A VISION FOR APEC: SUMMARY OF RECOMMENDATIONS
November 1993

Trade Liberalization

o Global Trade Liberalization

Recommendation 1: That the APEC members reiterate that global trade liberalization and a strong GATT system are their highest trade policy priorities and thus:

A. Endorse successful completion of an ambitious Uruguay Round Agreement by the end of 1993;

B. If the outcome is still uncertain at the time of the APEC Ministerial, announce new liberalization offers in an effort to achieve a successful result;

C. Seek an agreement by the GATT contracting parties, to be included in the final act of the Uruguay Round, to launch the next major global negotiation by the end of 1995;

D. Initiate, immediately after completion of the Uruguay Round, international consultations to begin planning that next phase of global liberalization including creation by the GATT of a Wise Persons Group to recommend a specific course of action; and

E. Propose that the new negotiation inter alia substantially tighten the rules that govern regional arrangements and institute an annual review process for all such arrangements, volunteering to submit APEC itself and its several subregional pacts (AFTA, ANZCERTA, the prospective NAFTA) to such review.

o Regional Trade Liberalization

Recommendation 2: That the APEC members, wishing to strengthen the multilateral trading system through their efforts in the Asia Pacific Region as well as in the GATT itself, agree to pursue an active program of regional trade liberalization on a GATT-consistent basis to help create an Asia Pacific Economic Community. To that end, the members should now agree:

A. On an ultimate goal of free trade within the region, through regional efforts as may be necessary to supplement future multilateral negotiations;

B. To determine the target date for reaching that goal, and the timetable for achieving it, in 1996;

C. To seek additional liberalization beyond what has proved possible at the global level, focusing on issues which (1) could not be agreed globally in the Uruguay Round (or previous GATT efforts) and (2) could be addressed in future multilateral talks, especially the next GATT negotiation proposed to begin by the end of 1995; and

D. To include such specific issues as competition policy, dispute settlement, environmental issues, export credits, financial services, foreign investment, government procurement, intellectual property rights, state trading, tariff reductions and tariff matching in particular sectors.

Trade Facilitation Programs

o An Asia Pacific Investment Code

Recommendation 3: APEC should adopt an Asia Pacific Investment Code [APIC] to reduce the uncertainties and transactions costs of trade and investment in the region.

o An Asia Pacific Dispute Settlement Process

Recommendation 4: Whether or not such changes are fully agreed in the Uruguay Round, APEC should adopt an effective dispute settlement mechanism, based on either the "Dunkel Text" or the Canada United States/NAFTA model, as soon as possible.

o Macroeconomic Policy Cooperation

Recommendation 5: Ministers and Officials responsible for macroeconomic and monetary policy in APEC members should meet regularly to develop and promote cooperation on these issues, to (1) support the liberalization and facilitation of trade in the region and (2) to promote growth and effective adjustment of regional imbalances.

o Competition Policy

Recommendation 6: As a first step, APEC should consider adopting a policy based on one of the existing models of international cooperation on competition policy.

o Standards, Regulations, And Procedures

Recommendation 7: APEC should adopt a medium-term objective of mutual recognition of product standards and mutually acceptable domestic testing and monitoring procedures for standards in selected priority industries, such as telecommunications or aviation safety.

o The Environment

Recommendation 8: APEC members should make sure that their trade and environmental policies are mutually reinforcing, and should endorse a commitment to GATT negotiations toward this end. In addition, the members should broaden their environmental consultations and coordination to focus efforts on standards, data, technologies, and regional approaches to these issues.

o Rules Of Origin

Recommendation 9: APEC should address the issue of rules of origin in its annual reviews of subregional arrangements within the area. In addition, APEC members should consult promptly to find ways to prevent rules of origin from becoming a new and serious source of uncertainty hampering trade and cooperation either in the Asia Pacific or globally.

o The Overall Program

Recommendation 10: In implementing this trade facilitation program, the annual APEC Ministerial Meetings should review the progress of each of its components.

o Technical Cooperation

Recommendation 11: Region-wide support is needed to supply, in a balanced manner, such public infrastructure as higher education, transportation and telecommunication networks, and energy facilities. APEC should play a catalytic role in channeling such resources within the region.

Institutionalizing APEC

o Ministerial And Informal High-level Meetings

Recommendation 12: Economic, Finance, Trade and Industry Ministers of APEC members should gradually assume the central role in the APEC process, including its annual Ministerial Meeting.

Recommendation 13: Informal Leadership Meetings should be convened at least every three years.

o APEC Secretariat

Recommendation 14: After the initial three years of operation of the Secretariat, APEC members should take a collective financial responsibility in recruiting and paying for its substantive staff.

o APEC Work Programs

Recommendation 15: APEC should limit its research priorities to a few vitally important regional economic issues, rather than involving itself and spreading its limited resources across ten work projects as at present.