7/16/13

APEC members begin talks on connectivity and infrastructure | The Jakarta Post

APEC members begin talks on connectivity and infrastructure

Linda Yulisman, The Jakarta Post, Medan, NORTH SUMATRA | Headlines | Sat, July 06 2013, 10:27 AM

Members of the Asia-Pacific Economic Cooperation (APEC) kicked off their senior officials meeting in the North Sumatra provincial capital of Medan on Friday, seeking ways to step up the regional economic integration processes. During the first day of the two-day meeting, the officials from the 21member economic forum began discussions on initial drafts of a connectivity framework and multi-year plans for investment in infrastructure development proposed by Indonesia, the Trade Ministrys director general for international trade cooperation Iman Pambagyo said. The framework and the infrastructure development plans are two flagship projects that Indonesia, as APECs chair this year, is endorsing as the concrete deliverables of the summit scheduled for Oct. 7-8 in Bali. The two projects are part of a priority to promote connectivity, which goes beyond physical connectivity to also include institutional and people-to-people connectivity, in addition to another two priorities set by Indonesia: achieving the Bogor Goals APEC commitment to adopt an open trade and investment regime by 2020 and growth with equity. Based on our temporary assessment, other APEC economies are open to Indonesias initiative to put a focus on connectivity, Iman told the press at the third APEC senior officials meeting . Regional connectivity and much-needed investment are major concerns of business communities across Asia-Pacific. As infrastructure development usually requires huge investment, the risks may be high, thereby raising concerns about feasibility and, moreover, profitability. To minimize the risks, business players demand governments provide guarantees in terms of legal frameworks and incentives to facilitate the process, a point raised by the APEC Business Advisory Council (ABAC). Apart from connectivity, discussions during the day also centered on attainment of the Bogor Goals, with Indonesia underlining the need to pay attention to development issues related to widening gaps between big and small business players in the region stemming from further liberalization processes, Iman said. Investment may indeed spur growth and create jobs, but there should be policy intervention to help small and medium enterprises as well as other vulnerable groups lacking access to information, finance, et cetera, he said, adding that only by doing this could APEC members establish a resilient economic community and become an engine of growth. APEC set the Bogor Goals of, free and open trade and investment in the Asia-Pacific by 2010 for developed economies and 2020 for developing economies during the summit meeting in Bogor in 1994. Established in 1989, APEC represents 40 percent of the worlds population, 54 percent of the worlds gross domestic product and 44 percent of global trade. Members have approved opening trade with each other through mostfavored nation terms and have cut import duties from 17 percent in 2002 to 5.8 percent in 2010. Between 2007 and 2010 APEC economies also lowered transaction costs by 5 percent, which has translated into US$58.7 billion for business. The third APEC senior officials meeting is the peak of more than 20 meetings on a wide array of issues, including non-economic issues such as agriculture, emergency preparedness, health, science, technology and innovation, held since June 22 and involving 3,367 delegates.
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7/16/13

APEC members begin talks on connectivity and infrastructure | The Jakarta Post

Iman said that during the meeting, Indonesia also took the opportunity to request fellow members to accelerate the negotiations to prepare for the ninth ministerial conference of the World Trade Organization (WTO) in Bali.
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