TEXT: KANTOR ON INTEGRATION OF PRIVATE SECTOR IN APEC
(APEC success measured in relevance, benefit to business)

Manila -- The importance of involving business in the Asia-Pacific Economic Cooperation (APEC) forum, and establishing APEC Business Advisory Council (ABAC) as an effective channel for business views, cannot be overstated, according to Secretary of Commerce Mickey Kantor.

In a statement to the ministers of the 18 Asia-Pacific Economic Cooperation (APEC) forum November 23, Kantor said: "As the ABAC report title states, APEC Means Business,' and so it should. The success of our efforts in APEC can be measured in terms of the relevance and direct benefit of our work to our economies' respective business communities, and the people they employ."

Kantor commented on the work of APEC -- and ABAC -- and their benefit to the business sector starting with the APEC Tariff Database. "The initiative to consolidate the electronic versions of all the member economies' applied tariff schedules into a searchable database on the Internet was taken by the Commerce Department and serves as a true example of public-private partnership," Kantor said.

The Commerce Secretary also commented on the issue of transparency and U.S. anti-corruption efforts. "The United States has undertaken a worldwide effort with our trading partners to deal with non-transparent practices which, to be frank, include illicit payments," he said. "We have obtained OECD consensus that bribery abroad must be criminalized.

"We achieved a similar success at the Organization of American States -- the world's first anti-corruption treaty requiring signatories to criminalize bribery of foreign officials and extradite offenders.

"We have supported the World Bank in establishing transparency guidelines that must be adhered to by all bidders.

"We hope to engage our other trading partners in WTO negotiations aimed at an agreement on procurement to assure transparency, openness, and due process, as a step towards broadening a subsequent comprehensive WTO procurement agreement. We intend to seek agreement at the Singapore Ministerial in December to begin negotiations in 1997 on this interim agreement," Kantor said.

Kantor also commented on APEC efforts to identify ways to access to trade finance for small and medium-sized enterprises (SMEs) and to improve SMEs' utilization of technology to access market information, and on APEC environmental initiatives.

Following is the official text of Kantor's statement:

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STATEMENT BY SECRETARY OF COMMERCE MICKEY KANTOR
TO THE EIGHTH APEC MINISTERS MEETING

Manila, Philippines November 23, 1996

APEC has moved vigorously to integrate the private sector into its activities. No other international organization relies quite so heavily on the direct participation of business in its activities. Business involvement has been integral to the work that has taken place in APEC's many subcommittees and working groups, where many of the basic but fundamentally important issues are being addressed.

The importance of involving business in APEC, and establishing ABAC as an effective channel for business views, cannot be overstated. As the ABAC report title states, "APEC Means Business," and so it should. The success of our efforts in APEC can be measured in terms of the relevance and direct benefit of our work to our economies' respective business communities, and the people they employ.

In the United States, we take this responsibility seriously. We have conducted regular discussions on key issues such as customs, investment, and standards with our Industry Sector and Functional Advisory Committees, and the Advisory Committee on Trade Policy negotiations. I would also like to credit the Washington State Council on International Trade for forming the National Center on APEC last year. The Center has done much to encourage greater public/private interaction on APEC.

Last year, APEC's two formal private sector advisory bodies -- the Pacific Business Forum and the Eminent Persons Group -- both issued reports to APEC Leaders which called on APEC members to ensure that the vision of Bogor is fully and effectively implemented. While the Eminent Persons Group was dissolved, the leaders agreed to establish a permanent private sector APEC Business Advisory Council (ABAC).

This year, ABAC has continued that important work, preparing a series of recommendations for the Leaders. I know this report represents a major effort on the part of all 54 participants. I am sure many of my colleagues here will wish to comment on the recommendations in detail, but I would just like to comment on a couple of areas.

Tariff Database

The commitment of the APEC governments to liberalize and pave the way for companies in different APEC economies to do business together is key to the public-private partnership that APEC represents.

One example of a concrete project produced by APEC is the electronic tariff database. The initiative to consolidate the electronic versions of all the member economies' applied tariff schedules into a searchable database on the Internet was taken by the Commerce Department and serves as a true example of public-private partnership. We worked with Federal Express to develop this prototype Internet database. I would like to take this opportunity to thank the CEO of FedEx, Fred Smith, for bringing this project to fruition and arranging to demonstrate it for the Ministers and business leaders here in Manila.

Infrastructure/Transparency

An important topic covered by the ABAC recommendations is infrastructure. The United States agrees with the recommendation to hold public-private sector roundtables to identify infrastructure needs, remove impediments, disseminate regional best practices, and encourage productive partnerships. In fact, as I mentioned earlier, the U.S. and Indonesia co-sponsored a Roundtable on Best Practices in Infrastructure this past summer. The report of this roundtable has been published, both in hard copy and on the APEC Home Page of the Internet. I commend it to both the Ministers and the business participants at APEC.

Meeting infrastructure needs is clearly a two-way street: the developing members of APEC need to create or improve transport and telecommunications links, increase energy production, and treat or prevent pollution, among other infrastructure needs. Developed members can compete for these projects, leading to export sales, jobs, and economic growth.

As you may know, the United States has undertaken a worldwide effort with our trading partners to deal with non-transparent practices which, to be frank, include illicit payments:

We have obtained OECD consensus that bribery abroad must be criminalized.

We achieved a similar success at the Organization of American States -- the world's first anti-corruption treaty requiring signatories to criminalize bribery of foreign officials and extradite offenders.

We have supported the World Bank in establishing transparency guidelines that must be adhered to by all bidders.

We hope to engage our other trading partners in WTO negotiations aimed at an agreement on procurement to assure transparency, openness, and due process, as a step towards broadening a subsequent comprehensive WTO procurement agreement. We intend to seek agreement at the Singapore Ministerial in December to begin negotiations in 1997 on this interim agreement. Ultimately, of course, we think all members should adhere to the Government Procurement Agreement.

I hope that the ABAC members, as well as the member economies of APEC, can begin to focus especially on those best practices which have to do with transparency and good governance.

Small and Medium-Sized Enterprises (SMEs)

Another area mentioned by your report is small and medium-sized enterprises. SMEs account for a significant proportion of economic growth and employment in many of our economies.

At the SME Ministerial in September, the United States advanced proposals to identify ways to increase SMEs' access to trade finance and to improve SMEs' utilization of technology to access market information. The United States also agreed to do a consultative survey on the franchising environment and trends in the APEC member economies. The Joint Ministerial Statement specifically requests the APEC Leaders to reflect upon the importance of reaching our to SMEs and the need to strengthen APEC's work through participation of support groups and through further incorporation of SME priorities throughout the APEC agenda.

Sustainable Development (Environmental Initiatives)

One area that is showing concrete progress in APEC's effort to define the framework to strengthen Economic and Technical cooperation is APEC's work on Sustainable Development. APEC initiatives on clean oceans and clean production are setting out clear goals and milestones to ensure that desired long-term results are achieved.

At the APEC Ministerial Meeting on Sustainable Development in July, APEC Environment Ministers identified "the promotion of public-private partnerships" as a guiding principle for APEC Action on Sustainable Development.

The United States sees these initiatives as an opportunity to expand partnerships between the public and private sectors to develop mutually beneficial solutions to the environmental challenges which threaten economic development in the region.

Clean Production Initiative -- APEC's Industrial Science and Technology Working Group has a major new undertaking of great interest to business, the APEC Cleaner Production Initiative. This initiative was called for by the Ministers at the Manila Sustainable Development Ministerial in July 1996. It is sponsored by the United States with the cosponsorship of Chinese Taipei, Australia and the Philippines.

It has two goals: First, strive to achieve dramatic progress in reducing pollution in specific industries through promotion of appropriate cleaner production technologies, policies and practices. And second, strive to achieve broader adoption of cross-cutting policies and methods for cleaner production through institutional and professional partnership. In order for it to succeed, industry must be involved closely in this initiative.

Clean Oceans and Seas -- APEC's Marine Resource Conservation Working Group has welcomed the opportunity to take the lead in developing an APEC Action Plan on Sustainability of the Marine Environment. The Action Plan will identify concrete actions which can be undertaken throughout APEC fora to protect the health of the marine environment and achieve a clean ocean and seas in the APEC region. Like the Clean Production Initiative, its success will depend on the engagement of the private sector.

Through these initiatives, and other APEC activities, we hope to explore the potential for APEC to address environmental problems while promoting economic development and opportunities for the private sector. For example, there may be opportunities to work with businesses -in tourism industries and resort development to explore options for waste water management, including new technologies and techniques, for the mutual economic benefit of both sectors. Other opportunities may exist to establish a dialogue with port authorities and shipping companies to consider approaches to port management and facilities and approaches to responding to environmental emergencies such as oil or hazardous materials spills with cutting edge technologies and expertise.

While this is a relatively new approach to environmental protection, I believe that partnerships and participation will form the basis for a long term solutions to the environmental challenges which face us all in the region.

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