APEC Outcomes & Outlook 2018 • 2019 Contents

2 Introduction

4 APEC Member Economies

6 Outcomes: APEC 2018

15 The Chair’s Era Kone Statement

20 Annex A: The APEC Action Agenda on the Digital Economy

23 Outlook: APEC 2019

31 Key Meetings in 2019

32 APEC Milestones

36 About APEC

1 Introduction by Dr Alan Bollard Introduction by Tan Sri Dr Rebecca Sta. Maria

The extraordinary events in Port Moresby last November offer us an opportunity to clear misconceptions and In 2018 the Asia-Pacific region benefitted from continued economic growth that outpaced that of the rest of the answer the question: what is, in fact, APEC’s purpose? world, but it also faced uncertainty, escalating trade tensions, higher global interest rates and tectonic shifts in the world of politics and technology. It just happens to be the perfect time for an exercise in self-reflection because the world is shifting around us, in part due to technological disruption to many industries which has affected the economy and our individual lives. It is an exciting time to take on this role. The world we live in today is more prosperous and yet less equal, always connected but more divided than ever. Policymakers face challenges that they did not have to grapple APEC has always been about ideas. It was formed during a time when the world was transforming at an arguably with before, that are wide reaching and cut across borders. more drastic rate than today. It is a place for members to collectively adapt to and take advantage of change by exploring new ways of doing things. Economies can do this because of APEC’s nature—it is a forum that is non- Amid and despite all of this, APEC continues its work on connecting the region, strengthening its economies, with binding, consensus-based and voluntary which introduces new ideas and incubates the good ones. the ultimate goal of improving the living standards of its people. It is a time for more multilateral cooperation, not less. APEC has been a platform for this since 1989. After three decades, its significance has only grown, and Hardly any of these good ideas make it to the headlines about APEC, even Economic Leaders’ Week. And though by no means is it slowing down. no one should fault the media for watching the activities on the sidelines, APEC itself is not about bilateral approaches. It is the meeting of the 21 member economies—developed as well as developing, who all work on Chile’s theme for 2019, “Connecting People, Building the Future,” and its priorities, cater to the needs of the an equal footing—that defines the forum. times, and will invest members’ efforts into making the region’s economy more sustainable, more connected and, especially, more inclusive. When Leaders and Ministers met, there were certainly a range of views around the table, but under Papua New Guinea’s guidance, and in the spirit of advancing the common interest, members achieved consensus on almost As in recent years, there will be an emphasis on supporting small business and underrepresented sectors. everything they set out to discuss. This includes important work to further advance women’s participation in the Notably, one of APEC’s main priorities this year is to empower women—who make up half the population, economy; taking advantage of digital technology to bridge the development gap; and empowering micro, small are more likely to have gone to college, but whose economic participation still lags behind men—to excel as and medium enterprises to join the global value chain. All of this, as well as hundreds of other initiatives APEC members of the workforce, as leaders and as business owners. has labored on over the years, will help improve the lives of the people in the region and will continue to serve as the basis for APEC’s work in the coming years. I welcome this wholeheartedly not only because studies say the global economy will significantly grow when women start contributing more but also because in 2019 a successful woman should no longer be such a rare thing. And while these understated victories aren’t all that exciting, they matter, because APEC matters. Its 21 members are diverse, cover over half the world’s economy and have led the world in strong trade-driven growth. Where APEC is becoming a more people-centered story—as much as it is about trade and economic integration, it APEC chooses to go next will make a global difference. is also about helping people nurture their livelihoods, develop new skills, stake their claim in the market, and benefit from growth and new technologies. It is a meaningful and necessary narrative, and I look forward to taking part in it.

Dr Alan Bollard Tan Sri Dr Rebecca Sta. Maria Executive Director, 2013-2018 Executive Director APEC Secretariat APEC Secretariat

2 3 APEC Member Economies DARUSSALAM CHILE PEOPLE’S REPUBLIC OF , CHINA REPUBLIC OF KOREA PAPUA NEW GUINEA THE REPUBLIC OF THE VIET NAM

4 5 Outcomes

Harnessing Inclusive Opportunities, Embracing the Digital Future

APEC economies have made great progress in driving growth, and the economic outlook for the Asia-Pacific appears robust. But risks and uncertainties are pronounced, both in the region and globally.

APEC is addressing these challenges by forging ahead with initiatives to strengthen regional integration and that fosters free and open trade and investment and fuels growth. Mindful of concerns over persistent wealth gaps from globalization and rapidly changing workforces, APEC is focused on supporting innovative and inclusive growth—to ensure the economic benefits are shared broadly and no one is left behind.

As host of APEC 2018, Papua New Guinea steered members towards initiatives to support this growth by creating opportunities for all segments of society to benefit from the digital economy.

APEC pursued policy directions based on the following priorities: • Improving Connectivity, Deepening Regional Economic Integration • Promoting Sustainable and Inclusive Growth • Strengthening Inclusive Growth through Structural Reforms

6 7 Outcomes

Improving Connectivity, Deepening recommitted to implementing the Internet and Digital Economy Roadmap as well as the Framework on Cross-border E-commerce Facilitation. In 2018, Regional Economic Integration the forum also continued its work to expand membership of the Cross- Border Privacy Rules System. APEC’s commitment to building an interconnected Asia-Pacific brought member economies together in 2018 to pursue policies to advance this Global Value Chain Cooperation – Integration into global value chains is cause. APEC reaffirmed its commitment to attaining the Bogor Goals of free a powerful driver of productivity growth, job creation, and increased living and open trade and investment, and welcomed the latest progress report, standards. APEC made progress in 2018 in completing the APEC Trade in encouraging further concrete actions towards reaching this goal by 2020. Value Added Database, a tool for economies to improve policies designed to help businesses take part in global production networks. Strengthening Connectivity – Economies steadfastly agreed to further implement the APEC Connectivity Blueprint to strengthen physical, The services sector is also a major contributor to growth. The improvement institutional and people-to-people connectivity in the region, and meet competitiveness through an open and predictable environment is a targets set for 2025. significant boost to this sector. APEC economies in 2018 therefore welcomed the APEC Non-Binding Principles for Domestic Regulation of the Services With quality infrastructure projects, including sustainable financing Sector, and reiterated their commitment to implementing the APEC Services practices and strong public–private partnerships, critical for stronger Competitiveness Roadmap. connectivity, members welcomed the updated APEC Guidebook on Quality of Infrastructure Development and Investment as well as the new Guideline for Quality of Water Infrastructure. Both tools give members quality information Promoting Sustainable for future projects. and Inclusive Growth

On APEC’s vision for a Free Trade Area of the Asia Pacific (FTAAP), members Leaders made it clear APEC must continue to develop and implement urged further progress on identified issues, so all economies can enhance initiatives to bridge economic divides, noting that this work can have a their ability to participate in high-quality free trade agreements in the future. positive impact especially on disadvantaged groups. Economies in 2018 endorsed the Cross-Cutting Principles on Non-Tariff Measures as a valuable tool to address non-tariff barriers in the region. Human Resources Development – APEC believes in investing in quality education, including in rural and remote areas, as well as in reskilling and Internet and Digital Economy, including ICTs – The internet and upskilling workforces, to meet technological changes and the digital age. digital economy continue to open new growth opportunities for businesses Members therefore refocused support for the APEC Skills Development of all sizes. Improving access to the digital economy and the use of new Capacity Building Alliance and encouraged the continued implementation of technologies contributes to economic development and poverty reduction. the APEC Framework on Human Resources Development in the Digital Age.

APEC is working on new avenues of collaboration to protect consumers Health – APEC recognizes the importance of strengthening health systems online, and to enable a free flow of information. Thus, APEC economies and enhancing economies’ preparedness and capability to respond to public

8 9 Outcomes

health emergencies and disasters. Members therefore welcomed the joint Enhancing Food Security and Sustainable Fisheries – APEC plays a APEC statement, presented to the United Nations, to end tuberculosis, part key role in strengthening food security in the region, including promoting of the 2030 Sustainable Development Agenda. policies that improve resilience, adaptation and productivity of food systems to protect the environment, and mitigate the effects of climate change and Women and the Economy – Economies grow when women are natural disasters. empowered and treated equally. APEC focused this year on women’s access to the digital economy, a vital pathway to the global economy. The forum led Members in 2018 made strides in implementing the APEC Food Security initiatives to improve women-led businesses access to finance, technology Roadmap 2020, focusing on sustainable development of the agricultural and and capacity building. Related programs are an APEC contest for women fishery sectors. Given the profound threat of climate change on the region’s entrepreneurs and the 2018 version of the APEC Women and the Economy food security, APEC has endorsed a 2018–2020 action plan, and members Dashboard, which determines the social and economic status of women in were encouraged to push ahead with implementing it. APEC through data. Strengthening Inclusive Growth Micro, Small and Medium Enterprises (MSMEs) – Small businesses, including those led by women, are a critical part of the Asia-Pacific’s through Structural Reforms economic structure, employing half the region’s workforce. But many lack Well-planned policy reform to increase cross-border trade and investment access to foreign trade, including global supply chains. In 2018, members can pave the way for economic growth that benefits all. Members therefore noted progress in implementing the Boracay Action Agenda to foster MSME welcomed the 2018 APEC Economic Policy Report (AEPR) on Structural participation in foreign markets. They also welcomed progress on an APEC Reform and Infrastructure, which gives members policy options for promoting compendium for members to share policies and success stories for fostering quality infrastructure, and encourages efficient planning processes for such MSME access to foreign markets. projects.

APEC has focused much of its work in recent years on helping MSMEs Members also welcomed a review of their progress so far on reforms in enhance their capacity to innovate and compete. This area of work includes three broad areas; more open, transparent and competitive markets, deeper increasing participation in the internet and digital economy, and access to participation in those markets by all segments of society, and sustainable electronic commerce. Projects include the SME Online-to-Offline Initiative social policies to reduce inequality in the economy. that provides MSMEs knowledge and support from members on becoming digitally competitive and resilient. Through the APEC Initiative on Promoting And they noted progress this year on APEC’s Ease of Doing Business Innovative Start-ups, the forum urges members to establish regulatory Initiative. Through APEC-led and individual economy efforts, the multi-year frameworks that promote a business-friendly environment. initiative aims to improve the business environment in the region through regulatory reforms to make it cheaper, faster and easier to do business.

10 11 12 13 Outcomes

THE 26TH APEC ECONOMIC LEADERS’ MEETING Port Moresby, Papua New Guinea • 18 November 2018 The Chair’s Era Kone Statement Harnessing Inclusive Opportunities, Embracing the Digital Future

1. The Statement of The Chair reflects the chair’s assessment of the changing economic conditions and that is condusive for increased prevailing views of all APEC member economies as expressed during investment and job creation. discussions at the APEC Economic Leaders’ Meeting held in Port Moresby. Most economies agreed to the following text, while a small 4. We are optimistic about the future recognizing that 2018 has bridged number had alternative or additional views on paragraphs 9, 16 and our efforts to attain APEC’s current goals and setting APEC’s vision 17. beyond 2020. We are resolved to take concrete steps to foster a shared future of a peaceful, stable, dynamic, inter-connected and 2. Exactly a quarter of a century after Papua New Guinea joined APEC, prosperous Asia-Pacific region, through the following actions: which coincided with the historic first APEC Economic Leaders’ Meeting, we, the Economic Leaders of APEC, met in Port Moresby under the theme, “Harnessing Inclusive Opportunities, Embracing the Digital Future”. In this era of rapid technological change, we continue I. Embracing the Digital Future to recognize the importance of international trade to stimulating 5. We recognise the increasing benefits of the digital economy in all growth that is inclusive and sustainable, and driving prosperity for APEC economies whether in the form of internet connection and usage, all. We reaffirm APEC’s core objectives in promoting free and open government services, the growing number of businesses producing trade and investment. To that end, we recommit to advance balanced, digital products and services, or trade in these products and services innovative, secure, sustainable and inclusive growth and highlight across borders. Innovations involving the use of digital technologies APEC’s work on structural reform and regional economic integration. are increasingly being seen in many sectors of our economies and We seek to ensure that all people of the region can share in the contribute to economic growth. Furthermore, digital technologies benefits of a digital future. and innovations are increasingly changing the way businesses and government operate across all sectors of our economies. 3. We welcome the global growth achieved in 2018 and the economic outlook for the Asia-Pacific region. However, growth has become less 6. We recognise that APEC economies’ collective efforts on the digital balanced and downside risks have risen. We will continue to promote economy have the potential to increase productivity leading to an open economy in the Asia-Pacific that is responsive to rapidly

14 15 Outcomes

significant gains for our economies as a whole. We acknowledge that from 2019. We also recognise that addressing these issues requires IV. Improving Connectivity, 15. We are committed to further actions to increase APEC’s the ability to harness such gains for all in a balanced and equitable a multi-faceted approach and we welcome work with other relevant competitiveness in the services sector by 2025 and intensifying our manner will also depend on APEC’s collective effort in enabling an fora on digital economy issues, including among others WTO, in Deepening Regional Economic efforts to address barriers and facilitate services trade that will better open, accessible, and secure environment for the growth of, the particular the E-commerce discussion. To implement the Roadmap, Integration enable our businesses to compete or trade in services markets. digital economy. We note, that promoting stability, security, trust, we encourage economies to work closely with private sector and confidence and protection of consumer rights in the use of information other stakeholders. Improving Connectivity World Trade Organisation and communication technologies (ICTs) are also essential. We emphasize the importance of enabling the free flow of information 11. Today, as we gather in Papua New Guinea, the only APEC member 16. We recognise the importance of working toward achieving free and data, recognizing legitimate domestic public policy objectives. II. Progressing the Bogor Goals economy in the region that physically connects the Pacific to Asia, and open markets and the significance of international trade and We recognize the importance of facilitating e-commerce and digital we reaffirm our commitment to implement the APEC Connectivity investment in delivering prosperity for our people. We reaffirm trade, including the identification and reduction of unjustified barriers. 9. It is imperative that we hasten our efforts towards attaining the Blueprint, which aspires to build a seamless and comprehensively the importance of trade liberalisation and facilitation in achieving Bogor Goals. We urge economies to make maximum progress under connected and integrated Asia-Pacific by 2025. We welcome sustainable global economic growth and creating jobs in our 7. To ensure that no one is left behind, we will promote the participation their individual action plans by the deadline of 2020. We further urge the progress of quality infrastructure initiatives in APEC. We are economies. We recognise the contributions that the multilateral of all groups in the digital economy including women and those from economies to advance trade in the region in a free, fair, and open committed to pursuing all ongoing commitments in progressing work trading system has made towards that end. We support a well- remote and rural areas. The digital economy also has the potential to manner, in a way that will support non-discriminatory, and mutually on connectivity, including sub-regional, remote area connectivity and functioning WTO that provides a transparent, and non-discriminatory promote greater engagement by disadvantaged groups in the broader advantageous trade and investment frameworks. rural urban development and will identify future areas of cooperation. framework for progressive trade liberalisation, based on rules agreed economy. We are committed to making joint efforts to improve upon by its members. digital inclusion and to bridge the digital divide. These efforts will 12. We commit to bringing member economies and people closer include among others, capacity building, facilitating the construction together through policy and regulatory cooperation and coherence, 17. In order to improve the functioning of the WTO and to deliver for all of and access to secure and resilient digital infrastructure, and the III. Post-2020 Vision trade facilitation and people-to-people exchanges. We resolve to its members, we commit to work together to improve its negotiating, development of skills. We will promote the use of digital technology developing better regional networks in ICT infrastructure. monitoring and dispute settlement functions. We also encourage and innovation for high quality and sustainable development. We 10. We reiterate our commitment to developing a strategic, forward APEC economies to increase their participation in the WTO to advance recognize that there is significant potential to speed up the pace looking, and ambitious post-2020 vision that will position APEC Deepening Regional Economic Integration its work. of development through the facilitation and use of Information and to better address 21st Century challenges and opportunities for Communication Technology (ICT) and improved internet connectivity. member economies and our people. This vision would build upon past 13. We reiterate the importance of APEC’s regional economic integration achievements, address unfinished business, and explore new areas agenda. We welcome progress to date to implement the Lima V. Promoting Sustainable and 8. In order to meet such challenges, in 2017 we welcomed the adoption of cooperation to better respond to new and emerging challenges and Declaration on Free Trade Area of the Asia Pacific (FTAAP) and urge of the APEC Internet and Digital Economy Roadmap. Given the pressing issues in the coming decades. We welcome the discussions further progress on issues identified by economies in order to enhance Inclusive Growth rapid development of digital technologies and their far-reaching on the post 2020 vision and note the progress on the ongoing work of APEC economies’ ability to participate in high quality, comprehensive 18. We reaffirm our commitment to promote sustainable and inclusive implications for all our economies, the implementation of the the APEC Vision Group (AVG). free trade agreements in the future. We instruct officials to report growth that benefits our people, raises living standards, lifts Roadmap has now become more urgent than ever. We therefore progress to us in 2020. people out of poverty, and harnesses and develops our resources endorse the APEC Action Agenda on the Digital Economy (Annex sustainably in collaboration with the private sector. Recognizing A) and instruct officials to begin implementing this Agenda starting 14. We welcome ongoing progress on developing statistics in Trade in the interconnectedness of the economy with our societies and the Value Added (TiVA). This cooperation will produce tools to assist environment, APEC should take a comprehensive approach to its economies to better understand global production networks. work to advance sustainability and inclusion in the region, and put

16 17 Outcomes

our peoples’ economic prosperity and well-being at the center of our VI. Strengthening Inclusive Growth considerations. In this regard, we reaffirm our commitment to APEC’s agenda on advancing economic, financial and social inclusion through through Structural Reform APEC initiatives. These initiatives complement and are consistent with our individual economy efforts as well as those undertaken 23. We recognise the critical importance of structural reform as a driver in other frameworks, such as the 2030 Agenda on Sustainable to strengthen inclusive, innovative and quality economic growth. Development. An effective and holistic approach to structural reform improves the functioning of markets, enables deeper market participation by 19. Recognizing the critical importance of energy security to support all segments of our society and advances our broader APEC goals. sustainable economic growth in the APEC region, we commit to Improvements to the regulatory environment, including through enhance access to affordable, sustainable, reliable and clean strengthening competition policy, removing behind the border barriers, energy, including clean and advanced fossil fuels and technologies and facilitating the ease of doing business, can increase cross-border by facilitating energy-related trade and investment, reducing energy trade, finance and investment, as well as boost innovation and intensity, enhancing energy resilience to avoid disruptions to the support the emergence of groundbreaking technologies. We welcome energy sector, and scaling up deployment of efficient and clean work on structural reform and infrastructure and encourage officials energy sources. to undertake work in 2019 on structural reform and digital economy.

20. We underscore that it is crucial to improve the business environment 24. We reaffirm our commitment to foster integrity in the public and for Micro, Small and Medium Enterprises (MSMEs) as part of our private sectors. We recognise the importance of our efforts to combat efforts to advance inclusive growth. and prevent corruption, promote transparency and good governance and strengthen the rule of law. 21. We emphasize the importance of the economic empowerment of women and girls. We underscore the need to bridge the digital 25. We welcome the outcomes of the APEC Finance Ministers’ Process, divide between men and women and the gender pay gap thereby particularly the Finance Ministers Joint Statement, and the progress 27. On this historic occasion, we congratulate Papua New Guinea for its increasing opportunities for women and girls towards fully realizing of accelerating infrastructure development and financing, advancing VII. Looking Forward leadership this year in hosting APEC for the first time, and significantly their potential and enabling them to increase their participation in financial inclusion, fostering international tax cooperation and promoting future work on the Internet and Digital Economy and APEC’s the digital economy. In this regard, we welcome further initiatives transparency, and further developing disaster risk financing and 26. Under our Era Kone Declaration, we hereby commit to take forward Post-2020 Vision. to implement APEC’s work on human resources development in the insurance. the above actions which will harness inclusive opportunities, and digital age. We recognise the importance of further promoting the full allow our people to benefit from the digital future. We are committed 28. We thank the APEC Business Advisory Council (ABAC) for its continued advancement of women and girls as a means of realising sustainable to carrying out further actions to maintain APEC as a key driver cooperation, advice and support. development, economic growth and gender equality. of regional and global economic growth and we will strengthen APEC’s global leadership in addressing the most pressing economic 29. We look forward to meeting again in Chile in 2019. 22. We recognise the importance of science, technology and innovation challenges. in enabling inclusive, sustainable economic growth for the region.

18 19 Outcomes

Annex A APEC Action Agenda For The Digital Economy

At our meeting in Da Nang in 2017 we welcomed the adoption of the APEC b) Develop a program for future data and analytical support for work under Internet and Digital Economy Roadmap (“the Roadmap”). In doing this, the Roadmap. As a contribution to this work, the 2019 APEC Economic we recognized that digital technologies (and their associated services and Policy Report will be prepared on the topic of Structural Reform and the platforms) have the potential to continue providing significant gains. Under Digital Economy; the Roadmap, we also recognized that if these gains are to be fully realized, significant challenges need to be addressed. The Roadmap sets out eleven c) Develop any further areas of work that might be examined, given the key focus areas of work designed to address these challenges. Roadmap is a living document and the rapid development of digital technologies points to the potential for new topics to arise in the future. We welcome the progress that has been made in implementing the Roadmap during Papua New Guinea’s host year in 2018. This includes establishment We further commit to continuing to engage all relevant public and of a new governance mechanism, the Digital Economy Steering Group. We private sector stakeholders on this work. In this respect, we applaud the also applaud Papua New Guinea’s leadership to facilitate discussions among contributions already made by the APEC Business Advisory Council and the APEC fora and sub-fora on how they can contribute to the implementation Pacific Economic Cooperation Council. It will also be important for APEC to of the Roadmap. build closer cooperation with the relevant fora in this field.

To continue to implement the Roadmap in a comprehensive manner and to Finally, we reaffirm the central role of APEC Senior Officials, supported by provide a platform for future work, we commit that APEC will by the end of the Digital Economy Steering Group, in taking this work forward, including 2019: monitoring and evaluating progress in relation to the implementation of the key focus areas by the relevant fora and sub fora. We instruct Senior a) Prepare a comprehensive work program on future implementation of Officials to report on the achievement of these commitments when we meet the Roadmap with contributions from committees and sub fora, as in 2019. appropriate. This will examine the broad potential opportunities and challenges presented by digital technologies.

2020 21 Outlook

Connecting People, Building the Future

Since its founding 30 years ago, APEC has successfully fostered integration in the Asia-Pacific region, facilitating free trade and investment across borders, and bringing growth to our economies. Now, at a time of substantial technological change, APEC is focused on deepening this integration for the future, by working to remove new barriers to trade so that economies can take full advantage of the digital age and compete freely in the global marketplace. As chair in 2019, Chile will steer APEC towards ensuring all sections of society benefit from this integration, especially women and small and medium-sized enterprises (SMEs). As we look to the future, APEC is also committed to growth in the region that is sustainable for future generations.

Under the overarching theme of “Connecting People, Building the Future,” we will advance a regional agenda with the following priorities:

• Digital Society • Integration 4.0 • Women, SMEs and Inclusive Growth • Sustainable Growth

2222 23 Harnessing the Digital Revolution Deepening Integration

The digital age is now a reality in both developed and developing economies. • Improve regional connectivity through telecommunications While APEC has long been at the forefront of facilitating a more integrated • Enhancing APEC economies’ integration into global value chains Digital technologies are drastically changing the way we do business and • Develop efficient, coherent and comprehensive regulatory frameworks region, it must now look to the future. Globalization is set to deepen in • Smart borders—with a focus on building trust in electronic single live our lives. APEC has focused in recent years on bridging the digital for digital related policies an increasingly digitized world, where webs of interconnected companies windows systems, which are an efficient and effective way of speeding divide, so more people can take advantage of the internet and digital trade. • Develop standards for e-commerce and digital trade between APEC specialize in different tasks, adding value to a final good of multiple origin. up trade documentation at reduced cost economies A new era of regional and global integration will emerge, which we dub • Smart logistics—focusing on improving understanding of Authorized With APEC initiatives already underway, Chile is focusing on specific • Design an APEC education, training and knowledge strategy on the Integration 4.0. Economic Operator (AEO) programs. AEO programs speed up trade outcomes, including implementing the APEC Internet and Digital Economy digital economy that reflects the opportunities of new technologies because businesses taking part are certified as showing their role in the Roadmap. The roadmap has been developed as a comprehensive guide APEC is well positioned to address barriers to achieving this integration, international supply chain is secure and customs controls followed for economies to increasing access to digital technology and the digital For economies to develop policies about the internet and the digital such as by showcasing best practices on trade procedures and regulations • Smart trade—focusing on integrating Good Regulatory Practices economy. It contributes to the APEC goal of creating greater prosperity economy, they need sound and comparable data. Through APEC economies and to encourage coordinated approaches which ease trade between as a model chapter of the FTAAP. APEC is working towards eventual through more innovative growth. To help achieve this goal, APEC in 2019 is can collectively design and implement methodologies that help policymakers economies. APEC in 2019 will therefore target specific areas for outcomes: realization of a Free Trade Area of the Asia Pacific (FTAAP) targeting four key areas for implementation: understand the gaps and sectors which require comparable data. To • Enhancing skills mobility in the APEC region implement this, Chile will drive efforts to: • Develop a common metric for the internet and the digital economy • Develop an annual report on digital policies among APEC economies

2424 25 Outlook

Women, SMEs and Inclusive Growth Strengthening Sustainable Growth

APEC’s core work is increasing participation in the regional economy, so APEC’s work on integration has facilitated free trade and investment, that the benefits are spread to more sections of society. In 2019, APEC is leading to more growth in the region. But APEC must also focus on ensuring focusing specifically on increasing the participation of women and SMEs in a sustainable platform for future growth. Environmental challenges mean regional trade. This contributes to the APEC goal of more inclusive growth. members must transform their economic activities to ensure critical issues Increasing women’s economic empowerment makes economies grow faster such as climate change, ocean waste and pollution, clean energy, and smart overall, but their ability to join the workforce remains much lower than men, cities are addressed. even after decades of progress. In 2019, APEC will focus on initiatives to protect our oceans and marine Chile will focus on increasing women’s participation in non-traditional ecosystems, including addressing the tons of plastics and other debris that sectors. Initiatives will assist economies in developing strategies to attract, threaten the Pacific Ocean. APEC will also target outcomes on preventing retain and promote women in industries such as mining, transportation illegal, unreported and unregulated fishing practices in the vast Pacific. and energy. Ensuring women have equal access to digital technologies and opportunities for connected learning is also a key enabler for women’s The APEC region accounts for around 60 per cent of world energy demand. participation, so they can take advantage of the digital age. Chile is committed to intensifying efforts to promote clean, renewable and affordable energy and to agree new goals on efficient energy use. Meanwhile, SMEs are the engines of growth and innovation in the region Regulatory policies are also key to fostering deployment of clean cars to and employ more than half of the APEC workforce, but account for less than reduce carbon emissions. 35 per cent of direct exports. Up to 80 per cent of the world’s population will live in urban areas by 2050. Removing barriers that make it difficult for SMEs to participate in regional APEC is to continue efforts on sharing best practices so cities are smart, trade is critical to achieving the overall goal of inclusive growth. green and livable for all people. Initiatives will include a focus on good governance of cities, efficient transport networks, urban planning and public Specific initiatives in 2019 will focus on simplifying and improving the spaces. quality of regulations so more SMEs can start up and thrive. APEC will also focus on improving SME access to the global marketplace and strengthening their capability to benefit from digital trade.

26 27 Outlook

2828 Photo by David Kirkland 29 Key Meetings in 2019

Meeting Date

First Senior Officials’ Meeting and Related Meetings 23 February - 8 March

Second Senior Officials’ Meeting and Related Meetings 3 - 15 May

Ministers Responsible for Trade Meeting 17 - 18 May

Third Senior Officials’ Meeting and Related Meetings 17 - 30 August

Agriculture Ministerial Meeting 17 - 24 August

Small and Medium Enterprise Meeting 2-6 September and Related Meetings

Women Ministerial Meeting and Related Meetings 30 September - 5 October

Finance Ministers’ Meeting 14 - 15 October

Concluding Senior Officials’ Meeting 11 - 12 November

APEC Ministerial Meeting 13 - 14 November

APEC Economic Leaders’ Meeting 16 - 17 November

Note: Dates are subject to change, for the latest information please go to: http://www.apec.org/Events-Calendar.aspx

3030 31 APEC Milestones

2018 • Port Moresby, region, particularly in the context of climate change enterprises in regional and global markets; for 2013 • Bali, Indonesia positions in the WTO. APEC sets the goal to reduce 2008 • Lima, Peru Papua New Guinea and rural-urban development, the forum adopts building sustainable, and resilient communities; APEC Leaders reaffirm their commitment to the aggregate energy intensity by 45 per cent by 2035. APEC Economic Leaders address the global The APEC Chair releases the Era Kone Statement, the Food Security and Climate Change Multi-Year developing human capital; and enhancing the rules-based multilateral trading system and In addition, APEC commits to take specific steps by financial crisis in the Lima Statement on the reflecting the work of member economies Action Plan 2018-2020. And through the creation regional economic integration agenda. They also achieving the successful Doha Round outcome 2013 to implement good regulatory practices by Global Economy, in which they commit to take all throughout 2018. It states that Leaders reaffirm the of the APEC Vision Group, Leaders show their express support for the achievement of quality at the World Trade Organization (WTO) 9th ensuring internal coordination of regulatory work; necessary economic and financial measures to importance of trade liberalization and facilitation commitment to a strategic and ambitious post- growth, and endorse a network on services Ministerial Conference. APEC Leaders endorse assessing regulatory impacts; and conducting restore stability and growth, to reject protectionism in achieving sustainable economic growth and 2020 vision that will position APEC to aim for 21st cooperation, recognizing that the services sector a multi-year plan on infrastructure development public consultation. and to intensify efforts to advance the WTO’s Doha in creating jobs, and recognize the contributions Century opportunities after the Bogor Goals are represent a significant percentage of businesses in and investment. As a first step under this plan, a Development Agenda negotiations. APEC focuses in achieving this of the rules-based multilateral met. the region. Public Private Partnership Centre in Indonesia will 2010 • Yokohama, Japan on the social dimensions of trade, reducing the gap trading system. APEC Leaders commit to advancing be established. To encourage people-to-people APEC Leaders provide a roadmap for members between developing and developed members and inclusive growth through innovation, such as the use 2016 • Lima, Peru 2014 • Beijing, China connectivity, APEC seeks to promote cross-border to realize an economically-integrated, robust Corporate Social Responsibility. Leaders welcome of digital technologies. They recognize that digital APEC Leaders reaffirm the member economies’ APEC Leaders commit to taking a concrete step cooperation with the target of 1 million intra-APEC and secure APEC community. This includes the the APEC Investment Facilitation Action Plan aimed technologies are changing the way businesses confidence in international trade as a mechanism towards greater regional economic integration university students per year by 2020. APEC holds its formulation of a comprehensive, long-term growth at improving the investment environment in the and government operate, and although they come for achieving positive economic and social change. by endorsing a roadmap to translate the vision of first joint Ministerial Meeting on Women and SMEs strategy. APEC completes an assessment of region. with challenges, they have the potential to provide This is after throwing their support behind an the Free Trade Area of the Asia-Pacific (FTAAP) to promote women entrepreneurship. its progress towards the Bogor Goals and finds significant widespread gains. To further APEC’s agenda that pursues inclusive growth as the Asia- into a reality. As a first step, APEC will carry out a significant gains in the areas of liberalizing trade 2007 • Sydney, Australia ability to meet these challenges, they endorse the Pacific region takes strides to achieve a free and collective strategic study on issues related to the 2012 • Vladivostok, Russia in goods, services and investment, as well as trade For the first time, APEC member economies issue Action Agenda for the Digital Economy which lays open trade area. Specifically, they express support realization of the FTAAP. Members implement the APEC Leaders endorse an APEC List of facilitation. APEC formulates the APEC Strategy for a Declaration on Climate Change, Energy Security out clear commitments to meet the digital future. for advancing the regional economic integration first-ever APEC Connectivity Blueprint to achieve Environmental Goods that directly and positively Investment and endorses the APEC New Strategy and Clean Development outlining future action and growth agenda; developing human capital; targets for better physical, institutional and people- contribute to green growth and sustainable for Structural Reform. APEC holds its first APEC in support of a new international climate change 2017 • Da Nang, Viet Nam modernizing micro, small, and medium business; to-people linkages across the region by 2025. development objectives. APEC seeks to address Ministerial Meeting on Food Security. arrangement and announcing a forward program Leaders underline APEC’s crucial role in supporting and enhancing the regional food systems. In line In order to capture higher value-added growth, transparency as a new next generation trade and of practical, cooperative actions and initiatives. a rules-based, free, open, fair, transparent and with these priorities, APEC put forward policy policies to promote innovation, human resource investment issue, and Leaders endorse the APEC 2009 • Singapore Leaders also adopt a major report on closer regional inclusive multilateral trading system. APEC commits commitments for members toward sustainable development and sustainability are part of the new Model Chapter on Transparency for RTAs/FTAs to APEC resolves to pursue balanced, inclusive and economic integration, including structural reform to strengthening the ability of micro and small economic integration in the region. APEC Accord on Innovative Development, Economic be used as a guide by APEC economies. sustainable growth, while Leaders agree to extend initiatives, and welcome the second APEC Trade enterprises to compete in international markets Reform and Growth. Recognizing the importance their standstill commitment on protectionism until Facilitation Action Plan which aims to reduce trade and endorsed a strategy to create an environment 2015 • Manila, Philippines of promoting diversified energy supplies, APEC 2011 • Honolulu, United States 2010. The first-ever joint meetings of APEC senior transaction costs by a further five per cent by 2010. that enables them to go green and sustainable. The APEC Leaders unite behind the opportunity to build economies agree to work toward doubling the APEC Leaders commit to taking concrete steps trade and finance officials are held to address the forum aims to meet the potential of the internet inclusive economies in a bid to make economic share of renewables by 2030 in the region’s energy toward a seamless regional economy; addressing economic crisis. APEC launches the Supply-Chain 2006 • Ha Noi, Viet Nam and digital economy through regulation and policy growth felt broadly by more sectors in society. mix, including in power generation. shared green growth objectives; and advancing Connectivity Framework and the Ease of Doing APEC Economic Leaders endorse the Ha Noi and seeks to prepare workers—especially those Acknowledging uneven global growth and the regulatory cooperation and convergence. To reach Business Action Plan to make doing business in Action Plan which identifies specific actions and in vulnerable groups—for the changing world of presence of risks and uncertainties in the global these goals, APEC resolves to reduce, by the end of the region 25 per cent cheaper, faster and easier by milestones to implement the Bogor Goals. Leaders work through human resource development. To economy, the Leaders agree to set forth policy 2015, applied tariff rates of environmental goods to 2015. Member economies also commence work on conclude that the APEC Trade Facilitation Action ensure food security in and beyond the Asia-Pacific enablers for integration of micro, small and medium 5 per cent or less, taking into account economies’ an APEC Services Action Plan and an Environmental Plan has achieved its target of a five per cent circumstances, without prejudice to APEC members’ Goods and Services Work Program.

32 33 APEC Milestones

reduction in trade transaction costs in the region 2002 • Los Cabos, Mexico 1999 • Auckland, New Zealand between 2002 and 2006. APEC takes a strategic APEC adopts a Trade Facilitation Action Plan and APEC Leaders endorse the APEC Principles to approach to reform fora and strengthen the the Statement to Implement APEC Policies on Enhance Competition and Regulatory Reform Secretariat. Trade and the Digital Economy. The Secure Trade aimed at addressing the structural and regulatory in the APEC Region (STAR) initiative is launched weaknesses that contributed to the Asian financial 2005 • Busan, Korea and a Statement to Implement APEC Transparency crisis. APEC commits to paperless trading by 2005 APEC completes the Mid-Term Stock-take of Standards is endorsed. in developed economies and 2010 in developing Progress towards the Bogor Goals. The stock-take economies. The APEC Business Travel Card scheme finds that average tariffs in the APEC region have 2001 • Shanghai, is approved and a Mutual Recognition Arrangement been reduced to 5.5 per cent, down from 16.9 per People’s Republic of China on Electrical Equipment and a Framework for the cent when APEC was established in 1989, and that Leaders issue APEC’s first Statement on Counter- Integration of Women in APEC are endorsed. APEC is on schedule to meet the Bogor Goals. It Terrorism and pledge to enhance counter-terrorism also outlines the Busan Roadmap to the Bogor cooperation. Leaders also adopt the Shanghai 1998 • Kuala Lumpur, Malaysia Goals. The APEC Privacy Framework is launched. Accord which focuses on: broadening the APEC APEC Ministers agree on a Blueprint for Action on vision to reflect changes resulting from the digital Electronic Commerce, including a commitment to 2004 • , Chile economy; clarifying the roadmap to reach the paperless trading by 2005 in developed economies APEC adopts Best Practices for RTAs and FTAs, a Bogor Goals; and strengthening the IAP Peer and by 2010 in developing economies. reference guide for APEC members undertaking Review Process and capacity building activities. An RTA/FTA negotiations. The Leaders’ Agenda to e-APEC Strategy identifying the necessary policy 1997 • Vancouver, Canada Implement Structural Reform (LAISR) is launched. environment and specifying appropriate goals and APEC endorses a proposal for early voluntary It addresses five priority areas: regulatory reform; actions to maximise the benefits of the digital sectoral liberalisation in 15 sectors and decides corporate governance; public governance; economy is also endorsed. that Individual Action Plans should be updated 1995 • Osaka, Japan 1994 • Bogor, Indonesia 1993 • Blake Island, United States competition policy; and strengthening economic annually. legal infrastructure. Leaders endorse the Santiago 2000 • Bandar Seri Begawan, APEC adopts the Osaka Action Agenda which APEC sets the Bogor Goals of “free and open trade APEC Economic Leaders meet for the first time provides a framework for meeting the Bogor and investment in the Asia-Pacific by 2010 for and outline APEC’s vision of “stability, security and Commitment to Fight Corruption and Ensure Brunei Darussalam 1996 • Manila, Philippines Goals through trade and investment liberalisation, industrialised economies and 2020 for developing prosperity for our peoples.” Transparency. APEC commits to the Action Agenda for the New The Manila Action Plan for APEC is adopted, business facilitation and sectoral activities, economies.” The Uruguay Round of multilateral Economy. Leaders set the goals of tripling internet outlining the trade and investment liberalisation underpinned by policy dialogues and economic trade negotiations conducted under the General 1989 • Canberra, Australia 2003 • Bangkok, Thailand access throughout the APEC region by 2005, and and facilitation measures required to reach the and technical cooperation. The APEC Business Agreement on Tariffs and Trade is concluded. APEC APEC begins as an informal Ministerial-level Members undertake to implement the APEC Action achieving universal access by 2010. Bogor Goals. The first Collective and Individual Advisory Council is established to inject a business is widely considered to have been a significant force dialogue group with 12 founding members. Plan on SARS and the Health Security Initiative Action Plans are compiled, outlining how economies perspective into APEC deliberations and to give in bringing the Uruguay Round to a conclusion. to help the region prevent and respond to health will achieve the free trade goals. advice on business sector priorities. threats. Leaders pledge to strengthen regional efforts to promote sound and efficient financial systems and encourage the development of domestic and regional bond markets.

34 35 About APEC

The Asia-Pacific Economic Cooperation (APEC) is a regional Economic Data Benefits of APEC economic forum established in 1989 to leverage the growing Imports of Exports of APEC has grown to become a dynamic engine interdependence of the Asia-Pacific. APEC’s 21 members Merchandise Merchandise of economic growth and one of the most Goods and Goods and aim to create greater prosperity for the people of the region Population GDP per Commercial Commercial important regional forums in the Asia-Pacific. Its Member Economy and in 2017 GDP in 2017 capita in Services in 2017 Services in 2017 21 member economies are home to around 2.9 by promoting balanced, inclusive, sustainable, innovative Year Joined (thousands) (US$m) 2017 (US$) (US$m) (US$m) billion people and represent approximately 60 Australia (1989) 24,598.9 1,323,421.1 53,799.9 295,192.1 295,113.8 and secure growth and by accelerating regional economic per cent of world GDP and 47 per cent of world Brunei Darussalam (1989) 428.7 12,128.1 28,290.6 4,451.1 6,079.8 integration. trade in 2017. Canada (1989) 36,708.1 1,653,042.8 45,032.1 547,424.3 506,767.0 APEC ensures that goods, services, investment and people Chile (1994) 18,054.7 277,075.9 15,346.4 78,124.8 79,439.3 As a result of APEC’s work, growth has soared move easily across borders. Members facilitate this trade China (1991) 1,386,395.0 12,237,700.5 8,827.0 2,307,923.0 2,489,759.4 in the region, with real GDP increasing from Hong Kong, China (1991) 7,391.7 341,449.3 46,193.6 666,977.1 653,872.9 through faster customs procedures at borders; more favorable approximately just USD 19 trillion in 1989 to Indonesia (1989) 263,991.4 1,015,539.0 3,846.9 189,373.3 192,503.6 USD 44.8 trillion in 2017. Meanwhile, residents business climates behind the border; and aligning regulations Japan (1989) 126,785.8 4,872,136.9 38,428.1 860,781.3 878,136.8 of the Asia-Pacific saw their per capita income and standards across the region. Korea (1989) 51,466.2 1,530,750.9 29,742.8 598,794.9 660,162.9 rise threefold, lifting millions out of poverty and Malaysia (1989) 31,624.3 314,500.3 9,944.9 236,847.4 254,500.8 creating a growing middle class in less than APEC works to help all residents of the Asia-Pacific participate Mexico (1993) 129,163.3 1,149,918.8 8,902.8 468,817.1 436,321.3 three decades. in the growing economy. For example, APEC projects provide APEC’s 21 member economies are New Zealand (1989) 4,793.9 205,852.8 42,940.6 52,918.8 54,059.6 digital skills training for rural communities and help indigenous Papua New Guinea 8,251.2 21,088.8 2,555.9 4,890.3 8,394.2 Bringing the region closer together, reducing Australia; Brunei Darussalam; Canada; (1993) trade barriers, and smoothing out differences women export their products abroad. Recognizing the impact Chile; People’s Republic of China; Peru (1989) 32,165.5 211,389.3 6,571.9 48,532.4 52,483.7 in regulations have boosted trade which has of climate change, APEC members also implement initiatives Hong Kong, China; Indonesia; Japan; Philippines (1989) 104,918.1 313,595.2 2,989.0 127,716.4 104,300.1 also led to this dramatic increase in prosperity. to increase energy efficiency and promote sustainable Russia (1998) 144,495.0 1,577,524.1 10,743.1 325,348.4 410,493.9 Average tariffs fell from 17 per cent in 1989 Republic of Korea; Malaysia; Mexico; Singapore (1989) 5,612.3 323,907.2 57,714.3 498,271.1 537,640.8 to 5.3 per cent in 2017. During that same time management of forest and marine resources. New Zealand; Papua New Guinea; Chinese Taipei (1991) 23,555.5 572,767.0 24,318.0 312,037.0 361,970.0 period, the APEC region’s total trade increased The forum adapts to allow members to deal with important Peru; The Republic of the Philippines; Thailand (1989) 69,037.5 455,220.9 6,593.8 267,078.5 311,988.6 six fold—outpacing the rest of the world with United States (1989) 325,719.2 19,390,604.0 59,531.7 2,924,498.0 2,307,993.9 two-thirds of this trade occurring between new challenges to the region’s economic well-being. For Russia; Singapore; Chinese Taipei; Viet Nam (1998) 95,540.8 223,864.0 2,343.1 228,310.9 227,309.2 member economies. example, some of APEC’s shared goals are to ensure disaster Thailand; United States; Viet Nam. APEC 2,890,697.0 48,023,477.1 16,613.1 11,044,308.3 10,829,291.7

resilience, planning for pandemics and addressing the threat Source: StatsAPEC http://statistics.apec.org/ of terrorism. Extracted: December 2018

36 37 About APEC

APEC Process The APEC Secretariat

APEC operates as a cooperative, multilateral building projects help members implement APEC for overarching goals and initiatives. The working The APEC Secretariat is staffed with a team of diplomats seconded from APEC member economic and trade forum. Member economies* initiatives. groups are then tasked with implementing these economies as well as by professional, specialist and administrative staff. The Secretariat participate on the basis of open dialogue and initiatives through a variety of APEC-funded is headed by an Executive Director. respect for views of all participants. In APEC, all APEC’s structure is based on both a “bottom-up” projects. Members also take individual and economies have an equal say and decision-making and “top-down” approach. Four core committees collective actions to carry out APEC initiatives in The APEC Secretariat holds ISO 9001 Quality is reached by consensus. There are no binding and their respective working groups provide their individual economies with the assistance of Management Certification. This recognises the commitments or treaty obligations. Commitments strategic policy recommendations to APEC APEC capacity building projects. continuous efforts made by the APEC Secretariat are undertaken on a voluntary basis and capacity Leaders and ministers who annually set the vision to provide high quality administrative and support activities. The APEC Secretariat is the first *The word ‘economies’ is used to describe APEC members because the APEC process is predominantly concerned with trade and economic issues, and members engage with one another as economic entities. international trade-related secretariat to attain ISO certification.

APEC Organisational Chart Leaders’ Meeting

Sectoral Finance Deputies’ The APEC Policy APEC Stakeholder APEC Business Ministerial Meeting Advisory Council Ministerial Meetings Meeting Support Unit Participation

Senior Officials’ Senior Finance The APEC Policy Support Unit (PSU), established in APEC recognises that strong and vibrant Through the APEC Study Centres Consortium Meeting Officials’ Meeting 2008, provides research, analysis and evaluation economies are not built by governments alone, (ASCC), APEC member economies actively APEC Secretariat capabilities to assist in the implementation of but by partnerships between governments engage academic and research institutions in APEC’s agenda. The PSU is guided and overseen and key stakeholders, including the business the APEC process. The ASCC assists the APEC by a board that comprises representatives from sector, industry, academia, policy and research process by undertaking independent policy the current, immediate past and next APEC host institutions, and interest groups within the research on APEC-related issues. There are APEC Committee on Budget and SOM Steering Committee Economic Committee Study Centres in most APEC member economies, Trade and Investment Management Committee on ECOTECH economy, and from each major donor. community. comprising some 50 universities, research APEC member economies recognise that business centres and centres of academic excellence. Sub- Industry Friends of Policy Working Group Sub-Forum drives the economies of the region and therefore committee Dialogue the Chair Partnership and Task Force involves business at all levels of the APEC process. At the highest level, APEC Economic Leaders communicate through annual meetings Every year one of the 21 member economies hosts the APEC meetings and serves as the APEC Chair. The APEC host with the APEC Business Advisory Council (ABAC). economy is responsible for chairing the annual Economic Leaders’ Meeting, Ministerial Meetings, Senior Officials’ ABAC comprises high-level business people from Meetings, the APEC Business Advisory Council and the APEC Study Centres Consortium. all 21 APEC member economies.

38 39 About APEC

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