HKCPEC/Inf/1/2016 25 April 2016 MEMORANDUM FOR THE HONG KONG COMMITTEE FOR PACIFIC ECONOMIC COOPERATION (HKCPEC) Asia-Pacific Economic Cooperation (APEC): Outcome of the First Senior Officials Meeting in 2016 SUMMARY The First Senior Officials Meeting (SOM1) of APEC 2016 was held on 3 and 4 March 2016 in Lima, Peru, preceded by a number of committee, sub-committee and experts group meetings. The delegation of Hong Kong, China (HKC) was led by Deputy Director-General of Trade and Industry (Multilateral Trade, Regional Cooperation & Bilateral Trade). This note informs Members of the key outcome of SOM1. 2. The theme for APEC 2016 is Quality Growth and Human Development. Discussion at SOM1 centred on four priority areas for 2016, namely (i) Advancing Regional Economic Integration and Quality Growth; (ii) Enhancing the Regional Food Market; (iii) Towards the Modernization of Micro, Small and Medium Enterprises (MSMEs) in the Asia-Pacific; and (iv) Developing Human Capital. DETAILS Advancing Regional Economic Integration and Quality Growth Supporting the Multilateral Trading System (MTS) 3. SOM1 reached a broad consensus for issuing a statement in support of the MTS at the APEC Ministers Responsible for Trade (MRT) meeting to be held in May 2016. They agreed to work closely with their counterparts in the World Trade Organization (WTO) in preparing the draft statement, taking into account the elements proposed jointly by Canada and Singapore, such as the outcome of the WTO Ministerial Conference in Nairobi in December 2015, and the call for earlier implementation of concluded agreements. HKC took the opportunity to urge other APEC member economies, which are also WTO members, to expedite their acceptance of the WTO Trade Facilitation Agreement so that its benefits could be realized as soon as possible.
- 2 - Free Trade Area of the Asia-Pacific (FTAAP) 4. The senior officials noted that the Task Force had prepared the first eight draft chapters of the Collective Strategic Study on Issues Related to the Realization of the FTAAP for comments by all APEC member economies. With a view to completing the Study by the end of 2016 as mandated by the leaders of the APEC member economies, SOM1 agreed on the next steps leading up to the MRT meeting, which include revising the draft chapters, drafting the remaining chapter, and conducting consultation with the APEC Policy Support Unit (PSU), the APEC Business Advisory Committee (ABAC) and the Pacific Economic Cooperation Council (PECC). Global Data Standards (GDS) 5. HKC updated APEC member economies on the latest progress of the GDS project, jointly organised by HKC and New Zealand (NZ). The project seeks to promote a wider use of GDS to enhance supply chain performance. Specifically, the pilot project on deer velvet led by NZ was completed. The two pilot projects on wine and boxed meat, respectively led by HKC and Australia, have been launched. The remaining pilot projects were expected to commence later this year. The related study by the PSU on the cost-benefit analysis of GDS application was under way. APEC Services Competitiveness Roadmap 6. Leaders of APEC member economies endorsed in 2015 the development of a strategic and long-term APEC Services Competitiveness Roadmap to move forward APEC s agenda on services. At SOM1, the senior officials exchanged views on the outline of the Roadmap, the enabling factors of services competitiveness and the timeline for developing the Roadmap. It was agreed that a draft outline of the Roadmap would be prepared by the Second Senior Officials Meeting (SOM2) in May 2016, and a Public-Private Dialogue on Services would be held in the margins of SOM2 to support the development of the Roadmap. The target was to complete the Roadmap with agreed actions and targets to be achieved by 2025 for endorsement by APEC leaders by November 2016. Structural Reform 7. The APEC Economic Committee (EC) Chair reported on EC s work in 2016 to support the APEC priorities, including issues related to the Renewed Agenda for Structural Reform (RAASR). Under RASSR, each APEC member economy will develop in 2016 an individual action plan setting out its structural reform priorities, objectives and policies through to 2020.
- 3-8. HKC appreciated the EC Chair s report and pledged support by undertaking to develop HKC s individual action plan this year. As strengthening economic and legal infrastructure is an important tool of structural reform, HKC, in its capacity of the coordinator of the Friends-of-the-Chair Group (FotC) on Strengthening Economic and Legal Infrastructure (SELI) under the EC, has been working with other APEC member economies on this front. HKC thanked the fifteen member economies which had joined the FotC on SELI and encouraged more member economies to join. 9. HKC co-champions the priority area of enforcing contracts, an important aspect of legal infrastructure, in the Second APEC Ease of Doing Business (EoDB) Action Plan. Under the Action Plan, HKC organised a self-funded capacity building workshop on Alternative dispute resolution - the key to efficient settlement of business disputes on 26 February 2016 in the margins of SOM1. The workshop was well attended. HKC planned to organise another workshop in 2017 on the use of international instruments to strengthen contract enforcement in supply chain finance for global business. These workshops were also closely related to SELI. Urbanisation 10. China briefed SOM1 on the preparation of an APEC High-Level Forum on Urbanisation to be held in China in June 2016. With the theme of urbanisation and inclusive growth, the Forum would discuss (i) connectivity and expansion of urban infrastructure for regional integration, (ii) regeneration and renewal of cities, (iii) innovation in urban governance, (iv) the Internet Plus and Smart City Concepts, (v) low-carbon, green and sustainable cities, and (vi) financial innovation concerning urbanization. The Forum would invite high-ranking officials of relevant government agencies of APEC Member Economies, mayors, renowned scholars and experts, entrepreneurs, and media representatives to attend. Enhancing the Regional Food Market 11. APEC senior officials articulated their economies efforts to enhance the regional food market. HKC shared its policy objective of maintaining a stable and well diversified food supply through an open, efficient and competitive food market and food trade. China announced its plan to organise later this year (i) a seminar to discuss food loss reduction, food infrastructure and investment facilitation; and (ii) a project on enhancing grain quality standards.
- 4 - Towards the Modernization of Micro, Small and Medium Enterprises (MSMEs) Boracay Action Agenda to Globalize MSMEs 12. SOM1 also discussed the next steps on the APEC Boracay Action Agenda to Globalize MSMEs (BAA) and the APEC BAA Implementation Plan. It endorsed the reporting template proposed by the Philippines for APEC committees, working groups and sub-fora to monitor work on implementing the BAA from 2016 to 2020. Member economies were also encouraged to share information on initiatives to build dynamic, global MSMEs within the Asia-Pacific region. The results of the annual stocktake would be used as a reference by APEC senior officials during the 2018 mid-term review of the BAA. Developing Human Capital 13. APEC senior officials shared their economies initiatives and proposals to develop human capital in the Asia-Pacific. Korea briefed the meeting on its initiative to boost youth employment and entrepreneurship. Under the initiative, there were five proposed actions, namely (i) sharing best practices and developing policy recommendations for promoting youth employment and entrepreneurship, (ii) developing APEC programmes for supporting young entrepreneurship and business start-ups, (iii) developing APEC programmes for promoting youth employment, through means including vocational education, training and internship, (iv) facilitating youth mobility through qualifications recognition, and (v) developing an APEC Youth Portal. Korea s initiative received good support from member economies, including HKC, which had offered to co-sponsor the initiative. 14. Malaysia presented its proposal on APEC Internship, which would offer internship places in Malaysia to bright students from APEC member economies. APEC senior officials welcomed Malaysia s proposal and considered that it might have synergy with Korea s proposal mentioned in paragraph 13 above. COMMENTS 15. HKC is pleased with the progress of the Collective Strategic Study for FTAAP, and look forward to working with other APEC member economies on the next steps, with a view to completing the Study by end 2016. We will also provide contributions to the statement on supporting the MTS and the APEC Services Competitiveness Roadmap in the coming months. 16. On the GDS project, HKC and NZ will continue to work with participating Member Economies, the PSU and relevant stakeholders to take forward the pilot projects and the related study.
- 5-17. HKC s workshop on Alternative dispute resolution - the key to efficient settlement of business disputes held on 26 February 2016 to encourage the use of dispute resolution (instead of litigation) as a means of efficient settlement of business disputes was well attended and well received. As the co-champion of enforcing contracts under the EoDB Action Plan, HKC will continue to organize and participate in related capacity building activities. As the coordinator of the EC FotC on SELI, HKC will continue to collaborate with other member economies to strengthen the economic and legal infrastructure in the Asia-Pacific. 18. We welcome the initiatives related to the priority area of developing human capital, and look forward to working with other member economies to provide more education and internship opportunities for young people in the region. ADVICE SOUGHT 19. Members are invited to note the content of this memorandum. Hong Kong Committee for Pacific Economic Cooperation Secretariat Ref: EIC 1016/10/1 2016 CR EIC 1013/35