For Immediate Release
Office of the Press Secretary
October 21, 2001
APEC Economic Leaders' Declaration
Shanghai, China
21 October 2001
Meeting New Challenges in the New Century
1. We, the Economic Leaders of APEC, gathered today in Shanghai for
the first time in the twenty-first century. We are here to explore ways
to meet the new challenges confronting us. Convinced of the great
potential of the Asia-Pacific region, we have resolved to achieve
common prosperity through broader participation and closer
cooperation.
2. Our meeting has taken place at a crucial juncture. The major
world economies are experiencing a slowdown more severe than
anticipated. Most economies in the Asia-Pacific region have experienced
an economic downturn, with some emerging economies particularly
affected by unfavorable external market conditions. In addition, the
terrorist attack on the United States risks undermining some industries
as well as consumer and investor confidence. In the long run, a major
challenge for the Asia-Pacific community is to manage the profound
changes brought forth by globalization and the New Economy and to
benefit from the opportunities that abound.
3. As the premier forum for regional economic cooperation in the
Asia Pacific, APEC is well suited to play a leading role in helping its
member economies embrace these opportunities and challenges. We wish to
send a clear and strong message on the collective resolve of the
Asia-Pacific community to counter terrorism. We are determined to
reverse the current economic downturn and maintain public confidence at
a time of uncertainty by fighting protectionism and committing to the
launch of the new WTO round at the upcoming WTO Ministerial Conference.
These efforts are consonant with and contribute to the pursuit of the
APEC vision of peace, harmony and common prosperity.
4. Inspired by such a vision, we are determined to work together
for a more dynamic and prosperous Asia Pacific in the new century by
promoting sustainable economic growth, sharing the benefits of
globalization and the New Economy, and advancing Trade and Investment
Liberalization and Facilitation (TILF). To this end, we reaffirm our
commitment to achieving the Bogor Goals of free and open trade and
investment in the Asia Pacific by 2010 for developed economies and 2020
for developing economies. We have also charted the course for the
development of APEC in its second decade and beyond by adopting the
Shanghai Accord.
Promoting Sustainable Growth
5. We affirm our unwavering confidence in the medium and long-term
growth prospects for the Asia-Pacific region since the fundamentals of
the region remain sound. As reforms and restructuring following the
1997-1998 financial crisis take effect, many emerging economies are now
in a much stronger position to cushion themselves against the impact of
the economic slowdown and unexpected shocks.
6. We undertake to adopt appropriate policies and measures to
increase economic growth and resolve to enhance macroeconomic policy
dialogue and cooperation not only to resume growth but also to build a
stronger foundation for sustainable growth and broad-based development.
It is important for all economies to take timely policy actions to
strengthen markets and facilitate an early pick-up in global economic
activity.
7. In this context, we pledge to accelerate our domestic efforts to
build capacity and deepen structural reform so as to strengthen the
market fundamentals across the region. To this end, we emphasize the
importance of sound economic policies and corporate governance as well
as the important role and responsibility of governments in shaping the
legal and regulatory framework that encourages competition and
innovation, with an increased emphasis on capacity building. Developing
the social safety net is a high priority, as it can make an important
contribution to reducing the harmful effects of economic shocks on
vulnerable groups. As noted in the 2001 Economic Outlook, enhancing
financial efficiency is also essential to promoting growth. We thus
welcome efforts made in these areas in APEC, including strengthening
economic legal infrastructure, supervision of capital markets,
corporate governance, and implementation of international financial
standards, as exemplified by the work done through the Finance
Ministers' process. We also welcome contributions by Pacific Economic
Cooperation Council (PECC) in these areas. We direct responsible
Ministers and Officials to build on their work.
8. Recognizing the importance of promoting financial stability and
crisis prevention, we stress the need to strengthen the international
financial system. We urge continued efforts to enhance the
effectiveness of mechanisms to prevent the recurrence of financial
crisis. We welcome the important steps that have been taken to
strengthen the international financial architecture including, for
example, the review by the Financial Stability Forum of the
effectiveness and the progress in implementing the recommendations from
the Working Group on Offshore Financial Centers and Highly Leveraged
Institutions. We emphasize the importance of ensuring that
representation on the International Monetary Fund (IMF) Board and IMF
quota/share allocation appropriately reflects the current world
economy. While the IMF and other international financial institutions
play a pivotal role, regional cooperation can also be very useful in
complementing efforts by these institutions to promote financial
stability. In this connection, we welcome the substantial progress in
implementing the Chiang Mai Initiative to strengthen cooperative
financing arrangements among the Association of Southeast Asian Nations
(ASEAN) countries and China, Japan and the Republic of Korea. We also
note the ongoing work in the Manila Framework Group. We support all
these efforts and urge them to be strengthened.
9. The current economic slowdown underlines, above all, the
importance of APEC's work towards more open and stronger economies. We
reaffirm our unyielding commitment to free and open trade and
investment and resolve to work together to fight against protectionism
in all forms. We render the strongest support for an open, equitable
and rules-based Multilateral Trading System, which is essential to
sustain global economic growth. APEC must also stay on track with its
own agenda on trade and investment and on capacity building.
Sharing the Benefits of Globalization and the New Economy
10. We are convinced that globalization is a powerful vehicle that
stimulates economic growth, and holds great promises for delivering
higher living standards to people and improving social well-being for
our communities. We acknowledge that the New Economy has broad
potential to raise productivity, stimulate innovation in economic
organization and entrepreneurship, and create and disseminate knowledge
and wealth. However, the opportunities arising from these processes are
not sufficiently shared among and even within economies. Hence the need
to enable all individuals in our communities to benefit from them. We
emphasize the importance of capacity building, both human and
institutional, as a key answer to the challenges and opportunities of
globalization and the New Economy. Capacity building constitutes a key
element of the balanced approach essential to the success of APEC along
with market opening and full participation.
11. In this context, we reiterate that human capacity building
(HCB) remains a central theme this year and the years ahead. We commend
the success of the High-Level Meeting on Human Capacity Building, and
welcome the Beijing Initiative as a comprehensive set of principles for
human capacity building, which also provides opportunities for further
work in the New Economy. We call on APEC fora and member economies to
undertake follow-up activities in specific areas of their interest in
the spirit of developed and developing economies complementing each
other. We support the engagement of all key stakeholders in the region
and, in particular, the establishment of the partnership of government,
business, academic and training institutions for this purpose. We
welcome the launch of the Consortium for APEC Cyber Education
Cooperation initiated and sponsored by the APEC Education Foundation,
the Human Capacity Building Promotion Program and the APEC Finance and
Development Program. We also welcome the outcomes of the 4th Human
Resources Development Ministerial meeting and support the Kumamoto
Statement that makes a contribution to APEC Human Resources Development
activities in the 21st Century as a basis for advancing social and
economic development and the sharing of prosperity by our people.
12. Reaffirming the importance of Economic and Technical
Cooperation (Ecotech) in achieving equitable growth and sustainable
development, we welcome the progress that APEC has made in advancing
Ecotech goals and underscore that Trade and Investment Liberalization
and Facilitation and Ecotech should be mutually reinforcing. We call
for efforts to this end to be further strengthened. We commend the
formulation and submission of Ecotech Action Plans by individual member
economies as a major step forward for promoting sound and balanced
development of APEC and ask Ministers and Officials to develop the
exercise as lessons are learned.
13. We also welcome the progress made in other areas of Ecotech. We
endorse the APEC Strategy for Combating Infectious Disease and call on
members and relevant fora to implement its recommendations.
14. Given the importance of Small and Medium-sized Enterprises
(SMEs) and micro-enterprises, we instruct Ministers and Officials to
build on APEC's Integrated Plan of Action for SMEs and place special
emphasis on micro-enterprises. In this context, we welcome the High
Level Meeting on Micro-enterprises to be hosted by Mexico next year.
15. Building on work done in Brunei last year, we have made further
progress by formulating and delivering a long-term, forward-looking and
more action-oriented e-APEC Strategy for the development of the New
Economy through the promotion of information and communications
technology (ICT) and its application in our region. The goal is to
build APEC towards a digital society, with higher growth, increased
learning and employment opportunities, improved public services and
better qualities of life by taking advantage of advanced, reliable and
secure ICT and networks and by promoting universal access. Such a
society should bring equal opportunities and widely shared benefits for
all member economies and individuals, including women, the disabled and
others. We commend the crosscutting character of the e-APEC Strategy
and urge APEC fora and member economies to implement the programs for
collective and individual actions set out in the Strategy, as
appropriate. Under the current circumstances, the early implementation
of the Strategy will also support the revival of the ICT sector. We
also welcome the progress in advancing e-commerce.
16. In September 2002 many of us will be meeting in Johannesburg
for the World Summit on Sustainable Development, to reinvigorate our
commitment to sustainable development in pursuit of enhancing economic
growth, promoting human and social development and protecting the
environment as interdependent objectives. We will consider how APEC,
which has undertaken a broad range of activities in this area, can
contribute to the success of the World Summit and take forward the
outcomes in its work program.
17. We realize that there is an ongoing public debate on the
benefits and costs of globalization. Such debates are healthy when they
are informed by rigorous and comprehensive analysis of the impact of
globalization. The time has come for APEC to come forward and lead the
public debate in a constructive manner. We instruct Officials to
convene an APEC Dialogue on Globalization and Shared Prosperity,
focusing on, among other issues, structural adjustment and its impact.
At the same time, APEC should reach out to business and other
stakeholders to communicate APEC's objectives, activities and benefits
to ensure that they participate in and benefit from the APEC process
and globalization at large. In particular, we thank APEC Business
Advisory Council (ABAC) for its report and value the interaction with
the Council and other business representatives. We also direct our
Ministers and Officials to develop and implement programs to give
effect to the APEC Communications and Outreach Strategy as well as the
conclusions of the Ad Hoc Group on APEC Interaction.
18. Noting that sustainable growth in the APEC region also requires
the ability to feed a growing and increasingly prosperous population,
Leaders call for accelerated implementation of the APEC Food System
initiative. Recognizing the benefits of biotechnology in improving
productivity, increasing nutrition, and reducing the environmental
impact of agricultural production, we reaffirm the importance of safe
introduction and use of biotechnology products based on sound science.
We also welcome the initiative to hold a policy-level dialogue on
agricultural biotechnology and call for more related capacity building
activities.
19. We take satisfaction at the significant progress made, through
the leadership of the Ad Hoc Group on Gender Integration, in the
capacity of APEC to address gender equity in its work. Our commitment
to a wide distribution of the economic opportunities of our era
requires the application of gender perspectives in APEC's work, we
welcome the decision to hold a Second Ministerial Meeting on Women in
Mexico in 2002, as an opportunity to make further progress.
Supporting the Multilateral Trading System
20. Trade and investment liberalization and facilitation hold
another key to realizing our vision for reduced disparities and common
prosperity. They have taken on increased importance at a time when
rapid changes are reshaping the global marketplace. Hence, we commit to
further efforts in advancing trade and investment liberalization and
facilitation both within our region and globally.
21. In November, a major decision will be taken at the Fourth WTO
Ministerial Conference. Its outcome will have long-term implications
for our future. Our choice is unmistakably for a stronger Multilateral
Trading System with greater opportunities for all. We strongly support
the launch of the WTO new round at the conference, recognizing that the
current slowdown in the world economy has added to its urgency. We
agree that, once launched, the new round should be concluded
expeditiously.
22. We emphasize the need for a balanced, sufficiently broad-based
agenda, which is achievable. This is essential to the successful launch
and conclusion of the New Round. We agree that the agenda for the New
Round should include further trade liberalization, the strengthening of
WTO rules, implementation issues, and reflect the interests and
concerns of all members, especially those of the developing and least
developed ones. We also agree that such an agenda should address the
challenges in the 21st century and support the goal of sustainable
development. This will help ensure that the prosperity flows from
growing trade and investment is accessible and equitably distributed to
all. In this context, we also emphasize the importance that the New
Round be supported by all WTO members, and hence the need for effective
implementation of special and differential treatment and for enhancing
WTO's internal transparency.
23. We reconfirm the commitment to the APEC-wide moratorium on the
imposition of custom duties on electronic transmissions, and agree on
its extension until the Fifth WTO Ministerial Conference, recognizing
the importance of relevant WTO agreements for electronic commerce.
24. We reaffirm the importance of APEC WTO-related capacity
building activities which realize the objectives of the Strategic APEC
Plan as a unique, substantial contribution to strengthening the
Multilateral Trading System, and call for the accelerated
implementation of the Plan to assist developing economies in
implementing the WTO agreements.
25. We applaud the conclusion of all negotiations on the terms for
China's membership in the WTO as a historic development that not only
helps make WTO a truly world organization but also reinforces the
underpinnings for global economic cooperation. We urge that the
decision on final approval of China's accession be taken at the
upcoming Ministerial Conference. We also reiterate strong support for
the final approval of the accession by Chinese Taipei at the Conference
and the advancement of WTO accession by the Russian Federation and Viet
Nam.
26. We reaffirm that regional and bilateral trade agreements should
serve as building blocks for multilateral liberalization in the WTO. We
affirm that the existing and emerging regional trading agreements
should therefore be consistent with WTO rules and disciplines. We also
believe that these arrangements should be in line with APEC
architecture and supportive of APEC's goals and principles. We note the
initiatives on exchange of information in this regard.
Sharpening the Vision for the Future
27. APEC has come a long way since its inception in 1989. So has
the world around it. These changes have not in any way lessened the
need for a vehicle of cooperation like APEC in our region. On the
contrary, they have made it more compelling for us to remain fully
committed to the APEC process, to the vision of a peaceful and
prosperous Asia-Pacific community of diverse yet interdependent
economies that has evolved from Seattle to Brunei, and above all, to
the Bogor Goals. We also reaffirm our belief in the unique APEC
Approach based on the fundamental principles of voluntarism,
consensus-building, combination of individual and collective actions,
flexibility, comprehensiveness and open regionalism, which has inspired
and underpinned our successes.
28. At the same time, we recognize that APEC must demonstrate its
dynamism in advancing with the times by responding and adapting to
changes in the global and regional economy. As it enters the second
decade, it is important for APEC to enrich, update and sharpen its
vision for the future. In this respect, we envision that APEC's
objectives in the second decade are to make continuous progress in
achieving the Bogor Goals; deepen the spirit of community by sharing
the benefits of growth more widely and equitably; and build APEC into a
closer, stronger partnership for regional economic cooperation.
29. To this end, we announce today the Shanghai Accord as a
strategic, forward agenda for the development of APEC in the coming
years. The Accord not only gives voice to our common resolve to fulfill
our commitments, it also stands as a template laying out some key steps
to be taken to achieve our Goals and Objectives. Reflecting the
diversity of APEC's membership, it incorporates trade and investment as
well as economic and technical cooperation as two mutually supportive
and reinforcing elements.
30. In the Shanghai Accord, we commit to:
-- Broadening APEC's vision for the future by identifying a
conceptual and policy framework to guide APEC in the new century. Such
a framework recognizes the changes entailed by globalization and the
New Economy and reflects the need to extend the APEC agenda to cover
reforms and capacity building at both domestic and international
levels;
-- Clarifying APEC's roadmap for achieving the Bogor Goals on
schedule with a mid-term stocktake of the overall progress in 2005,
including by broadening and updating the Osaka Action Agenda, adopting
a pathfinder approach in advancing selected APEC initiatives towards
achieving the Bogor Goals, promoting the adoption of appropriate trade
policies for the New Economy, following up on the APEC Trade
Facilitation Principles, pursuing greater transparency in economic
governance; and
-- Strengthening APEC's implementation mechanism by strengthening
the Individual Action Plan Peer Review process, reinforcing Ecotech and
capacity building efforts.
31. We direct our Ministers and Officials to follow up actively on
the Accord. We have no doubt that with our concerted efforts the vision
we set here will over time come to full fruition, culminating in a
stable, secure and prosperous Asia-Pacific community.
Appendix 1
Shanghai Accord
I. BROADENING THE APEC VISION
Globalization and the New Economy have transformed the global and
regional economy significantly since the Bogor Goals, bringing forward
extraordinary opportunities as well as challenges. APEC's vision needs
to reflect these changes. While trade liberalization is at the core of
APEC agenda, Leaders also agree that the Bogor Goals need to be placed
within the context of an updated and expanded vision that addresses
trade and investment liberalization and facilitation and economic and
technical cooperation in an integrated manner to maximize the benefits
for all economies in the region. One of the greatest challenges to
materialize such a vision is to intensify the collective and individual
actions that economies take at domestic and international levels on
reforms and capacity building across a range of areas.
The strategic goals of the Finance Ministers' Process should also
be reflected in a broader vision for APEC, given the important role of
sound macroeconomic policies, good economic governance, stable
financial systems and greater economic interaction have in improving
prosperity for the region.
II. CLARIFYING THE ROADMAP TO BOGOR
-- Broadening and updating the OAA
Leaders applaud the work done this year on the Osaka Action Agenda
(OAA), and recognize its importance in reflecting APEC's
accomplishments and ability to respond to changes in our regional and
global situation. Leaders agree that the OAA should be broadened to
reflect fundamental changes in the global economy since Osaka, such as
the development of new economy including through the implementation of
relevant aspects of e-APEC Strategy, and Strengthening the Functioning
of Markets. Leaders direct Ministers to follow this up. Officials
should present an interim report at the 2002 Meeting of Ministers
Responsible for Trade (MRT) and a full report at the 2002 APEC
Ministerial Meeting (AMM) on their recommendations with regard to
broadening the OAA.
-- Adopting a pathfinder approach in advancing some APEC
initiatives
Leaders reaffirm that those economies ready to initiate and
implement a cooperative arrangement may proceed to do so, consistent
with the Bogor Declaration. Leaders encourage the development of such
"pathfinder initiatives' and agree that in adopting such an approach,
APEC principles of voluntarism, comprehensiveness, consensus-based
decision-making, flexibility, transparency, open regionalism and
differentiated timetables for developed and developing economies should
be observed. Use of 'pathfinder initiatives' based on a group of
members piloting the implementation of the initiatives, will invigorate
progress towards the Bogor Goals and provide a framework to encourage
broader participation through enhanced capacity building programmes.
Leaders also agree that these initiatives should be transparent and
open, with clearly defined objectives and framework for implementation
to encourage the broadest participation by other APEC members when they
are ready to join.
-- Promoting the adoption of appropriate trade policies for the New
Economy
Leaders recognize the importance of adopting appropriate trade
policies to reflect the new context and encourage the development of
the New Economy. As part of this effort, Leaders instruct officials to
undertake by mid-2002 an exchange of appropriate trade policy
information, such as information on the status of liberalization of
services, and adherence to tariff and intellectual property regimes. On
this basis, economies may develop targets by the Ministerial Meeting in
2002. In this exercise, account should be taken of the implementation
of relevant recommendations endorsed in the e-APEC Strategy. Given the
diversity among member economies, Leaders agree that the development of
the New Economy would also involve developing and implementing concrete
capacity building programs to improve performance.
-- Follow up on the Trade Facilitation Principles
Leaders instruct Ministers to identify, by Ministerial Meeting in
2002, concrete actions and measures to implement the APEC Trade
Facilitation Principles by 2006 in close partnership with the private
sector. The objective is to realize a significant reduction in the
transaction costs by endeavoring to reduce them by 5 percent across the
APEC region over the next 5 years. Leaders also instruct Ministers to
explore the possibility of setting objective criteria on trade
facilitation, taking fully into account the diversity among the members
as well as progress achieved in respective economies so far. Leaders
also agree that assistance programmes to help build the capacity of
developing economies in trade facilitation is particularly important.
-- Adoption of transparency principles
Leaders recognize the importance of transparency in economic
governance. In this regard, APEC has developed, menus of options and
principles in different areas that contain transparency provisions.
Leaders direct Ministers to pursue the implementation of APEC's agreed
transparency principles, taking into account economies' specific
circumstances and report on the progress in their IAPs in 2002 and
thereafter. Leaders also underline the importance of well-targeted
assistance to help the developing economies make progress towards
greater openness and transparency. Leaders note the importance of
cooperation on e-government for achieving this objective.
III. STRENGTHENING THE IMPLEMENTATION MECHANISM
-- Strengthening the IAP Peer Review Process
Leaders welcome the decision by Ministers to strengthen the
Individual Action Plan (IAP) peer review process, and encourage member
economies to volunteer their IAPs for peer review on the basis of the
new approach. Leaders also agree that upon completion of such a review
cycle, involving all volunteer economies, a mid-term stocktake of the
overall progress towards the Bogor Goals should be undertaken in 2005.
-- Strengthening Ecotech and capacity building efforts
Leaders recognize that in addition to promoting sustainable
development and narrowing disparity, Ecotech helps to enable all member
economies to achieve prosperity through activities that both directly
support trade and investment liberalization and facilitation and
strengthen the competitiveness of our economies. Leaders applaud the
efforts undertaken this year to update the OAA Part II and call for
greater integration of Ecotech efforts with all APEC priority goals.
Leaders underscore the need to give a strong impetus to ensuring the
effective implementation of various Ecotech initiatives, especially
crosscutting issues such as human capacity building.
Leaders recognize the importance of substantially enhancing the
profile of Ecotech and improving the coordination and management of
Ecotech activities of all fora. In this context, Leaders welcome the
review to be undertaken on the mandate and role of the SOM Subcommittee
for Ecotech (ESC), and look forward to early progress. Leaders also
recognize the need to encourage the incorporation of the priorities of
micro, small and medium enterprises throughout the APEC agenda.
Leaders agree to further develop Ecotech Action Plans (EAPs), as an
instrument to gauge and encourage Ecotech activities, drawing from the
experience and lessons learned in the pilot phase. Leaders also call on
all members to take part in this exercise on a voluntary basis. Leaders
agree that APEC should strengthen ties with bilateral, multilateral,
and private funding entities with a view to minimizing duplication and
maximizing the delivery of capacity building programs. Leaders instruct
Ministers and officials to intensify Ecotech activities and report the
progress to the Ministerial Meetings next year.
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