US DEPARTMENT OF STATE DISPATCH
VOLUME 4, NUMBER 48, NOVEMBER 29, 1993
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
ARTICLES IN THIS ISSUE:
1. The APEC Role in Creating Jobs, Opportunities, and Security --
President Clinton
2. America's Pacific Future -- Secretary Christopher
3. APEC: Charting a Course For Prosperity -- Secretary Christopher
4. Developing APEC as a Platform for Prosperity -- Secretary
Christopher
5. APEC: A Forum To Boost Trade and Investment -- Secretary
Christopher
6. Briefing on the APEC Economic Leaders' Meeting -- Winston Lord
7. APEC Ministerial Meeting Joint Statement
8. Declaration on an APEC Trade And Investment Framework
9. APEC Economic Leaders' Vision Statement
10. Fact Sheet: Asia-Pacific Economic Cooperation (APEC)
11. Fact Sheet: APEC Working Groups
12. Fact Sheet: U.S. Economic Relations With East Asia And the Pacific
ARTICLE 1:
The APEC Role in Creating Jobs, Opportunities, and Security
President Clinton
Address to the Seattle APEC Host Committee, Seattle, Washington,
November 19, 1993
Thank you so much for that warm welcome, and thank you--all of you--for
everything you have done to make this Asia-Pacific Economic Cooperation
conference a success. I want to thank your governor for his leadership
in coming all the way to Washington, DC, to help me pass the NAFTA
agreement and for speaking up for it as a leader of the State which
leads America in per capita trade. I want to thank my good friend,
Mayor Rice, who heads this wonderful city, which has been voted the best
city in America in which to do business--in no small measure because of
your mayor.
I'm glad to see my friend and former colleague, Governor Roberts, out
there. I must say, I sort of jumped when Governor Lowry introduced her
as his neighbor to the south. I never thought of Oregon as being in the
south before. That's a lesson for this whole conference--perspective is
very important.
I have one member of your delegation here, Congressman Norm Dicks, who
came back with me yesterday, and Speaker Foley is on the way. But I'm
glad to see him here. The Washington delegation has been enormously
supportive of this Administration in the cause of economic expansion,
and I am very grateful for that.
Senator Murray wanted to come back with me also, but she's on the floor
of the Senate, even as I speak here, debating the crime bill and trying
to pass it--with 100,000 new police officers--and the Brady bill and a
historic ban on assault weapons, which she's working hard to keep in the
bill.
I love Seattle. I always love to come here. I called home last night,
and both my wife and daughter chewed me out because I was here and they
weren't. We've had some wonderful days here. This morning I got up and
went running in Green Lake Park. I didn't turn green, but I nearly did;
it was a vigorous run.
I am delighted that so many members of our Administration came with me--
Secretary of Commerce Ron Brown, Chief of Staff Mack McLarty, and
National Economic Adviser Bob Rubin are over here to my right. We also
have Trade Representative Ambassador Mickey Kantor here and Secretary of
State Warren Christopher. They've all come here to make it clear how
important we believe this wonderful meeting is to our future interests,
as I know you do. I'm glad to see so many of my friends here from other
States in the west and, indeed, from all across America.
This organization, APEC, has historically had 15 members that together
account for more than half the world's output--Australia, Brunei,
Canada, China, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, the
Philippines, Singapore, South Korea, Chinese Taipei, Thailand, and the
United States. At this meeting, we are adding Mexico and Papua New
Guinea. This will be the first time that leaders of all of these
economies have gathered together. APEC reflects the Asia-Pacific values
of harmony and consensus-building. Our goal this week will be to do
some of both.
This city is the appropriate place to have this meeting. Not only is
Washington State the most trade-oriented state in the Union, but as I
learned from the governor on the way upstairs, 80% of your trade is tied
to the Asia-Pacific region, and 90% of the imports to this port in
Seattle come from Asia. Over half of Boeing's planes, Microsoft's
computer programs, and Washington's wheat are sold abroad.
Today I want to talk with you who have done so much to make this meeting
a reality about why APEC and the Asia-Pacific region will play a vital
role in our American quest to create jobs and opportunity and security.
And I want to begin by talking about what I believe our broader purposes
as a nation must be as we near the end of this tumultuous century.
Our Nation's Broader Purposes
Once in a great while, nations arrive at moments of choice that define
their course and their character for years to come. These moments are
always hard because change is always hard, because they are steeped in
controversy, and because they are often full of risk. We know and
regret the moments when our nation has chosen unwisely in the past, such
as when we turned the world toward protectionism and isolationism after
World War I or when we failed for so long to face up to the awful
consequences of slavery.
We celebrate the chapters of American history in which we chose boldly--
the Declaration of Independence, the Louisiana Purchase, the containment
of communism, the embrace of the civil rights movement. Now we have
arrived again at such a moment. Change is upon us; we can do nothing
about that. The polestars that guided our affairs in the past years
have disappeared. The Soviet Union is gone; communist expansionism has
ended.
At the same time, a new global economy, constant innovation, and instant
communication are cutting through our world like a new river, providing
both power and disruption to the people and nations who live along its
course. Given the disappearance of the Soviet threat and the
persistence of problems at home--from layoffs and stagnant incomes to
crime rates--many Americans are tempted to pull back and to turn away
from the world.
This morning, I ran with some of my friends from Seattle, and we were
talking about the irony that some of us felt so excited about this
meeting and all of its promise and prosperity. One of my friends, who
is a judge here, was going to court to deal with candidates for parole
and talking to me about all the young children who are in trouble--even
in this, one of our most vibrant cities.
In times like this, it is easy to just turn away. Our people have a
right to feel troubled. The challenge of the global economy and our
inadequate response to it for years is shaking the moorings of middle-
class security. So are the destructive social developments here at home
and our inadequate response to them. But we simply cannot let our
national worries blind us to our national interests. We cannot find
security in a policy of withdrawal guided by fear. We must--we must--
pursue a strategy of involvement grounded in confidence in our ability
to do well in the future.
Our security in this new era clearly requires us to reorder our military
forces and to refine our force structure for the coming years. But our
national security also depends upon enlarging the world's community of
market democracies, because democracies make more peaceful and
constructive partners. That's why we're leading an ambitious effort to
support democratic and market reforms in all the nations of the former
Soviet Union.
And more than ever, our security is tied to economics. Military threats
remain, and they require our vigilance and resolve. But increasingly,
our place in the world will be determined as much by the skills of our
workers as by the strength of our weapons; as much by our ability to
pull down foreign trade barriers as our ability to breach distant
ramparts. As President, I've worked to put these economic concerns of
our people at the heart of our domestic and foreign policy. We cannot
remain strong abroad unless we are strong at home. Stagnant nations
eventually lose the ability to finance military readiness, to afford an
activist foreign policy, or to inspire allies by their examples. You
have only to look at what happened to the former Soviet Union to see
that lesson writ large. It collapsed from the inside out, not from the
outside in.
At the same time, creating jobs and opportunities for our people at home
requires us to be engaged abroad, so that we can open foreign markets to
our exports and our businesses. Today, exports are the lifeblood of our
economic growth. Since the mid-1980s, half our increases in incomes and
almost all the expansion in manufacturing jobs in the United States have
been tied to exports. This trend will continue. All wealthy nations,
and many more than ours, are having difficulty creating jobs and raising
incomes even when there is economic growth. Why is that? Because
workers in advanced countries must become ever more productive to deal
with competition from low-wage countries on the one hand and high-
skilled, high-tech countries on the other. Being more productive simply
means that fewer and fewer people can produce more and more goods.
In an environment like that, if you want to increase jobs and raise
incomes, the only way to do it is to find more customers for each
country's product; there is no alternative. No one has yet made any
convincing case that any wealthy country can lower unemployment and
raise incomes by closing up its borders. The only way to do it is to
expand global growth and to expand each country's fair share of global
trade. This country must do both.
Strategies To Promote Global Growth
To prosper, therefore, we have to try to get all nations to pursue a
strategy of growth. I have worked hard on that. For 10 years, I
watched America go to these G-7 meetings and be hammered by other
nations to reduce its deficit, to stop taking money out of the global
pool of investment capital, to contribute to global growth by showing
some discipline here at home. Well, we've done that. We've done that.
And now we must get our partners in Europe and Japan to also follow
strategies that will promote global growth.
Much of our trade deficit problems today are the result directly of slow
economic growth abroad. And this nation now is growing more rapidly
than all our wealthiest competitors. We must do that. But we must also
compete, not retreat. We cannot confuse our objectives with our
problems. We have no alternative, even in a time of slow global
economic growth, to taking the steps to expand world trade.
We are pursuing a new global trade agreement under GATT by the end of
this year. In July, we negotiated a market-opening agreement at the G-7
to help advance the GATT process. That market-opening agreement offers
the prospect of hundreds of thousands of new jobs in the American
economy. We have placed our vital relationship with Japan on a new
foundation that will allow our workers and our businesses greater access
to Japanese markets when we complete the process. We have established a
new dialogue for economic cooperation with Korea aimed at improving
trade and the regulatory environment for the United States and other
foreign businesses in that nation.
Now, after a long and difficult national debate, we're about to secure
something I have fought for tooth and nail, as the previous speakers
discussed--the North American Free Trade Agreement. I fought for NAFTA
because I believe it will create American jobs, and a lot of them;
because I believe it will improve the quality of our life; because I
know it will lead us to similar agreements with the rest of the market
democracies in Latin America; and because I believe that it sends a
message that our hemisphere wanted to hear and that the world needs to
hear--the Cold War may be over, but the United States is not about to
pull up stakes and go home. We will remain engaged in the world. This,
after all, is the real significance of NAFTA. It does not create a
trading bloc. It is a building block in our efforts to expand world
economic opportunity and global growth and, in the process, to promote
jobs and opportunity for Americans.
Wednesday's vote for NAFTA enables me to begin this APEC meeting
bolstered by a bold expression of America's intent to remain involved in
the world. And the NAFTA vote, combined with this APEC conference,
greatly strengthens our push for an even bigger potential breakthrough--
a new GATT agreement. I want to be clear about this: This nation will
not accept a flawed agreement; but if we achieve one that meets our
standards, the benefits to our people could be enormous.
Over the first 10 years, a good GATT agreement could create 1.4 million
American jobs and boost the average American family income by $1,700 a
year. Over a decade, it could expand the world's economy by $5
trillion. This, my fellow Americans, is the answer to 20 years of
stagnant wages for the hard-working middle class.
Our willingness to fight for these initiatives--for NAFTA; for an
invigorated APEC; for a good, new GATT agreement--should make it clear
to the world that America will lead the charge against global recession
and the pressures for retrenchment it has created, not just here in our
country but in all the advanced nations of the world. Years from today,
Americans will look back on these months as a moment when our nation
looked squarely at a new economic era and did not flinch from its
challenges. As we exert our leadership in the global economy, we have to
pursue a three-part strategy. We must first continue to make our
economy and our people more competitive. Second, we must focus our
global initiatives on the fastest-growing regions. Third, we must
create new arrangements for international relations so the forces of
this era benefit our people as well as our partners.
Making the United States More Competitive
Our first challenge involves actions here at home. After years of
neglect, we're putting our economic house in order so we can compete and
win abroad. We've enacted a sweeping deficit-reduction measure that
points the way back to solvency. The deficit this year was cut about
$50 billion below where it was estimated to be on the day that I took
office--largely because of plummeting interest rates that are directly
resultant from the deficit-reduction efforts.
We're investing in education and training and in the knowledge and
skills of our people--in the technologies of the future. We're working
to ensure that we have the means to adjust to a dynamic world economy.
We created some special bridge programs for any workers displaced by
NAFTA. And early next year, I will propose a plan to transform
America's unemployment system into a re-employment system of lifetime
education and training and job placement services for workers who have
to change jobs many times.
Particularly as we enact NAFTA, we must recognize that we have a solemn
obligation to make our involvement in international trade serve the
interest of our people. That means they have to be able to adjust to
change.
And if I might just add a parenthesis here to all of you who are very
much future-oriented: This country, today, is really being limited in
what it can do because so many of our systems, economic and social, are
organized for conditions that no longer exist. We are not organized to
make the changes we all want to make. The unemployment system is simply
an example of that. The unemployment system was created at time when
the average length of unemployment was shorter than it is today and when
the average unemployed person--when called back to work--went back to
his or her former employer, which is not the case today. So
unemployment could literally be a more passive system. You could draw
money out of it. Your wage would go down for a while, but you knew
you'd be called back to your old employer. That's fine for a static
economy. It doesn't work for a dynamic economy where the average 18-
year-old must change jobs seven times in a lifetime, where the average
unemployed person is unemployed longer, and where most people don't get
called back to the same job they gave up.
The unemployment system, in short, is now an unfair tax on employers
because it doesn't function and is a ripoff for employees because it
doesn't help them. Why? Because the system was organized for a reality
that isn't there anymore. So what the Labor Secretary is trying to do
is to set up a system where people who lose their jobs immediately--and
even before they lose their jobs, if possible--begin training programs,
job placement programs, and thinking about what the future really holds,
instead of living with a system that was yester-day's reality and is
today's sham.
Time here does not permit this, but there are a lot of creative people
in this room. I cannot resist this opportunity to say that if you look
at the operative systems in the courts, in the juvenile system, in all
the social systems in this country, in the education and training
systems, and in the economic arrangements of this country, you will find
example after example after example after example where good, bright,
creative people--who know what the problems are--are struggling with
organizations which thwart their ability to deal with the world as it
is. This is one of our great challenges, my fellow Americans, and we
must face it.
With the end of the Cold War, we are trying to open billions of dollars
worth of formerly restricted high-tech goods to export markets. We are
working to speed the conversion of companies, of workers, of communities
from defense to commercially successful economies. With the Vice
President's leadership, we're rein-venting government and reducing
bureaucracy. We're about to reform our health care system in ways that
will relieve businesses burdened by unfairly rising costs and provide
security for families terrorized by uncertain coverage.
All these steps to make our people and our nation better prepared to
thrive in this competitive economy are important. The beginning steps,
while limited, are beginning to pay off. The deficit has declined.
Interest rates have been at historic lows. Inflation rates remains low,
while investment is increasing. Housing costs have climbed for three
straight months. Employment is increasing. In the first 10 months,
there have been more private-sector job increases than in the previous
four years. To be sure, there is still much to do, but this is a good
beginning.
Expanding Our Engagement
The second part of this strategy must be to expand the sweep of our
engagement. For decades, our foreign policy focused on containment of
communism, a cause led by the United States and our European allies. I
want to emphasize this here today: Europe remains at the core of our
alliances. It is a central partner for the United States in security,
in foreign policy, and in commerce. But as our concern shifts to
economic challenges that are genuinely global, we must look across the
Pacific as well as the Atlantic. We must engage the world's fastest-
growing economies.
Our support for NAFTA is a recognition not only that Mexico is our
closest big neighbor and a very important part of our future but that
Latin America is the second-fastest-growing part of the world and a part
of the world increasingly embracing both democracy and free market
economics--two things that have eluded that continent for too long. The
fastest-growing region, of course, is the Asia-Pacific, a region that
has to be as vital for our future as it has been for our past.
A lot of people forget that we began our existence as a nation as a
Pacific power. By the time of George Washington's inauguration,
American ships were already visiting China. In this century, we fought
three major wars in the Pacific. Thousands of our people still remain
stationed in the region to provide stability and security in the armed
services. And our cultural bonds are profoundly strong. There are now
7 million American citizens of Asian descent.
The Asia-Pacific has taken on an even greater importance as its economy
has exploded. It is a diverse region, spanning 16 time zones and having
at least 20 different major languages and hundreds of dialects. This is
a region where many rice farmers still harvest their crops by hand, and
yet it is the home to the world's fastest-growing cities. Yet amid this
great diversity, a distinct economy has emerged--built upon ancient
cultures connected through decentralized business networks; linked by
modern communications; and joined by common denominators of high
investment, hard work, and creative entrepreneurship.
What has happened to Asia in the past half-century is amazing and
unprecedented. Just three decades ago, Asia had only 8% of the world's
GDP. Today, it exceeds 25%. These economies are growing at three times
the rate of the established industrial nations. In a short time, many
of these economies have gone from being dominoes to dynamos, from minor
powers racked by turmoil [applause]--yes, you can clap for them; it's
true.
The press will ask me at the end of this speech who gave me that phrase.
It came from Winston Lord, our Assistant Secretary of State for East
Asian and Pacific Affairs--he gives me good ideas, as well as good
phrases.
This is a hopeful time. For the first time in this century, no great
military rivalry divides the Asia-Pacific region. Active hostilities
have yielded to possibilities for cooperation and gain. Of course, the
region still has problems and dangers. Tens of millions of Asians still
live on less than $1 a day. There are territorial disputes, ethnic
tensions, and weapons proliferation. This sudden growth has led to
serious environmental strains from smoke-choked cities to toxic dumping.
And there are human rights abuses and repression which continue to
affect millions of people throughout the region.
The economic explosion has been a source of anxiety for many Americans.
Our workers are concerned that their jobs, their markets, are being lost
to Asia. Of the nations that are represented here, I believe we have a
trade deficit with all but one. The trade imbalances with Japan and
China alone account for more than two-thirds of our total trade deficit.
And we do have a trade deficit, as I said, with virtually every one of
the nations.
Yet, ultimately, the growth of Asia can and should benefit our nation.
Over the past five years, our exports to every one of these nations has
increased by at least 50%. Much of what Asia needs to continue in its
growth pattern are goods and services in which we are strong: aircraft,
financial services, telecommunications, infrastructure, and others.
Already, Asia is our largest trading partner. Exports to Asia account
for 2.5 million jobs here in America. Increasing our share of that
market by 1% would add 300,000 jobs to the American economy. This is an
effort worth making.
Of course, we must continue to press these nations to be more open to
our products, as we are to theirs. We've made a good start with the
economic framework agreement with Japan, and I look forward to
discussing the elements of that and the progress we can make with Prime
Minister Hosokawa later today.
We're also determined to work with China to eliminate its trade barriers
and to raise the issue of our continuing concern over human rights and
weapons sales. I look forward to doing all that when I meet with
President Jiang today, in an effort to put our relationship with China
on a more constructive path--but still one that deals with all of these
issues that are important to the United States.
We do not intend to bear the cost of our military presence in Asia and
the burdens of regional leadership only to be shut out of the benefits
of growth that that stability brings. It is not right. It's not in the
long-term interest of our Asian friends. And, ultimately, it is a trade
relationship that is simply not sustainable. So we must use every means
available in the Pacific, as elsewhere, to promote a more open world
economy through global agreements, regional efforts, and negotiations
with individual countries.
As we make these efforts, U.S. businesses must do more to reach out
across the Pacific. I know Seattle's business community understands the
potential that lies in the Asia-Pacific region, but millions of our
businesses do not. We cannot have customers where we are not there to
make the sale. I want American businesses to see the opportunities, to
hear the success stories not only here but all across the nation. I
want more American businesses to follow the examples of firms like H.F.
Henderson Industries in West Callwell, New Jersey, which manufactures
automatic weighing systems. This small firm's sales to China, South
Korea, Australia, Singapore, and Hong Kong have added over two dozen
jobs to its payroll of 150.
You think about that. If every company in America with 150 employees
could add two dozen jobs by exports to Asia, we would have a much
smaller unemployment problem in a very short time. We have to do a
better job of piercing those markets even as we press for them to be
opened.
In July, I made my first trip over-seas to Asia as President. During
that trip, I proposed this leaders' meeting and described a vision of a
New Pacific Community to underscore the importance we place on working
for shared prosperity, security, and democracy. As I said earlier, the
Secretary of State, the Secretary of Commerce, our Trade Representative-
-they've all come to Seattle; all are going to give major speeches here;
all are going to make our presence felt. We want to be a partner with
all of the other nations that are here in making this New Pacific
Community.
Developing New Institutional Arrangements
But as I said earlier about our problems here at home with the
unemployment system, you could also say the same thing about the
international system. We have to develop new institutional arrangements
that support our national economic and security interests
internationally.
If you look at the end of World War II and the success that flowed from
it, that didn't happen by accident. Visionaries like Harry Truman and
George Marshall, George Kennan, Dean Acheson, and Averell Harriman
worked with other nations to build institutions like NATO, the IMF, the
World Bank, and the GATT process. We take it for granted now, but it
took them a few years to put this together. And it wasn't self-evident
at the time that it had to be done. A lot of people thought it was a
waste of time or effort, and others thought that it would never work.
Still others thought that it wasn't even a good idea. But these people
had the vision to see that collective security, expanded trade, and
growth around the world were in the interest of the ordinary American
citizen.
We now have to bring the same level of vision to this time of change.
We've done that through our vote for NAFTA. We will do so again at the
NATO summit this January, where I will recommend a new Partnership for
Peace to draw Central and Eastern Europe toward our community of
security. And we're working to build a prosperous and peaceful Asia-
Pacific region through our work here with APEC.
This is still a young organization. I want to salute those who had the
vision to establish it, such as former Australian Prime Minister Robert
Hawke and others, including President Bush and those in his
Administration who wanted to host this regional leaders' meeting in
Washington State. But I want to say also that we now must imagine what
this organization should be in the 21st century.
APEC's Future
Over time, there is a lot we may be able to do through this organization
that no one ever thought about before. It could become a forum for
considering development priorities in Asia, for working with the Asian
Development Bank to assure that all can share in the region's economic
growth. It could help focus attention on barriers to trade and growth.
It could evolve into a forum for dispute resolution on economic matters.
The mission of this organization is not to create a bureaucracy that can
frustrate economic growth but to help build connections among economies
to promote economic growth. Although we are still only formulating
APEC's agenda, we can speculate what some of those connections might be.
This organization, for example, could help set up common
telecommunications standards so firms won't need a different product
design for each separate country. It could help us move toward an open
skies agreement that could lower fares for airline passengers and cargo
and provide greater consumer choices over routes. It could promote
solutions to the environmental problems of this populous and energy-
devouring region--problems that are truly staggering today--so that we
could guarantee that a polluted quality of life does not undermine a
rising standard of living.
Protecting the Pacific environment also can be a particular source of
American business opportunities. Asia's purchases of environmental
equipment likely will rise by $40 billion by the end of this decade.
And our nation, which has pioneered many of those technologies, should
be there to claim a large share of that market.
APEC can complement our nation's other efforts to open world trade. It
can provide a counterbalance to our bilateral and global efforts. If we
encounter obstacles in a bilateral negotiation, we should be able to
appeal to other APEC members to help us resolve the disputes. If our
efforts to secure global trade agreements falter, then APEC still offers
us a way to expand markets within this, the fastest-growing region of
the globe.
I expect this first meeting of APEC leaders to focus on getting
acquainted and on sharing perspectives. Whatever we do must be done in
a spirit of genuine partnership and mutual respect in the interest of
all the nations involved. This cannot be a U.S. show; this has got to
be an Asia-Pacific combined partnership.
Nonetheless, I believe it is our obligation to propose some tangible
steps to move forward. We will propose that Secretary Bentsen organize
a meeting of APEC's finance ministers to advance our dialogue on the
broad issues affecting economic growth. We will propose the formation
of an Asia-Pacific business roundtable to promote greater discussion
within the region's private sectors. We will ask the leaders to endorse
the establishment of an Asia-Pacific education foundation to promote
understanding and a sense of community among our region's young people.
These first steps are small, but we should not understate or
underestimate the scope of the journey that they could begin.
Today we take for granted the importance of many institutions that
seemed unlikely when they were first created. For example, we can't
imagine now how we could have weathered the Cold War without NATO. In
the same way, future generations may look back and say they can't
imagine how the Asia-Pacific region could have thrived in such a spirit
of harmony without the existence of APEC. Even though this organization
is in its infancy and its first leaders' meeting is not intended to make
decisions, we should not hesitate to think boldly about where such
efforts could lead.
For this organization, these meetings and these relationships we are
forging today can lead our members toward shared expectations about our
common responsibilities and our common future. Even now, we can begin
to imagine what a New Pacific Community might look like by the end of
this decade--and that's not very far away.
Imagine an Asia-Pacific region in which robust and open economic
competition is a source of jobs and opportunity without becoming a
source of hostility and instability, a source of resentment or
unfairness. Imagine a region in which the diversity of our economies
remains a source of dynamism and enrichment, just as the diversity of
our own people in America makes our nation more vibrant and resilient.
Imagine this region in which newly emerging economic freedoms are
matched by greater individual freedoms, political freedoms, and human
rights; a region in which all nations--all nations--enjoy those human
rights and free elections.
In such a future, we could see Japan fast becoming a model of political
reform as well as an economic colossus, pursuing policies that enable
our economic relations to be a source of greater mutual benefit and
mutual satisfaction to our peoples. We could see China expressing the
greatness and power of its people and its culture by playing a
constructive regional and global leadership role while moving toward
greater internal liberalization. We could see Vietnam more integrated
into the region's economic and political life after providing the
fullest possible accounting of those Americans who did not return from
the war there.
We could even see a Korean Peninsula that no longer braces for war but
that lives in peace and security because its people--both North and
South--have decided on the terms of reunification. We could see a
region where weapons of mass destruction are not among the exports and
where security and stability are assured by mutual strength, respect,
and cooperation; a region in which diverse cultures and economies show
their common wisdom and humanity by joining to preserve the glory of the
Pacific environment for future generations.
Conclusion
Such goals extend beyond tomorrow's agenda. But they must not lie
beyond our vision. This week, our nation has proved a willingness to
reach out in the face of change to further the cause of progress. Now
we must do so again. We must reach out to the economies of the Pacific.
We must work with them to build a better future for our people and for
theirs. At this moment in history, that is our solemn responsibility
and our great opportunity. Thank you very much. (###)
ARTICLE 2:
America's Pacific Future
Secretary Christopher
Address at the University of Washington, Seattle, Washington, November
17, 1993
Thank you for that introduction, Professor Lardy. I want to thank the
World Affairs Council and the Jackson School for having me here today.
Scoop Jackson believed that America derived strength from its
willingness to engage abroad, and he would be proud of the work being
done here in his name.
One hundred and thirty-two years ago, the University of Washington was
carved out of Seattle's emerald wilderness by a band of hardy and
intellectually hungry pioneers. The first faculty consisted of one
professor; the first graduating class, one student.
From those simple origins on that rugged frontier, the University of
Washington has become one of America's great public universities. I
want to acknowledge, in that regard, my longtime friend Bill Gerberding,
President of this university.
Today, another frontier beckons. And Seattle stands not at the end of
the trail but at the beginning. As we approach the next century,
America must once again look west--west to Asia, west to our Pacific
future.
In the 19th century, American visionaries connected the coasts with
great iron railroads. Now, with the ethereal reach of satellites and
the blinding speed of fiber optics, we are traversing the Pacific. With
the same determination that brought trains to Washington State, we are
building bonds of communication, commerce, and culture with Asia.
Signs of our Pacific future are sprouting here like espresso stands.
Trade with Asia accounts for 95% of the volume of Seattle's bustling
ports. A quarter of the city's schoolchildren are Asian-Americans.
Pike Place Market overflows with the scents, flavors, and dialects of
the Pacific Rim. And in every sector--from aircraft to software to real
estate--Seattle's economy is increasingly tied to Asia's.
My message today is simple: As Seattle goes, so must the nation. As
Asia advances, so must we. For, today, no region in the world is more
important to the United States than Asia.
America has fought three wars in Asia during the past half-century. We
have abiding security interests there. As to our economic interests,
40% of our trade is with Asia, half again as much as with Europe. And
every day, immigrants from Asia and their descendants are fulfilling the
American dream, enriching our culture and maintaining tangible ties
across an ocean of opportunity.
Just over a generation ago, when many of these immigrants were first
arriving on American shores, Asia seemed mired in a cycle of epic
suffering. But a new determinism pervades Asia now. Despair about
decay has given way to faith in progress.
In southern China, towns that were once agrarian backwaters are leaping
forward into the industrial age. In Singapore's gleaming harbor, where
laborers once carried sacks of rice on their backs, enormous cranes now
swivel and stretch to unload high-technology cargo. And in the towering
skyscrapers of Jakarta, Indonesians born in bamboo huts are making
fortunes in Asian commodity markets.
Like Mount Rainier, Asia's astounding revival and the challenges it
presents are best viewed from a panoramic perspective. Asia is likely
to account for half the growth in world trade between now and the year
2000. It includes the world's fastest-growing economies and most
promising terrain for American exports. But at the same time, we are
running unacceptable trade deficits with some of our Asian trading
partners.
In security terms, Asia is more stable--and, if you will, more pacific--
than at any other time since the turn of the century. But at the same
time, we need to meet new security challenges that cloud the horizon.
Across the region, the rising tide of democracy is watering some of
freedom's most parched terrain. But at the same time, some of the
world's least open regimes can also be found in Asia.
As we look ahead, then, we must remove the peril and realize the promise
of wider engagement with the Pacific. That is why President Clinton has
called for a New Pacific Community, built on three core elements:
shared prosperity, shared strength, and a shared commitment to
democratic values.
I. Prosperity
Let me turn first to the economic dimension. In Asia, we see most
clearly that economic policy stands at the center of our foreign policy.
Last year, our exports to the region totaled $128 billion and created
2.4 million American jobs.
This Administration is working to widen trade and investment in Asia on
three levels: globally, through the GATT; regionally, through the APEC
forum; and bilaterally, with individual nations.
No region has more at stake than Asia in the removal of barriers to
global trade and investment. Asia has asked us to remain engaged in the
region, and we will do so. But for the American people to appreciate
the benefits of such engagement, Asia's markets must be open to our
goods and services.
Today I urge the leaders of the Asian economies to join us in pushing
for a successful conclusion of the GATT Uruguay Round. If the round
succeeds, it will open markets and create jobs around the world. If it
fails, however, we will all suffer from the punishing effects of rising
protectionism.
While we work to open global trade, we must also strengthen our regional
trading ties. Today's historic vote on NAFTA is a test of our
willingness to do that. It is a test of our desire to compete rather
than retreat.
NAFTA, as the President and I have been saying, is in our overriding
national interest. It takes down barriers to prosperity. It
demonstrates that as we enter the next century, America is looking
outward, not turning inward. That is why the President has put so much
on the line for NAFTA's passage. And that is why I believe the House of
Representatives will approve NAFTA today.
APEC, the forum for Asia-Pacific Economic Cooperation, is another vital
part of our strategy to strengthen regional trading ties. APEC was
created only four years ago--not to micromanage trade but to get
bureaucracy out of the way of business and to promote cooperation among
diverse economies.
This year's meeting here in Seattle, to be followed by President
Clinton's historic gathering of APEC leaders, is dedicated to expanding
Pacific trade and investment. We will begin to bring greater harmony to
the trade policies of APEC members. We will work to facilitate the
entry of American businesses into Asian markets. And we will work to
strengthen APEC as an institution.
In the software business today, "open architecture" is the coin of the
realm. That, in essence, is what my colleagues and I are developing:
an open environment in which we can increase by many times the $500
billion in trade among APEC members.
But let me be clear: APEC is a building block, not a trading bloc. The
United States views APEC as the cornerstone of regional economic
cooperation. These regional efforts, in turn, are a catalyst for global
trade cooperation.
At the same time, the Clinton Administration is working to strengthen
some of our most important bilateral economic relationships in Asia.
China, one of America's largest trading partners, has a trade surplus
with the United States that reached nearly $20 billion last year. To
address this problem, we are working with the Chinese to achieve full
implementation of our market access agreements. In South Korea, we have
launched a new dialogue that will improve the trade and investment
climate for U.S. businesses. And with Japan, we are negotiating a new
economic framework.
The security and political dimensions of our partnership with Japan are
in sound condition. But the economic pillar is urgently in need of
repair. This Administration attaches as high a priority to improving
our economic ties with Japan as it does to maintaining our security and
political links. That is why we are working to correct our persistent
trade imbalance. We are determined to forge a more equitable and
mutually beneficial partnership.
II. Security
Ultimately, all our efforts to advance American prosperity in Asia
depend on the peace and security of the region. America's continued
security engagement is, therefore, the second core component of our New
Pacific Community.
I was a 20-year-old Navy ensign--the same age as many of you here today-
-when World War II and its aftermath first linked America to the
security of the Pacific. Today, the reasons for us to stay anchored in
Asia have changed. But they are still compelling. For it remains in
our unambiguous national interest to deter regional aggression and to
sustain Asia-Pacific economic growth.
While the tensions of the Cold War have subsided, many Asian nations
harbor apprehensions about their closest neighbors. An American
withdrawal would magnify those concerns. And so America must stay
engaged.
Our security role in Asia begins with our treaty alliances with Japan,
South Korea, Australia, Thailand, and the Philippines. We will honor
these obligations and maintain our forward military presence throughout
the Pacific.
At the same time, we are working in Asia to prevent the proliferation of
weapons of mass destruction. Nowhere is the threat of nuclear
proliferation more serious today than in North Korea.
North Korea is caught in a kind of time warp. It is the most isolated
country in the world, unmoved by the winds of change that have swept
across the region. It has buried the economic dreams of its people to
raise a million-man army, most of which is deployed at South Korea's
doorstep.
The other nations of the region share President Clinton's firm view that
North Korea must set aside its nuclear ambitions. It must not be
allowed to pose a nuclear threat to South Korea or its other neighbors.
North Korea has refused to grant international inspectors full access to
its nuclear sites. The United States is committed to a diplomatic
solution as the best means of resolving the nuclear issue. At the same
time, we insist on North Korea's full compliance with all of its
international commitments, including the Nuclear Non-Proliferation
Treaty. North Korea must fulfill its fullscope safeguards obligations
and permit the inspections required by the International Atomic Energy
Agency. North Korea must also fulfill its denuclearization agreement
with South Korea.
These are not only the views of the United States; they are the views of
the world community. We are not approaching this on a unilateral basis.
We are working with others in the region.
If North Korea refuses the necessary inspections--and refuses to resume
a dialogue with South Korea on nuclear issues--then we are prepared to
recommend that the UN Security Council consider options other than
negotiation. This need not be the outcome of this impasse. We urge
North Korea to join the community of responsible nations by responding
positively to the comments I have made here today.
As we work to resolve the impasse with North Korea, we must also develop
new regional approaches to prevent conflicts. That is why at the ASEAN
Post-Ministerial Conference last July, my fellow ministers and I
established the ASEAN Regional Security Forum. This forum will
supplement, but not replace, our treaty alliances. These security
discussions will ease tensions and discourage arms races. It will
include the ASEAN nations, the United States, Japan, Canada, South
Korea, Australia, and others. It will also include--mark this--China,
Russia, and Vietnam.
Ten years ago, or even five, such an array of countries would have been
unthinkable. Next year, it will be a reality.
III. Democracy
Just as security is the bedrock for the pursuit of prosperity, so
democracy is the foundation for security. More open societies make for
a more stable region. Democratic nations make better neighbors and
better trading partners. That is why the support of democracy and human
rights is the third core element of our New Pacific Community.
President Clinton has said that "free markets not only enrich people;
they empower them." As more Asians enter the middle class, they will
seek a greater voice in their communities. As factories bloom across
China, political power will come increasingly from the end of an
assembly line.
Greater openness will also help sustain modernization in Asia. After
all, how can countries attract investment without the rule of law? How
can they combat corruption without a free press? How can they generate
prosperity without constant currents of information?
There are those who say that democracy is somehow unsuited for Asia,
that our emphasis on human rights is a cloak for cultural imperialism.
But there is no cloak over the city of Phnom Penh, where Cambodians
voted this spring in their first free election. There is no cloak over
Seoul, where former dissident Kim Young Sam is now Korea's President.
Nor, indeed, is there a cloak over Shanghai, where a talk show called
"Radio Orient" receives thousands of calls and letters every day.
To be sure, great areas of Asia lag behind the march of history. But
the yearnings for freedom are not a Western export. They are a human
instinct. All across Asia, the United States is working to respond to
those yearnings. We are, in short, aligning ourselves with the future.
Human rights is a key issue in our relations with several Asian
countries, including Burma, Vietnam, Indonesia, and China. The Clinton
Administration has developed a policy toward China that reflects both
our values and our interests. China is a great nation and an
influential member of the world community. A stable, prosperous China
is in the long-term interest of the United States.
Recent problems have created the risk of a downward spiral in our
relationship. On human rights, unless there is overall, significant
progress, the President will not be able to renew China's most-favored-
nation status. We are encouraged by Beijing's recent offer to open its
prisons to the International Red Cross. We hope that is a harbinger of
sustained progress on human rights in China.
On trade, we continue to have concerns about market access, textiles,
and intellectual property protection. And on non-proliferation, we have
imposed sanctions on China for its shipment of M-11 missile components
to Pakistan. At the same time, we have made clear that we are willing
to negotiate the necessary conditions for a waiver of those sanctions.
And so we have launched a process of deeper engagement with China to
make progress in these key areas. Our goal, I emphasize, is to build a
comprehensive relationship that permits the resolution of our
differences.
Conclusion
Many of the issues that can bring together the New Pacific Community are
global issues--challenges that cut across political borders. Consider,
for example, the environmental problems that Asia, with its huge
appetite for energy sources, will face in the next century. Consider
that 20 years from now, 1 billion more people will live in Asia alone.
Problems like these demand transnational solutions. That is why this
Administration has brought global issues into the mainstream of our
foreign policy.
Recently, I passed by Red Square--the one in Moscow, that is--to give a
speech to Russian students. They, like many of you, are wary of
sweeping proclamations about "our moment in history." But your
generation--whether in Moscow or Seattle or Beijing--truly stands at a
pivotal point, between the Cold War and a new millennium. For Russia's
youth, the question is whether to believe in free markets and democratic
reform. For you, the question is simpler: whether to believe in
yourselves.
Over the last several years, some Americans have worried that Asia's
success spells trouble for the United States. They look at Japan's
performance, or China's incredible growth, or the ferocious development
of Asia's "four tigers," and they have feared that America's best days
are behind us.
I see it altogether differently. Asia's success is ours, too--because
Asia's dynamism creates enormous new markets for our products; because
for a half-century our engagement has supported regional stability; and
because Asia's drive toward freedom echoes the enduring strength of our
values.
I look at the flower of Asian prosperity, and I see the seeds of
American renewal. The virtues that have made America great--thrift,
diligence, optimism, resilience--must guide us again as we rebuild
America's economy and engage ever more vigorously with Asia.
Can we summon the confidence to do that? Can we muster the courage to
seize this opportunity? From Lewis and Clark's expedition to the first
flight of a Boeing airplane, everything in our history suggests that we
can.
And everything in our future--our Pacific future--says that we must.
Thank you very much. (###)
ARTICLE 3:
APEC: Charting a Course for Prosperity
Secretary Christopher
Opening statement at a news conference, Washington, DC, November 15,
1993
I will be leaving tomorrow for Seattle to chair the fifth ministerial of
the forum on Asia-Pacific Economic Cooperation. Immediately following
the ministerial, the President will host a historic meeting of the APEC
economic leaders. These meetings highlight the importance of the Asia-
Pacific region and underscore the fact that this Administration has
placed economic policy at the heart of its foreign policy.
Ten days ago, I set forth the Administration's six strategic foreign
policy priorities in testimony before the Senate Foreign Relations
Committee. I placed economic security first, and I did so deliberately.
There is no bright line dividing foreign policy from domestic economic
policy. Our strength at home and our engagement abroad are interlocking
and mutually reinforcing. We are pursuing policies that spur growth and
create American jobs, and that's part of our overall economic security
strategy.
As one of our six strategic priorities, I also emphasized the importance
the Administration attaches to the Asia-Pacific region. APEC's
membership includes the world's most dynamic economies, which produce
half the world's economic output.
Asia is our largest trading partner. Our exports to Asia and the
Pacific in 1992 totaled nearly $130 billion. This accounted for 2.4
million American jobs. Our trade with this region is 50% greater than
our total trade with Europe.
No region is more important to the United States and its future than
Asia and the Pacific. Asia's importance does not stem from trade flows
alone, however impressive those are. America is a Pacific nation, and
our stake in the region is enormous. We will be a full participant in
the Asia-Pacific region as it plays an increasingly important global
role. That is why President Clinton made his first trip overseas to
Asia, and that is why I have been to Asia three times in the short nine
months that I've been in office.
A core element of our policy in Asia, of course, is our security role.
We remain unyielding in our commitment to maintain our Asia-Pacific
forward military basing and to meet our solemn treaty commitments to
five of the leading nations in the Asia-Pacific area.
Let me mention a couple of countries specifically. China and Japan are,
clearly, major players in the region. The cornerstone of our Asia-
Pacific policy remains our relationship with Japan. The President seeks
to shape a partnership with Japan that will place our economic ties on
as sound and cooperative a basis as we have established for security,
political, and global issues. We are negotiating a new framework with
Japan to correct our unacceptable trade imbalance. With regard to
China, we are working to create a comprehensive relationship that
permits resolution of differences in a broad, strategic context. We are
actively working to make strides in areas of continuing concern,
including human rights, non-proliferation, and trade abuse.
This Administration is placing a special emphasis on developing a
regional approach so as to construct with others the President's vision
of a New Pacific Community built on shared strength, shared prosperity,
and a shared commitment to democratic values. This is why the meetings
in Seattle are so important. In a letter the President sent to the
Asian economic leaders, he asked them to work with him to try to find
ways to meet the economic challenges of the 21st century. The President
has invited these leaders to Seattle so they can work together to have a
positive impact on global economic growth so America can achieve future
prosperity.
The ministerial meeting also can help chart the course for a more
dynamic future for the Asia-Pacific region. The Declaration on an APEC
Trade and Investment Framework can provide a blueprint for economic
relations within the region.
We will be hearing the report of the Eminent Persons Group and will be
looking to consider their recommendations for long-term initiatives to
expand trade. There should be agreement on additional specific work
plans in areas such as telecommunications and transportation--work plans
that can help American business and lead to additional jobs.
This week's meeting represents an important first step toward a more
open, liberal trading regime linking the United States and the Asia-
Pacific nations. We are in the early stages of this effort, and APEC is
in its early years as an organization. Achieving the kind of open
architecture that I've spoken about for trade and investment ties
throughout the region clearly will take time. It will not be done
overnight. It will be an evolutionary process that will reflect the
consensual progress that has marked ASEAN and the early years of APEC.
But what is important is that the United States lead this historic
movement toward open markets and trade--and that certainly will be our
objective this week.
Over the next 30 days, two events--in addition to the APEC meetings in
Seattle--will shape our economic future. The first is the vote in
Congress on NAFTA. Approving NAFTA means choosing American leadership
and competitiveness and rejecting isolationism and protectionism.
Approving NAFTA will clearly strengthen our influence at a time when we
are working to boost global growth through trade expansion.
The second event is the December 15 final deadline for concluding the
Uruguay Round. APEC has worked consistently to move these negotiations
forward. I'm very confident that this week's meetings--both the
ministerial meeting and the leaders' meeting on Saturday--will produce a
strong and urgent call to complete this round--and to complete it on
time and in a way that will provide for a more open trading system.
Two of our highest foreign policy priorities--economic security and the
Asia-Pacific region--converge this week in Seattle. Our role in shaping
the future of this region helps secure our future prosperity. Through
our leadership in hosting this APEC conference, we are advancing
President Clinton's program for America's economic renewal. (###)
ARTICLE 4:
Developing APEC as a Platform for Prosperity
Secretary Christopher
Remarks at the welcoming dinner for APEC delegates, Seattle, Washington,
November 17, 1993
Thank you for that kind introduction, Mr. George. Fellow ministers,
APEC delegates, Governor Lowry, Senator Gorton, Mayor Rice, and guests:
I am honored to address this distinguished group.
I would like to offer sincere thanks to the Washington Council on
International Trade and the corporate sponsors, who have not only given
us tonight's delicious dinner but have done so much to make this
ministerial meeting in Seattle possible. Their work is illustrative of
the important and helpful role the business community has played in
APEC. I want very much to encourage even greater business involvement
in all aspects of APEC's work.
These wonderful aircraft symbolize the ties between the Asia-Pacific
region and the United States--across boundaries of time, geography, and
culture. Since the age of the China Clippers, America has been a
Pacific nation. Our connections to Asia grow ever more important as the
rest of America catches on to what Seattle and the west coast have known
for years: Our futures are linked across an ocean of opportunity.
This museum also looks to the future. We in APEC need to ensure that
the region's economies are able to take full advantage of the
possibilities of our age. In the midst of the great economic explosion
in Asia and the Pacific, APEC was created four years ago--not to
micromanage economic relations but to get bureaucracy out of the way of
business.
People in the business sector, like our hosts, have been the engines
powering Pacific Rim economies: making capital investments, introducing
new technologies, and creating jobs. APEC is designed to help business-
-by removing barriers to trade and investment and by encouraging
stronger links in such areas as telecommunications and transportation.
These APEC meetings come at a moment of extraordinary opportunity to
open markets and spur global growth. Over the next 30 days, three
defining events will shape our economic future.
The first event is tonight's historic vote by the House of
Representatives to approve the North American Free Trade Agreement. The
vote tonight was not just a dramatic moment but a defining one. The
action taken by the House is a vote of confidence in America's future.
It demonstrates that the United States chooses leadership and rejects
isolation; that we choose competitiveness and reject protectionism.
This vote sends a message to Americans from Seattle to Miami that we
will create jobs at home by expanding exports to our North American
neighbors.
This vote sends a message to Mexico City and to other Latin American and
Caribbean capitals that the U.S. will stay engaged and support the great
process of political and economic reform in this hemisphere. And this
vote sends a message to Geneva, where negotiations on the Uruguay Round
of the GATT must conclude within a month. The United States remains
fully committed to opening markets and creating the global economic
growth that will lift the living standards of all nations.
The NAFTA vote lends further strength to APEC's support for more open
trade and investment. We should harness the momentum of NAFTA as we
consider the second event--the GATT Uruguay Round.
A successful Uruguay Round will open markets, spur growth, and create
new jobs. Failure of the round will mean economies stifled by declining
growth and rising protectionism. The United States remains firmly
committed to winning a broad, liberalizing agreement on the time
schedule established by Congress--December 15. There will be no
December 16 for the Uruguay Round.
The trade-offs to complete the Uruguay Round will not be easy, but they
must be made. This opportunity to revive global economic growth is in
the national interest of each of the members of APEC, and it is in our
mutual interest. The opportunity must not be lost.
APEC has consistently worked to move the Uruguay Round forward. I am
confident that, at this ministerial meeting, we will come together to
issue a strong and urgent call to conclude the Uruguay Round--and to do
so successfully.
The third event in this vital 30-day period begins today, with the
commencement of the APEC ministerial.
The United States attaches tremendous importance to its relationship
with the Asia-Pacific region. Not only is Asia our largest trading
partner, with trade about 50% greater than our trade with Europe, but we
are bound to Asia by our strong commitment to regional security and by
profound personal ties.
This morning, in a speech at the University of Washington, I described
the President's vision of a New Pacific Community based on shared
strength, shared prosperity, and a shared commitment to democratic
values. This Administration is placing special emphasis on developing
regional approaches to build--along with others--that new community.
APEC is a regional approach to economic issues. Trade and investment
within the region are weaving a new web of human and commercial
relationships. APEC can help develop these networks and create the
infrastructure that will build a community out of this far-flung and
diverse region.
That is why this week's meetings are so important. APEC ministers can
approve the proposed Declaration on a Trade and Investment Framework.
The report of the Eminent Persons Group can give us a blueprint for
expanding trade and economic relations over the long term. We can agree
on specific plans for the working groups that will provide practical
help for all businesses.
These will all be important steps toward a more open trading regime
among the members of APEC. We are only in the early stages of this
effort, just as APEC is in its early years as an organization.
Achieving an "open architecture" for trade and investment across the
region will be an evolutionary process. So even as we work on this
week's agenda, we should be looking ahead. The United States believes
APEC should focus on three areas for the future.
First, it should promote open trade and investment in the region. This
is APEC's original task--and must be its most enduring one.
Second, it should enhance cooperation on regional issues that require
regional solutions, such as energy and the environment. This will help
the region adapt to the demands--and the consequences--of its stunning
economic growth.
And third, it should improve the networks and the regional
infrastructure that bind us together.
It is this third dimension that I want to emphasize this evening--the
concept of networking. APEC is the first regional organization founded
in the information age. As you know, personal computers used to stand
alone. Now they and their users are tied into larger networks, all the
while retaining their individuality. In the same way, we envision a
Pacific community increasingly linked through telecommunications,
transportation, capital flows, and human contacts. APEC can help to
make that happen.
We already communicate instantaneously across more than a dozen time
zones. Fiber optic cables are being laid across the Pacific, linking
Asia's financial markets and bringing Asian countries closer to one
another--and to us. Star TV, broadcast from Hong Kong, has a satellite
footprint covering most of Asia. CNN is accessible--and regularly
accessed--throughout the region.
The next step could be the development of an Asia-Pacific "superhighway"
using fiber optics and satellite technology to convey information. We
should make sure that we communicate quickly and easily--whether by
phone, FAX, or computer.
In this room, with the original Boeing aircraft on display, it is
astounding to think that it has been routine for years to fly non-stop
from Seattle to Tokyo. The phenomenal growth of passenger and freight
traffic is straining the system. We need to expand air routes,
modernize facilities, and relieve transportation bottlenecks. APEC is
already at work on these problems.
Two of America's most important foreign policy priorities--economic
policy and the Asia-Pacific region--are converging at these meetings.
When he invited the region's economic leaders to Seattle, President
Clinton asked that they define a vision that will shape the 21st
century. He and I are convinced that APEC's members will contribute
ideas, technology, and managerial expertise that will lead the world
economy into the next century.
The President and I are, of course, committed to advancing America's
interests. APEC's work benefits American businesses and the American
people. But the work we undertake together, through APEC, also benefits
each and every member--their businesses and their people. It is a true
harmony of interests.
APEC can become the vehicle for sustained regional cooperation. We want
an organization every bit as dynamic as the region itself. As we begin
our work, therefore, let us ensure that APEC retains its commitment to
open regionalism--that it is a building block, not a trading bloc. Let
us ensure that APEC remains diverse and inclusive--an open network, not
a closed club.
Let me leave you with a challenge. To those of you in business, I say:
Seize the opportunities before you in Asia and the Pacific--and tell us
how APEC can help you. And to my fellow APEC ministers, I say: Let us
continue to develop APEC as a platform for our common prosperity. (###)
ARTICLE 5:
APEC: A Forum To Boost Trade and Investment
Secretary Christopher
Remarks at the opening session of the fifth APEC ministerial meeting,
Seattle, Washington, November 18, 1993
I would like to warmly welcome our two new members--Mexico and Papua New
Guinea. I welcome you to the forum of the Asia-Pacific Economic
Cooperation entity. We have also decided, based upon yesterday's
events, that Chile will become a member in 1994, and we look forward to
welcoming Chile at that time.
As another result of yesterday's discussions, we have agreed that there
will be a three-year period of deferral of the consideration of any new
members to allow us to consolidate our efforts and to consider the issue
of new members. So those three matters of consensus were reached
yesterday. I thought I would announce that before we begin our
proceedings today.
Now if I can open the meeting today by a few welcoming remarks. I
welcome you formally but also in a very warm and informal spirit to
Seattle and to this fifth forum of the Asia-Pacific Economic Cooperation
entity and our ministerial meeting.
In 1776, the year of America's birth, the famous American essayist,
Thomas Paine, wrote:
Not a place upon earth might be so happy as America. Her situation is
remote from all the wrangling world, and she has nothing to do but to
trade with them.
Paine's assumption that happiness would be increased by trade was
certainly prophetic. But the isolation that he treasured is not
consistent with successful trade relationships. Trade relationships, as
we all know, require constant and vigorous attention and engagement, and
that is one of the main purposes of this organization.
For the United States and for all the economies represented here, this
APEC conference is a prime opportunity for that kind of engagement. APEC
can serve not only as a vehicle for our common prosperity but as a forum
for cooperation across a broad range of regional and global issues.
President Clinton and I have put economic security at the very heart of
American foreign policy, and no part of the world is more important to
economic well-being than the Asia-Pacific region.
As a Pacific nation ourselves, we are committed to expanding our ties
with Asia, and that is why we attach such great importance to APEC and
to this meeting. We are very fortunate to have an opportunity to host
it in the first year of President Clinton's Administration.
APEC's work to liberalize regional trade certainly advances American
interests. But the work we undertake here advances the interests of
each and every one of the members. It is this harmony of interests that
makes APEC such a useful and constructive organization.
Let me say just a few words about the specific purposes of this meeting.
This year's ministerial is dedicated to expanding the flow of Pacific
trade and investment. We will discuss the many ways that our diverse
economies can work together. The Declaration on an APEC Trade and
Investment Framework, which we will consider for adoption, is the result
of a year-long consultation by APEC senior officials. It incorporates
ideas from all of you around the room, and it represents a significant
and welcome step forward, I believe, by APEC as an institution.
Yesterday's historic vote approving NAFTA gives our work here today an
added sense of urgency. The vote last night was not just a dramatic
moment--which perhaps some of you saw on television--but, as the
President said, it was also a defining moment. It sent a message
throughout the region that the United States remains committed to open
trade and to global growth.
Let me emphasize and state my view as firmly as I can that neither NAFTA
nor APEC is a trading bloc. They are building blocks. All of us here
are committed to an open global trading system that will spur economic
growth, create jobs, and increase the prosperity and welfare of all our
citizens. So I urge everyone here today to act on that commitment by
pushing for a successful conclusion of the Uruguay Round by the December
15 deadline. I hope this ministerial will issue a strong and urgent
call to win broad and liberalizing agreement in the GATT negotiations.
At our meeting today, we will also hear a report from the Eminent
Persons Group that will give us a blueprint for opening trade and
widening our economic contacts. We also will assess the work of the
APEC working groups and discuss the vision statements that have been
prepared by those groups. Let me say just a further word about the
working groups. They have worked to analyze a number of important
problems: regional transportation bottlenecks, telecommunications
links, ways to standardize trade data, ways to promote commercial
exchanges, and ways to share information on environmentally sound
technologies--all tasks that are important for our region and vital for
long-term economic progress.
One of the highest priorities we have in this week's discussions is to
find ways to involve the private sector more actively in APEC's work.
It is ultimately the business community that will drive the region's
growth and prosperity, and it behooves us to find ways to involve
private businesses, many of whom, I am glad to say, are here in the room
and many of whom we saw last night. They are dedicated to helping us
make APEC work. As I said last night, it is our view that APEC should
focus on three areas. I will not repeat them at length, but let me just
tick them off briefly.
First, we should promote open trade and investment in the region. That
was APEC's original purpose and no doubt is our most enduring task.
Second, we should enhance cooperation on regional issues that require
regional solutions, issues such as energy and the environment.
And, third, we should improve regional networks and infrastructures that
bind us together.
In that cooperative spirit and forward-looking view, President Clinton
has invited the APEC economic leaders to an informal session on
Saturday. He told me yesterday, when we were talking about the NAFTA
vote, how much he looked forward to that meeting and to participating in
this APEC endeavor. This, of course, will mark the first time that
these leaders have met to discuss long-term economic opportunities and
challenges we face.
The President and I are convinced that APEC's members will contribute
ideas, technology, and managerial expertise that will lead the world
economy into the next century. Benjamin Franklin, one of the great
founding members of the United States and a contemporary of Thomas
Paine, once observed that no nation was ever ruined by trade. If I
could take the liberty of updating that remark, I would say that no
great nation can succeed without trade. Every economy here is proof of
the importance of trade.
So, together, let us expand our trade and advance our common prosperity,
starting here and now. Thank you very much. (###)
ARTICLE 6:
Briefing on the APEC Economic Leaders' Meeting
Winston Lord, Assistant Secretary for East Asian and Pacific Affairs
Opening statement at a news briefing, Seattle, Washington, November 20,
1993
There were two historic events today, and I missed one of them. The one
I missed is, I gather, that Boston College beat Notre Dame in the last
six seconds. But the other one I was attending.
There is a tendency, I know, toward hyperbole at events like this; I
wouldn't want to exaggerate this. But I think that we will look back in
10 or 20 years and consider this leaders' conference today a turning
point in Asia-Pacific history in terms of symbolism and in terms of the
beginning of moving toward a genuine community--a community as defined
by the President, together with the other leaders, not in the sense of
an integrated European Community but in a sense of family and a sense of
shared purpose.
As I believe the President outlined earlier today, there were three
central themes that emerged in the course of the discussions.
One, this group was united, not divided.
Secondly, it saw its purpose as being open and not closed.
Thirdly, you start with the Uruguay Round, underlining the fact that the
global approach to growth and world trade is the central theme. Indeed,
that was borne out in the course of this week by the impressive Uruguay
Round package that Mickey Kantor and others put together, representing
some $250 billion of trade in the sectors covered--going beyond what the
Quad had agreed to earlier.
The Vision Statement And Further Ideas
You have to remember that this leaders' conference didn't even exist
four months ago. It was proposed by the President but worked out
carefully--as is consistent with the consensus principle of APEC--over
the last few months. I think it's fair to say that the chemistry among
the leaders began to warm up at dinner last night and then in the boat
ride today. You could see, as the day went on, in the informal
discussions with only the leaders in the room, that it got more and more
open and relaxed.
There was not a series of prepared statements; there were genuine
interventions. There were ideas in the Vision Statement. But--as I
will rehearse in just a minute--as the discussions went on, new ideas
began to come out on the table about how the member economies and
countries could move toward the vision they sketched in the Vision
Statement.
As one leader put it, "Beginning is half the job done." Now this is a
beginning, and it's made concrete by the fact that, toward the end of
the discussion, the participants unanimously asked President Suharto of
Indonesia--or recommended to him--that he offer to host another leaders'
meeting next year in Indonesia. He readily accepted, and everyone
thanked him for that. So I think that's the best proof that the leaders
found this exercise worthwhile. This was pre-cooked--I mean, I think
that it's fair to say that there was some thought given to that, but
people were reserving judgment until they saw how it went.
I'm assuming you all have copies of the Vision Statement. We want to
leave some time for questions. So I won't go over that, except to say
that, beyond the general vision sketched in the front of it of moving
toward freer trade in the region--and keep in mind you've got an
extremely diverse set of countries and economies here, and yet they can
agree on the principle of freer trade; they can agree on the principle
of global trade through the GATT; they can agree on the strength in
diversity; and they can agree on a sense of community, as I said
earlier--there were some specific initiatives, because the discussions
in the course of the day were divided into three parts.
-- The first part was sketching the challenges and opportunities in the
region.
-- Then they moved into each leader describing his sense of national
priorities within that framework.
-- The third part of the discussions, starting at lunch and moving
through the afternoon, was mechanisms and institutions to move toward
that vision.
Specific Initiatives
I think you're familiar with the primary ones in the statement: the
fact that the finance ministers will meet in 1994 and the fact that a
business forum will be formed to advise how the private sector can more
effectively work with APEC. But in the course of the afternoon, this
was further refined when the extraordinarily important role of small-
and medium-sized businesses was underlined. It was determined that in
this forum, you'd have one representative--from each country--of a large
business, but the other one would have to be from a small or medium
business. The important thing to note here is that in most of the APEC
economies, over 90% of their exports are by small and medium businesses,
not by large businesses.
There's also an APEC education program to be fleshed out, but this would
include, perhaps, scholarships and study centers. There were more
specific initiatives on small and medium businesses and the potential
gathering of ministers concerned with these enterprises to discuss how
they can link up better.
The leaders also asked their bureaucracies to develop an action plan on
the relationship between growth, energy, and environment. Again, the
energy demand in this region is awesome. By the year 2000, that demand
will double if it's not gotten under control. Present growth rates
cannot be sustained unless something is done about this, not to mention
the impact on the environment. And there was a proposal of cultural
exchange.
Again, all of these, except the first four, came up beyond the Vision
Statement in the course of their discussions. There was also a proposal
that APEC develop non-binding, non-discriminating investment rules. Now
that's only a beginning; it is non-binding, but it could lead to
something really quite significant for this diverse region. Finally,
there was a proposal that a technology transfer exchange center be
established to help developing countries in particular.
So there are some concrete initiatives beginning to flesh out the vision
that the leaders of these diverse countries agreed upon. Indeed, at the
end, the President and the others each said, let's put our best people
to work on these projects and let's make as much progress as we can make
by the time we meet again--approximately a year from now.
Some General Themes Of the Discussions
Let me just give a few themes and then go to your questions. In the
course of the discussions, I think, one of the themes that emerged was,
of course, the great sense of potential and dynamism in this region--
you're familiar with that from the course of this week. So I won't give
you a long rundown of statistics, except to re-emphasize that once the
word community was understood--some were rather frightened by it,
thinking of the EEC--but in the sense that the President spelled out
last evening, I think there was a ready agreement of moving toward that
kind of family and shared purposes.
The integration of the Asia-Pacific region was underlined by one
participant. Already, this region is more integrated in terms of trade
than Europe or any other region in the world, which, frankly, came as a
surprise to me and many of the rest of us. Sixty-six percent of the
trade of the APEC members is among themselves--versus only 60% or 61% in
the EEC.
The diversity of this group, I think, was reflected in the fact that you
can roughly divide it into three groups.
-- You have the developing countries still in the rather early stages
of development, and they are still plagued by population and poverty
problems.
-- Then you have the "tigers," or newly industrialized economies.
Their main problem and challenge is the need for infrastructure; indeed,
over the next 10 years, you will see $1 trillion spent on this by these
countries--tremendous opportunities for American business, by the way.
-- Then there are the developed countries, the third group, and here I
think it's fair to say the most challenging problem was job creation.
Indeed, one of the themes throughout the discussion, particularly among
some of the more developed countries, was the fear of their citizens
with respect to change--the insecurity of a more interdependent world
economy. And that's why many of the leaders underlined their approval
of the President's victory on NAFTA, which was a triumph, they felt, of
hope over fear--looking to the future rather than retreating toward the
past. Finally, I'd like to end up by saying that the importance of the
Uruguay Round was a constant theme throughout these discussions,
reflected in the Vision Statement and, of course, in the market access
package that I outlined earlier.
The final note--it would be the importance of the private sector. I
think there were some 2,000 business people here this week. Some of the
initiatives that we have developed reflect the role of the private
sector. I think it's fair to say that if anyone is out there creating a
community, it is private business. And it's one of the roles of APEC
and the APEC governments to get out of the way of business, to remove
obstacles, and to facilitate trade and investment. (###)
ARTICLE 7:
APEC Ministerial Meeting Joint Statement
Following is the text of a joint statement released by the APEC
ministers, Seattle, Washington, November 20, 1993. (For the text of
Annex 1, see p. 832 [ARTICLE 8]; Annexes 2-8 omitted.)
1. Ministers 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 Fifth Asia-Pacific Economic Cooperation
(APEC) Ministerial Meeting convened in Seattle, Washington November 17-
19, 1993. The ASEAN Secretariat, the Pacific Economic Cooperation
Council (PECC) and the South Pacific Forum (SPF) attended as observers.
Members of the APEC Secretariat also were present.
2. The meeting was chaired by the Honorable Warren Christopher,
Secretary of State of the United States.
3. In his opening remarks, Secretary Christopher stated trade and
investment within Asia and the Pacific are weaving a new web of human
and commercial relationships. He indicated APEC can play a crucial role
in developing these Asia-Pacific networks. The Secretary also stressed
APEC's development depends on its ability to promote more open trade and
investment in the region, increase cooperation on issues that require
regional solutions, and improve regional infrastructure.
4. The Ministers noted with great anticipation the meeting of APEC
leaders to be held in Seattle, November 20, 1993. The Ministers agreed
this meeting offers a unique opportunity for leaders to articulate a
shared vision for the region into the next century and further develop
economic ties in the region.
5. Ministers held discussions on a range of topics, including:
-- The Report of the Eminent Persons Group
-- Economic Trends and Issues
-- Trade and Investment Issues
-- The APEC Work Program
-- Participation Issues
-- Organizational Issues
6. As the former Chairman of APEC and the current Chairman of the ASEAN
Standing Committee, H.E. Foreign Minister Prasong Soonsiri of Thailand
expressed satisfaction with the progress made since the Bangkok
Ministerial meeting. He stated APEC's priority tasks are to push for
the successful conclusion of the Uruguay Round by the target date and to
further enhance technical cooperation and trade facilitation in APEC.
The Foreign Minister stressed the achievement of regional trade
liberalization must be made through consultation in a manner consistent
with the principles of GATT and open regionalism, with full recognition
of members' differences in levels of economic development. APEC must
retain its consensual and flexible character, which continues to be its
fundamental strength.
REPORT OF THE EMINENT PERSONS GROUP
7. Ministers expressed their great appreciation for the initial Report
of the Eminent Persons Group, which assessed the current position and
outlook of the APEC region, developed a long-term vision for open trade
in the APEC region and proposed a program of initiatives to implement
the vision. The EPG chair, Dr. C. Fred Bergsten, presented the Group's
unanimous Report which emphasized that APEC must accelerate and expand
cooperation in order to respond to three threats to the continued
vitality of the region: erosion of the multilateral global trading
system; evolution of inward looking regionalism; and risk of
fragmentation within the Asia-Pacific region. The EPG recommended APEC
undertake initiatives in four areas: regional and global trade
liberalization; trade facilitation programs; technical cooperation; and
institutionalizing APEC.
8. Ministers warmly welcomed the Report's broad thrust and direction,
pointing out the Report's bold vision of open trade, investment and
economic development in the region provides an important foundation and
catalyst for future regional cooperation. In a wide-ranging discussion
Ministers noted the contribution of the EPG in promoting vigorous debate
on the economic challenges facing the Asia-Pacific region, reaffirmed
the central value of a strengthened open multilateral trading system to
continued growth in APEC economies, urged acceleration and extension of
APEC's trade and investment facilitation and technical cooperation, and
expressed their desire to enhance APEC's role as a vehicle for regional
and global trade and investment liberalization. They also noted the EPG
vision reflected the strengthening of economic relationships and a
growing sense of cohesion and community in the Asia-Pacific region,
reflecting APEC's commitment to consultation and consensus building.
Ministers directed the APEC Secretariat to give broad distribution to
the Report. They also suggested EPG members might wish to discuss the
Report with the business community, academia, and the general public,
and APEC members might wish to encourage this process.
9. Ministers discussed several approaches to addressing the EPG
recommendations, noting in particular that those recommendations closely
linked to ongoing work should be implemented promptly; those
recommendations related to the outcome of the Uruguay Round would
require additional study and consideration; and those recommendations
related to longer term trade liberalization would require further
elaboration by the EPG, on the advice of Senior Officials.
10. In light of the above, Ministers instructed Senior Officials to
develop pragmatic programs to implement the EPG recommendations on trade
liberalization and facilitation, technical cooperation, and the
development of the APEC structure and decision-making process.
Ministers further requested Senior Officials prepare a strategy and
program to advance regional and global open trade, identify mechanisms
to achieve that goal, and report to Ministers at the next ministerial
meeting.
11. Ministers asked the Eminent Persons Group, on the advice of Senior
Officials, to present further more specific proposals on how the
recommended long-term vision might be realized. Ministers wish to
consider these proposals at their meeting in Indonesia in 1994.
ECONOMIC TRENDS AND ISSUES
12. Ministers emphasized the central role which sound economic analysis
plays in developing both national policies and regional cooperative
initiatives. The growing interdependence within the region is producing
shared goals and aspirations and fostering a spirit of common purpose
and of community among APEC members. The work of the Ad Hoc Group on
Economic Trends and Issues is, therefore, crucial to promoting open
trade and investment throughout the region and increasing the economic
well-being of all our peoples. Ministers directed the Group to
strengthen further its capability to prepare assessments of long-term
economic trends and studies of specific sectoral issues. Ministers
directed Senior Officials to explore the possibility of transforming the
Group into the APEC Economic Committee before the next ministerial
meeting.
13. Ministers thanked Thailand for the excellent economic outlook paper
prepared for Ministers' review. Ministers discussed the key issues
analyzed in the report, including the prospects for continued economic
growth in the region and the near-term outlook for inflation. Ministers
also considered several emerging economic issues the paper identified,
including the growth of infrastructure bottlenecks in some member
economies and changes in the labor markets of several member economies.
14. Ministers welcomed the valuable analysis contained in Japan's paper
on a vision of the region in the year 2000. They noted the importance
of continued analysis of the major topics in the report, including trade
and investment liberalization, developing human resources and meeting
environmental and energy resource challenges.
15. Ministers endorsed the proposal to initiate regular exchange among
APEC members of key economic statistics. Such exchange will facilitate
policy formulation and enhance future Ministerial discussion of economic
developments in the region.
16. Ministers endorsed the Group's mission statement and instructed
Senior Officials to advance work on one or more of the proposals to:
assess the study on investment flows throughout the region; examine the
interrelation of trade liberalization and privatization; study the means
of sustaining economic growth in the context of sound energy and
environmental policies; and over the longer term, explore the
feasibility of producing in-depth analysis of international industrial
linkages. Ministers also directed Senior Officials to prepare short- to
medium-term economic outlooks for economies of the region for use at the
1994 ministerial meeting.
TRADE AND INVESTMENT ISSUES
17. Ministers confirmed trade and investment liberalization as the
cornerstone of APEC's identity and activity. Strengthening the
multilateral trading system, expanding regional and global trade and
improving investment rules and procedures in a GATT-consistent manner
are, therefore, central APEC objectives. The Uruguay Round must
conclude by December 15. Ministers accordingly resolved to exercise the
political will required to achieve this goal. To that end, Ministers
agreed to a resolute statement urging an early and successful conclusion
to the Uruguay Round and demonstrated their commitment to this goal by
expressing their preparedness to take additional specific trade
liberalizing measures [Annex 1]. APEC challenges other Uruguay Round
participants to enhance their own contributions to the Round's
successful conclusion.
18. Ministers expressed strong support to non-GATT members of APEC in
their efforts to become GATT contracting parties, thus making
additional contributions to the strengthening of the multilateral
trading system.
19. Ministers welcomed the Report of the Informal Group on Regional
Trade Liberalization (RTL), as agreed by Senior Officials, and endorsed
its recommendations on the continuation of a dialogue within APEC on
important multilateral and regional trade policy issues and the further
development of APEC's action agenda on trade and investment. On the
trade policy dialogue, Ministers noted in particular the effective role
played by APEC in maintaining the momentum for a satisfactory outcome to
the Uruguay Round and in fostering better understanding of subregional
trade arrangements and the contribution of such arrangements to APEC's
overall goals.
20. Ministers emphasized the imperative that APEC members give
effective support to the market-driven dynamism of the region. In this
respect, they endorsed the RTL Group's recommendations aimed at
improving access to tariff data, reducing administrative barriers to
trade, streamlining customs procedures, harmonizing the diverse
approaches to standards and conformance issues and encouraging the flow
of investment. Ministers welcomed the extensive progress on customs
facilitation, publication of an APEC Investment Guidebook and a private
sector survey of attitudes toward investment in the region, publication
of the APEC Customs Manual and hosting of the APEC Customs Symposium.
APEC's important work in this area will be further developed by the new
Committee on Trade and Investment which will replace the RTL Group.
21. Ministers wholeheartedly adopted the "Declaration on an APEC Trade
and Investment Framework" and the accompanying initial work program for
the newly established Committee on Trade and Investment [Annex 2]. The
Declaration significantly advances APEC's role in trade and investment
by engaging APEC members in both policy and facilitation matters. The
Declaration serves as an important instrument within which to further
define APEC's identity, expand economic activity and facilitate the flow
of goods, services, capital, investment and technology throughout the
region.
22. Ministers called for a meeting of ministers concerned with trade
policy to review the results of the Uruguay Round and its implications
for the region. Ministers urged this post-Uruguay Round meeting to
consider next steps for regional and global trade liberalization.
WORK PROGRAM ISSUES
23. APEC's role in sustaining regional growth and development derives
from growing intraregional economic interdependence. The activities of
the ten Working Groups are an essential part of APEC's efforts to
contribute to the region's development and prosperity. Recognizing the
critical importance of modern telecommunications and information
technologies to regional integration and cooperation; the unique role of
tourism as the largest industry in the region; and the urgent need to
work with other organizations on marine resources conservation to
strengthen regional cooperation in response to UNCED, Ministers issued
separate declarations on those issues [Annexes 3-5].
24. Ministers commended and approved the vision and policy issues
statements and asked the Working Groups to direct their efforts to
realizing the objectives in those statements. Ministers approved the
Consolidated Report on the APEC Work Program.
25. Ministers welcomed Korea's proposals on the establishment of an
"APEC Vocational Training Program" and the creation of an "APEC
Technomart" and directed the Senior Officials to explore the possibility
of implementing them within the framework of the Human Resource
Development and Investment and Industrial Science and Technology Working
Groups.
Trade and Investment Data
26. Ministers welcomed the progress made on developing a near
comparable merchandise trade data base for APEC economies and directed
that priority attention be devoted to efforts to adjust published
merchandise trade data according to agreed principles and standards.
The Group should also strengthen efforts to improve the collection and
sharing of services trade and investment data.
Trade Promotion: Programs and Mechanisms for Cooperation
27. Ministers noted the Working Group can play an important role in
strengthening interaction with the business/private sector. Ministers
anticipate the first Asia-Pacific International Trade Fair to be held in
Osaka, Japan in October 1994 will be a significant step to accelerate
trade promotion and increase commercial transactions in the region.
Investment and Industrial Science and Technology
28. Ministers noted the broadening of the mandate for the Investment
and Industrial Science and Technology Working Group and endorsed its
efforts to develop a work program that increases cooperation in these
important fields.
Human Resource Development
29. The people of the Asia-Pacific region are its single most important
asset. The dynamism of the region is reflected in changing human
resources needs. Ministers expressed satisfaction with the progress
achieved in APEC's human resource development activities, but urged that
continued priority attention be devoted to this work--with particular
emphasis on the training and adjustment needs necessitated by changing
trade patterns, industrial restructuring and other economic changes
associated with rapid growth and technological progress.
Energy Cooperation
30. Ministers noted the vital importance of secure and balanced energy
supplies and rational energy use for sustained economic development and
protection of the environment. They welcomed technology and policy
exchanges on energy efficiency, clean coal technology and renewable
energy, and in particular were encouraged by active business/private
sector participation in APEC technical energy workshops and seminars.
Marine Resource Conservation
31. Ministers confirmed the unique contribution APEC can make to marine
resources conservation and the importance of APEC cooperation with other
marine resources conservation organizations in response to UNCED.
Telecommunications
32. Modern and compatible telecommunications networks are vital
components linking and drawing closer the APEC economies. Ministers
praised the completion of the second edition of The State of
Telecommunications Infrastructure and Regulatory Environments of APEC
Economies, the Working Group's stress on human resources development,
and its important contribution to the consideration of coordinating
APEC's electronic data interchange activities.
Fisheries
33. Ministers noted the important role of fisheries to the region's
economies and endorsed the Working Group's project on fisheries
management, survey of training needs, health and quality rules for
fisheries products, improved marketing information on seafood trade in
the region, and the possible role of APEC in respect to aquaculture.
Transportation
34. Ministers emphasized the importance of efficient transportation
systems in promoting regional growth and integration. They expressed
appreciation for the Working Group's efforts in developing information
on regional transportation and encouraged the Group to accelerate its
work on identifying infrastructural needs and facilitating movement of
passengers and goods in the region.
Tourism
35. Ministers welcomed the progress made by the Working Group in
addressing the issues of sustainable development of the tourism sector
and addressing the relationship between tourism and the environment.
PARTICIPATION ISSUES
36. Ministers noted the continuing interest expressed by a number of
economies and organizations in participating in some capacity in the
APEC process. Ministers reaffirmed APEC is an open and evolving process
and recalled the view expressed in Bangkok that consolidation and
effectiveness should be the primary considerations at this stage of
APEC's development. Ministers also recognized, however, that APEC
should develop more systematic means of addressing the issue of new
members in a manner which is responsive to APEC's needs while promoting
constructive interaction with other economies and organizations in the
region.
37. Ministers welcomed the admission of Mexico and Papua New Guinea to
APEC. They also decided to admit Chile to APEC and looked forward to
its membership at the ministerial meeting in 1994. In the interim,
Ministers encourage Chile to participate in the Working Group
activities. Noting the importance of increasing APEC's effectiveness,
Ministers agreed to defer consideration of additional members for three
years, during which time Senior Officials would study APEC's membership
policies and provide recommendations to Ministers on an ongoing basis.
38. Ministers reaffirmed that participation by non-members from the
Asia-Pacific region in APEC work projects can be beneficial to members
as well as non-members. In order to facilitate cooperation with non-
members and address issues arising from increased economic
interdependence, Ministers approved the proposed guidelines for non-
member participation in APEC Working Group activities which appear as
Annex 6, and asked Senior Officials to identify other potential means to
promote mutually beneficial interaction. With respect to organizations,
Senior Officials should identify considerations to guide APEC in
fostering appropriate ties and report their findings to the Sixth
Ministerial.
Private Sector Participation
39. The business/private sector has played a major role in facilitating
the dynamic growth of the region. Engagement with the business/private
sector, particularly through Working Group activities, ensures APEC's
efforts are relevant to real world challenges and opportunities.
Ministers commended the progress made this year in increasing
business/private sector engagement with APEC and directed each Working
Group to enhance its outreach to the business/private sector. Ministers
pledged to solicit the advice of the business/private sector on issues
relevant to APEC's work, especially through the PECC, and instructed
Senior Officials to explore other ways of broadening and deepening
cooperation with the business/private sector including the work of the
new Committee on Trade and Investment.
ORGANIZATION ISSUES
APEC Secretariat
40. Ministers noted with satisfaction the successful establishment of
the APEC Secretariat, and expressed deep appreciation to Singapore for
its extraordinary generosity in assisting the Secretariat and to
Executive Director Ambassador Bodde and the Secretariat staff for their
outstanding efforts during the first year of operation. Ministers
highlighted the Secretariat's crucial role in facilitating cooperative
links with members and the work program. Ministers stressed the
Secretariat should serve as a central coordinating point for
disseminating information including informing Working Groups of Senior
Officials' decisions, coordinating requests by non-members to
participate in APEC activities, and publishing and distributing APEC
documents. The Secretariat should continue to place high priority on
careful management of the APEC budget, disbursement of central funds,
and maintenance of effective financial controls to ensure accountability
of APEC funds.
Budget
41. Ministers endorsed efforts by Senior Officials, assisted by Working
Group Shepherds and the APEC Secretariat, to develop and implement a
series of measures related to financial operations and administration.
Ministers approved an APEC 1994 Central Fund of $2 million and
stipulated that unspent 1993 funds may be carried over to 1994 for
expenditures approved by Senior Officials. Ministers asked the Budget
and Administrative Committee to address the issue of contributions from
new members.
APEC Structure
42. Ministers praised work by Korea and Canada in developing a
comprehensive Vision Statement containing proposals designed to ensure
efficient management of APEC's scarce resources. Similarly, Ministers
directed that a Budget and Administrative Committee be established to
advise Senior Officials on operational and administrative budget issues,
financial management, and project management of the APEC work program.
For the first year, committee membership will be open to all APEC
members. The Working Groups will continue to report directly to Senior
Officials. Ministers directed Senior Officials to use the Vision
Statement as a basis for developing proposals related to APEC's
structure and to provide recommendations at the 1994 ministerial meeting
on restructuring APEC to improve its effectiveness and decision-making
process.
VENUES FOR FUTURE APEC MINISTERIAL MEETINGS
43. As decided at the Fourth Ministerial Meeting in Bangkok, the Sixth
Ministerial Meeting will be held in Indonesia in 1994, the Seventh
Ministerial Meeting will be held in Japan in 1995, Philippines and
Canada will host the Eighth and Ninth Ministerial Meetings in 1996 and
1997 respectively.
OTHER MATTERS
44. Ministers also welcomed Canada's offer to host a meeting of APEC
ministers concerned with the environment in Vancouver on March 25-26,
1994 in connection with the Globe '94 conference and environmental
exhibition.
45. Ministers and their delegations expressed their deep appreciation
to the United States for the warm and generous hospitality extended to
them and the excellent facilities and arrangements made available for
the Meeting. (###)
ARTICLE 8:
Declaration on an APEC Trade And Investment Framework
Following is the text of Annex 1 of the APEC ministerial meeting joint
statement released by the APEC ministers, Seattle, Washington, November
20, 1993.
Ministers of 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 Philippines, Singapore,
Chinese Taipei, Thailand and the United States of America, meeting in
Seattle from November 17-19, 1993, (collectively the "Members"):
1. Determined to work through APEC toward the further development of
open regionalism and market-driven economic interdependence in the Asia
Pacific region;
2. Challenged by their desire to capitalize upon the strong and dynamic
growth in regional trade and investment through increased cooperation
and facilitation;
3. Recognizing that GATT principles are the cornerstone of the
multilateral, international trading system and the basis for economic
cooperation in APEC, and remaining committed to those principles;
4. Mutually determined to develop APEC's global role as a forum
operating through consultation and by consensus, distinguished by open
regionalism and committed to the strengthening of the multilateral
trading system embodied by GATT;
5. Demonstrating to the global trade and investment community APEC's
vision of dynamic interdependence and APEC's ability to represent the
mutual interests of the Asia Pacific region with an active, common voice
on trade and investment issues of global importance;
6. Recognizing the differences in the stages of development and in the
socio-political systems, and giving due consideration to the needs of
developing economies;
7. Recognizing the linkage between trade and investment and the flow of
technology;
8. Committed to open dialogue and consensus-building with respect to
the views of all participants;
9. Determined to pursue the objectives of the Seoul APEC Declaration
November 14, 1991, confirmed at Bangkok on September 11, 1992 to:
-- sustain the growth and development of the region for the common good
of its peoples and in this way, to contribute to the growth and
development of the world economy;
-- enhance the positive gains, both for the region and the world
economy, resulting from increasing economic interdependence, including
by encouraging the flow of goods, services, capital and technology;
-- develop and strengthen the open multilateral trading system; and
-- reduce barriers to trade in goods and services and investment among
participants in a manner consistent with GATT principles and without
detriment to other economies;
10. Acknowledging the essential role played by the APEC business sector
in furthering growth, creating jobs, expanding trade and investment,
improving technology and enhancing economic development and cognizant
that protectionism, certain investment measures as well as other
discriminatory and restrictive practices that distort trade would
deprive APEC economies of such benefits;
11. Desiring to consult on and seek solutions to trade and investment
problems in the region as amicably and expeditiously as possible without
prejudice to the rights and interests of members under the GATT and
consistent with GATT principles;
12. Convinced that it would be in the interest of APEC economies to
establish an APEC mechanism to stimulate the liberalization of trade and
investment and advance a trade agenda in support of these objectives
within the region.
To this end, Ministers jointly resolve as follows:
PARAGRAPH ONE
Establishment of the APEC Committee on Trade and Investment
Under the authority of APEC Ministers, the APEC Committee on Trade and
Investment (the "Committee") is established. The Committee will report
to Ministers through Senior Officials (the SOM).
PARAGRAPH TWO
Objectives
The objectives of the Committee are to:
1. Create a coherent APEC perspective and voice on global trade and
investment issues and increase cooperation among Members on key issues.
2. Pursue opportunities to liberalize and expand trade, facilitate a
more open environment for investment and develop initiatives to improve
the flow of goods, services, capital and technology within the region;
consult on issues of importance in that context and develop consensus to
expand and strengthen these flows within the region and globally, and to
reduce and remove distortions which impede these flows in a manner
consistent with applicable GATT principles.
PARAGRAPH THREE
Scope of Activity
1. Ministers will review progress on trade and investment issues and
determine the Committee's work program at their annual meeting.
2. The Work Program will address a range of such issues encompassing:
a) policy issues related to the evolving interrelationship of the APEC
economies within the global economic environment;
b) impediments and distortions which affect the movement of goods,
services, investment, and technology in the APEC region;
c) reduction of transaction costs which affect the flow of trade and
investment in the region;
d) trade and investment policy issues evolving from the work of
individual APEC Working Groups and activities;
e) ways to enhance the contribution of the APEC business sector in
evolution of trade policies, identification of barriers to trade within
the region and possible solutions of mutual benefit to the region.
3. At this Ministerial meeting in Seattle, Ministers enjoined the
Committee to undertake the initial work program for 1994.
PARAGRAPH FOUR
Structure of the Committee
1. The Committee shall be composed of Members' policy-level officials
responsible for trade and economic affairs.
2. The Committee shall select a Chair and Vice Chair to serve a term to
be decided by the Committee.
3. The Committee will meet at such times as agreed jointly by
representatives.
4. The Committee may establish either temporary or permanent sub-
committees, with clearly defined terms of reference and duration, that
may meet concurrently or separately in order to facilitate its work.
(###)
ARTICLE 9:
APEC Economic Leaders' Vision Statement
Following is the text of a statement released by the APEC economic
leaders, Seattle, Washington, November 20, 1993.
We have held an unprecedented meeting of the economic leaders of the
Asia-Pacific Economic Cooperation forum. In this post Cold War era, we
have an opportunity to build a new economic foundation for the Asia
Pacific that harnesses the energy of our diverse economies, strengthens
cooperation and promotes prosperity.
Our meeting reflects the emergence of a new voice for the Asia Pacific
in world affairs. As we prepare to enter the twenty-first century, we
believe our dynamic region, representing forty percent of the world's
population and fifty percent of its GNP, will play an important role in
the global economy, leading the way on economic growth and trade
expansion.
The foundation of our economic growth has been the open multilateral
trading system. Therefore, we pledge our utmost efforts to bring the
Uruguay Round to a successful conclusion by December 15. We are
determined the Asia Pacific region will lead the way in taking concrete
steps to produce the strongest possible outcome in Geneva. Increased
participation by APEC economies in a strengthened GATT system also will
facilitate greater regional cooperation.
Our success has been the result of the ability of our societies to adapt
to changing circumstances. Our economies are moving toward
interdependence and there is a growing sense of community among us. We
are united in our commitment to create a stable and prosperous future
for our people.
Recognizing our economic interdependence as well as our economic
diversity, we envision a community of Asia Pacific economies in which:
-- The spirit of openness and partnership deepens, enabling us to find
cooperative solutions to the challenges of our rapidly changing regional
and global economy;
-- We are a vast Asia Pacific market of two billion people where
dynamic economic growth continues, contributing to an expanding world
economy and supporting an open international trading system;
-- We continue to reduce trade and investment barriers so that our
trade expands within the region and with the world and goods, services,
capital and investment flow freely among our economies;
-- Our people share the benefits of economic growth through higher
incomes, high skilled and high paying jobs and increased mobility;
-- Improved education and training produce rising literacy rates,
provide the skills for maintaining economic growth and encourage the
sharing of ideas that contribute to the arts and science;
-- Advances in telecommunications and transportation shrink time and
distance barriers in our region and link our economies so that goods and
people move quickly and efficiently;
-- Our environment is improved as we protect the quality of our air,
water and green spaces and manage our energy sources and renewable
resources to ensure sustainable growth and provide a more secure future
for our people.
We recognize this vision will become a reality only if we work together
actively to secure it. We are convinced we can succeed. We intend to
use our shared vision as a guide for developing the future of our
region.
We reaffirm our support for the continued development of APEC as a forum
dedicated to producing tangible economic benefits to the region. We
urge APEC to expand its economic dialogue and advance its specific work
projects. The entrepreneurial spirit and market-oriented policies that
have driven our economic dynamism will continue to be fostered within
APEC.
We welcome the challenge presented to us in the report of the APEC
Eminent Persons Group to achieve free trade in the Asia Pacific, advance
global trade liberalization and launch concrete programs to move us
toward those long-term goals. We ask APEC to undertake work aimed at
deepening and broadening the outcome of the Uruguay Round, strengthening
trade and investment liberalization in the region, and facilitating
regional cooperation, including in such areas as standards.
We agree to convene a meeting of APEC Finance Ministers to consult on
broad economic issues including macroeconomic developments and capital
flows. We believe such discussions will help us address some of the
challenges facing the region, including ensuring non-inflationary
regional growth, financing investment and infrastructure development,
and promoting capital market development.
We ask business leaders to establish a Pacific Business Forum to
identify issues APEC should address to facilitate regional trade and
investment and encourage the further development of business networks
throughout the region. We also ask APEC to strengthen its policy
dialogue on small and medium size business enterprises.
We agree to make an investment in our future generations by establishing
an APEC Education Program to develop regional cooperation in higher
education, study key regional economic issues, improve worker skills,
facilitate cultural and intellectual exchanges, enhance labor mobility
and foster understanding of the diversity of our region. We agree to
establish an APEC Business Volunteer Program to promote cooperation
among us in the areas of human resource development and the exchange of
management skills and techniques.
As members of APEC, we are committed to deepening our spirit of
community based on our shared vision of achieving stability, security
and prosperity for our peoples. (###)
ARTICLE 10:
Fact Sheet: Asia-Pacific Economic Cooperation (APEC)
Background
The Asia-Pacific region, comprising some of the more dynamic economies
in the world, has experienced unprecedented growth in the last two
decades. Economic relations among economies of the region also have
increased dramatically, fueled by growing trade and financial flows.
Asia-Pacific Economic Cooperation (APEC) was established to better
manage the effects of growing interdependence in the Pacific region and
sustain economic growth. A new vehicle for multilateral cooperation
among the market-oriented economies of the region was needed. APEC
began in 1989 as an informal grouping of 12 Asia-Pacific economies
formed to meet that need. In November 1991, APEC admitted China, Hong
Kong, and Chinese Taipei. In November 1993, Mexico and Papua New Guinea
joined APEC, bringing membership to 17.
APEC provides a forum for discussion on a broad range of economic issues
of importance to the region. The APEC chair rotates annually among
members and is responsible for hosting an annual ministerial meeting.
Foreign and economic ministers from the members first met in Canberra,
Australia, in November 1989. Since then, annual ministerial meetings
have been held in Singapore; Seoul, South Korea; Bangkok, Thailand; and
Seattle, Washington. Upcoming ministerial meetings are planned for
Indonesia in 1994, Japan in 1995, the Philippines in 1996, and Canada in
1997.
Indonesia now holds the APEC chair and will host the next APEC
ministerial meeting in Bali, Indonesia, in November 1994. Indonesia
also will host periodic lower-level meetings throughout 1994 to lay the
groundwork for the ministerial meeting.
U.S.-APEC Relations
The United States works closely with members of APEC, which is an
important part of U.S. engagement in the Asia-Pacific region. President
Clinton has underscored that the United States is "committed to making
[APEC] a vehicle for liberalization in the region."
In 1992, U.S. trade across the Pacific ($344 billion) was 51% greater
than trade with Western Europe ($228 billion). U.S. foreign direct
investment in economies belonging to the APEC group was more than $145
billion in 1992, about 30% of total U.S. foreign direct investment.
APEC Progress
APEC has grown from an informal dialogue group to a more formalized
institution that involves all major economies of the region: China,
Hong Kong, and Chinese Taipei joined APEC in 1991; APEC established a
permanent secretariat in Singapore in September 1992; and, at the
November 17-19, 1993, ministerial meeting in Seattle, Mexico and Papua
New Guinea joined APEC and ministers invited Chile to join in late 1994.
In Seattle, ministers also agreed to the Declaration on an APEC Trade
and Investment Framework and action plan, set up the Committee on Trade
and Investment, and extended the non-governmental Eminent Persons
Group's mandate to develop proposals to effect its long-term
recommendations and vision for Asia-Pacific regional economic
cooperation.
APEC economic leaders, meeting on Blake Island near Seattle on November
20, 1993, set forth a vision which recognizes that in the post-Cold War
era:
We have an opportunity to build a new economic foundation for the Asia
Pacific that harnesses the energy of our diverse economies, strengthens
cooperation and promotes prosperity.
The leaders also:
-- Called for a successful conclusion to the Uruguay Round of the
General Agreement on Tariffs and Trade;
-- Called on APEC to expand its economic dialogue and advance its work
program;
-- Agreed to convene a meeting of APEC finance ministers;
-- Asked business leaders to establish a Pacific Business Forum;
-- Asked APEC to strengthen its policy dialogue on small and medium-
sized business enterprises; and
-- Agreed to establish an APEC Education Program and a Business
Volunteer Program.
APEC's priority is to encourage market-oriented solutions to the
adjustment problems associated with quickly growing economies. APEC has
made significant contributions to negotiations during the Uruguay Round
and is considering moves toward regional trade liberalization.
APEC Groups
APEC senior officials oversee 10 working groups, covering broad areas of
economic, educational, and environmental cooperation. In addition, APEC
has a Committee on Trade and Investment and an Ad Hoc Group on Economic
Trends and Issues. The working groups are:
Trade and Investment Data. Develops consistent and reliable data in
merchandise trade, trade in services, and investment.
Trade Promotion. Develops proposals to exchange trade and industrial
information and to promote economic and trade missions among economies
of the region. Organizes international seminars and meetings to pro-
mote trade, an Asia-Pacific trade fair, and a training course on trade
promotion.
Investment and Industrial Science and Technology. Promotes investment
in the APEC region through such activities as an investment and
technology information network for the Asia-Pacific region.
Human Resource Development. Seeks ways to exchange information among
Asia-Pacific economies in such areas as business administration,
industrial training and innovation, project management, and development
planning. In this working group, the United States hosted an APEC
education ministerial in Washington, DC, in August 1992 and sponsors the
APEC Partnership for Education, which promotes university partnerships
among U.S. and Asian/South Pacific universities, outreach and
cooperative education activities, and private sector training.
Energy Cooperation. Develops cooperative projects, such as a regional
database on energy supply and demand, and exchanges views on, among
other things, coal utilization, technology transfer, and resource
exploration and development.
Marine Resource Conservation. Exchanges information on policy and
technical aspects of marine pollution and advancement of integrated
coastal zone planning. Exchanges information on and develops
recommendations for dealing with red tide/toxic algae pollution
problems.
Telecommunications. Compiles annual survey on APEC telecommunications
development activities, including a description of each member country's
telecommunications environment. Explores ways to establish and develop
regional networks, initially by encouraging electronic data interchange.
Exchanges information on policy and regulatory developments in each
member's telecommunications sector. Disseminates a manual on how to
approach training in a telecommunications organization, followed by a
pilot project reviewing needs and recommending solutions in a selected
organization.
Transportation. Studies and recommends ways to improve infrastructure,
facilitate movement of passengers and freight, collect and exchange
data, and enhance transportation safety and security. This U.S.-led
working group is one of three added in March 1991. The United States
proposed it because of the importance of improved transportation links
to continued economic growth in the region.
Tourism. Studies one of the region's most important industries,
focusing on tourism data exchange, barriers to expansion, training
programs, and current projects in APEC member economies.
Fisheries. Surveys the pattern of APEC fisheries cooperation to develop
fisheries resources. Reports on role of APEC in coordinating and
complementing the work of existing organizations and promoting
cooperative relations among APEC participants.
Participating Economies
Australia, Brunei, Canada, China, Hong Kong, Indonesia, Japan, South
Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Philippines,
Singapore, Chinese Taipei, Thailand, United States (###)
ARTICLE 11:
Fact Sheet: APEC Working Groups
Since APEC's formation in 1989, 10 APEC working groups have been
established to develop activities which will contribute to its overall
goal of expanding economic cooperation among the member economies.
Following are descriptions of each group.
Human Resource Development Working Group
Background
The APEC Human Resource Development (HRD) working group, chaired by
Canada, promotes the development of human resources in the Asia-Pacific
region, with the recognition that economic prosperity requires a well-
trained, flexible work force. The working group aims to exchange
information within APEC on business administration, industrial training
and innovation, project management, and development planning. Three
main networks/priority areas are: Business Management Network; Network
for Economic Development and Management; and Human Resources Development
in Industrial Technology Network.
Recent Accomplishments
-- Within the HRD working group, the U.S. sponsors the APEC Partnership
for Education, promoting university partnerships among U.S. and other
APEC member economy universities, outreach and cooperative education
activities, and private sector training.
-- The working group is undertaking more than 50 projects, including,
for example, human resource development efforts in small and medium-
sized enterprises, the impact of foreign aid on human resource
development and capacity-building, developing a quality work force
through on-the-job training, and the compilation of comparable education
statistics in the APEC region.
Goals
The working group will continue to discuss human resource development
policy issues among APEC members. It will complement activities of
other APEC working groups and multilateral agencies engaged in human
resource development. Specifically, it will complete the rotation of
network coordinators in the Business Management Network, Network for
Economic Development and Management, and the Human Resources Development
in Industrial Technology Network. The working group plans to finish its
medium-term work plan and continue to promote the U.S.-APEC Partnership
for Education, the Japan-APEC Partnership for Education and Training,
and the Mobility in the Asia-Pacific Project of Australia University.
Contact
Randolph Yamada, U.S. Agency for International Development, Bureau for
Asia and Near East, (202) 647-2658/3805, FAX (202) 647-1805.
Tourism Working Group
Background
Tourism, one of the largest and most rapidly growing industries in the
world, is very important to APEC member economies. By the year 2000,
tourism in the region will grow markedly, and global tourism is
projected to exceed $3.4 trillion. The APEC Tourism Working Group
(TWG), co-chaired by the United States and Indonesia, coordinates travel
and tourism issues for APEC-member economies.
Private sector participation in the TWG has included the Pacific Asia
Travel Association (PATA), the Pacific Economic Cooperation Council
(PECC), and the University of Hawaii. The group also works with the
World Tourism Organization and the Organization for Economic Cooperation
and Development.
Goals and Accomplishments
The working group is developing tourism projects related to:
1. The environment;
2. Human resource development; and
3. Statistics.
Tourism and the Environment: One goal of the working group is to
promote sustainable economic development in the region. In 1993, the
working group received $50,000 in APEC funds to identify major
ecosystems that significantly affect tourism--and vice versa--and to
determine management techniques, strategies, and funding sources to
conserve and enhance these areas as well as to increase or maintain
tourism flows. A second, self-funded project reviews tourism
development and its interdependence with natural, cultural, and
social/historical environments among working group members.
Human Resource Development: The group received $25,000 in 1993 APEC
funds to develop a course to enhance local government officials'
awareness of the impact of their decisions on tourism. Future courses
will be funded through industry support as well as through registration
fees from individuals benefiting from the educational services provided.
Statistical Data Collection: The working group plans to initiate the
development of an APEC regional tourism database to include the
comparability of current tourism statistics and information within the
region. The group also is considering a proposal for a Pacific-Asia
travel monitor as a future APEC-funded project which would develop and
implement, over a six-year period, a continuous survey of outbound
travel from most APEC member economies.
Other Issues: These include cooperative efforts among APEC economies to
promote the concept of tourism growth based on solid infrastructures
that account for preservation of the environment, community needs,
traveler safety and welfare, training and education requirements, and
collection and distribution of tourism statistics.
Contact
Ginger Smith, Public Affairs and Senior International Policy Analyst,
U.S. Travel and Tourism Administration, Washington, DC 20230, (202) 482-
0137, FAX (202) 482-4279.
Trade and Investment Data Working Group
Background
The Trade and Investment Data Working Group (TIDWG) is co-chaired by
Singapore, Japan, Indonesia, and the U.S. It seeks to increase the
utility of statistical data among member economies and to improve
regional consultations in data collection methods and practices. Its
objective is to set up comparable statistical databases on trade in
goods and services and investment for APEC member economies.
Discrepancies in APEC trade and investment data have been a source of
concern to policy-makers. Consistent and comparable databases across
APEC economies are fundamental to developing and supporting trade and
investment policies for its members and for analyzing economic issues
facing the region. The data on the value of what one member exports or
invests should be comparable with partner member data on imports or
receipts in the form of investments. Discrepancies in trade and
investment statistics--when unexplained--could lead to incorrect
analyses of current economic conditions, inappropriate policies,
misallocation of resources, and misunderstandings among members.
Recent Accomplishments
-- The TIDWG has completed an inventory of practices among members in
compiling statistics on merchandise trade, services trade, and foreign
investment, in order to identify differences in members' practices and
gaps in data and to establish international standards of compilation to
eliminate discrepancies in statistics.
-- It established a technical advisory panel to provide guidance in the
development of the merchandise trade database, to select the "creator"
of the database, and to ensure that APEC standards and guidelines are
met.
-- The technical advisory panel developed a budget proposal to set up
the merchandise trade database. This proposal was the best means for
establishing the trade databases and the guidelines for ongoing
collection and maintenance of reliable and consistent international
statistics among members.
Goals
The TIDWG plans to create a near comparable merchandise trade database
in the coming year and has begun work to develop near comparable
databases on services trade and foreign investment.
Contact
Sumiye O. McGuire, Office of Macroeconomic Analysis, Office of the Chief
Economist, Economics and Statistics Administration, U.S. Department of
Commerce, (202) 482-1675.
Fisheries Working Group
Background
The APEC Fisheries Working Group (FWG) is co-chaired by New Zealand,
Japan, Thailand, and Indonesia. It reviews current activity in the
field of fisheries and aquaculture in the Asia-Pacific region and
promotes cooperation to maximize the benefits that members can obtain
from their fisheries resources, including sustained optimum utilization,
enhanced training and education, and trade facilitation.
Recent Accomplishments
-- The FWG sponsored a workshop, study tour, and roundtable discussion
on promoting development and cooperation of small and medium-sized
businesses in the processing sector of fisheries.
-- The working group completed a survey of fishery species requiring
international cooperation in resource management and of existing
management and/or scientific support arrangements in the Pacific region.
-- The FWG completed an inventory of existing facilities and
opportunities for the transfer of fish harvesting and post-harvesting
technologies.
Goals
The working group has endorsed a three-year working program on health
and quality requirements for fish and seafood products. It will include
training workshops, field visits, and seminars, with the aim of
improving transparency of, and encouraging compliance with, fish
inspection systems. The program is scheduled to begin in 1994. The
working group also has approved a study on ways to improve seafood
marketing and trade information in the region and will soon consider
proposals on aquaculture issues.
Contacts
William E. Dilday, Senior Pacific Affairs Officer, Office of Marine
Conservation, U.S. Department of State, (202) 647-3940 or Mark Wildman,
Foreign Fisheries Analyst (Asia), Office of International Affairs,
National Marine Fisheries Service, Department of Interior, (301) 713-
2286.
Trade Promotion Working Group
Background
The Trade Promotion Working Group (TPWG) is co-chaired by Indonesia,
Malaysia, Thailand, and South Korea. The TPWG focuses its attention on
areas for practical cooperation to promote regional trade, market access
and economic cooperation. There are five work programs:
1. Trade and industrial information exchange;
2. Trade promotion seminars;
3. Trade promotion courses;
4. Intra- and inter-regional trade and economic missions support; and
5. An Asia-Pacific international trade fair.
Recent Accomplishments
-- The U.S. Department of Commerce has surveyed trade associations for
their ideas on how to involve the private sector. Other member
economies also are gathering private sector input.
-- The third seminar on trade promotion was held in Seoul in October
1993 with the theme, "Globalization and Changing Business Practices in
the 1990s: Asia-Pacific Response to the New World Economic Order." The
next seminar will be held in China in June 1994.
-- A special seminar on "Promoting the Expansion of the Export of
Medium and Small Enterprises" was held in Shenzhen, China, in June 1993.
-- The second training course for small and medium-sized enterprises
was completed in the Philippines and Chinese Taipei. The third course
is scheduled for June 1994 in Beijing.
-- Plans are underway for the first APEC international trade fair, to
be held in Osaka, Japan, in October 1994.
Goals
The TPWG is committed to bringing the private sector into its activities
and planning process. This is illustrated by the invigorated effort of
the TPWG members to involve the business community. The TPWG expects
to enhance its 1993-94 action plan through a more active partnership
between businesses and governments.
Contacts
Sarah Kemp or JeNelle Matheson, U.S. and Foreign Commercial Service,
Department of Commerce at (202) 482-2422. To participate in or attend
the APEC international trade fair in Osaka, contact Ira Kasoff,
Commercial Officer, U.S. Consulate General, Osaka, 011-81-6-315-5964, or
FAX 011-81-6-361-5976.
Marine Resource Conservation Working Group
Background
The APEC Marine Resource Conservation (MRC) working group, promotes
initiatives among APEC economies to protect the marine environment and
resources and to ensure continuing socioeconomic benefits by maintaining
the quality of the marine environment. The working group has developed
programs related to red tide/toxic algae and integrated coastal zone
management. Its major focus during 1992 was on ocean pollution and
environmental concerns. In December 1992, APEC senior officials agreed
that the MRC should focus more on policy and the broader international
agenda of marine environment issues, including the relevant elements of
the UN Conference on Environment and Development (UNCED), not just on
specific projects. They also noted the importance of coordinating
environmental matters emerging through a range of APEC projects.
Recent Accomplishments
-- The MRC working group completed an inventory of international
organizations dealing with marine resource conservation in the APEC
region.
-- The working group prepared the November 1993 APEC ministerial
statement which responded positively to UNCED's Agenda 21, Chapter 17.
In Chapter 17--on oceans--UNCED calls for "numerous national and
international including regional institutions, both within and outside
of the United Nations system, with competence in marine issues" to
coordinate and develop networking for the implementation of the oceans
chapter.
-- The group proposed a new project to coordinate UNCED follow-up with
other organizations active in marine affairs in the APEC region.
-- The group proposed a plan to effect an increased dialogue with the
private sector.
Goals
The MRC working group will complete data gathering for the Red
Tide/Toxic Algae Project. It will finalize the first phase of the
Integrated Coastal Zone Management Project--including member economy
reports on land-based sources of pollution, responsible agencies, and
contacts--as well as promotion of implementation of "UNCED Agenda 21
Oceans." Private sector participation in the working group will be
encouraged.
Contact
Bill Sullivan, U.S. Department of State, (202) 647-0240.
Energy Cooperation Working Group
Background
The Energy Cooperation Working Group (EWG), chaired by Australia, was
established to maximize the energy sector's contribution to the region's
economic development, while safeguarding the environment. The EWG
contributes to decision-making through frank and open discussion of
national energy policies and planning priorities, sharing of basic
resource demand and supply outlook data, and considering regional energy
implications and responses to energy-related issues such as the
greenhouse effect. The TWG is divided into four expert groups:
1. Energy supply and demand;
2. Energy and the environment;
3. Energy conservation and efficiency; and
4. Technology cooperation.
Recent Accomplishments
-- The first seminar on APEC regional utilization of clean coal
technologies was held in Thailand in September 1993; seminar proceedings
are now available.
-- APEC Energy Statistics--1991, a historical compilation of energy
supply and demand balances, was published and is available from the APEC
Secretariat.
-- The first seminar on demand-side management was held in Hawaii in
May 1993, and an energy efficiency and conservation compendium was
published.
-- A study tour of photovoltaic installations was held in Australia,
July-August 1993.
Goals
In 1994, the EWG plans to hold seminars and workshops in the areas of
energy efficiency and alternative fuels issues in urban transport
systems; clean coal technology; and energy technology for the next
decade. Furthermore, the EWG expects to publish studies on the APEC
database, energy efficiency practices and measures, energy efficiency
and conservation information systems, natural gas vehicles, demand-side
management, and renewable energy programs.
Contact
Robert S. Price Jr., Director, International Energy Organizations and
Policy Development, U.S. Department of Energy, (202) 586-6383, FAX (202)
586-6148.
Investment and Industrial Science And Technology Working Group
Background
The goal of the APEC working group on Investment and Industrial Science
and Technology (IIST), co-chaired by Japan, the Philippines, Indonesia,
and China, is to promote economic growth by expanding investment and
technology transfer.
Recent Accomplishments
-- During its most recent meeting in Seoul in May 1993, the IIST
working group explored the viability of establishing an electronic
network for information on investment and technology transfer. APEC
members plan to incorporate this proposed network into an overall APEC
information network.
-- In addition, IIST working group members meeting in Seoul decided to
reinforce the group's focus on science and technology initiatives. On
September 12-13, the working group met in Shimizu, Japan, and adopted
principles and proposed a work program for future APEC science and
technology cooperation. The work program was endorsed by APEC ministers
in Seattle in mid-November.
Goals
The working group's next major activity will be a seminar hosted by
China in May 1994 on the development of industrial and technology parks.
The working group also plans to publish a handbook on industrial park
development and to hold additional science and technology seminars.
Following adoption by APEC ministers of the Declaration on a Trade and
Investment Framework, the Investment and Industrial Science and
Technology working group now can coordinate its investment-related
activities with those of the APEC Trade and Investment Committee.
Contact
Raphael Cung, U.S. Department of Commerce, (202) 482-3877.
Transportation Working Group
Background
The Transportation Working Group, chaired by the United States, works
closely with the private sector and is concerned with policy and
management issues. The group is surveying regional transportation in
order to provide information on various activities and to avoid
duplication of effort with other organizations. Members are preparing
overviews of transportation systems and services and synopses of
transportation data.
The group also is examining transportation problem areas that may impede
trade and economic growth. It is undertaking an investigation of
transportation bottlenecks in the APEC region and is studying ways to
use electronic data interchange (EDI). The group has instituted a
series of seminars on transportation.
Recent Accomplishments
-- A seminar was conducted with the business/private sector on the
facilitation of the movement of passengers and cargo and on the
applications of EDI.
-- A document on the regulatory environment for transportation in each
APEC economy has been completed and will be published in 1994.
-- A survey of transportation data has been completed. To be published
in 1994, it will be used to identify gaps in data collection and to
assist the rationalization and development of transportation systems in
the region.
Goals
The group has agreed upon two new projects for 1994: a study of the
current usage and expansion of EDI in the transportation sector and a
seminar on the harmonization of technical and operating standards in the
transportation sector. The group will continue its projects to identify
transportation impediments to increased transportation trade and
services as well as to develop guidelines for transportation policy in
the region.
Contact
Kevin Sample, U.S. Department of Transportation, (202) 366-9526.
Telecommunications Working Group
Background
APEC recognizes that modern telecommunications and information
technologies are vital prerequisites for fostering regional,
collaborative initiatives and increased economic cooperation. The group
is co-chaired by the United States and Canada. It exchanges
information, consults on policy and regulatory developments and
standards, and develops projects.
Recent Accomplishments
-- An electronic data interchange project with a major Australian
steel company and its trading partners in New Zealand has been
implemented.
-- The second edition of the survey on The State of Telecommunications
Infrastructure and Regulatory Environments of APEC Economies has been
published. The first edition was published in 1991.
-- A human resource development manual, "How To Approach Training
Within a Telecommunications Organization," has been published.
-- Recommendations were made for a telecommunications infrastructure
project.
-- The group prepared the November 1993 APEC ministerial statement
promoting telecommunications.
Goals
Efficient telecommunications services are to be made accessible to all
citizens and businesses of APEC member economies. Regionally balanced
development and expansion of telecommunications infrastructures are to
be a high priority in economic planning. Flows of information,
technology, and expertise are encouraged as a means of facilitating
balanced growth of telecommunications networks and services in the APEC
region. Modern telecommunications services will be introduced to ease
information flows and to facilitate economic development. Human
resource development will be encouraged to sustain the growth of the
telecommunications sector and to ensure efficiency, innovation, and
high-quality telecommunications services. The flow of
telecommunications goods, services, capital, and technology will also be
encouraged.
Contact
Richard Beaird, Director of International Communications and Information
Policy, U.S. Department of State, (202) 647-5832. (###)
ARTICLE 12:
Fact Sheet: U.S. Economic Relations With East Asia and the Pacific
Background
The East Asian and Pacific region is the world's most economically
dynamic area. Japan has become the second- largest market economy and,
with the United States, one of the world's leading aid donors. The
region's newly industrialized economies (NIEs)--Hong Kong, South Korea,
Singapore, and Taiwan--have maintained high economic growth rates over
the last two decades. In the process, they have achieved "middle-
income" levels of per capita GNP and have become major participants in
international trade. Thailand and Malaysia are fast approaching
development levels close to those of the NIEs.
Over the last decade, the East Asian and Pacific region has surpassed
Western Europe to become the largest regional trading partner of the
United States, both as a supplier of U.S. imports and as a customer for
its exports. In 1992, U.S. two-way trade with the region was more than
$344 billion, 51% more than trans-Atlantic trade. American direct
investment in the region reached $66 billion in 1991, 15% of total U.S.
overseas investment.
The Association of Southeast Asian Nations (ASEAN)--Brunei, Indonesia,
Malaysia, Philippines, Singapore, and Thailand--is America's fourth-
largest source of imports and its sixth-largest export market. In 1992,
U.S. trade with ASEAN was $60 billion. In the preceding decade, total
U.S. trade with the ASEAN countries grew at an average annual rate of
17%. The United States in 1991 exported more to Singapore than to
Italy, more to Malaysia than to the countries of the former Soviet
Union, and more to Indonesia than to Central and Eastern Europe
combined. The United States also is the leading export market for
Singapore, Thailand, and the Philippines and is the second-largest
export market for Malaysia. U.S. direct investment in ASEAN totaled $16
billion in 1992.
Transportation also links the United States more closely to East Asia
and the Pacific. In 1993, air traffic on Pacific routes is expected to
overtake Atlantic traffic on a passenger-mile basis. By the year 2000,
the Pacific market is projected to account for almost half of total
international traffic.
U.S. Support for Economic Reforms
The achievements of the successful Asian economies can be attributed
largely to market-oriented, outward-looking strategies of growth,
together with the high value these societies have traditionally placed
on education, discipline, and hard work. The United States contributes
to this success and supports economic reforms by providing:
-- The principal market for the region's exports;
-- Leadership in promoting an open international trade and financial
system;
-- Economic assistance to the region's developing nations; and
-- A military security umbrella.
The Philippines and Indonesia have economic reforms underway that, if
sustained, will enable them to capitalize on their impressive potential.
Australia and New Zealand also are engaged in difficult economic
restructuring and trade liberalization efforts. Some Pacific island
mini-countries are not yet fully participating in the region's economic
success. Implementation of market-oriented reforms has boosted the
economies of Laos and, to a lesser extent, Vietnam, but both countries
remain poor.
China experienced rapid economic growth during most of the 1980s as it
moved toward a more market-oriented system.
Trade Success and Imbalances
More than 40% of U.S. total trade is now conducted with the East Asian
and Pacific region. However, this dramatic expansion has been
accompanied by the development of large, recurring trade deficits with
some U.S. trade partners. In 1992, the United States had trade deficits
with Japan ($49.5 billion), China ($18 billion), Taiwan ($9.5 billion),
and South Korea ($2 billion). On the other hand, the United States had
a $5-billion trade surplus with Australia in 1992.
There is particular concern about the size of Japan's trade surplus.
The U.S. and Japan have concluded agreement on a "Framework for a New
Economic Partnership" that is expected to contribute to a significant
reduction in both countries' external imbalances.
In addition, the NIEs, particularly South Korea and Taiwan, also have
reduced import barriers to a limited extent. This has helped reduce the
overall U.S. trade deficit with the East Asian and Pacific region from
$107 billion in 1987 to about $87 billion in 1992.
East Asian and Pacific countries have come to recognize that their
growth and export successes require them to bear a much larger burden
for the health of the world economy. Consequently, they are undertaking
appropriate adjustments to help correct international imbalances by:
-- Ensuring realistic exchange rates;
-- Lowering barriers to imported goods, services, and investment; and
-- Adopting macroeconomic and structural policies that encourage growth
through increased domestic demand as well as exports.
The United States, in turn, must maintain its efforts to reduce domestic
fiscal imbalances and to keep its import markets open.
Increasing Regional Cooperation
The United States has been working with East Asian and Pacific economies
for several years to strengthen regional economic cooperation. U.S.
officials have had extensive consultation with ASEAN, the Asian
Development Bank, the UN Economic and Social Commission for Asia and the
Pacific, the South Pacific Council, the South Pacific Forum, and the
Pacific Economic Cooperation Council. Many of the region's leaders
recently have called for more intensive consultation among the market-
oriented economies of the East Asian and Pacific region on macro-
economic issues, structural reform, and the health of the world trading
system, particularly the current Uruguay Round of the General Agreement
on Tariffs and Trade (GATT). The U.S. played a key role in the
formation of Asia-Pacific Economic Cooperation (APEC), a regional forum
based on those principles.
The United States works actively with its East Asian and Pacific
partners to promote APEC as a vehicle for regional economic cooperation.
At the invitation of then-Australian Prime Minister Hawke, the first
APEC ministerial conference convened in Canberra in November 1989. A
second ministerial meeting took place in Singapore in July 1990, leading
to the creation of work projects in various areas of interest to the
original APEC members. Since then, annual ministerial meetings have
been held in Seoul, South Korea; Bangkok, Thailand; and, most recently,
Seattle, Washington. The next ministerial is planned for Bali,
Indonesia, in November 1994. Subsequent ministerials will be in Japan
(1995), the Philippines (1996), and Canada (1997). (###)
END OF DISPATCH VOL 4, NO 48.
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