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FIFTEENTH APEC MINISTERIAL MEETING
JOINT STATEMENT
SUMMARY OF KEY ISSUES

APEC Ministers reviewed the achievements of the 2003 APEC year hosted by the Kingdom of Thailand and agreed on initiatives for the 2004 APEC year to be hosted by the Republic of Chile.

Under Thailand's theme for APEC 2003, "A World of Differences: Partnership for the Future," Ministers discussed how to reinvigorate the World Trade Organization (WTO) Doha Development Agenda (DDA) Negotiations as well as how to address the challenge to regional security and prosperity posed by transnational terrorism and infectious diseases.

The WTO and the Multilateral Trading System

Ministers agreed that the WTO Doha Development Agenda (DDA) offers the potential for real gains for all economies, and particularly developing economies, in the areas of agricultural reform, improved market access for goods and services, and clarification and improvement of trade disciplines.

Ministers regretted the missed opportunity to advance the DDA during the Fifth WTO Ministerial Conference held in Cancun, Mexico, on 10-14 September 2003. They noted that progress had been made in some areas of negotiations, and welcomed the recent historic decision on TRIPS and access to essential medicines. They reaffirmed that a successful outcome is essential for strengthening the global trading system, promoting global economic development and well-being, as well as achieving the Bogor Goals. Ministers recalled the Leaders' Declaration at Los Cabos, and reiterated that the development dimension remained central to the DDA. To move the DDA forward, Ministers agreed to build on Chairman Derbez's text of 13 September, 2003, recognizing that flexibility and political will from all are urgently needed.

Ministers recognized APEC's capacity building contributions, and instructed Senior Officials to review the experience gained in order to identify measures and practices to improve WTO capacity building activities in the future, and make them as effective as possible in reinvigorating the DDA negotiations. Ministers also reaffirmed the importance of effective WTO capacity building activities in helping developing economies fully participate in WTO DDA negotiations and enjoy the full benefits of WTO membership.

Ministers recognized that intra-APEC Regional Trade Agreements/Free Trading Arrangements (RTAs/FTAs) could contribute to APEC's goals of free and open trade and investment provided they were consistent with WTO rules and disciplines. In particular, they encouraged the 2nd Policy Dialogue on RTAs/FTAs to be held in May/June 2004 in Pucon, Chile to explore ways in which RTAs/FTAs can contribute to the Bogor goals and advance the WTO process.

Trade and Investment Liberalization and Facilitation

Ministers noted the progress made in the implementation of the APEC Trade Facilitation Action Plan (TFAP) in particular the selection by individual economies of actions and measures to reduce business transaction costs. They urged all economies to implement their selected actions and measures expeditiously and to prepare for the mid-term review and Expanded Dialogue on Trade Facilitation to be held next year with the aim to reduce business transaction cost by the targeted 5 percent by 2006.

Ministers agreed to recommend that Leaders endorse the Transparency by 2005 Strategy agreed by Ministers Responsible for Trade. Ministers endorsed the package of area-specific Transparency Standards into the Leaders' Statement to Implement APEC Transparency Standards and requested Senior Officials to further refine the template developed for reporting on how economies implement the General Transparency Standards for use from 2004 onwards.

Ministers welcomed the expansion of the 1998 APEC's Menu of Options for Investment Liberalization and Business Facilitation to Strengthen APEC Economies to include competition policy and regulatory reform as well as the capacity building programs and activities to improve the economies' capabilities in the investment area.

Structural Reform

Ministers stressed their determination to pursue structural reform in the APEC region to maximize the opportunities arising from trade and investment liberalization and facilitation. They endorsed the "APEC Structural Reform Action Plan" as a unified framework for helping build economies' capacity to meet changing market demands and enhance their competitiveness.

Ministers also recognized that good governance is fundamental to sustained economic growth and development and strongly supported the implementation of good governance practices across the APEC region.

Capacity Building to Share Prosperity

Ministers endorsed a shortlist of priorities designed to focus APEC's work on Economic and Technical Cooperation (ECOTECH). The four ECOTECH priorities are:

Ministers also welcomed the results of the Senior Officials' roundtable discussion with international financial institutions (IFIs) and called for further strengthening of the partnership with IFIs and the business sector.

Knowledge-Based Economy for All

Ministers recognized that effective management of Intellectual Property Rights (IPR) is essential to building a knowledge-based economy. Therefore, Ministers endorsed the establishment of IPR Service Centers and the Comprehensive Strategy on IPR in APEC, both of which will improve IPR facilitation, protection and enforcement in the region.

Ministers welcomed the first Life Sciences Innovation Forum in Phuket, Thailand in August 2003. They took note of the progress in developing the draft Strategic Plan for promoting Life Sciences Innovation and requested that the forum and its expert groups finalize the plan for endorsement in 2004.

Counter-Terrorism and Secure Trade

Ministers are committed to ongoing work in blocking the cross-border movement of equipment, funds and people involved in transnational terrorist activities while at the same time enhancing the free flow of legitimate travelers, trade and investment.

To minimize the potential abuse of alternative remittance systems for terrorist financing purposes, the Ministers noted the Finance Ministers agreement on the need to explore how alternative remittance systems operate and in some cases, how the formal financial systems can be strengthened to provide more attractive and accessible remittance services.

To counter the emerging threat of Man-Portable Air Defense Systems (MANPADS) to civil aviation, Ministers agreed to strengthen domestic controls on the production, stockpiles, transfer and brokering of MANPADS.

To increase the security of travel, Ministers encouraged economies to implement advance passenger information systems including after expedited feasibility studies and instructed Senior Officials to assess the feasibility of a regional movement alert system.

Ministers endorsed the Energy Security Initiative Implementation Plan identifying actions to fulfill requirements of APEC's Energy Security Initiative, and timeframes where appropriate.

Ministers welcomed the outcomes of the 1st Secure Trade in the APEC Region (STAR) Conference in Bangkok in February 2003, and looked forward to the outcomes of the 2nd STAR Conference, which is scheduled to take place in Valparaiso, Chile in March 2004. They also welcomed the establishment of the Counter-Terrorism Task Force and the progress achieved in implementing the Leaders' counter-terrorism commitments. Ministers urged economies to continue to work toward full implementation of the commitments.

Ministers called on all Senior Officials to help economies to identify their counter-terrorism capacity building needs consistent with the objectives outlined by Leaders and to co-ordinate, where appropriate, with International Financial Institutions and relevant regional and international organizations, including the United Nations Security Council Counter-Terrorism Committee, the G-8 Counter-Terrorism Action Group, ASEAN and the OECD Financial Action Task Force.

In addition, Ministers agreed that APEC must be ready to respond to other threats to regional prosperity such as the re-emergence of Severe Acute Respiratory Syndrome (SARS). They emphasized the need for continued vigilance and preparedness to implement the APEC Action Plan on SARS and the APEC Infectious Disease Strategy, so as to detect, respond to, and mitigate the impact of future public health threats, including bio-terrorism, and naturally occurring infectious diseases, such as SARS and HIV/AIDs. Ministers endorsed the Health Security Initiative and forwarded it to Leaders, and welcomed the establishment of an ad hoc APEC Health Task Force.

Creating a New Financial Architecture for APEC

Recognizing the importance of establishing a sound and resilient financial system in the region, the institutional framework and structural reforms that would allow the most efficient allocation of savings need to be undertaken.

It was also agreed that promoting regional bond market strength with a view to building a regional bond market would provide an alternative means of mobilizing savings, providing investment alternatives, generating more economic growth and achieving deeper financial markets.

Supporting SMEs and Micro-enterprises - the New Growth Enterprises

Ministers encouraged future measures to reduce red tape and to facilitate access to capital and other resources for Small and Medium Enterprises (SMEs) and welcomed efforts to identify and reduce impediments to trade for regional SMEs.

Ministers welcomed the signing of the Memorandum of Understanding (MOU) on Cooperation Among the APEC Financial Institutions Dealing with SMEs by financial institutions from participating economies. They welcomed this as an initial step towards establishing a network of APEC SME financial institutions.

APEC Reform

Ministers commended recent efforts to make APEC meeting arrangements more interactive, to reinvigorate and redesign APEC's process, as well as to make the agenda of APEC more focused and policy oriented. They agreed on the need to further streamline the process and to make APEC more responsive to the rapidly changing environment as well as the needs of major APEC stakeholders, especially the public at large.

In this regard, Ministers requested Senior Officials to develop proposals for broader APEC reform and to report the progress to 16th AMM. Ministers also instructed the APEC Secretariat to facilitate this process of review and assessment by providing a report on APEC's working profile, covering its structure, decision-making process, work areas and activities to the Senior Officials process as soon as possible.