WORLD TRADE WT/L/254
16December 1997
ORGANIZATION(97-5526)
Original: English/French
ASIA-PACIFIC ECONOMIC COOPERATION (APEC)
ECONOMIC LEADERS 'DECLARATION: CONNECTING THE APEC COMMUNITY
Vancouver, 25November 1997
ThefollowingDeclarationoftheAPECEconomicLeadershasbeenreceivedfromthePermanent
Mission ofCanada withtherequest thatitbecirculated toMembers.
_______________
1. We,APEC 'sEconomic Leaders, mettoday inVancouver, Canada, toreaffirm ourcommitment
towork together tomeetthechallenge ofsustaining regional prosperity andstability. Certain ofthe
dynamism andresilience oftheregion, weunderline ourresolve toachieve sustainable growth and
equitable development andtounlock thefullpotential ofthepeople wholivehere. Weagree thatthe
prospects foreconomic growth intheregion arestrong, andthatAsia-Pacific willcontinue toplay
aleading roleintheglobal economy. Thegoals wehaveset,including theachievement offreeand
opentrade andinvestment intheregion bythedates setoutintheBogor Declaration, areambitious
andunequivocal.
2. Wetakenoteoftherapid expansion ofAPEC 'sactivities inrecent years, andtheincreasing
leadership roleitplays inglobal economic affairs. Flowing fromcommitments embodied intheOsaka
Action Agenda andtheManila Action PlanforAPEC, wewelcome thedesignation of1997asAPEC 's
Year ofAction .Wehave reflected ontheconcrete results thatAPEC cooperation hasgenerated
throughout theyear, andsetoutavision ofhowwemaybuild upon these achievements intheyears
ahead. Astheyeardraws toaclose, wenotewithsatisfaction thatwehavemetandsurpassed allthe
tasks wesetforourselves atourlastmeeting inSubic.
3. APEC -Addressing shared challenges: Wehavehadathorough discussion ofrecent financial
developments intheregion. Oureconomies andtheinternational community asawhole haveastrong
interest inseeing aquick andenduring restoration offinancial stability andhealthy andsustainable
growth. These events reflect newchallenges intheinternational financial system thatrequire new
responses. Theglobal dimensions oftheseproblems suggest theneedforaglobal response, withregional
initiatives tocomplement andsupport these efforts. Weareresolved towork together toaddress these
shared challenges.
There isnodoubt thatthefundamentals forlong-term growth andprospects fortheregion
areexceptionally strong. Weremain convinced thatopen markets bring significant benefits andwe
willcontinue topursue trade andinvestment liberalization thatfosters further growth. Prudent and
transparent policies, particularly sound macroeconomic andstructural policies, human resource
development strategies, andeffective financial sector regulation arekeytorestoring financial stability
andrealizing thisgrowth potential.WT/L/254
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Butweneedtogofurther. Webelieve itiscritically important thatwemove quickly toenhance
thecapacity oftheinternational system toprevent or,ifnecessary, torespond tofinancial crises of
thiskind. Onaglobal level, theroleoftheIMFremains central. Therefore, wewelcome andstrongly
endorse theframework agreed toinManila asaconstructive steptoenhance cooperation topromote
financial stability: enhanced regional surveillance; intensified economic andtechnical cooperation to
improve domestic financial systems andregulatory capacities; adoption ofnewIMFmechanisms on
appropriate terms insupport ofstrong adjustment programs; andacooperative financing arrangement
tosupplement,whennecessary,IMFresources.WeurgerapidimplementationoftheManilaFramework.
Wealsolookforward totheconclusions oftheIMFstudy already underway ontheroleofmarket
participants intherecent crises.
Werecognize thatastheregion ’smostcomprehensive economic forum, APEC isparticularly
wellsuited toplayapivotal roleinfostering thekindofdialogue andcooperation onarange ofpolicies
anddevelop initiatives tosupport andsupplement theseefforts. WeaskourFinance Ministers, working
closely withtheirCentral Bank colleagues, toaccelerate theirwork launched inCebu inApril onthe
collaborative initiatives topromote thedevelopment ofourfinancial andcapital markets, andtosupport
freerandstable capital flows intheregion. APEC canplayaparticularly valuable roleinexploring
ways, incooperation withtheWorld Bank, theIMF, andtheAsian Development Bank, ofintensifying
itseconomic andtechnical cooperation, giving priority toupgrading financial systems, enhancing
cooperation among market regulators andsupervisors andother measures tohelpimprove theintegrity
andfunctioning offinancial markets. Agood example ofprivate-public partnership inthese areas is
therecently-announced Toronto Centre forExecutive Development ofFinancial Sector Supervisors.
WelooktoourFinance Ministers toreport onprogress onallofthese initiatives early inthe
newyearandtoconcrete outcomes attheirnextmeeting.
4. APEC mustplayanincreasing roleinaddressing suchchallenges. Weareresolved towork
together toachieve concrete results through dialogue andproblem-solving. Recognizing thediverse
interests andcircumstances ofitsmembership, APEC hasgiven risetoentirely newapproaches to
international economic cooperation. Based onthreemutually supportive pillars --tradeandinvestment
liberalization, business facilitation, andeconomic andtechnical cooperation --theAPEC approach
addresses regional challenges andopportunities inanintegrated fashion sothatallmembers develop
thecapacity toparticipate fullyinandbenefit from thiscooperation. Byconnecting thecommunity
APEChashelpedustobuildrelationshipsandshareknowledgetoimprovethewell-beingofourcitizens.
These partnerships enhance ourprosperity andprogress, enrich ourlivesandfoster thespirit ofthe
APEC community.
AYear ofAction -KeyResults
5. Wewelcome theconcrete results achieved thisyearinimplementing thetradeandinvestment
liberalization commitments wesetoutatSubic Bay.Werecognize efforts made bymembers toimprove
thecommitments intheirIndividual Action Plans. APEC 'scollective achievement inenhancing the
comparability andtransparency ofthese plans isimportant inensuring thatourundertakings arewell
understood inthemarketplace. Theviews oftheprivate sector arecritical toensuring thatAPEC 's
efforts remain focused andontarget. Inthisregard, wewelcome thereview oftheManila Action
PlanforAPEC which wascarried outbytheAPEC Business Advisory Council, andinstruct our
ministers totakeABAC 'sviews intoconsideration inthepreparation offuture plans. AsIndividual
Action Plans remain thecoremechanism forAPEC 'strade andinvestment liberalization activity, we
reaffirm ourcommitment totheirannual improvement.
6. APEC 'sliberalization proceeds onavoluntary basis, propelled bycommitments taken atthe
highest level. Inthisregard, wewelcome theaction taken toaccelerate bytwoyears thetimetableWT/L/254
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fortheidentification ofsectors forearly voluntary liberalization, adecision thatunderlines our
determination toadvance thepaceofliberalization intheregion andglobally. Weendorse theagreement
ofourMinisters thataction should betaken withrespect toearlyvoluntary liberalization in15sectors,
withninetobeadvanced throughout 1998withaviewtoimplementation beginning in1999. Wefind
thispackage tobemutually beneficial andtorepresent abalance ofinterests. Weinstruct Ministers
responsible fortrade tofinalize detailed targets andtimelines bytheirnextmeeting inJune1998. To
sustain thismomentum, wefurther instruct thattheadditional sectors nominated bymembers thisyear
tobebrought forward forconsideration ofadditional action nextyear. Weunderline ourcommitment
tocomprehensive liberalization, asstated intheOsaka Action Agenda.
7. Among multilateral andregional fora,APEC isapioneer intheareaoftrade andinvestment
facilitation. Ourbusiness community tellsusthatthisistheareaofAPEC activity ofmostimmediate
relevance tothem. Lowering costs, eliminating red-tape anddelay, promoting regulatory reform,
developingmutualrecognitionarrangementsonstandardsandconformance,andincreasingpredictability
areclear benefits, especially tooperators ofsmall andmedium-sized enterprises. TheBlueprint for
APEC Customs Modernization, which putsforward acomprehensive program toharmonize andsimplify
customsclearancesbytheyear2000,providesamodel.Weurgetheaccelerationoftradeandinvestment
facilitation through APEC 'sCollective Action Plans anddirect Ministers touseAPEC 'seconomic
andtechnicalcooperationactivitiestobuildcapacity,adaptproceduresandincorporatenewtechnologies.
8. Ontheeveofthe50thanniversary oftheGATT wereflected ontherichlegacy ithasconferred
through theencouragement ofopentrade regimes. Wereaffirm theprimacy oftheopen, rules-based
multilateral trading system under theWTO andreiterate ourcommitment toAPEC 'sactivity proceeding
onthebasis ofopenregionalism. Weinvite trading partners outside APEC tofollow suit.
Fullandactive participation inandsupport oftheWTO byallAPEC economies iskeytoour
ability tocontinue tostrengthen theglobal trading system. Weencourage theacceleration ofsubstantive
negotiations onprotocol issues andmarket access withaview toachieving universality ofWTO
membership. Wereaffirm ourundertaking toimplement fullyallexisting WTO commitments andthe
built-in agenda oftheWTO according toagreed timetables. Wealsochallenge theWTO tobuild on
APEC 'sefforts towards further broad-based multilateral liberalization. Wenotewithpleasure the
leadership thatAPEC hasdemonstrated inadvancing intheWTO theconclusion ofAgreements on
Information Technology andBasic Telecommunications. Weundertake toworkinadetermined fashion
toachieve asuccessful conclusion toWTO negotiations onfinancial services bytheagreed deadline
ofDecember 12,1997. Asagreed byourfinance andtrade Ministers, asuccessful conclusion would
include anMFN agreement based onsignificantly improved commitments. Thisresult willenhance
competition within ourfinancial systems, foster development ofregional capital markets, promote
financialintegration,improvetheregionalcapacitytointermediatesavingsandstrengthenoureconomies'
resilience inthefaceofexternal shocks.
9. Wearepleased withtheprogress thathasbeenmade inimplementing the1996 Framework
forStrengthening Economic Cooperation andDevelopment inAPEC, andcallonMinisters andofficials
tofocus onaddressing thekeychallenges identified therein. Wedirect Ministers togiveallelements
oftheFramework equal weight andattention, andtobemindful ofitsindivisibility asanintegrated
setofobjectives requiring coordination andcommunication across theAPEC agenda. Weapplaud the
effort in1997toapply thisFramework approach toAPEC 'swork ontwokeychallenges intheregion -
-infrastructure andsustainable development. Wedirect Ministers tofocus further efforts oncapacity-
building in1998through workondeveloping human resources andharnessing technologies ofthefuture
toenable allmembers oftheAPEC community tobenefit more fullyfrom trade liberalization.
10. Meetings ofMinisters responsible forfinance andtrade provided early impetus forAPEC 's
work in1997. Wecommend theiractivities asadirect contribution toourgoalforsustainable growthWT/L/254
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andequitable development. Wearealsogratified bythesubstantial contributions thatMinisters
responsible forenvironment, transportation, energy, small andmedium-sized enterprises, andhuman
resource development havemade in1997 toAPEC 'swork. Wewelcome theprogress ofAPEC fora
ininvolving business, academics andother experts, women andyouth in1997activities, andencourage
them tocontinue these efforts.
11. APEC members share abelief inthecontribution offreemarkets toachieving ourgrowth and
employment objectives. While theyhaveaclearroleinmanaging theimpacts ofeconomic transition,
governments alone cannot solve thecomplex questions posed byourinterconnected world. Weare
pleased tonotealeapinbusiness involvement inalllevels ofAPEC activity thisyear. AsLeaders,
wehaveprofited from ourdialogue withtheAPEC Business Advisory Council. Wecommend their
initiative inincreasing their exchanges withMinisters andSenior Officials. Wewillreflect on
recommendations setoutinABAC 's1997 CalltoAction .Wealsowelcome ABAC 'sintention to
establish aPartnership forEquitable Growth, andexpress appreciation forrecommendations ondiverse
andimportant issues suchasstandards, business mobility andcapital market development. Westress
theneedforAPEC tobroaden itsoutreach toawider segment ofthebusiness community.
Noteworthy in1997hasbeenthewealth ofAPEC activities andinitiatives insupport ofsmall
andmedium-sized enterprises (SMEs). Although oursisaregion oftraders, many SMEs encounter
obstacles totheirfullparticipation. Westress theimportance ofstrengthening ourSME sectors, to
allow themtotakeadvantage oflinkages intoregional tradeandinvestment opportunities bypromoting
abusiness environment thatstimulates creation ofnewenterprises. Wecommend thefactthatmany
specialized APEC forahavedeveloped programs toaddress theneeds ofSMEs. Wetakenoteofthe
priorities andapproaches setoutinAPEC 's1997Framework forSMEs ,andinstruct Ministers toensure
theyareapplied.
AVision forthe21stCentury
12. Connecting APEC 'sinstruments: Intense growth intheeconomies ofAsia-Pacific overthe
pastdecade hashadfarreaching impacts onoursocieties. Growth andemployment, aswellasimproved
incomes andquality oflife,arewelcome benefits. Inallofoursocieties these positive outcomes have
beenaccompanied bystructural andenvironmental pressures. Globalization hasemerged asareality.
Rapid urbanization andadvances ininformation technology aretransforming ourcityscapes, aswell
asthewayinwhich weinteract. Ourability toadapt tonewdevelopments willdetermine oursuccess
inachievingsustainableandequitabledevelopmentamongandwithinsocietiesintheregion.Weapplaud
theefforts made thisyeartointegrate APEC 'sinstruments --liberalization, facilitation andeconomic
andtechnical cooperation --inaddressing emerging challenges.
13. Connecting withourconstituents: Westress ourcommon belief thatongoing andambitious
tradeandinvestment liberalization remains indispensable tothehealth ofoureconomies. Tounderpin
ourefforts, support among thepeople oftheregion forcontinuing trade andinvestment liberalization
isessential. Wewelcome thedecision byMinisters todevelop anAPEC-wide work program toassess
thefullimpacts oftrade liberalization, including itspositive effects ongrowth andemployment, and
toassist members inmanaging associated adjustments.
14. Connecting oureconomies: Ourdiscussions today havefocused onregional infrastructure
requirements insupport ofeconomic andsocial development. Weendorse theworkthathasbeencarried
outthisyearoninfrastructureapplicationstomakecitylifemoresustainable,inparticulartheSustainable
Cities Program ofAction .Therapid growth ofurban centres poses daunting challenges suchas
bottlenecks, supply constraints, aswellashealth andenvironmental concerns. Governments muststrive
toensure adequate access toinfrastructure forpeople inallwalks oflife,urban orrural. CapacityWT/L/254
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building through economic andtechnical cooperation isessential toensure theability ofalleconomies
toaddress these critical challenges.
Infrastructure isinextricably linked tothequestions offinancial stability thatwehaveaddressed.
Inaddressing regional infrastructure decisions, governments andbusiness mustwork together toensure
thatlong-term financial sustainability isadequately considered. Cooperation withbusiness and
international financial institutions anddevelopment banks canbecritical toachieving optimal project
planning. Weendorse theattached Vancouver Framework forEnhanced Public-Private Partnerships
forInfrastructure Development .Wealsoarepleased bytheagreement toenhance cooperation among
Export Credit Agencies andExport Financing Institutions insupport ofregional infrastructure
development, aswellasagreement toundertake afeasibility study onaNetwork ofInfrastructure
Facilitation Centres toencourage information sharing andtransparency. Recognizing theimportance
oftelecommunications andinformation technology forbuilding anAsia-Pacific information society,
weagree thattheAsia-Pacific Information Infrastructure isanessential basis forensuring the
competitiveness oftheregion inthe21stCentury.
15. Connecting electronically: Weagree thatelectronic commerce isoneofthemost important
technological breakthroughs ofthisdecade. Wedirect Ministers toundertake awork program on
electronic commerce intheregion, taking intoaccount relevant activities ofother international fora,
andtoreport tousinKuala Lumpur. Thisinitiative should recognize theleading roleofthebusiness
sector andpromote apredictable andconsistent legalandregulatory environment thatenables allAPEC
economies toreapthebenefits ofelectronic commerce.
16. Connecting science andtechnology: Inviewofthegrowing roleofscience andtechnology
inpromoting economic growth anditscloselinkages totradeandinvestment flows, wedirect Ministers
toformulate anAPEC Agenda forScience andTechnology Industry Cooperation intothe21stCentury,
andpresent ittousinKuala Lumpur. Wealsowelcome other regional networks tostrengthen science
andtechnology linkages, including theAssociation ofPacific RimUniversities (APRU).
17. Connecting theissues: Achieving sustainable development remains attheheart ofAPEC 's
mandate. Equity, poverty alleviation andquality oflifearecentral considerations, andmustbeaddressed
asanintegral partofsustainable development. Wehavemade acommitment toadvance sustainable
development across theentire scope ofourworkplan. Wewelcome theresults ofthemulti-sectoral
symposium onrelationships among foodandenergy andtheenvironment under thepressures ofrapid
economic andpopulation growth, aswellastheinterim report wehavereceived. Welookforward
topresentation ofamore detailed andaction-oriented report in1998.
18. Connecting efforts onclimate change: Werecognize theimportance ofaccelerating action
onaglobal level todealwithemissions ofgreenhouse gases. Weaffirm thatthisissue isofvital
significance, andthatitrequires cooperative efforts bytheinternational community, inaccordance
withtheprinciple ofcommon butdifferentiated responsibilities. Weemphasize ourstrong support for
asuccessful outcome totheThird Conference oftheParties infurthering theobjectives oftheUN
Framework Convention onClimate Change (UN-FCCC). WenotethatallAPEC members canmake
important contributions tothiseffort. Wealsoagree thattheenhancement ofenergy efficiency plays
animportant roleinaddressing climate change. Weaffirm theimportance offlexible andcost-effective
cooperative approaches toreducing greenhouse gasemissions, including bypromoting thedevelopment
anddiffusion ofbeneficial technologies. Werecognize thelegitimate needs ofdeveloping economies
topromote theirsustainable development infurthering theobjectives oftheUN-FCCC and,inthis
respect, theimportance ofenhancing theavailability ofbeneficial technologies.WT/L/254
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19. Connecting emergency response: Werecognize thatunexpected disasters which affect one
ofuscanaffect allofus,andthatwecanbenefit fromsharing expertise andcollaborating onemergency
preparedness andresponse. Wewelcome theinitiative ofMinisters inthisregard.
20. Connecting thepeople ofAsia-Pacific: Continued prosperity intheregion willdepend heavily
onourwillingness andourability tovestthenextgeneration ofleaders oftheregion withtheskills
andknowledge theyrequire. Weapplaud theinitiative toinvolve youth throughout APEC 's1997
activities. Education andskill-building remain keyobjectives forlong-term employment ofouryouth,
andwecallonMinisters towork withyoung people, academics, workers andbusiness toshare
approaches onsuccessful transitions from thelearning environment tothework force. Wewelcome
theElectronic Source Book onwork, study andexchange opportunities intheregion, theestablishment
anddevelopment oftheAPEC Education Foundation, andtheAPEC Youth Skills Camp andtheAPEC
Youth Science andTechnology Festival, bothtobeheldin1998 inSeoul. Weappreciate theoffer
bySingapore toestablish anAPEC Education Hub,which includes thegranting ofscholarships toAPEC
students. Wewelcome theholding ofaMinisterial Conference onEducation in1999inSingapore to
explore thepossibility toexpand thisinitiative, offering quality programmes tostudents intheregion.
Webelieve APEC should takespecific steps toreinforce theimportant roleofwomen in
economicdevelopment.WewelcometheofferofthePhilippinestohostaMinisterialMeetingonWomen
in1998 inManila, totakestock ofprogress todateininvolving women inAPEC 'sagenda andto
determine nextsteps tointegrate women intothemainstream ofAPEC 'sactivities.
21. Spanning twelve timezones from St.John'stoSumatra, APEC bridges bothdistance and
diversity. Through acombination ofconcrete results andrenewed vision, thespirit ofcommunity
which unites ushasbeenstrengthened andbroadened thisyear. Thepeople oftheregion remain its
greatest asset. AsLeaders, weareaccountable forsafeguarding andimproving theireconomic and
social well-being. Ourpeople arethefoundation onwhich theAPEC community isbuilt. Wecommit
ourselves toensuring thatAPEC remains responsive totheirconcerns.