Philippines Meetings

Japan and the 1996 APEC Meetings in the Philippines

The Osaka APEC meetings of 1995 were a resounding success. Thanks in part to the initiative of the host country, Japan, the Seventh APEC Ministerial Meeting (November 16 and 17) and the Economic Leaders' meeting (November 19) adopted the "Osaka Action Agenda" detailing the strategic framework for specific actions by APEC and the "Osaka Action Agenda". In addition, it heard reports on "initial actions" by individual members, formally adopted the "Partners for Progress" initiative proposed by Japan, and established the APEC Business Advisory Council (ABAC).

This year, the Philippines will be chairing the Eighth APEC Ministerial Meeting, which is scheduled for November 22 and 23 in Manila, and the APEC Economic Leaders' meeting, which will be held on November 25 in Subic. Below is a summary of the major items that Japan hopes to accomplish in this year's meetings.

Draft and submit an "Action Plan" for trade and investment liberalization facilitation
The Action Agenda positions this year as the first year for drafting an Action Plan that will lead to concrete actions in the area of trade and investment liberalization and facilitation. Each member has therefore been asked to submit an Action Plan to the November Ministerial Meeting in Manila. Members' Action Plans will contain specific, detailed descriptions of short- and medium-term measures that they will take towards achieving the goals set forth in the Bogor Declaration, and will also articulate the member's basic stance towards long-term liberalization. To provide powerful impetus for the liberalization and facilitation of trade and investment within the region, approximately thirty liberalization and facilitation projects will begin next year with Japanese funding.
Provide economic and technical cooperation
This year has seen a burst of activity in ministerial meetings and working groups (for example, in July 1996 a Ministerial Meeting on Sustainable Growth and a Meeting of Trade Ministers were held; in August there was a Meeting of Energy Ministers), and also the implementation of economic and technical cooperation as called for in the Action Agenda. Progress of each forum will be presented at the Ministerial Meeting in Manila. The "Partners for Progress" initiative proposed by Japan was officially adopted as an APEC project by the Osaka Meeting and will begin to function next year as a mechanism for new cooperation in the spirit of mutual assistance and voluntary action.
Tackle new challenges
Under the initiative of then-Prime Minister Tomiichi Murayama of Japan, work on new challenges was included in the declaration issued by the Osaka Summit. In light of this, APEC has begun to tackle such long-term issues for the Asia-Pacific region concerning the impact of population growth and rapid economic development on food, energy, and the environment.
Strengthen ties with private sector
There is an awareness that the on-going cooperation and active involvement of the business and private sectors are essential to all APEC activities. The Osaka Meeting therefore decided to create the APEC Business Advisory Council (ABAC). The members of the committee have subsequently been appointed and convened, and are now providing advice to APEC from the private/business sector perspective.
Strictly adhere to the principle of "open regional cooperation"
As we promote cooperation in the Asia-Pacific region, we must also take pains to alleviate any worries that non-APEC countries may harbor of APEC becoming a "closed economic bloc." Japan has traditionally held that regional integration and cooperation should not exclude those from outside the region but should be open to all. And in point of fact, the liberalization achieved by APEC will, in accordance with the WTO Agreement, be open to a wide range of non-APEC countries. To accomplish this, Japan perceives the need to take such opportunities as present themselves to instill a greater understanding of APEC activities among countries in the EU, where there is strong interest in the development of APEC, and also among other non-APEC countries and institutions. In addition, we must also ensure that cooperation in the Asia-Pacific region is in conformance to the principles of the WTO Agreement and that it contributes actively to the further development of the multilateral free-trading system.

The APEC Business Advisory Council (ABAC)

Events leading up to the establishment of the APEC Business Advisory Council
In 1993 the Pacific Business Forum (PBF) was established under a US initiative. The purpose of the forum was to identify issues that, from the perspective of the private/business sector, APEC should work on in promoting trade and investment in the region. The activities of the Pacific Business Forum came to an end in 1995, but the 1995 APEC Ministerial Meeting and Economic Leaders' meeting in Osaka recognized the importance of having on-going advice from the private/business sector and therefore decided to formally establish a business advisory council.
Overview of the APEC Business Advisory Council
(1) Each APEC economy will appoint at most three representatives to ABAC from the business/private sector. These representatives are to reflect the interests of a broad spectrum of the sector and should include representatives of small and medium enterprises.

(2)The APEC Business Advisory Council has two main activities: providing advice on the implementation of the Action Agenda and providing information and perspectives as requested by APEC fora.
1996 activities of the APEC Business Advisory Council
(1) Organization of the APEC Business Advisory Council The 1996 ABAC secretariat was established at the Institute for International and Strategic Studies in the Philippines, this year's host country. Chairing ABAC is Mr. Roberto Romulo (Chairman of the Philippine Long Distance Telephone Corporation) from the Philippines, with co-chairs Mr. Minoru Murofushi (President and CEO of ITOCHU Corporation) from Japan and Dr. Dorothy I. Riddle, CMC (President and CEO of Service Growth Consultants Inc.) from Canada.

(2) Drafting of the APEC Business Advisory Council Report The committee met three times during 1996 and prepared a "1996 APEC Business Advisory Council Report," which was submitted to Philippine President Ramos on October 24 and then widely distributed in the business community. Dialog between members of the APEC Business Advisors Committee and ministers and heads of state is planned for the Philippine meetings in November. The report contains advice on ten items in five areas.

(3) Japanese delegates to the APEC Business Advisory Council are: Mr. Minoru Murofushi (President and CEO of ITOCHU Corporation), Mr. Nobuo Tateishi (Chairman and Representative of OMRON Director Corporation) and Mr. Kenzo Nakagawa (President of Showa Plastics Co. Limited).

Outline of the 1996 APEC Business Advisory Council Report

Cross-border Flows
(1) Creation of APEC Business Visas and establishment of APEC Business Immigration Lanes.
(2) Establishment of an APEC Central Registry for Trademarks and Patents.
(3) Development of common professional standards for business-related service providers in the region.
(4) Adherence to 100% implementation of the Bogor trade and investment liberalization goals by 2010/2020 with ABAC's continued aspirations to accelerate the process in view.
Finance and investment
(5) Establishment of APEC Voluntary Investment Projects (AVIP), under which economies can voluntarily apply a specific set of principles for enhanced investment protection to selected projects, above and beyond the protection provided in the Non-Binding Investment Principles.
Infrastructure
(6) Expansion of public-private sector cooperation is necessary to meet the region's urgent need to expand, coordinate and rationalize investment in major projects.
Small and medium enterprises and human resources development
(7) Establishment of an APEC Network for SMEs, intra-regional cooperation and networking for the purpose of facilitating human resources development, technology exchange, fund-raising, and market access for SMEs.
(8) Holding of round tables in each economy for discussions between government and business leaders in order to address the growth and export financing needs to SMEs.
(9) Collecting and reporting of data on SME statistical indicators in the region that will contribute to their development.
Economic and technical cooperation
(10) Launching of APEC's new model of economic and technical cooperation based on cooperation among the government and private/business sectors that will help improve community awareness within the region.

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