SUMMARY CONCLUSIONS OF
THE THIRD SENIOR OFFICIALS MEETING
FOR THE SIXTH APEC MINISTERIAL MEETING
YOGYAKARTA, 1214 SEPTEMBER 1994
1. The Third Senior Officials Meeting (SOM) for the Sixth APEC Ministerial Meeting was convened in Yogyakarta on 1214 September 1994. Delegations from Australia, Brunei Darussalam, Canada, the People's Republic of China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Republic of the Philippines, Singapore, Chinese Taipei, Thailand and the United States of America participated in the Meeting. Members of the APEC Secretariat also attended. Representatives of the ASEAN Secretariat, the Pacific Economic Cooperation Council (PECC), and the South Pacific Forum (SPF) were present as observers. The delegation of Chile was also present as a guest of the Chair. The list of participants appears as Annex 1.
2. The Meeting was chaired by Mr. Wisber Loeis, Director General for Foreign Economic Relations, Department of Foreign Affairs of the Republic of Indonesia.
Opening Remarks
3. The Chair opened the Third Senior Officials Meeting (SOM) by welcoming delegates and stressed the importance of the Third SOM as the best opportunity to hold an intensive discussion and exchange of views particularly on the final substantive preparation for the forthcoming APEC Ministerial Meeting. Bearing this in mind, he hoped that the Meeting would be able to identify matters to be included in the Joint Statement of the Sixth Ministerial Meeting and also discuss how best Ministers might convey their remarks.
4. On behalf of the Senior Officials the Chair welcomed the members of the Chilean Delegation who attended the SOM for the first time as guests of the Chair. He also welcomed the Chairman of Eminent Persons Group (EPG), Dr. Fred Bergsten, and the member from Indonesia, Dr. Suhadi Mangkusuwondo who both made presentations on the Second Report of EPG which had been submitted to President Soeharto of Indonesia on 31 August 1994.
5. The Chair stated further that there were many important issues which still required consensus: among them, institutional issues. Pending matters and crucial issues that had to be considered thoroughly concerned membership and organizational issues, and the future of the APEC Secretariat. He also reiterated important areas of cooperation within the APEC framework this year: cooperation on human resources development, infrastructure improvement, and business/private sector participation including the promotion of Small and Medium Enterprises (SMEs). He hoped that this meeting and all APEC activities this year would add to the broadening and deepening of these areas of cooperation within the APEC framework. The main emphasis of APEC, however, was still on trade and investment issues that were becoming more crucial in today's changing world. The spirit of transparency and liberalization that was embodied in the newly concluded round of GATTWTO was expected to provide a fresh impetus for APEC members to work for a more liberalized trade and investment regime in the region.
II. Adoption of the Provisional Agenda
6. The provisional agenda was adopted as amended. The adopted agenda appears as Annex 2.
III. Eminent Persons Group
A. Presentation from the Chairman of the Eminent Persons Group (EPG)
7. Dr. Fred Bergsten, Chairman of the EPG, and Dr. Suhadi Mangkusuwondo presented the Second EPG Report to the SOM. This was followed by a substantive question and answer session.
8. Noting that the members of the EPG had reached a full consensus, the Chairman of the EPG explained that regional and global trade liberalization could be mutually supportive. He expressed the hope that the EPG's recommendations could serve as a basis for assisting APEC member economies in reaching a consensus on a program to achieve the goal of free and open trade and investment in the region by 2020, in a manner consistent with the different stages of development of APEC member economies. Dr. Suhadi Mangkusuwondo noted that the EPG Report also called for complementary efforts to promote trade facilitation and other forms of cooperation, including measures in support of infrastructure and human resources development.
9. The SOM expressed its appreciation for the EPG's Second Report.
B. Discussion on the EPG's Second Report to be presented to the Sixth Ministerial Meeting
10. The Meeting commended the efforts of the EPG for its ambitious and forward looking Report and had a general exchange of views on it. The Meeting felt that the Report contained many substantive recommendations which needed to be discussed in the Fourth SOM in November 1994.
11. The Meeting also agreed that to facilitate discussions by Ministers and Leaders, the APEC Secretariat should identify those ideas in the Report which were already being implemented or were being studied.
IV. Economic Trends and Issues (ETI)
A. Report of the ETI
12. Canada as Chair of the Ad Hoc Group on Economic Trends and Issues (ETI) reported to the SOM that the Group had held its meeting in Yogyakarta on 8 September 1994. In addition to member economies, the meeting was attended by observers from Chile and PECC. In preparing for the 1994 APEC Economic Outlook, the meeting reviewed the latest draft prepared by Chinese Taipei and asked that all updated information and comments provided to Chinese Taipei before 6 October. Japan presented a revised draft of its 3Es paper and invited member economies to provide further comments and suggestions by 30 September. The ETI was also informed of the present state of the study on privatization and trade liberalization conducted by the Philippines which could augment work prepared by the CTI. A final report is scheduled to be submitted in a month's time. A foreign direct investment study prepared by Canada was presented for initial consideration by ETI and will be further developed to support APEC activity in foreign investment. The ETI was also briefed by the USA and Indonesia on the followup of the APEC Finance Ministers' meeting in March and was advised that Indonesia will host the next APEC Finance Ministers' meeting scheduled for Bali on 1617 April 1995. In the context of ongoing economic work, there was a suggestion that the new Economic Committee study the issue of exchange rate fluctuations, particularly the Yen and the US dollar, and their effects on Asia Pacific economies.
13. The SOM took note of the Report of the ETI Ad Hoc Group which appears as Annex 3.
14. The SOM noted the decision of the Ad Hoc Group that the Heads of Delegations of the Ad Hoc Group on ETI should meet in Jakarta prior to and as part of the Fourth SOM in the first week of November 1994.
B. Proposed Transformation of the Ad Hoc Group on ETI.
15. The ETI Chair recalled that APEC Leaders had urged APEC to expand its economic dialogue, and that the Fifth Ministerial had directed the SOM to explore the possibility of transforming the Group into an Economic Committee. It was further noted that at the Bali SOM it was agreed that it would be desirable tnat an Economic Committee be established to complement and support the work of the CTI and the working groups. The ETI Chair stressed the need for the Group to move forward at its meeting to establish an Economic Committee, and to consider the draft terms of reference (TORs) collated by Chinese Taipei which had taken into account the views of eleven member economies. The ETI Chair noted that, following extensive review, the revised TORs had produced a consensus among member economies to transform the Group into an Economic Committee.
16. The SOM congratulated the Ad Hoc Group of the ETI for its efforts in drafting the terms of reference for the proposed Economic Committee. The SOM considered the recommendation of the Ad Hoc Group to transform the Group into an Economic Committee and agreed to recommend to Ministers that an Economic Committee be established at the November Ministerial Meeting.
V. Trade and Investment
A. Report of the Committee on Trade and Investment (CTI)
17. The SOM invited the Chair of CTI to present its report on its third meeting which was held in Yogyakarta on 910 September 1994. In his presentation the Chair highlighted results of the meeting that had, among others subjects, discussed the progress of the APEC nonbinding investment principles; preparation of the APEC Trade Ministers Meeting; the proposed Uruguay Round implementation Seminar; trade facilitation projects that include the publication of APEC tariff manual, the project program of tariff data base, the updating of the APEC investment guide and the publication of standard and conformance guide; survey on SMEs and survey on notification, validation of member economies' administrative aspects of market access (AAMA).
18. The SOM endorsed the report of the meeting of the Committee which appears as Annex 4.
B. Review on the Progress of the Trade and Investment Work Program
19. The SOM reviewed the Committee's report on the progress of its 1994 work program and noted the development made in its discussion on its work program for 1995.
20. The SOM were encouraged by the substantial progress reported by the CTI on the draft of nonbinding investment principles. Members would consult in capitals to resolve remaining differences, with a view to finalizing a text which could be presented to the SOM and Ministerial meeting in November for acceptance by APEC Leaders.
21. The SOM noted the result of the first Uruguay Round Assessment Task Force Meeting, and took the view that the revised assessment report to be formulated by Canada, incorporating comment from member economies and intended as a reference paper for the forthcoming Trade Ministers Meeting, would be identified as Canada's report.
22. The SOM asked that Japan prepare a paper on an Ad Hoc SME Policy Level Group that would incorporate suggestions from member economies defining both the structure and the subject to be discussed during the next SOM, paying due attention to the joint statement of the forthcoming SME Ministerial Meeting in Osaka.
C. Proposals to Establish SubCommittees under CTI
23. The SOM agreed that a consensus on the formation of CTI Subcommittees on Custom Procedures and Standards and Conformance could be achieved with an addition to the drafts terms of reference which would indicate that the subcommittees would be dissolved at the end of three years, unless otherwise decided by the CTI.
D. Preparation for the Meeting of APEC Ministers in Charge of Trade Policy
24. The SOM was briefed by Indonesia on the preparations for the Meeting of APEC Ministers in charge of Trade Policy to be held in Jakarta on 6 October 1994. The SOM expressed its warm appreciation for the efforts made by Indonesia in preparation of the Meeting.
VI. Human Resources Development
A. Discussion on Ways and Means for Strengthening APEC Cooperation in the Area of Human Resources Development in All Its Aspects
25. The Chair invited Indonesia and the APEC Secretariat to explain the content of the background paper (Annex 5) and its connection to the draft Ministerial Declaration on an HRD Framework for APEC (Annex 6).
26. Members indicated support for the concept of such a Declaration and expressed a desire to contribute to its wording. The Chair requested that such contributions be sent to Indonesia as soon as possible so as to permit circulation to members of a final draft in early November.
27. On the question of a mechanism to permit expert recommendations to the First SOM of 1995, many members indicated a preference to use the expertise and the existing structure of the HRD Working Group, which will meet in Manila in late January, as a focal point in this process.
B. Discussion on the Draft APEC Declaration on Human Resources Development
28. The SOM welcomed the initiative of Indonesia in preparing the draft on an APEC Declaration on Human Resources Development. The SOM was of the view that the draft would be further revised by the Fourth SOM and to consider for adoption by the next Ministerial Meeting.
Vll. Cooperation in the improvement of Commercial and Public Infrastructure
29. As requested by the Second SOM, Indonesia introduced a detailed discussion paper on APEC cooperation in infrastructure (Annex 7). Some delegates raised the possibility of overlap with existing work on infrastructure being undertaken within APEC, and the APEC Secretariat was requested to examine current APEC work to identify areas in the discussion paper not already being dealt within APEC. Attention was also drawn to the forthcoming World Infrastructure Forum to be held in Jakarta from 1721 October. It was suggested that the APEC Secretariat attend this meeting.
30. The SOM noted the importance of the infrastructure issue for APEC and its bearing on future economic development. It was noted that the Indonesian paper raised a broad range of ideas deserving further study. SOM agreed that discussion on the item should continue at the Fourth SOM, and member economies were invited to submit comments on the paper to Indonesia prior to the next SOM to facilitate discussion.
VIII. Business/Private Sector Participation
A. Discussion on the format of Business/Private Sector Participation in APEC's activities
31. The SOM took note of the information paper entitled "Business/Private Sector Integration in APEC Activities" submitted by Indonesia (Annex 8.a).
B. Asia Pacific Business Network (APBNet)