A BUSINESS BLUEPRINT FOR APEC:
STRATEGIES FOR GROWTH AND COMMON PROSPERITY

October 15, 1994

LIST OF RECOMMENDATIONS

FREE TRADE AND INVESTMENT LIBERALISATION

Framework for Free Trade and Investment Liberalisation

-- The PBF recommends that APEC Economic Leaders decide in 1994 to adopt the goal of free trade and investment liberalisation in the region.

-- The PBF recommends as a goal that the implementation of free trade and investment liberalisation in the region be completed by the year 2002 by the developed economies, and no later than the year 2010 by the developing economies. The implementation of this programme must be GATT/WTO consistent and pursued in parallel with multilateral action.

-- The PBF believes that APEC member economies should proceed towards free trade by such measures as the full implementation of the existing Uruguay Round commitments, further unilateral liberalisation, liberalisation within the existing sub-regional free trade areas in APEC, and an APEC-wide negotiation covering all goods and services. The PBF also recommends that APEC supports the wish of all member economies to become members of the GATT/WTO.

-- The PBF urges APEC Economic Leaders to make a commitment to an immediate standstill on all new measures which hinder trade among APEC economies. The PBF recommends that APEC member economies adhere faithfully to the rules adopted by the Uruguay Round, to refrain from using dumping as a predatory pricing measure and to refrain from using antidumping trade actions as a protectionist measure.

Investment Initiatives

AN ASIA PACIFIC INVESTMENT CODE

-- The PBF urges that the APEC Economic Leaders adopt the Asia Pacific Investment Code at their meeting in Bogor, Indonesia in November.

-- The PBF urges APEC Economic Leaders to:

(1) make a commitment to an immediate standstill on all new measures which hinder investment flows between members;

(2) incorporate elements of the non-binding investment principles into their domestic investment laws where appropriate; and

(3) develop a legally enforceable and binding code of investment principles as soon as possible.

BUSINESS FACILITATION

Transparency

-- The PBF recommends that APEC Economic Leaders make transparency a priority in their regulatory and administrative regimes and in the standard operating procedure in their economies, particularly in the case of the many rules and regulations affecting business.

Border Restrictions

CUSTOMS PROCESSING

-- The PBF urges all APEC member economies to participate actively in the GATT 1994 three-year work programme on the harmonisation of rules of origin.

-- The PBF recommends that measures to accelerate customs processing be implemented expeditiously. These include:

(1) the simplification of customs documentation, such as reducing the length and number of forms that need to be completed;

(2) education and training of customs officers to upgrade standards of proper and prompt implementation of customs processing;

(3) the use of electronic means of customs documentation and processing;

(4) the development of an APEC electronic tariff database;

(5) the harmonisation of customs classifications, to reduce search time in determining the correct customs code for a specific product to be exported to or imported from different economies; and

(6) the establishment of a carnet system, involving an acceleration of customs clearance for goods destined for promotional use.

VISA PROCESSING

-- The PBF recommends the immediate implementation of:

(1) the relaxation of visa requirements and acceleration of visa processing wherever possible;

(2) visa free entry for the citizens of other APEC member economies for short stays of, for example, up to seven days, which would cover a large percentage of business travel;

(3) the granting of multiple entry visas or special documentation, such as a "smart card", for frequent business travellers; holders of such documents should be entitled to use special immigration facilities which would expedite their entry and exit;

(4) temporary work permits for professional visits and short term residencies; and

(5) temporary visas for instructors and participants in overseas vocational training and apprenticeship programmes.

Standards and Conformance

-- The PBF recommends that APEC member economies make every effort to move as quickly as possible towards the harmonisation of domestic product standards with international standards.

-- The PBF recommends that APEC encourage the negotiation among its member economies of mutual recognition arrangements, covering a wide range of standards above a prescribed minimum threshold. The PBF urges APEC to accelerate its work currently underway aimed at broadening mutual recognition of testing and certification arrangements in the region.

Intellectual Property Rights

-- The PBF recommends that all APEC member economies:

(1) should begin implementation of the Trade Related Intellectual Property Issues (TRIPs) agreement in the shortest time possible, if they are signatories. Those economies that are not yet signatories should comply with the provisions of TRIPs as fully as possible. APEC should also encourage all members to adhere to the provisions of the Berne Convention;

(2) undertake to develop credible enforcement, with penalties that effectively deter intellectual property violations;

(3) conduct public education and awareness campaigns as a way of improving intellectual property protection;

(4) agree to address within APEC the following intellectual property issues: copyrights, patents, trademarks, industrial design and trade secrets.

Technology Transfer

-- The PBF recommends that APEC should examine existing government restrictions on technology transfer, with a view to eventually formulating a set of APEC-wide principles on technology transfer.

Dispute Settlement Mechanisms

-- The PBF recommends that APEC Economic Leaders adopt a proposal to establish an agreed panel of third party APEC member economies to assist in dispute settlement between APEC members prior to taking the dispute to the GATT/WTO where appropriate, and undertake to give serious consideration to any guidance or recommendations offered by the third party panel.

-- The PBF further recommends that APEC Economic Leaders agree to establish separate regional mechanisms for the settlement through mediation, arbitration, etc of commercial disputes between businesses in APEC economies, where the present procedures are unclear.

Business Ethics

-- To promote good business ethics, the PBF recommends the following measures:

Government should:

(1) adopt a transparent, open style of government in order to reduce opportunities for discretionary and discriminatory behaviour. For example, government authorities could draw up clear licencing procedures;

(2) institute tough legal sanctions against corrupt practices. Corrupt practices and the associated penalties should be clearly defined in the relevant laws. Enforcement of these laws should be pursued vigorously and relentlessly. The enforcement agency should be independent and made accountable to the legislature or a public body to maintain its credibility;

(3) launch public education campaigns to raise public awareness of the desirability of sound business ethics; and

(4) include good business ethics and practices in school curricula and business/management programmes of tertiary institutions.

Business should:

(1) recommend, through chambers of commerce and trade and professional organisations, best business practices for members to follow;

(2) identify and promote better accounting and auditing methods which make it more difficult to hide corrupt practices; and

(3) encourage individual businesses to publish a corporate ethics statement emphasising the company's commitment and that of its employees to proper business practices.

HUMAN RESOURCES AND BUSINESS DEVELOPMENT POLICIES

Human Resources Development

-- The PBF recommends more intensive efforts in the regional transfer of skills, technology and personnel. It urges both government and business to explore regularly new ways and means to continue and enhance cooperation in human resources development.

CULTURAL EXCHANGE

-- The PBF recommends:

(1) introducing or strengthening home-stay programmes among APEC member economies;

(2) enhancing and expanding student exchange and training programmes; and

(3) enhancing and expanding scholarship programmes for universities and business apprenticeships.

-- The PBF recommends that the business sector in respective APEC member economies undertake some financial commitment to support cultural exchange.

Small and Medium Enterprises (SMEs)

SMEs IN REGIONAL BUSINESS ACTIVITIES

-- The PBF recommends that APEC Economic Leaders institute programmes that:

(1) provide seed capital to SMEs through networks of private and corporate investors and venture capital companies in order to link SMEs to risk capital, and tax incentives to encourage such linkage;

(2) assist SMEs to develop high-technology products and processes through R&D, for example by the commercialisation of academic research and sponsorship of applied research;

(3) establish business incubators for start-up companies to nurture them through their initial and vulnerable stages of development;

(4) create linkages between large enterprises and SMEs within economies and across borders through, inter alia, subcontracts and procurements; and

(5) facilitate networks among SMEs within economies to reduce costs and share market intelligence.

TECHNOLOGICAL COOPERATION AMONG SMEs

-- The PBF recommends that APEC member economies encourage technological cooperation among SMEs by offering administrative and fiscal incentives.

Infrastructure Development

REGION-WIDE INFRASTRUCTURE DEVELOPMENT

-- The PBF recommends that a comprehensive plan for region-wide infrastructure development in key sectors be drawn up for the APEC region.

-- The PBF recommends that a joint public and business/private sector task force on region-wide infrastructure development be established.

THE APEC INFORMATION INFRASTRUCTURE

-- The PBF recommends that, while plans for the global information infrastructure are in their infancy, there should be consultations between the public and business sectors on issues related to information infrastructure.

-- The PBF urges that a meeting of ministers responsible for telecommunications policies be convened in 1995 to address these issues.

Structural Adjustment Policies

-- The PBF recommends that APEC member economies should promote both structural adjustment policies and policies to increase labour mobility.

Best-Practice Benchmarking

-- The PBF recommends to APEC Economic Leaders that APEC systematically establish a set of best-practice benchmark models for major aspects of regional trade and investment.

GOVERNMENT/BUSINESS PARTNERSHIP AND BUSINESS NETWORKING

Government/Business Sector Partnership

PRIVATISATION

-- The PBF believes that APEC should continue to encourage further privatisation efforts throughout the region.

AN APEC BUSINESS ADVISORY FORUM

-- The PBF recommends the continuation of the dialogue between the APEC Economic Leaders and the business community, and the establishment of an APEC Business Advisory Forum, appointed by and reporting to the Leaders, to achieve APEC's objectives.

Business Networking

APEC ELECTRONIC-BASED BUSINESS NETWORKS

-- The PBF recommends the development of an APEC electronic-based business network.