APEC 2010

May 27, 2010 Ministry of Foreign Affairs, Japan Ministry of Economy, Trade and Industry, Japan Contents

１．Logo for APEC Japan 2010 ・・・・・・２ ２．Theme of APEC Japan 2010 ・・・・・・３ ３．Positioning of APEC Japan 2010 ・・・・・・４ ４．APEC Member Economies ・・・・・・５ ５．International Frameworks in Asia-Pacific region ・・・・・・６ ６．Significance of APEC ・・・・・・７ ７．Structure of APEC ・・・・・・９ ８．Cooperation with Business Community ・・・・・・１０ ９．History of APEC ・・・・・・１２ １０．Major Results of APEC Economic Leaders’ Meeting ・・・・・・１３ １１．Significance of APEC Japan 2010 ・・・・・・１４ １２．Schedule for APEC Japan 2010 ・・・・・・１６

1 １．Logo for APEC Japan 2010

2 ２．Theme of APEC Japan 2010

Change and Action

During this period of significant change in the global political and economic order, APEC should build upon its past successes to propose necessary “changes” and execute concrete “actions” to ensure that it will continue to play an important and relevant role in the 21st Century.

3 ３．Positioning of APEC Japan 2010

Basic Principles ● A framework established to connect East Asia and the Americas. ● Pursue economic integration and regional cooperation for sustainable development of the Asia-Pacific region. ● The sole framework for regional economic cooperation participated by the world’s three economic powers: Japan, the United States and .

Features ● APEC activities are limited to the economic sphere. ● The Obama Administration places emphasis on APEC. The U.S. has ensured its active engagement in the Asia-Pacific economy. ● Close coordination with the business community. The APEC Business Advisory Council, established as a bridge between business and APEC Leaders, actively makes recommendations to the APEC Economic Leaders. ● Establishing an environment that facilitates business development in the Asia-Pacific region.(Note: Specific results include the implementation of the APEC Business Travel Card.) 4 ４．APEC Member Economies （Total membership: 21 economies）

A total of 21 economies participate. A major feature is the concurrent participation of China; , China; & .

Russia Republic of Korea

People’s Republic of China Japan United States Chinese Taipei Hong Kong, China Republic of Viet Nam Singapore

Brunei Darussalam

New Zealand

5 ５．International Frameworks in the Asia-Pacific Region

APEC

ASEM EAS ASEAN

Brunei, Indonesia, Malaysia, Laos, Pakistan, European Philippines, Singapore, Myanmar, India Mongolia Union Thailand, Viet Nam Cambodia

Japan, China, Republic of Korea European ASEAN+3 Commission Australia,

United States, Canada, , Papua New Guinea North Korea ARF Hong Kong, China; Chinese Taipei; Mexico; Chile; Peru

6 ６．Significance of ＡＰＥＣ

◆Dependence on intra-regional trade in each regional framework

ASEAN + 3 EAS member economies APEC Extra- Intra-regional Intra-regional Extra- trade Extra- regional Intra-regional trade regional 43.1% regional trade trade trade US$2,533.8 bil. trade 42.8% 32.9% 67.1% 56.9% 57.2% US$2,840.3 bil. 52.0% US$8,469.5 bil. (including Taipei & Hong Kong)

Total: US$5,880.6 bil. Total: US$6,639.7 bil. Total : US$12,613.3 bil.

【Reference】 NAFTA EU Extra- Intra-regional regional Intra-regional Extra- trade regional trade trade 41.7% 34.2% trade 65.8% US$1,824.1 bil. 58.3% US$7,120.0 bil. Total: US$4,373.8 bil. Total: US$10,816.1 bil.

Data in 2007

7 ◆Economic Relations with APEC Region as Seen from Japan

Exports from Japan Imports to Japan

APEC Region APEC Region 75% APEC地 60% 域 75%

Direct Investment from Japanese residents in Japan foreign countries APEC Region 53.62% APEC Region 790,000 persons 72.7% 8 ７．Structure of ＡＰＥＣ

Sectoral Ministerial Meetings APEC Business Leaders’ Meeting ★Trade ★Finance ★Tourism ★Ocean-related ★Education Reports Advisory Council Ministerial Meeting ★Transportation ★ Environment (MOFA / METI Ministers) ★Small & Medium Enterprises ★Health (ABAC) ★ ★ ReportsInstruction Human Resource Development Regional Science & Technology Cooperation Budget & Management Committee Advice, s Recommendations Senior Officials’ Meeting ★Women’s Affairs ★Energy ★Mining (BMC) ★ (SOM) Telecommunications & Information Instructions ★Food Security APEC Secretariat Instructions Reports

Committee on Trade & Investment SOM Steering Committee on Economic (CTI) ECOTECH (SCE) Market Access Group（MAG） Committee (EC) Working Groups (WGs) Sub-Committee on Customs Procedures（SCCP） ★Health (HWG) ★Energy (EWG) Sub-Committee on Standards & Conformance（SCSC） ★Small & Medium Enterprises (SMEWG) ★Human Resource Development (HRDWG) Group on Services（GOS） Competition Policy & ★Telecommunications & Information (TELWG) Law Group (CPLG) Government Procurement（GPEG） ★Tourism (TWG) ★Transportation (TPTWG) Investment Experts Group（IEG） ★Industrial Science & Technology (ISTWG) ★Agricultural Technical Cooperation (ATCWG) Intellectual Property Rights（IPEG） ★Fisheries (FWG) ★Marine Resources Conservation (MRCWG) Business Mobility Group (BMG) ★Emergency Preparedness (EPWG)

Electronic Commerce Steering Group（ECSG） Counter-Terrorism Task Force（CTTF）

Automotive Dialogue Anti-Corruption and Transparency Experts Task Force （ACT） Chemical Dialogue Gender Focal Point Network（GFPN）

Life Sciences Innovation Forum (LSIF) Mining Taskforce（MTF） 9 ８．Cooperation with Business Community

ＡＢＡＣ: APEC Business Advisory Council

● APEC’s official advisory body. Its establishment was decided at the Ministerial Meeting and the Economic Leaders’ Meeting held in in 1995. ● Its role is to monitor APEC activities and advise APEC about priority issues for the business community. ● Japanese members are as follows. They assume duty upon nomination by the Prime Minister. Gempachiro Aihara Counselor, Mitsui & Co., Ltd. (Chair of ABAC 2010) Yoshihiro Watanabe Advisor, Bank of Tokyo-Mitsubishi UFJ, Ltd. Yasuo Morimoto Senior Adviser, Toshiba Corporation ● Four general meetings are held every year and recommendations are submitted to the Economic Leaders. A dialogue is held once a year at the APEC Economic Leaders’ Meeting between the Leaders and ABAC members.

10 （Reference） Business Community’s Interest & APEC’s Efforts

・The business communities of 21 economies have formed an APEC-supporting network, ABAC (APEC Business Advisory Council). ・Major production bases of and markets for Japanese companies exist in the Asia-Pacific region. ・Helping to accelerate the establishment of a free business environment through APEC.

Labor MobilityLabor Mobility TradeTrade Capital FlowCapital Flow ● ●Business Community’s Interest: Business Community’s Interest: ● “Facilitating mobility of business “Ensuring both trade liberalization/facilitation & security” Business Community’s Interest: people” (2009 “ABAC Report to APEC (2009 “ABAC Report to APEC Economic Leaders”) “Improvement of financial infrastructure,” Economic Leaders”) “Facilitation of financing for SMEs” ●Examples of Efforts by APEC (2009 “ABAC Report to APEC Economic Leaders”) ・Since 2008: The “Authorized Economic Operator (AEO) ●Examples of Efforts by APEC ● system” promoted & spread for developing economies/ Examples of Efforts by APEC ・Since 1996: “APEC Business Travel ・ regions (to simplify export/import declarations by trade-related AEOs) Since 2008: In response to the financial Card” (ABTC) introduced crisis, the “Asia-Pacific Trade Insurance – So far 18 economies have introduced (20 economies if including the U.S. and Canada ・Japan already signed mutual recognition arrangements with Network” has been expanded. where the ABTC can be used only for the United States & New Zealand (study under way with Canada, (Export credit institutions give each other reinsurance coverage. Cooperation in human passenger clearance lanes) Singapore, Malaysia, China & ROK) resource development also undertaken.) ・Already joined by the U.S., Canada, ・Advantages of ABTC: Singapore, Malaysia, Indonesia & Thailand. ① Exemption of short-term visa (To be negotiated with Mexico) ② Specialized lanes available Knowledge and Technology TransferKnowledge Transfer ●Business’ Interest： Promote innovation, and develop highly efficient patent application processes. -2008 ABAC Report to APEC Leaders ●Efforts in APEC: Example ・Implementation of the APEC Cooperation Initiative on Patent Acquisition Procedures Assist APEC member economies’ patent offices with patent applications and improve their patent examination capacity.

11 ９．History of APEC

1989 ・APEC launched (the first Ministerial Meeting held in Australia) 1993 ・ The first APEC Economic Leaders’ Meeting on Blake Island in the U.S. city of Seattle. APEC Economic ・Hereafter, APEC, as a framework for promoting regional economic integration and cooperation Leaders’ Meeting linking East Asia and the Americas, has played smoothly playing the role of encouraging trade and Asian Currency investment liberalization by adoption of the Bogor Goals in 1994 and the Osaka Action Agenda in Crisis 1995.

1998 ・Attempts by the U.S. and other members to promote further voluntary liberalization leads to hurting mutual trust within APEC. And APEC fails to map out effective solutions to the Asian economic crisis triggered by the crash of the Thai baht. These developments cause APEC to temporarily lose momentum. 2001 ・APEC strengthens efforts to ensure human security such as measures against terrorism and infectious disease from the viewpoint of building a safe business environment in the wake of the 9/11 terrorist 9/11 Terrorist Attacks attacks and the outbreak of avian influenza. ・ Economic development in East Asia, including China, once again highlight the importance of APEC. In 2006, the U.S. broaches the idea of a Area of the Asia-Pacific (FTAAP). 2008 ・ The need is stressed again for efforts to tackle global economic challenges such as trade and World Economic investment, APEC’s core agenda, in the wake of the world economic and financial crisis. Crisis

12 10. Major Results of Singapore APEC Economic Leaders’ Meeting

Theme: “Sustaining Growth, Connecting the Region”

● “Growth Strategy” became the most important theme in response to the global economic crisis.

● Confirmed the importance of the following points as a common perception in the APEC region. (1) “Inclusive Growth” based on the idea of giving greater priority to social aspects and ensuring the benefits of growth to be spread more widely. (2) “Sustainable Growth” taking into consideration environmental aspects including climate change and energy.

● Agreed to map out a more comprehensive Growth Strategy including “Inclusive Growth” and “Sustainable Growth” in order to further expand domestic demand and achieve balanced growth in the Asia-Pacific region. Its specific details are to be discussed during APEC Japan 2010.

● Agreed to discuss such issues as the early conclusion of the WTO Doha Development Agenda, resistance to trade protectionism and regional economic integration in connection with the strengthening of coordination in the Asia-Pacific region.

13 １１．Significance of APEC Japan 2010

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14 ◆Points of Contention at APEC Japan 2010

●The theme of APEC Japan 2010: “Change and Action”

●The year 2010 is an important milestone for industrialized economies as it marks their deadline for the Bogor Goals (of achieving free and open trade and investment no later than 2010)

●Japan will display leadership as chair, bring forward transparent and credible work on the evaluation of achievements of the Bogor Goals, and wrap up discussions on the formulation of Growth Strategy.

●Japan will make all-out efforts, in partnership with the U.S., the chair of APEC 2011, to rebuild APEC and find its new values. 15 １２. Schedule for APEC Japan 2010

APEC Japan 2010 Symposium Tourism Ministerial Meeting （Dec. 9-10, 2009, Tokyo） （Sep. 22-23, Nara City） Informal Senior Officials’ SME Ministerial Meeting Meeting (ISOM) （Oct. 2-3, Gifu City） (Dec. 11, 2009, Tokyo) SOM I and Related Meetings Ministerial Meeting on Food （ ） （Feb. 22-Mar. 7, Hiroshima City） Security Oct.16-17, Niigata City Sapporo Ministerial Meeting on Telecom- Finance Ministers’ Meeting munications and Information Industry （Nov. 6, Kyoto City） SOM II and Related Meetings （ Oct.30-31, Nago City） （May 24-Jun. 4, Sapporo City） Concluding SOM Meeting of Ministers （Nov. 7-8, Yokohama City） Responsible for Trade Sendai （Jun.5-6, Sapporo City） APEC Ministerial Meeting Energy Minister’s Meeting Niigata （Nov.10-11, Yokohama City） （Jun.19-20, Fukui City） Fukui Tokyo APEC Economic Leaders’ Growth Strategy High Level Gifu Policy Round Table Kyoto Meeting Hiroshima Yokohama （Nov.13-14, Yokohama City） （ Aug.7-8,BeppuAug.7-8,Beppu City） Nara ABAC Meeting SOM III and Related Meetings Beppu (November, Yokohama City) （Sep.15-26, Sendai City） SME Summit (November, Yokohama City) Nago CEO Summit (November, Yokohama City)

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