Transcript Slide 1

The Business Vision of
an APEC Community
APEC’s role in Asia-Pacific business development
Tony Nowell
ABAC New Zealand
Chair ABAC Liberalisation Working Group
New Zealand and the Asia Pacific Economy
Asia Pacific Regional Economic Integration and Architecture
Conference
25 March 2010
The Context
In this 21st Century the comprehensive integration
of the global supply chain demands free and
open trade and investment to ensure that the
businesses of Asia-Pacific can give all
economies and peoples of the region access to
and the benefit of the widest possible range of
goods and services
The global centre of economic activity is the
Asia-Pacific region
The ease and speed of movement of goods has become
a critical factor
Efficient and effective cross border management is a
critical ingredient in the supply chain – “time is money”
Reconciliation of tighter border control and trade growth
is a serious challenge
Business believes rigorous security IS compatible with
improved facilitation – BUT requires robust and
innovative systems
Vastly increased movements of goods and
people
Need to protect against unwanted incursion of pests and
people
Guard against outbound illicit trade of ‘national treasures’
Increasingly difficult to manage trade flows in these
circumstances, against agreements in place with trading
partners
Greater pressure to assure a secure ‘leak proof’ border
A more extensive array of public agencies is engaged
The very concept of ‘border’ is under debate
Time is Money
Far too much variance between ports
Extreme security and extra load out time requirements
impose heavy non-recoverable financing and storage
costs
Ultimate cost rests with the end consumer
Reduce compliance burden
KPI’s for time and transaction cost savings
Improve capacity building and security systems
Rules based systems
Post the Asian currency crisis
Turbulent conditions in the world’s financial markets
including volatile currencies
The collapse of dot.com and major write-downs in equity
markets
Serious malfeasance and failures in corporate
governance in business across the region and elsewhere
Loss of business confidence
Worsening structural imbalances in some major
economies
The events of September 11 and new health threats like
SARS
Plus ca change……..
Post the Asian currency crisis
…….. plus c’est la meme chose.
“A range of major shifts now occurring will profoundly affect
APEC and its operating environment. These include creeping
protectionism, the threats arising from terrorism, threats to the
stability of financial systems and heightened political tensions.
These shifts, and the emergence of China as a major
economic power, will shape APEC's agenda over the next two
decades. Effective responses to these developments will
involve all three legs of APEC - liberalisation, facilitation and
capacity building, and therefore an effective APEC response
means that all three pillars will need to be strengthened”
The business vision of an APEC community
Commitment to free and open trade and investment
Goods services, investments, financial resources and business people
move freely
Firms operate anywhere in the region, as if in their own economy
Where there is an absence of tariff and non-tariff barriers, and unnecessary
red-tape
A transparent and predictable operating environment underpinned by
effective legal and regulatory systems exists
Barriers and impediments to foreign direct investment are eliminated
Liberalization of services and agricultural trade as central elements of the
region’s trade and economic growth occurs
Strengthened financial systems and robust capital markets operate
There is good governance and transparency in public and business affairs
Robust and effective IPR regimes to protect innovation exist
Mutual recognition of product standards and professional accreditation is
accepted
Strong commitment to the Bogor Goals
“Free and open trade and investment in the Asia-Pacific by 2010 for developed
economies and 2020 for developing economies”
2010 is fast approaching and based on present evidence business does not
believe that the Bogor Goals of free and open trade and investment will be
met.
It is critical that APEC member economies reaffirm their collective and
individual commitment to achieving those Goals.
Profound changes in the global economic environment since the founding of
APEC require that changes be made to the measures and modalities for
achieving the Bogor vision.
APEC must alter the way it conducts its business. The status quo is not
good enough.
APEC’s value proposition to business is that it strives to go beyond
members commitments in the WTO. This ‘WTO plus’ character of APEC
must be enhanced if it is to attract stronger support from the business
constituency.
The Bottom Line: Success requires strong leadership.
Leading the development of FTAAP
ABAC’s report to Leaders for 2009 recommended that
Leaders accelerate the achievement of the Bogor goals by
setting a timetable for initiating FTAAP.
Specifically ABAC asked that Leaders instruct Ministers to
finalize by their meeting in mid 2010 a viable timeframe and
modalities for initiating FTAAP so that these can be presented
to Leaders for decision at the 2010 Summit.
ABAC envisages FTAAP being a new generation agreement
going beyond trade and encompassing goods and services,
investments and behind-the-border issues of concern to
business.
FTAAP should be underpinned by the goal of “inclusive
growth” so that all participating economies and citizens benefit
and that transitional assistance is offered to those requiring it.
With the following features
Absence of tariff and non-tariff barriers
Transparent and predictable operating environment
Reduction of barriers and impediments to foreign direct investment
Administrative requirements that are not overly-burdensome
An efficient customs system
Adoption of international standards
Ease of business mobility
Liberalization of services trade
Mutual recognition of the professional accreditation
A secure trading environment for trade and financial flows
Prudent, sound financial systems, and robust capital markets, including efficient local and
regional bond markets
Safe, reliable, affordable, efficient and stable supply of energy
A well-trained and mobile work force
A robust and effective intellectual property regimes
Effective legal and regulatory systems
Enforceable contracts and property rights
Good governance and transparency in public and business affairs
Effectively enforced anti-corruption measures
Fair and transparent competition policies
Exchange rate stability
Business Vision of an APEC Community
Business Requirements for FTAAP
Thank you
Tony Nowell
ABAC New Zealand
Chair ABAC Liberalisation Working Group
The Business Vision of
an APEC Community
APEC’s role in Asia-Pacific business development
Thank you
Tony Nowell
ABAC New Zealand
Chair ABAC Liberalisation Working Group