the longer term, explore the feasibility
of producing in-depth analysis of international industrial linkages.
Ministers also directed Senior Officials to prepare short- to medium-term
economic outlooks for economies of the region for use at the 1994
ministerial meeting.
TRADE AND INVESTMENT ISSUES
- Ministers confirmed trade and investment liberalization as the
cornerstone of APEC's identity and activity. Strengthening the
multilateral trading system, expanding regional and global trade and
improving investment rules and procedures in a GATT-consistent manner
are, therefore, central APEC objectives. The Uruguay Round must conclude
by December 15. Ministers accordingly resolved to exercise the political
will required to achieve this goal. To that end, Ministers agreed to a
resolute statement urging an early and successful conclusion to the
Uruguay Round and demonstrated their commitment to this goal by
expressing their preparedness to take additional specific trade
liberalizing measures [Annex 1]. APEC challenges other Uruguay Round
participants to enhance their own contributions to the Round's successful
conclusion.
- Ministers expressed strong support to non-GATT members of APEC in
their efforts to become GATT contracting parties, thus making additional
contributions to the strengthening of the multilateral trading system.
- Ministers welcomed the Report of the Informal Group on Regional Trade
Liberalization (RTL), as agreed by Senior Officials, and endorsed its
recommendations on the continuation of a dialogue within APEC on
important multilateral and regional trade policy issues and the further
development of APEC's action agenda on trade and investment. On the trade
policy dialogue, Ministers noted in particular the effective role played
by APEC in maintaining the momentum for a satisfactory outcome to the
Uruguay Round and in fostering better understanding of subregional trade
arrangements and the contribution of such arrangements to APEC's overall
goals.
- Ministers emphasized the imperative that APEC members give effective
support to the market-driven dynamism of the region. In this respect,
they endorsed the RTL Group's recommendations aimed at improving access
to tariff data, reducing administrative barriers to trade, streamlining
customs procedures, harmonizing the diverse approaches to standards and
conformance issues and encouraging the flow of investment. Ministers
welcomed the extensive progress on customs facilitation, publication of
an APEC Investment Guidebook and a private sector survey of attitudes
toward investment in the region, publication of the APEC Customs Manual
and hosting of the APEC Customs Symposium. APEC's important work in this
area will be further developed by the new Committee on Trade and
Investment which will replace the RTL Group.
- Ministers wholeheartedly adopted the "Declaration on an APEC Trade
and Investment Framework" and the accompanying initial work program for
the newly established Committee on Trade and Investment [Annex 2]. The
Declaration significantly advances APEC's role in trade and investment by
engaging APEC members in both policy and facilitation matters. The
Declaration serves as an important instrument within which to further
define APEC's identity, expand economic activity and facilitate the flow
of goods, services, capital, investment and technology throughout the
region.
- Ministers called for a meeting of ministers concerned with trade
policy to review the results of the Uruguay Round and its implications
for the region. Ministers urged this post Uruguay Round meeting to
consider next steps for regional and global trade liberalization.
WORK PROGRAM ISSUES
- APEC's role in sustaining regional growth and development derives
from growing intraregional economic interdependence. The activities of
the ten Working Groups are an essential part of APEC's efforts to
contribute to the region's development and prosperity. Recognizing the
critical importance of modern telecommunications and information
technologies to regional integration and cooperation; the unique role of
tourism as the largest industry in the region; and the urgent need to
work with other organizations on marine resources conservation to
strengthen regional cooperation in response to UNCED, Ministers issued
separate declarations on those issues [Annexes 3-5].
- Ministers commended and approved the vision and policy issues
statements and asked the Working Groups to direct their efforts to
realizing the objectives in those statements. Ministers approved the
Consolidated Report on the APEC Work Program.
- Ministers welcomed Korea's proposals on the establishment of an "APEC
Vocational Training Program" and the creation of an "APEC Technomart" and
directed the Senior Officials to explore the possibility of implementing
them within the framework of the Human Resource Development and
Investment and Industrial Science and Technology Working Groups.
Trade and Investment Data
- Ministers welcomed the progress made on developing a near comparable
merchandise trade data base for APEC economies and directed that priority
attention be devoted to efforts to adjust published merchandise trade
data according to agreed principles and standards. The Group should also
strengthen efforts to improve the collection and sharing of services
trade and investment data.
Trade Promotion: Programs and Mechanisms for Cooperation
- Ministers noted the Working Group can play an important role in
strengthening interaction with the business/private sector. Ministers
anticipate the first Asia-Pacific International Trade Fair to be held in
Osaka, Japan in October 1994 will be a significant step to accelerate
trade promotion and increase commercial transactions in the region.
Investment and Industrial Science and Technology
- Ministers noted the broadening of the mandate for the Investment and
Industrial Science and Technology Working Group and endorsed its efforts
to develop a work program that increases cooperation in these important
fields.
Human Resources Development
- The people of the Asia Pacific region are its single most important
asset. The dynamism of the region is reflected in changing human
resources needs. Ministers expressed satisfaction with the progress
achieved in APEC's human resource development activities, but urged that
continued priority attention be devoted to this work -- with particular
emphasis on the training and adjustment needs necessitated by changing
trade patterns, industrial restructuring and other economic changes
associated with rapid growth and technological progress.
Energy Cooperation
- Ministers noted the vital importance of secure and balanced energy
supplies and rational energy use for sustained economic development and
protection of the environment. They welcomed technology and policy
exchanges on energy efficiency, clean coal technology and renewable
energy, and in particular were encouraged by active business/private
sector participation in APEC technical energy workshops and seminars.
Marine Resource Conservation
- Ministers Confirmed the unique contribution APEC can make to marine
resources conservation and the importance of APEC cooperation with other
marine resources conservation organizations in response to UNCED .
Telecommunications
- Modern and compatible telecommunications networks are vital
components linking and drawing closer the APEC economies. Ministers
praised the completion of the second edition of The State of
Telecommunications Infrastructure and Regulatory Environments of APEC
Economies, the Working Group's stress on human resources development, and
its important contribution to the consideration of coordinating APEC's
electronic data interchange activities.
Fisheries
- Ministers noted the important role of fisheries to the region's
economies and endorsed the Working Group's projects on fisheries
management, survey of training needs, health and quality rules for
fisheries products, improved marketing Information on seafood trade in
the region, and the possible role of APEC in respect to aquaculture.
Transportation
- Ministers emphasized the importance of efficient transportation
systems in promoting regional growth and integration. They expressed
appreciation for the Working Group's efforts in developing information on
regional transportation and encouraged the Group to accelerate its work
on identifying infrastructural needs and facilitating movement of
passengers and goods in the region.
Tourism
- Ministers welcomed the progress made by the Working Group in
addressing the issues of sustainable development of the tourism sector
and addressing the relationship between tourism and the environment.
PARTICIPATION ISSUES
- Ministers noted the continuing interest expressed by a number of
economies and organizations in participating in some capacity in the APEC
process. Ministers reaffirmed APEC is an open and evolving process and
recalled the view expressed in Bangkok that consolidation and
effectiveness should be the primary considerations at this stage of
APEC's development. Ministers also recognized, however, that APEC should
develop more systematic means of addressing the issue of new members in a
manner which is responsive to APEC's needs while promoting constructive
interaction with other economies and organizations in the region.
- Ministers welcomed the admission of Mexico and Papua New Guinea to
APEC. They also decided to admit Chile to APEC and looked forward to its
membership at the ministerial meeting in 1994. In the interim, Ministers
encourage Chile to participate in the Working Group activities. Noting
the importance of increasing APEC's effectiveness, Ministers agreed to
defer consideration of additional members for three years, during which
time Senior Officials would study APEC's membership policies and provide
recommendations to Ministers on an ongoing basis.
- Ministers reaffirmed that participation by non-members from the
Asia-Pacific region in APEC work projects can be beneficial to members as
well as non-members. In order to facilitate cooperation with non-members
and address issues arising from increased economic interdependence,
Ministers approved the proposed guidelines for non-member participation
in APEC working group activities which appear as Annex 6, and asked
Senior Officials to identify other potential means to promote mutually
beneficial interaction. With respect to organizations. Senior Officials
should identify considerations to guide APEC in fostering appropriate
ties and report their findings to the Sixth Ministerial.
Private Sector Participation
- The business/private sector has played a major role in facilitating
the dynamic growth of the region. Engagement with the business/private
sector? particularly through Working Group activities, ensures APEC's
efforts are relevant to real world challenges and opportunities.
Ministers commended the progress made this year in increasing
business/private sector engagement with APEC and directed each Working
Group to enhance its outreach to the business/private sector. Ministers
pledged to solicit the advice of the business/private sector on issues
relevant to APEC's work, especially through the PECC, and instructed
Senior Officials to explore other ways of broadening and deepening
cooperation with the business/private sector including the work of the
new Committee on Trade and Investment.
ORGANIZATION ISSUES
APEC Secretariat
- Ministers noted with satisfaction the successful establishment of the
APEC Secretariat, and expressed deep appreciation to Singapore for its
extraordinary generosity in assisting the Secretariat and to Executive
Director Ambassador Bodde and the Secretariat staff for their outstanding
efforts during the first year of operation. Ministers highlighted the
Secretariat's crucial role in facilitating cooperative links with members
and the work program. Ministers stressed the Secretariat should serve as
a central coordinating point for disseminating information including
informing Working Groups of Senior Officials' decisions, coordinating
requests by non-members to participate in APEC activities, and publishing
and distributing APEC documents. The Secretariat should continue to place
high priority on careful management of the APEC budget, disbursement of
central funds, and maintenance of effective financial controls to ensure
accountability of APEC funds.
Budget
- Ministers endorsed efforts by Senior Officials, assisted by Working
Group Shepherds and the APEC Secretariat, to develop and implement a
series of measures related to financial operations and administration.
Ministers approved an APEC 1994 Central Fund of $2 million and stipulated
that unspent 1993 funds may be carried over to 1994 for expenditures
approved by Senior Officials. Ministers asked the Budget and
Administrative Committee to address the issue of contributions from new
members.
APEC Structure
- Ministers praised work by Korea and Canada in developing a
comprehensive Vision Statement containing proposals designed to ensure
efficient management of APEC's scarce resources. Similarly, Ministers
directed that a Budget and Administrative Committee be established to
advise Senior Officials on operational and administrative budget issues,
financial management, and project management of the APEC work program.
For the first year, committee membership will be open to all APEC
members. The Working Groups will continue to report directly to Senior
Officials. Ministers directed Senior Officials to use the Vision
Statement as a basis for developing proposals related to APEC's structure
and to provide recommendations at the 1994 ministerial meeting on
restructuring APEC to improve its effectiveness and decision making
process.
VENUES FOR FUTURE APEC MINISTERIAL MEETINGS
- As decided at the Fourth Ministerial Meeting in Bangkok, the Sixth
Ministerial Meeting will be held in Indonesia in 1994, the Seventh
Ministerial Meeting will be held in Japan in 1995, Philippines and Canada
will host the Eighth and Ninth Ministerial Meetings in 1996 and 1997
respectively.
OTHER MATTERS
- Ministers also welcomed Canada's offer to host a meeting of APEC
ministers concerned with the environment in Vancouver on March 25-26,
1994 in connection with the Globe '94 conference and environmental
exhibition.
- Ministers and their delegations expressed their deep appreciation to
the United States for the warm and generous hospitality extended to them
and the excellent facilities and arrangements made available for the
Meeting.