APEC Ministerial Meeting in Santiago, Chile
(Overview and Evaluation)
 |
 |
November 19, 2004
I. Overview of the meeting
The Sixteenth APEC Ministerial Meeting was held in Santiago, Chile on November 17- 18. Minister for Foreign Affairs Nobutaka Machimura and Minister of Economy, Trade and Industry Shoichi Nakagawa of Japan, and the foreign ministers and trade ministers of the APEC member economies attended the meeting (The meeting was chaired by H.E. Ignacio Walker, Minister of Foreign Affairs and Trade of the Republic of Chile). The Joint Statement of the Sixteenth APEC Ministerial Meeting was adopted on November 18.
The following is an overview of the discussions.
1.Strengthening the multilateral trading system
(1)Ministers fully endorsed the decision of the World Trade Organization (WTO) General Council (July Package) and agreed that APEC would exercise leadership in maintaining momentum in order to achieve progress in the Doha Development Agenda (DDA) negotiations toward the Sixth Ministerial Conference to be held in Hong Kong in December 2005. Ministers commended the APEC Seminar on WTO Trade Facilitation held in Bangkok in November and the APEC/WTO Roundtable on Trade Facilitation (both hosted by Japan) to be held in Geneva in early 2005 from the perspective of APEC contributing to the DDA.
(2)Foreign Minister Machimura stated that (a) ministers of the APEC member economies should cooperate to promote negotiations constructively and strongly, (b) it is necessary to attain an overall balance in the Doha Round and progress should be made in all areas including agriculture, market access for non-agricultural goods, services trade, rules, trade facilitation and development, and (c) Japan is also contributing proactively in areas including issues concerning developing countries and trade facilitation.
2.Free Trade Agreements (FTAs)
Ministers agreed that FTAs add value to liberalization achieved through the WTO negotiations and contribute to achieving the Bogor Goals. Ministers endorsed the "APEC Best Practices for Regional Trade Agreements (RTAs) and Free Trade Agreements (FTAs)", a compilation of items and cases drawn from the numerous FTAs already concluded in the APEC region, which will serve as references in future FTA negotiations.
3.Enhancing human security
(1)In his opening remarks during this discussion, Foreign Minister Machimura pointed out that this year was critical for APEC to implement in concrete terms the commitment to tackle counterterrorism and non-proliferation issues, which were agreed upon at the APEC Economic Leaders' Meeting in Bangkok last year. In the context of non-proliferation issues, Foreign Minister Machimura also explained the North Korean nuclear issue and the abduction issue. He proposed that APEC should encourage global efforts in addressing infectious diseases by contributing to the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) and giving assistance to eradicate polio, among other things.
(2)Many ministers expressed their views that APEC should continue to address counterterrorism and non-proliferation issues, as they are central to human security, and underscored the importance of capacity building in developing economies. Ministers also stressed the importance of eliminating poverty and promoting dialogue between religions and cultures, among other items, in order to eradicate the roots of terrorism.
(3)Regarding non-proliferation issues in particular, Ministers (a) identified key elements of effective export control systems, (b) established guidelines on the control of Man-Portable Air Defense Systems (MANPADS) and (c) recognized that all APEC economies are implementing, have concluded, or aim to conclude an Additional Protocol with the International Atomic Energy Agency (IAEA) by the end of 2005. Ministers also endorsed the terms agreed on in the APEC Counter-terrorism Task Force (CTTF) (including enhancing Maritime and port security).
(4)Ministers approved the initiative "Fighting against AIDS in APEC" for endorsement by Leaders and underlined the need for the APEC Health Task Force (HTF) to enhance its activities. Ministers also stated that APEC should cooperate with the World Health Organization (WHO) to eradicate polio, a point Foreign Minister Machimura also stressed.
(5)Minister of Economy, Trade and Industry Nakagawa highlighted issues such as energy security and export controls. With respect to energy security in particular, Ministers endorsed the "Comprehensive Action Initiative recognizing the need for strengthening the APEC Energy Security Initiative - energy security, sustainable development and common prosperity" (CAIRNS Initiative). This Initiative was proposed by Japan and aims to expand energy supplies, promote the efficient use of energy and energy reserves, and diversify energy sources.
4.Structural reform
Foreign Minister Machimura proposed the "Leaders' Agenda to Implement Structural Reform" (LAISR Initiative) for adoption by Leaders. Ministers approved this Initiative, which contains a list of tasks that APEC should prioritize in order to promote structural reform activities in APEC. Foreign Minister Machimura also reported on the "APEC High Level Conference on Structural Reform" held in Tokyo in September 2004, which was based on the "APEC Structural Reform Action Plan" adopted at the Ministerial Meeting last year.
5.Anti-corruption
Ministers recognized that corruption is a threat that undermines the foundation of political and social systems and impedes smooth economic activities, and agreed to reinforce APEC's efforts in this respect. Ministers approved, for endorsement by Leaders, the "Santiago Commitment to Fight Corruption and Ensure Transparency" and the "APEC Course of Action on Fighting Corruption and Ensuring Transparency", which outlines concrete anti-corruption actions.
6.APEC reform
Ministers welcomed the package of reforms agreed by Senior Officials in the past year in response to Ministers' instructions in 2003 that APEC should implement reforms to enable an appropriate response to issues faced by the Asia-Pacific region. Ministers also agreed to deepen discussions further with a view to streamlining APEC's finances and improving fiscal soundness, including giving priority to various APEC activities.
7.Future meetings
Ministers welcomed Singapore's announcement that it would host the APEC Ministerial Meeting in 2009 (it has already been decided that future APEC Ministerial Meetings will be hosted by the Republic of Korea in 2005, Viet Nam in 2006, Australia in 2007 and Peru in 2008).
II. Evaluation of the meeting
- Regarding security issues, concrete measures on non-proliferation (three proposals referred in 3. (3)), which have been discussed in the CTTF, were incorporated into the Joint Statement of the APEC Ministerial Meeting. Japan highly values this as it is the first time APEC has referred to concrete measures concerning non-proliferation. Japan is pleased to note that a wide range of security issues were addressed, including energy and infectious diseases such as AIDS.
- The "Leaders' Agenda to Implement Structural Reform" (LAISR) to reaffirm a summit-level commitment, which was proposed by Japan, was approved. The LAISR Initiative designates areas that APEC should address in the future, and its approval establishes an institutional mechanism and is expected to add momentum to structural reform in APEC. (It has been agreed that the APEC Economic Committee will be reorganized and put in charge of structural reform as a part of APEC reform. This is an important contribution by Japan in the area of reform aimed at revitalizing APEC.)
- Japan is pleased to note the "APEC Best Practices for RTAs/FTAs" were formulated and approved, recognizing this as a new step for APEC. The APEC Best Practices for RTAs/FTAs actively take into account the significance of FTAs, whose number is rapidly growing in the APEC region, on liberalizing intraregional trade and investment, and will also serve as a reference in FTA negotiations between member economies.
- APEC has issued a strong statement toward the Sixth Ministerial Conference to be held in Hong Kong in December 2005 in response to the decision made by the WTO General Council (July Package). The emphasis placed on the necessity of ensuring a balance in the negotiations and achieving progress in all areas of negotiations is in line with Japan's established position. Moreover, it is meaningful that member economies highly regarded the seminar hosted by Japan, given the considerable experience APEC has had in the area of trade facilitation.
- Taking the opportunity of the gathering of foreign ministers and other ministers of major countries, Foreign Minister Machimura held individual meetings with the foreign ministers of Chile, the Philippines, the Russian Federation, Canada, Australia and China and had meaningful exchanges of opinions on the regional situation and international issues. Foreign Minister Machimura attended an informal working breakfast for Foreign Affairs Ministers that Minister of Foreign Affairs and Trade Ignacio Walker of Chile hosted on November 18 and discussions were held on regional issues including the non-proliferation issue (abovementioned three proposals) and North Korea.
Back to Index
