RESTRICTED MEMORANDUM FOR THE HONG KONG COMMITTEE FOR PACIFIC ECONOMIC COOPERATION
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1 HKCPEC/Inf/3/16 9 December 2016 MEMORANDUM FOR THE HONG KONG COMMITTEE FOR PACIFIC ECONOMIC COOPERATION Asia-Pacific Economic Cooperation (APEC): Outcome of the Third Senior Officials Meeting in 2016 SUMMARY The Third Senior Officials Meeting (SOM3) of APEC 2016 was held on August 2016 in Lima, Peru, preceded by a number of committee, sub-committee and experts group meetings. The Hong Kong, China (HKC) delegation was led by the Director-General of Trade and Industry. This note informs Members of the key outcome of SOM3. 2. The theme for APEC 2016 is Quality Growth and Human Development. The major issues discussed at SOM3 were related to the four priorities in 2016, namely (i) advancing regional economic integration and quality growth, (ii) enhancing the regional food market, (iii) promoting the modernization of micro, small and medium enterprises in the Asia-Pacific, and (iv) developing human capital. DETAILS Advancing Regional Economic Integration and Quality Growth Supporting the Multilateral Trading System (MTS) 3. Senior Officials welcomed the progress on member economies notifications of acceptance of the World Trade Organization (WTO) Agreement on Trade Facilitation (TFA), which showed APEC s support to the MTS 1. Senior Officials called on all remaining member economies to expedite their domestic processes for notifying acceptance of the WTO TFA by November Of the 21 APEC member economies, 16 economies have accepted the TFA.
2 Bogor Goals Senior Officials received updates by the APEC Policy Support Unit (PSU) on the Second-term Review of Economies Progress towards the Bogor Goals, and looked forward to receiving the final version of the report by November They also welcomed an initial exchange of views at the Dialogue on APEC Toward 2020 and Beyond held in the margins of SOM3, which set out the unfinished business for attaining the Bogor Goals by 2020 and the possible post-2020 vision for APEC. Free Trade Area of the Asia-Pacific (FTAAP) 5. Senior Officials took note of the progress of the Collective Strategic Study on Issues Related to the Realization of the FTAAP, including the finalized 9 study chapters and the revised draft on the last chapter of recommendations. They instructed officials to accelerate the work on finalizing the Study with a view to seeking leaders endorsement in November HKC urged member economies to resolve the remaining differences over the last chapter of recommendations, with the aim to present a practical way forward to leaders towards an early realization of the FTAAP. Global Data Standards (GDS) 6. HKC updated member economies on the latest progress made on a suite of GDS pilot projects jointly organized by HKC and New Zealand (NZ), which were expected to be completed by end of this year. The APEC Policy Support Unit (PSU) also presented its study on the application of GDS for enhancing supply chain connectivity from the earlier completion of two pilots on wine and boxed meat. Member economies were encouraged to explore next steps for the wider use of GDS in the APEC region based on the outcome of the PSU s study. Structural Reform 7. The Chair of APEC Economic Committee reported to the Senior Officials on the Committee s work on taking forward structural reform, including the compilation of member economies individual action plans under the Renewed APEC Agenda for Structural Reform (RAASR). In the margins of the reporting, HKC encouraged member economies to participate in HKC s capacity building workshop on strengthening contract enforcement in supply chain finance for global business, to be held in Viet Nam in the margins of the First 2017 SOM (SOM1). The workshop would contribute to strengthening economic and legal infrastructure, and enhancing ease of doing business under the umbrella of structural reform.
3 Urbanization Member economies updated the Senior Officials on their initiatives related to urbanization. Senior Officials took note of China s report on the successful conclusion of the APEC High-level Forum on Urbanization held in Ningbo, China in June A number of member economies, including HKC, attended the Forum. At SOM3, HKC shared experience in urbanization and indicated support to the Ningbo Declaration issued by the Forum. As infrastructure connectivity underpinned urbanization, HKC highlighted the launch of the Infrastructure Financing Facilitation Office in Hong Kong earlier this year to bring relevant stakeholders together to facilitate infrastructure financing in the Asia-Pacific region. Services 9. Senior Officials welcomed the second draft of the APEC Services Competitiveness Roadmap, which set out, among others, an overall target for APEC member economies of raising trade in services so that by 2025, exports and imports of services from APEC as a whole would exceed average global levels. Senior Officials instructed officials to finalize the Roadmap and to prepare an executive summary for leaders endorsement in November 2016, with a view to implementing the Roadmap to enhance the competitiveness of services sectors in the region. Enhancing the Regional Food Market 10. Peru updated the Senior Officials on the preparation of the Fourth APEC Food Security Ministerial Meeting to be held in Peru on September Senior Officials endorsed the 2016 work plan of the APEC High-Level Policy Dialogue on Agricultural Biotechnology. Member economies updated the Senior Officials on their projects related to strengthening food security. Promoting the Modernization of Micro, Small and Medium Enterprises (MSMEs) in the Asia-Pacific 11. The Philippines reported on the progress of compiling the 2016 stocktake for the Boracay Action Agenda to globalize MSMEs and the contributions by APEC fora so far. Member economies updated the Senior Officials on their latest initiatives and projects towards the modernization of MSMEs, including Peru s initiative on establishing a compendium of methodologies for SME internationalization and Thailand s project on greening MSMEs for sustainable development. These two initiatives generally received favourable responses from member economies. HKC underscored SMEs
4 - 4 - significance to the economy and expressed strong interest in initiatives beneficial to SMEs growth. Global Value Chains (GVCs) 12. Senior Officials welcomed the progress in implementing the workstreams of the APEC Strategic Blueprint for Promoting Global Value Chain Development and Cooperation (GVC Blueprint), including activities related to the measurement of APEC trade in value-added under GVCs, and the initiative on promoting SMEs integration into GVCs in services industries. Developing Human Capital 13. Member economies updated Senior Officials on their projects for developing human capital. In particular, Australia proposed to develop an APEC Labour Mobility Framework, a living document aiming at supporting collaboration among member economies to develop agile, efficient and effective systems that enhanced the mobility of labour and skills to meet demand and stimulate growth and employment. Australia would further consult the relevant APEC fora inter-sessionally on its proposal. COMMENTS 14. HKC has been working closely with APEC member economies on the Collective Strategic Study for the FTAAP. We look forward to the completion of the Study by end 2016, and the early realization of the FTAAP. We are also supportive of the work related to the APEC Services Competitiveness Roadmap and the GVC Blueprint. 15. On the GDS pilot projects, HKC and NZ will continue to work with participating member economies, the PSU and relevant stakeholders to take forward the remaining pilot projects and the related study. 16. It was noted at the APEC Economic Committee meetings held in March 2016 that there would still be room for improvement in facilitating contract enforcement in the outcome of the First APEC Ease of Doing Business (EoDB) Action Plan ( ). In this regard, HKC has volunteered as a co-champion economy for "Enforcing Contracts" in the Second EoDB Action Plan ( ) in a bid to build up member economies capacity in this area. HKC looks forward to member economies active participation in our workshop on strengthening contract enforcement in supply chain finance, an important topic for managing global business, to be held in the margins of 2017 SOM1.
5 HKC is highly urbanized among APEC member economies. We support the development of work programs and strategies to realize sustainable city development and urbanization in the Asia-Pacific region. We will continue to share our experience in this regard. ADVICE SOUGHT 18. Members are invited to note the content of this memorandum. Hong Kong Committee for Pacific Economic Cooperation Secretariat Ref: EIC 1016/10/ CR EIC 1013/35
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