Pacific Business Forum(PBF)
Pacific Business Forum (PBF), which aims at promoting trade and investment as well as further developing business network in Asia -Pacific, was established by the leaders of APEC member economies in Seattle in November 1993. The forum comprises 2 businessmen from each member economy, and submitted a report to the leaders on liberalization and cooperation in the field of trade and investment. This year, the forum will submit a report to the Chairman, Japanese Prime Minister Murayama, assessing the development of APEC as well as ways and means of enhancing cooperation among the member economies.
PBF PRESS RELEASE (July 15, 1995)
Time lines and bottom lines focused APEC's top business minds in Tokyo today as they continued work on a detailed private sector roadmap for realizing their vision of free trade and investment in the Asia Pacific region.
The Pacific Business Forum (PBF) , appointed by APEC leaders to advise them at their meeting in Osaka this November, will urge Leaders to adopt concrete goals and firm deadlines, beginning immediately, for removing barriers to trade and investment across the region. This is what the PBF considers to be the bottom line for making APEC more relevant to the business community.
"The PBF time lines will specify start and finish dates for
as many liberalization and business facilitation initiatives as
possible," said Mr Minoru Murofushi, President and CEO of
Itochu Corporation, Japan, and one of the three PBF co-chairs.
The timetable includes dates for:
- strengthening investment principles and incorporating
them into domestic laws
- completing customs harmonization and standardization
- introducing an APEC business visa and facilitating
APEC-wide visa-free travel
- setting up an infrastructure task force
In addition to the timetables, the PBF discussed further outcomes that it considers critical to business. "We want short-term results while working towards the ultimate goal of free trade," said Mr Murofushi.
The business group wants the GATT Uruguay Round agreement accelerated, broadened and deepened by APEC member economies. It also wants to push investment liberalization eventually beyond the non-binding investment principles, adopted by APEC last year. "It was a good start," said Mr Murofushi, "but we need to put more teeth into the investment principles, remove the loopholes and incorporate them into domestic laws."
Another pressing issue is differing product standards. APEC members should act speedily to harmonize product standards and establish mutual recognition agreements. "There is already a study underway and we would actually like to see some results in 1996," said Mr Richard Carano, another co-chair at the Tokyo meeting. Mr Carano is Group President of Fluor Corporation, USA.
Mr Carano also said that the PBF will propose customs reforms that speed up the flow of goods throughout the region. In addition to specifying dates for some of those measures, the group will recommend mechanisms to measure progress and to assist in technical training for those who need it.
An immediate concern for the business community is to travel and work in the region with as little red tape as possible. The PBF looks to a short term completion date for facilitating visa-free travel in the region.
An innovative idea the PBF is considering is the establishment of trade and investment ombudsman offices across the region. "The ombudsman system has worked well in Japan to mediate international trade and investment disputes," said Mr Murofushi who first suggested the idea to the PBF. "We're examining this idea to see whether it could be adopted by all APEC economies," he added.
The PBF report will also address certain developmental issues, such as the building of infrastructure and the nurturing of small and medium enterprises (SMEs). "SMEs are a critical component of all APEC economies and we want to make sure that they are well placed to take advantage of and contribute to the economic boom in the region," said Mr Bustanil Arifin of Indonesia, another co-chair of the PBF and President Director of PTPP Berdikari. "We are working on an innovative mechanism to help SMEs," he said. Another idea being discussed focuses specifically on fostering supporting industries as an integral part of economic development.
Infrastructure development has been a major concern throughout the region for several years. "We want to encourage more private sector foreign investments in infrastructure in the region by ensuring that those investments are better protected. We will make win-win recommendations for both the investor and the recipient," said Mr Arifin.
PBF members yesterday heard a briefing from the Japanese officials chairing the APEC process preparing for the Leaders' meeting in Osaka. They also accepted an invitation to convey PBF's views directly to the next APEC officials' meeting in Hong Kong on 12-13 September.
The PBF will meet once more in Newport Beach, California, on 1-2 September to finalize its report. The report will be presented to the Prime Minister of Japan in September in time for the APEC leaders' Osaka meeting on 19 November this year.
THE APEC BISINESS COUNCIL (ABC)
- The ABC shall comprise two representatives from each member economy.
- Representatives shall be appointed by Leaders. The selection process is up to the Leaders.
- The internal Processes of providing business inputs to the ABC representatives are left to each individual member economy. Some economics might wish to establish more formal structures, while other might prefer an informal process of dialogue and consultation.
- ABC should establish linkages with existing regional business organizations, such as through joint workings groups, to maximise synergies and resources, and to create a sense of shared purpose.
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