WORLD TRADE
ORGANIZATIONWT/L/543
24 October 2003
(03-5630)
Original:  English
FIFTEENTH APEC MINISTERIAL MEETING
Bangkok, Thailand
17-18 October 2003
Communication from Thailand
The following Joint Statement from the Fifteenth APEC Ministerial Meeting, held in
Bangkok, Thailand on 17-18 October 2003, has been received from the Permanent Mission of
Thailand.
_______________
JOINT STATEMENT
1. Ministers from Australia;  Brunei Darussalam;  Canada;  Chile;  the People’s Republic of
China;  Hong Kong, China;  Indonesia;  Japan;  the Republic of Korea;  Malaysia;  Mexico;  New
Zealand;  Papua New Guinea;  Peru;  the Republic of the Philippines;  the Russian Federation;
Singapore;  Chinese Taipei;  Thailand;  the United States of America;  and Viet Nam, representingeconomies which collectively account for 47 per cent of world trade and over 60 per cent of global
GDP, participated in the Fifteenth Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting in
Bangkok, Thailand on 17-18 October 2003.  The APEC Secretariat was present.  The Association of
Southeast Asian Nations (ASEAN) Secretariat, the Pacific Economic Cooperation Council (PECC)
and the Pacific Islands Forum (PIF) attended as observers.
2. The meeting was chaired by Dr. Surakiart Sathirathai, Minister of Foreign Affairs and
Dr. Adisai Bodharamik, Minister of Commerce of the Kingdom of Thailand.
3. Ministers renewed their commitment to stable economic growth in the Asia Pacific region
based on an open multilateral trading system.  They reiterated their pledge to achieve the Bogor Goals
of free and open trade and investment through harnessing the diverse and unique strengths of thetwenty-one APEC member economies to create jobs and raise the standard of living of its peoples.
Working towards the equitable and shared prosperity  for all, Ministers reviewed the implementation
of the APEC 2003 work program and set new directions and taskings for the APEC 2004 Year.  These
outcomes are organized in accordance with the theme and sub-themes of the APEC 2003 Year:
- A World of Differences: Partnership for the Future
- Act on Development Pledge;
- Knowledge-Based Economy for All;
- Promoting Human Security;
- Financial Architecture for a World of Differences;WT/L/543
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- New Growth Enterprises: SMEs and Micro-Enterprises.
I. PARTNERSHIP FOR THE FUTURE
4. For APEC to reach the Bogor Goals of free and open trade and investment by 2010 for
industrialized economies and 2020 for developing economies, Ministers called on all APEC membersto work together in an effective partnership not only among economies but also together with other
stakeholders and actors such as civil society, the business sector, and academia.  In particular, APEC
is encouraged to collaborate and work with Internatio nal Financial Institutions (IFIs) to better utilize
and harness the expertise and resources to bring about tangible benefits to all regardless of cultural
differences and levels of economic development.
II. ACT ON DEVELOPMENT PLEDGE
5. Despite its diversity, the APEC spirit of cooperation has underpinned its trade and investment
liberalization and facilitation agenda that works in concert with economic and technical cooperation
rather than through a donor-recipient relationship.  Through this process, APEC integrates its peoples
and communities into the mainstream of regional econom ic activities, turning them into stronger trade
and investment partners as APEC moves closer towards the Bogor Goals.
1. World Trade Organization (WTO)
6. Ministers agreed that the WTO Doha Development Agenda (DDA) offers the potential for
real gains for all economies, and particularly developing economies, in the areas of agricultural
reform, improved market access for goods and services, and clarification and improvement of trade
disciplines.  Ministers regretted the missed opportunity to advance the DDA during the Fifth WTO
Ministerial Conference held in Cancun, Mexico, on 10-14 September 2003.  They noted that progresshas been made in some areas of negotiations, a nd welcomed the recent historic decision on TRIPS and
access to essential medicines.
7. To move the DDA forward and arrive at an ambitious and balanced outcome to the DDA,
Ministers agreed on the need to re-establish the common purpose, commitment and contribution from
all WTO Members that has been the hallmark of successful multilateral trade liberalization, andreiterated that the development dimension is at the core of the DDA.
8. Ministers also recalled the Leaders’ Declaration at Los Cabos and reiterated that one of the
objectives of the negotiations should be the abolition of all forms of agricultural export subsidies, and
unjustifiable export prohibition and restrictions.  Ministers remained committed to on-going work in
the negotiating group on rules aiming at clarifying and improving trade disciplines.
9. Ministers called on all WTO Members to quickly re-energize the negotiation process by
building on Chairman Derbez’s text of 13 September 2003, recognizing that flexibility and politicalwill from all are urgently needed.  They also supported the Chairman of the WTO General Council’s
initiative to lead talks at the General Council on the areas that dominated discussions in Cancun, such
as agriculture, industrial market access, and the Singapore Issues, with an aim to setting out future
work programs for negotiations by 15 December 2003.  Ministers noted that the valuable work on
trade facilitation already undertaken by APEC woul d be helpful in the context of WTO negotiations.
They underlined their willingness to show flexibil ity in advancing such negotiations and urged their
trading partners to do the same.
10. Ministers reaffirmed the importance of effective WTO capacity building activities in helping
developing economies fully participate in WTO DDA negotiations and enjoy the full benefits of WTO
membership.  To contribute to the successful completion of the DDA, Ministers, reaffirming theWT/L/543
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importance of capacity building, instructed Senior Officials to focus on meeting the needs identified
by developing economies.  Ministers recognized APEC’s capacity building contributions and
instructed Senior Officials to review the experience gained, as well as the lessons of the Fifth WTO
Ministerial Conference in Cancun, in order to identify measures and practices to improve WTO
capacity building activities in the future, and make th em as effective as possible in reinvigorating the
DDA negotiations.
11. Ministers instructed officials in Geneva to increase the momentum in the work undertaken by
the APEC WTO Caucus so as to follow up on the discussions held and the instructions given to them
in Bangkok, on advancing the DDA negotiation agenda.
12. Ministers restated their support for the WTO accessions of the Russian Federation and
Vietnam, and agreed to seek early accession for these economies.  Ministers noted that APEC
capacity building programs could help the Russian Federation and Vietnam in building confidenceand capacity to accelerate their negotiation process to join the WTO.
13. Ministers noted the efforts underway in the current GATS negotiations to encourage
economies to provide greater transparency in all sectors and modes of supply.  Greater transparency
by APEC members would facilitate such efforts and promote investment and trade in goods and
services in the region.  Ministers encouraged economies to continue their discussions on transparencyand consider practical and effective ways to improve the availability of information related to their
GATS specific commitments, including mode 4.
2. Structural Reform
14. Ministers stressed their determination to continue pursuing structural reform in the APEC
region as a valuable avenue for achieving the Bogor Goals.  Work should continue to ensure thatpolicies of open markets are complemented by genuine efforts to progress structural reform and
constantly review policies and practices in the relevant areas.  They reiterated that "behind-the-
border" reforms are necessary to support "at the border" trade and investment liberalization and
facilitation initiatives.
15. Ministers adopted the "APEC Structural Reform Action Plan"  as a unified framework for
helping build economies' capacity to undertake structural reform by coordinating and promoting
current and future structural reform work in APEC .  The Action Plan incorporates work in structural
impediments to trade in goods and services, training on competition policy and deregulation,
corporate governance and insolvency systems, co rporate debt restructuring, and strengthening
economic legal infrastructure activities.  They also encouraged strengthening of social safety nets to
complement structural reform efforts.  Ministers requested Senior Officials to report progress on
implementation of the APEC Structural Re form Action Plan to the 16th AMM in 2004.
16. Ministers welcomed the progress with Strengthening Economic Legal Infrastructure (SELI)
capacity building projects, including initiatives on commercial laws, accounting systems and
competition policy.  They took note of the report on the Study on Debt Collection
Litigation/Arbitration in APEC Economies and the launch of the report on Strengthening Commercial
Laws in the APEC Region , and reaffirmed the importance of more transparent and more predictable
environment for business activities.  They also instructed Senior Officials to further develop SELI’s
activities by taking into account the findings of the past projects of the SELI Coordinating Group.
17. Ministers also recognized that good governance is fundamental to sustained economic growth
and development and strongly support the implementation of good governance practices across the
APEC region.WT/L/543
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3. Trade and Investment Liberalization and Facilitation
18. Ministers endorsed the 2003 Committee on Trade and Investment Annual Report  on APEC’s
Trade and Investment Liberalization and Facilitation activities.
19. Ministers welcomed considerable progress made by APEC in liberalizing and facilitating
investment flows in the region and urged member s to attach greater importance to investment
cooperation.
4. Individual and Collective Action Plans
20. Ministers reaffirmed their commitment to achieve the Bogor Goals through actions outlined
in their respective Individual Action Plans  (IAPs).  They endorsed the Senior Officials’ Report on IAP
Improvements for 2003  and welcomed the actions and measures taken by individual economies on
Trade Facilitation .  They urged all economies to report progress in the new IAP Chapter on Trade
Facilitation .  They agreed that this IAP Chapter on Trade Facilitation  will be a useful tool in charting
progress toward the objective in the Shanghai Accord of realizing a 5 per cent reduction in business
transaction costs by 2006.  Increased profits, due to reduction in transaction costs, will be returned to
business, which will result in increased trade volume, creation of new jobs and lower prices for
consumers.
21. The new IAP Chapter on the APEC Food System  is also a welcome addition to the IAP
process.  The APEC Food System, an initiative of the APEC 1999 Year, combines the development of
rural infrastructure, dissemination of technological advances in food production and processing, and
liberalization and promotion of trade in food products, into a robust regional food system.  This
system provides a vital contribution to meeting the objectives of APEC, aiding efficient and safe food
production, and facilitating effective trade in food products, and ensuring that its requirements arebased on sound science.  In this context, Ministers noted the Agricultural Technical Cooperation
Working Group’s plan to pursue a high-level policy dialogue on agriculture in 2004.
22. Ministers also welcomed the annual reporting mechanism of Strengthening Economic Legal
Infrastructure (SELI) that was agreed on by the members following the broadening of the OAA to
include a new chapter of SELI last year.  The re porting mechanism will help each economy identify
the economic legal areas that need improvement, a nd will push forward their efforts in the area.  In
addition, the mechanism will facilitate policy discussions and mutual cooperation among APEC
member economies in this area. Ministers instructed Senior Officials to further improve it with the
consideration of its relations with other relevant IAPs.
23. Ministers welcomed the successful 2003 IAP Peer Reviews  of Australia;  Canada;  Hong
Kong, China;  Japan;  Korea;  Mexico;  New Zealand and Thailand.  They took note of progress to
complete the peer reviews of Chile, China, Peru, Singapore, Chinese Taipei and the United States in2004. Ministers reaffirmed their commitment to comp lete all twenty-one IAP peer reviews by the
First Senior Officials’ Meeting (SOM I) in 2005 and to conduct a mid-term stocktake in 2005 on
overall progress towards meeting the Bogor Goals. Completion of preparations for this mid-term
stocktake should be agreed on by the 16th APEC Ministerial Meeting (AMM).
24. Whilst noting the progress made on the implementation of collective action plans, Ministers
instructed Senior Officials to expeditiously review and progressively improve the CAPs to ensure that
they produce tangible benefits to the business community and meet the Bogor Goals.
25. Ministers welcomed the expansion of the 1998 APEC’s Menu of Options for Investment
Liberalization and Business Facilitation to Strengthen APEC Economies  to include competition
policy and regulatory reform as well as the capacity building programs and activities to improve theWT/L/543
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economies’ capabilities in the investment area.  Ministers noted the reports prepared by most
economies highlighting their implementation of the Menu of Options, and urged all remaining
economies to provide their reports on the progress in implementing the Menu of Options  as soon as
possible, and encouraged the Investment Experts Group to advance work in this important arena.
5. Trade Facilitation Action Plan
26. Ministers applauded economies’ work to implement the APEC Trade Facilitation Action Plan
(TFAP) , in particular the individual economies’ selected actions and measures.  They noted that
several economies have presented case studies on how the benefits of trade facilitation actions and
measures can be quantified and encouraged economies to step up efforts to provide this type of detail.
Ministers welcomed the time release survey carried out by several economies as one of the proxies to
measure the 5 per cent reduction of transaction co sts.  To ensure APEC meets Leaders’ target of
reducing business transaction costs by 5 per cent by 2006, Ministers instructed Senior Officials toidentify and implement concrete actions and measures.  In this regard, the Ministers were of the view
that compilation of information about best practices of trade facilitation should be made available in
local languages of APEC to maximize the gain of trade facilitation.
27. Ministers further instructed Senior Officials to begin preparing for the mid-term review and
Expanded Dialogue on Trade Facilitation scheduled to take place at the Third Senior OfficialsMeeting in 2004.  Ministers agreed that the mid-term review and the participation of economies, non-
government experts and private sector representatives in the Dialogue should provide APEC members
with an accurate view of progress made thus  far to achieve the Shanghai Accord’s mandate.
28. Ministers reiterated their appreciation for recent studies, such as "Assessing the Economic
Benefits of Trade Facilitation and Recommendations for a Coordinated Capacity Building"  by the
World Bank, estimating the substantial economic benefits APEC economies can realize from reducing
transaction costs.  Ministers instructed Senior Officials to develop a work programmme to share
information on similar benefits that other WTO members could potentially achieve.
29. Ministers instructed Senior Officials to identify APEC-wide concrete actions and measures
that would enhance the cross border movement a nd customs clearance of goods and people in the
region.  Ministers also urged Senior Officials to further develop confidence and capacity building
activities to assist economies to implement the TF AP, including the progress report on the study to
examine developments in trade facilitation and secure trade.  They looked forward to the development
of a monitoring mechanism to demonstrate the cost  reduction effect and the benefit to the business
community and requested Senior Officials to report progress on the TFAP to the 16th AMM in 2004.
In this context, Ministers welcomed the outcome of the APEC Workshop on Quantitative Methods for
Assessing NTMs and Trade Facilitation, sponsored by the Market Access Group in Bangkok inOctober 2003, at which participants exchanged views on the latest analytical methods for assessing
the impact of non-tariff measures and trade facilitation.  By building capacity among trade policy
specialists in the developing APEC economies, the Workshop will lead to better information for
policymakers on a wide range of topics, including helping economies to assess their progress to
achieve a 5 per cent reduction in transaction costs by 2006.
30. Ministers noted the outcomes of a symposium held in Chinese Taipei in September 2003 on
Toward a Cross-Border Paperless Trading Environment - Actions for Trade Facilitation and the
Roadmap for Establishing an APEC Cross-Border Paperless Trading Environment.  They requested
relevant APEC fora to consider its recommendations in particular the commitment to achieving
paperless trading goals in the APEC region by 2005 for industrialized economies and 2010 fordeveloping economies.WT/L/543
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31. Ministers noted that trade and security are complementary issues.  As such, the
implementation of security related measures, such as STAR within the APEC region, should take into
account the need to minimize costs directly associated to trade.
6. Leaders’ Statement to Implement APEC Transparency Standards
32. Ministers endorsed area-specific Transparency Standards on Services, Investment,
Competition Law and Policy and Regulatory Reform, Standards and Conformance, Intellectual
Property, Custom procedures, market access and business mobility and directed their officials to
complete their work on area-specific standards on government procurement by the 2004 MRT.
Ministers requested Senior Officials to further refine the template developed for reporting on how
economies implement the General Transparency Standards for use from 2004 onwards.  Ministers
agreed to recommend that Leaders endorse the Transparency by 2005 Strategy agreed by Ministers
Responsible for Trade to ensure that economies implement the Leaders’ Transparency Standards intheir domestic legal regimes. Ministers instructed Se nior Officials to study how implementation of the
area-specific  Transparency Standards could also be tracked in the IAPs and called for the
development of demand-driven capacity building to assist developing economies to implement the
APEC Transparency Standards by January 2005.  Furthermore, Ministers asked Senior Officials to
ensure that these standards are made publicly available to the business community, as they make animportant contribution to APEC’s trade facilitation agenda.
33. Ministers recognized that enhancing transparency will contribute to combating corruption.
Ministers noted that in many member economies there already exist appropriate laws, institutions and
structures aimed at eliminating corrupt practices in both the public and private sectors.  Ministers
agreed that these anti-corruption measures should be vigorously enforced, and where appropriatelaws, institutions and structures should be strengthened in pursuit of our common goals.
7. Pathfinder Initiatives
34. Ministers re-emphasized the important role of Pathfinder initiatives that allow economies that
are ready to initiate and implement the cooperative arrangements to proceed to do so, while those that
are not yet ready to participate may join at a later date.  In this connection, Ministers urged alleconomies to actively take steps to participate in Pathfinder initiatives so as to ensure timely progress
towards the Bogor Goals.
35. Ministers of participating economies endorsed the "Next Steps" Action Plan adopted by
Ministers Responsible for Trade to implement the 2002 Pathfinder Statement to Implement APEC
Policies on Trade and the Digital Economy.  They also welcomed progress achieved so far under this
Plan to implement the Leaders’ Digital Economy St atement in the e-commerce, services, intellectual
property and tariff areas, and instructed that work under the Next Steps Plan continue.
36. Ministers welcomed Chile’s decision to participate in the Leaders’ Digital Economy
Statement, according to the understanding annexed to this Statement (see Annex A).  Ministers
instructed Senior Officials to work on the basis of participating economies’ proposals to identifyadditional information technology products on which tariffs could be eliminated.  Ministers also
instructed Senior Officials of the economies participating in the 2002 Pathfinder Statement toImplement APEC Policies on Trade and the Digital Economy to undertake work on technology choice
and non-discriminatory trade in digital products under the "Future Works" paper.
37. Ministers agreed on the importance of effective intellectual property protection consistent
with existing regimes and international agreements as  critical to fuel human genius and creativity, and
to promote investment in the creation of culturally diverse materials, and agreed to continue workunder the Digital Piracy Initiative to create the regulatory and enforcement environment needed toWT/L/543
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eliminate the production, import, export and distribution of pirated optical media.  To this end,
Ministers of economies participating in the Leaders’ Digital Economy Statement endorsed Effective
Practices for Regulations Related to Optical Disc Production. They also noted the  Initial Report on
Enforcement Best Practices in APEC Economies to Combat Optical Disk Piracy , and agreed that
economies participating the Leaders’ Digital Economy Statement  should provide information on their
enforcement practices so that a final report is ready for submission to Ministers Responsible for Trade
next year.  Ministers instructed officials to continually pursue new work areas under the Leaders’
Digital Economy Pathfinder Statement.  They also called for the formulation of demand-driven
capacity building projects that would help developing economies benefit from digital trade.
38. Ministers welcomed the launch of the APEC Sectoral Food Mutual Recognition Arrangement
(MRA) as a Pathfinder initiative and encouraged economies to share effective and/or best practices in
food regulations as initial means to help promote the initiative.  This initiative has the potential tobring greater returns to agricultural producers and would pass on the benefits of reduced costs to
consumers.  The initiative would also support AP EC’s efforts to promote the APEC Food System.
39. Ministers also welcomed progress made with respect to the following Pathfinder initiatives
and urged economies to participate actively in Pathfinder initiatives:
- Implementation of Unilateral Advance Passenger Information Systems;
- Adoption of the revised Kyoto Convention on the Simplification and Harmonization
of Customs Procedures;
- Electronic Sanitary and Phytosanitary (SPS) Certificates;- Electronic Certificates of Origin;- Mutual Recognition Arrangement of Conformity Assessment on Electrical and
Electronic Equipment Part II and Part III; and
- Corporate Governance.
8. Regional Trading Arrangements/Free Trade Agreements
40. Ministers acknowledged the development of intra-APEC Regional Trade Agreements/Free
Trading Arrangements (RTAs/FTAs) and welcomed APEC’s 1st Policy Dialogue on RTAs/FTAs
held in May 2003 in Khon Kaen, Thailand.
41. While recognizing that RTAs/FTAs can contri bute to multilateral trade liberalization,
Ministers reiterated Leaders’ emphasis that RTAs/FTAs must be consistent with both the WTO’s
rules and disciplines and APEC’s goals and principles.  They noted that if FTAs are comprehensive
they can promote competitive liberalization in the region and help to build momentum for the Doha
Round negotiations. Ministers welcomed the convening of a 2nd Policy Dialogue on RTAs/FTAs inMay/June 2004 in Pucon, Chile.  They supported continued work within APEC and with relevant
organizations, for example, the Pacific Economic Cooperation Council (PECC), to develop their work
for maximizing the contribution of RTAs/FTAs to the achievement of the Bogor Goals.  In particular,
Ministers instructed Senior Officials to develop work on ways to include discussions on RTAs/FTAs
on a regular basis, within APEC’s work agenda.WT/L/543
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9. APEC Business Advisory Council
42. Ministers recognized the unique role of th e APEC Business Advi sory Council (ABAC) in
providing specific advice concerning the improv ement of the business environment in the region.
They welcomed the presentation of the 2003 ABAC Report to APEC Economic Leaders  and
acknowledged ABAC’s call to act decisively to deliver on APEC members’ commitments. Ministerswelcomed the five key messages in the ABAC Report:
- reaffirm APEC’s commitment to advancing free, open and transparent trade, and
specifically reaffirm the commitment to ac hieve the Bogor Goals, and to advance the
Doha Development Agenda;
- facilitate trade to ensure that the benefits of liberalization are realized, and reaffirm
the commitment to reduce transaction costs by 5 percent by 2006, ensuring thatsecurity measures do not hinder legitimate commerce but rather provide an
opportunity to facilitate trade;
- pursue capacity building to ensure that growth resulting from liberalization is
balanced, equitable and sustainable and contributes to strengthened financial systems;
- work with the private sector to promote good governance, transparency and
application of international standards and conformance procedures to restoring trust
in markets; and
- ensure that APEC remains open to business input and participation so that APEC
efforts result in real improvements to the business environment and for regional
economies.
43. Ministers noted with satisfaction the closer working relationship between ABAC and Senior
Officials in 2003, and expressed appreciation for ABAC’s continued work to provide constructive,
specific recommendations and to engage with officials to help ensure the achievement of APEC goals
and their translation into real economic growth and benefits.
44. Ministers recognized the fact that financial stability is key to reinvigorating APEC economies.
Ministers welcomed ABAC’s recommendations on st rengthening APEC’s financial systems, securing
the financial environment and improving governance as well as transparency in order to restore
confidence in our markets.  Ministers also recommended the Finance Ministers Process to work withABAC on the implementation of measures that will contribute to the creation of a sound investment
environment for business within the APEC region.
10. APEC Business-Government Dialogues
45. Ministers  welcomed the excellent business-government understanding that has been achieved
as a result of the Automotive and Chemical Dialogues.
46. The automotive sector accounts for approximately ten percent of world trade.  In response to
the call of the 5th APEC Automotive Dialogue in  June 2003, Ministers reaffirmed that they will
endeavor to refrain from using measures which would have the effect of increasing the level of
protection in the automotive sector.  Ministers will also continue their support for the Automotive
Dialogue to map out strategies for increasing integration and development of the automotive sectorwithin the region.WT/L/543
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47. In the chemicals sector, Ministers noted the continuing concern of economies over the
European Commission’s proposed regulatory framework for chemicals and downstream products
(REACH system).  Ministers observed that many  APEC economies submitted detailed comments on
the proposed system, and urged the European Commission to carefully consider the trade effects and
trade policy implications of the proposed legislation. Ministers welcomed the efforts of the ChemicalDialogue to identify non-tariff barriers to trade to be addressed in APEC and as part of the
contribution to the Doha Development Agenda.
48. Ministers  also welcomed the outcome of the Globally Harmonized System (GHS) Capacity
Building Seminar held in Chinese Taipei in Septem ber 2003 for participants to exchange views on the
mechanism and benefits of adopting the GHS for classification, labeling and safety information
management of chemical products.
49. Ministers welcomed the outcome of the test-seminar held in August 2003 in Bratsk, Russia
and endorsed the convening of the first meeting of APEC Dialogue on Non-Ferrous Metals in 2004.
Ministers requested officials to consult with GEMEED and other relevant APEC fora on the
organizational and technical aspects of convening the first dialogue.
11. Economic and Technical Cooperation and Capacity Building
50. Ministers endorsed a short list of APEC -wide Economic and Technical Cooperation or
ECOTECH priorities :
- Integration into the Global Economy;
- Promoting the Development of Knowledge-Based Economies;
- Addressing the Social Dimension of Globalization; and
- Counter-Terrorism Capacity Building.
51. These ECOTECH priorities guide APEC’s contribution to the economic and social
development of the region.  They provide an up-to-date overall strategic focus, a strategic roadmap for
future ECOTECH activities and will enable APEC to better communicate with its constituents and
facilitate efforts to attract additional support from external organizations.  The complementary and
cross-cutting nature of TILF and ECOTECH are also reflected in the list of priorities.  This list of
priorities, however, does not preclude APEC from responding to future priorities as may be identified
by Leaders.  Additional ECOTECH and capacity bui lding activities may be undertaken by economies.
Ministers tasked SOM to focus on identification and implementation of capacity building projects
under the four ECOTECH priorities and report to AMM 2004.
52. Ministers welcomed the 2003 Senior Officials’ Report on Economic and Technical
Cooperation , and endorsed its recommendations.
53. Ministers instructed Senior Officials to use existing management mechanisms, such as the
SOM Committee on ECOTECH and the Budget and Management Committee to significantlystrengthen the coordination of APEC activities, in pa rticular APEC projects, so as to avoid duplication
and maximize APEC value, goodwill and benefit to  stakeholders.  They welcomed the development
of a project evaluation framework, which should be integrated into the APEC project framework in
time for 2005 projects, and looked forward to c ontinued progress in assessing APEC’s ECOTECH
activities.WT/L/543
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54. Ministers welcomed the rigorous assessment of ECOTECH Action Plans  in the area of human
resources development.  They remain accessible to interested economies as a basis for discussion and
may be revised for their own use.
55. Ministers acknowledged that it is essential to expand APEC’s relationships with other
organizations including the IFIs.  They welcomed the success of the first APEC/International
Financial Institutions Roundtable Discussion on Economic and Technical Cooperation  as a first step
in identifying synergies and proposing a framework for coordination and capacity building
opportunities for further cooperation.  In this connection, distance learning as well as outreach
activities on issues such as the positive impact of globalization, structural reform, trade security,
youth, women and digital economy may be areas with potential for further APEC/IFI cooperation
activities.  Ministers encouraged economies and APEC fora to continue to engage IFIs in the
ECOTECH and capacity building work of APEC a nd to develop relationships with other suitable
organizations and the business sector in the year ahead.  In particular, they looked forward towards
the concrete results that may arise from a Seco nd APEC/IFI Roundtable discussion on Economic and
Technical Cooperation, to be held during the Second Senior Officials’ Meeting in 2004.
III. KNOWLEDGE-BASED ECONOMY FOR ALL
56. Promoting the Development of Knowledge-based Economies (KBEs), one of APEC’s
ECOTECH priorities, is a foundation for the economic  and social development of the APEC region.
APEC needs to redouble implementation of its AP EC 2000 Year KBE Strategy by maximizing the
combined potential of information and communications technology, human resources development
and a facilitating legal and regulatory framework.  APEC’s work in this area will enhance economies’
abilities to engage in broader trade and investment liberalization, which will help APEC meet theBogor Goals.
57. Ministers encouraged undertaking technical cooperation amongst member economies in order
to develop global learning communities that can build the skills that our youth require in our
increasingly global and knowledge based economies:  Ministers welcomed the initiative of holding a
Working Research Summit on Education Reform in the APEC region during 12-14 January 2004 inBeijing, in order to examine the research base and policy trends in education affecting our economies.
These findings will inform policy recommendations and establish a substantive action-oriented
agenda for the region.
1. Intellectual Property Rights
58. Ministers recognized that effective management of Intellectual Property Rights (IPR) is
essential to building a knowledge-based economy.  Proper protection and enforcement of IPR are key
factors in promoting foreign trade and investment as well as boosting economic development.  Theycommitted to continuing close cooperation within APEC aimed at improving IPR facilitation,
protection and enforcement, and endorsed the establishment of IPR Service Centers , as a CAP,
understanding that each member economy will proceed with implementation as soon as it is ready.
They also endorsed the Comprehensive Strategy on IPR in APEC  which will improve IPR protection
and enforcement in the region.  The objective of th is Comprehensive Strategy is to set guidelines for
proper protection and enforcement of IPR in the region for the sake of better coordination and
collaboration among APEC economies in this area.  Ministers also instructed Senior Officials to
develop concrete plans to implement the strategy.  They emphasized the importance of
implementation of the APEC IP Toolkit  through well-targeted projects which take into account the
particular needs of developing APEC economies.  In this area, increased support for capacity buildingprograms as well as infrastructure development in order to strengthen the fight against piracy is
required.  Ministers also recognized the importance of APEC Technical Cooperation in IPWT/L/543
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Automation, which will bridge the digital divide among Intellectual Property Offices (IPOs) and
facilitate the implementation of cost-effective IP automation.
2. Cybersecurity
59. Ministers welcomed the TEL’s Report to Leaders and Ministers on Actions of the
Telecommunications and Information Working Group to Address Cybercrime and Cybersecurity,reflecting the work done to implement the APEC Cybersecurity Strategy, and urged APEC fora and
economies to continue their efforts to implement it.  In particular, Ministers welcomed the
Cybercrime Legislation and Enforcement Capacity Building Project and its first meeting held in
Thailand in 2003, and called for further work by APEC fora and economies to develop laws and
procedures to facilitate the investigation and prosecution of cross-jurisdictional cybercrime.  Ministers
noted the efforts economies have made to share information about security threats and to assist each
other in international cybercrime investigations, and welcomed APEC efforts to promote thedevelopment of an international network of Com puter Emergency Response Teams ("CERTs").  They
also agreed to continue to support the work done by APEC fora and economies to promote security
and technical guidelines, raise public awareness about computer security threats, and promote
cybersecurity training and education.
3. Life Sciences Innovation
60. Ministers recognized the importance of life sciences innovation to economic development and
the well being of people.  They welcomed the first APEC Life Sciences Innovation Forum  in Phuket,
Thailand in August 2003 and supported the forum’s recommendations to identify economy-specific
strengths in life sciences and ways to prom ote trade and investment, economic and technical
cooperation and government-business sector collaboration in life sciences innovation.  Ministers tooknote of the progress in developing the draft Strategic Plan for Promoting Life Sciences Innovation  and
requested that the forum and its expert groups finalize the plan for endorsement in 2004.  As an
immediate outcome of the forum, Ministers endorsed an agreement in principle to harmonize quality
standards for life science products and services according to international best practices.  They
requested that the 4th APEC Ministers’ Meetin g on Regional Science and Technology Cooperation in
New Zealand in 2004 be kept informed of the forum’s progress.
4. Innovative APEC
61. Ministers recognized the importance of promoting cooperation on science and technology
innovation to ensure the long-term economic grow th of APEC economies.  They welcomed the
Innovative APEC  initiative, which will promote cooperation in the APEC region through the
development of science and technology intermediary mechanisms and identification of bottlenecks
and impediments to their development.  They charged Senior Officials with examining the policyrecommendations arising from the Innovative APEC Workshop in February 2004 in China for further
implementation.  They requested Senior Officials to report progress on implementation of Innovative
APEC to the Fourth APEC Ministers’ Meetin g on Regional Science and Technology Cooperation,
where connecting innovative science, policy and busine ss will be a key feature. Senior Officials are
also requested to report progress in this area to the 16th AMM in 2004.
5. Biodiversity and Sustainable Development
62. Ministers agreed to continue to support global efforts to address significant sustainable
development issues and stressed the importance of the sustainable use of biodiversity.  Ministers
welcomed the Senior Officials’ decision to hold a workshop on this matter in 2004 where an
opportunity could be provided for representatives from governments, scientific institutions and thebusiness sector to exchange views on relevant best practices in biodiversity and implications on trade.WT/L/543
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63. Ministers reaffirmed their commitments delivered in the Seoul Statement on APEC Tourism
Charter.  They recognized tourism as the significant instrument towards obtaining sustainable
development within APEC region as well as in individual economy.
6. Agricultural Biotechnology
64. Ministers welcomed the 2nd APEC High Level Policy Dialogue on Agricultural
Biotechnology  held in Thailand in 2003 and recognised the benefits of biotechnology in improving
agricultural productivity, food security, and enhancing the environment.  They reaffirmed the
importance of the safe introduction and use of agricultural biotechnology products based on sound
scientific risk assessment and risk management.  They reiterated the need for enhancing public
awareness and confidence in products derived thr ough biotechnology and called on Senior Officials to
continue to develop better understanding in this area. In this regard, they welcomed the convening of
a 3rd APEC High Level Policy Di alogue on Agricultural Biotechnology in Chile in 2004 which would
cover Intellectual Property Rights and Capacity Building.
7. Invasive Alien Species
65. Ministers noted the difficulty and cost of dealing with problems caused by Invasive Alien
Species (IAS). IAS also has significant implications for trade. Ministers agreed that the invasive
species problem cuts broadly across sectors and that APEC should identify opportunities forcooperation and capacity building to combat the problem, using science-based criteria in accordance
with international standards.  In this context, a workshop will be held in 2004 where economies can
discuss IAS and consider APEC’s response, including the possibility of developing a common
strategy.
8. Electronic Commerce
66. Ministers took note of the 2003 Stocktake of Electronic Commerce Activities in APEC.
67. Ministers welcomed the work of Senior Officials in the area of electronic commerce,
including the Cybersecurity Workshop  on 14 August 2003 and the APEC Digital Trade Seminar  held
on 16 August 2003, both in Phuket, Thailand.  For 2004, Ministers highlighted the importance of
Senior Officials completing the APEC Data Privacy Principles and note that an APEC Symposium on
Data Privacy Implementation Mechanisms  will be held in August/September 2004 in Santiago, Chile.
The Principles will help APEC economies to develop privacy laws and regulations that achieve a
balance between effective privacy protection and the continuity of cross-border information flows,
thus promoting electronic commerce.  Ministers also endorsed updating the 1998 APEC Blueprint for
Action on Electronic Commerce , conducting future work on "spam" in close collaboration with the
OECD, holding an APEC Symposium on ebXML (electronic business Extensible Markup Language)
for Paperless Trading and Collaborative e-Business  in Thailand and noted plans for an APEC ECSG
Internet Investigatory Training Workshop for Law Enforcement Personnel.
68. Ministers welcomed China’s offer to host the APEC E-Commerce Fair on 15-19 June 2004 in
Yantai, China, and encouraged all member economies to participate in this event.
9. APEC Education Foundation and Cyber Education Cooperation Consortium
69. Ministers expressed their appreciation to the AP EC Education Foundation for its initiatives to
enhance Information and Communications Technology (ICT) capacity building of small and micro-
enterprises.  Ministers also recognized the Foundation’s potential as a useful vehicle to enhance
APEC education and human capacity building cooperation.WT/L/543
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70. Ministers also recognized the achievement for the Consortium for APEC Cyber Education
Cooperation (ACEC) in reducing the digital di vide in the APEC region and welcomed the
Consortium’s new directions towards building a wide learning community of teachers, learners and
researchers/administrators in the region.  Ministers encouraged member economies, business,
academia and other stakeholders to actively participate in the activities of the Foundation and theConsortium.
10. E-Learning
71. Ministers recognized the increasing role of technology in developing students' skills for the
21st Century and ability to contribute to knowledge based economies.  Ministers welcomed the
development of a Five-year Strategic Plan for e-Learning  in the region outlining recommendations to
improve students' and teachers' access to the Internet infrastructure, availability of innovative
educational content using the Internet, teachers' capacity to use technology, and addressing policyissues raised in implementing e-Learning efforts across APEC. Ministers encouraged APEC's
Education Ministers to review the document and prov ide further direction for promoting e-Learning at
the upcoming 3rd APEC Education Ministerial Meeting in Chile in 2004.
72. Ministers also encouraged member economies to undertake measures geared towards the
adequate knowledge and practical use of English as a Working Language within the APEC region.
Such measures focus, in particular, on strengthening current distance learning methods, exchanging
best practices and establishing a framework for increasing the appropriate use of English amongst
APEC’s youth, micro-enterprises and SMEs, in the different areas of economic activity, including
standards and conformance.
11. World Summit on the Information Society
73. Ministers welcomed the opportunity for APEC  to contribute to the World Summit on the
Information Society (WSIS) in December 2003. WSIS offers an opportunity to bridge the Digital
Divide and enhance cooperation, economic growth and social progress throughout the world,
including the APEC region.  Ministers noted that APEC’s input into the WSIS Statement reflects
APEC’s commitment to: sound economic policies; legal and regulatory frameworks that encouragecompetition and innovation in the information society; good corporate governance;  and the need to
protect information and communications technology infrastructure from criminal misuse.
IV. PROMOTING HUMAN SECURITY
74. Empowering people to become actively engaged and self-reliant in the regional economy is
the essence of promoting human security, as pointed out by the Report of the Commission on Human
Security.  Through capacity building programs and providing opportunities for human resources
development, the strengths and potential of all people in the APEC region can be better realized. Asthe region moves towards the Bogor Goals, within and between economies the process of economic
adjustment must be properly coordinated and social safety nets strengthened to ensure that economic
and social opportunities are accessible to all APEC stakeholders.
75. Terrorism and the spread of Severe Acute Respiratory Syndrome (SARS) have also
highlighted other aspects of human security.
1. Counter-terrorism
76. Ministers reiterated their resolve to secure trade and make APEC economies more resilient to
the threat of terrorism. They welcomed the important role of the newly created Counter-Terrorism
Task Force  in coordinating the implementation of APEC commitments to fight terrorism.  TheyWT/L/543
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applauded the development of Counter-Terrorism Action Plans  as a practical means to assist
economies in implementing the 2002 Leaders’ Statement on Fighting Terrorism and Promoting
Growth  and to identify and respond to capacity buildin g needs, as per the objectives put forward in
the Leaders’ Statement.  They called on Senior Officials and APEC fora to continue to identify
security measures and capacity building programs that would both facilitate and secure trade.
77. Ministers noted the World Bank’s report " The Use of Informal Funds Transfer Systems in the
APEC region:  Initial Findings and a Framework for Further Analysis"  and agreed that more effort is
needed to understand how remittances operate and, in some cases, how the formal financial systems
can be strengthened to provide more attractive and accessible remittance services.  Ministers looked
forward to the APEC Policy Dialogue to be held ne xt year to bring together public and private sectors
to consider ways in which remittances flows can be facilitated through safe and reliable channels.
78. Ministers welcomed the progress to implement the Secure Trade in the APEC Region (STAR)
Initiative, the Energy Security Initiative, Countering the Financing of Terrorism and the APEC
Cybersecurity Strategy as set out in the Report on Implementing the Leaders’ Statement on Fighting
Terrorism and Promoting Growth.  In this contex t, they welcomed the Energy Security Initiative
Implementation Plan which identifies the actions that economies will take to implement the
recommendations of the Energy Security Initiative and, where appropriate, the timeframes withinwhich these will be achieved. Ministers highlighted the Energy Security Initiative’s long-term
measures, such as the development of clean and sustainable energy resources.  Ministers further
encouraged continued efforts by APEC members to share information on money laundering and
cybersecurity and welcomed the outcomes of the APEC Anti-Money Laundering/Anti-Terrorist
Financing Seminar held in Tokyo in mid-October that enhanced APEC economies’ understanding ofthe international financial obligations and practices in this area.
79. They stressed the importance of building business confidence by working closely with the
business sector and sharing information on measures taken to secure trade.  They welcomed the non-
binding APEC Private Sector Supply Chain Securi ty Guidelines and encouraged economies to share
this best practice model with the business sector.
80. Ministers welcomed the outcomes of the APEC High Level Meeting on Maritime Security
Cooperation held in Manila, the Philippines on 8-9 September 2003 and recognized the importance of
exchanging best practices in maritime security to improve trade efficiency, reduce costs and ensure
trade security in the Asia-Pacific region.  They stressed the need for enhancing public-private
partnership to strengthen cooperation in maritime security.
81. Ministers praised the efforts of economies to establish container security regimes and to
protect ships engaged in international voyages as ca lled for by Leaders in the STAR initiative.  They
noted particular projects underway in Canada;  China;  Hong Kong, China;  Japan;  Republic of
Korea;  Malaysia;  New Zealand;  the Philippines;  Singapore;  Thailand;  and the United States.
They called on all economies to undertake further measures to secure and facilitate trade and tasked
SOM to discuss the issue of costs of new secure  trade measures in the CTTF 2004 work program.
82. Ministers welcomed work undertaken to secure people in transit, including the development
of standards for advance passenger information systems  and enhanced immigration service
cooperation to improve the security of travel documentation and issuing systems.  Ministers
congratulated Australia, Canada, Japan, New Zealand, Thailand, and the USA for implementing or
announcing their commitment to implement the advan ce passenger information systems.  Feasibility
studies have been conducted in Korea, Malaysia, Thailand, the Philippines and Indonesia.  A furthereight economies had agreed to undertake feasibility studies to enable them consider implementing the
advance passenger information systems.  They en couraged all economies to participate in these
activities.  Ministers also instructed Senior Officials to progress work to assess the strategic options,WT/L/543
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benefits and feasibility of a pilot phase of a Regional Movement Alert System (RMAS) that can
contribute to business mobility by harmonizing work on trade facilitation and security measures.
83. Ministers recognized the existence of the new threat to civil aviation posed by Man-Portable
Air Defense Systems  (MANPADS).  They also called for stronger domestic controls, as considered
necessary, on the production, stockpiles, transfer and brokering of MANPADS in order to preventacquisition by terrorists of these systems and a potentially devastating attack that would severely
reduce tourism and business travel.
84. Ministers noted the outcomes of the 1st STAR Conference in Bangkok, Thailand in February
2003.  They also welcomed the holding of the 2nd STAR Conference on 5-6 March 2004 in
Valparaiso, Chile.  The Conference will cover issu es such as airport and maritime security, the
mobility of passengers and the establishment of Financial Intelligence Units (FIUs) by APEC member
economies.
85. Ministers welcomed the outcomes of the recent APEC Smart Border Symposium in
Vancouver, Canada, which identified best practices in implementing various elements of the STAR
initiative and in addressing trade facilitation and security concerns, and which pointed to priority areas
for future border-related counter-terrorism capacity building.
86. Ministers also emphasized that secure trade in the APEC region must be applied across all
economies and that the development of enhanced capacity for individuals and institutions with
security mandates is of primary importance.  They welcomed the cooperative efforts of economies
and APEC fora to develop targeted capacity build ing programs, responding to the specific needs
contained in the Counter Terrorism Action Plans, to help developing economies implement Leaders'
counter-terrorism commitments.  In this context, Ministers welcomed the possibility of technicalcooperation, where appropriate, with IFIs and relevant international, regional and functional
organizations, including the United Nations Security Council Counter-Terrorism Committee the G-8
Counter-Terrorism Action Group, AS EAN and the OECD Financial Action Task Force.  Ministers
also welcomed SOM Report to Ministers on the Implementation of the Leaders’ Statement on
Fighting Terrorism and Promoting Growth, including the "Counter-Terrorism Capacity BuildingOngoing Activities and Needs" submitted by Japan, and encouraged member economies to implement
necessary projects as pointed out in this paper.  Ministers also welcomed an Australian report which
highlighted the threat that global terrorism poses to economic development, the costs to economies of
failing to secure trade, and the importance of wo rking cooperatively in APEC towards this end.  They
encouraged the Counter Terrorism Task Force to further pursue and realise such cooperation in the
year ahead.
87. Ministers also requested the APEC Secretariat to give priority to ensuring that its
communications strategy promoted APEC's counter-terrorism initiatives to its stakeholders.
2. Response to Severe Acute Respiratory Sy ndrome (SARS) and Other Health Threats
88. Ministers recognized the human and economic impact of Severe Acute Respiratory Syndrome
(SARS) on APEC economies, individually and coll ectively, and the importance of preventing future
outbreaks of SARS and other infectious diseases.  They welcomed the APEC Action Plan on SARS
and the establishment of an ad hoc  APEC Health Task Force under SOM to address infectious
diseases and other health threats, such as HIV/AIDs.  Ministers emphasized the need for continued
implementation of the Action Plan and the APEC Infectious Disease Strategy , especially with a view
to mitigating the impact of future outbreaks of infectious diseases.  They acknowledged the
importance of communications and confidence building in facing future outbreaks of infectiousdiseases and in this context, welcomed the APEC Communications Strategy on SARS.   T h e y
welcomed the positive cooperation on SARS with the World Health Organization and other relevantWT/L/543
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organizations, such as the United States Centers for Disease Control and Prevention, and encouraged
continued similar cooperation in the future as the need arises.
89. They endorsed the APEC Health Security Initiative and forwarded it to Leaders.
3. Social Safety Nets and Workforce Retraining
90. Ministers stressed the need for addressing the social dimensions of globalization and the
importance of developing social safety nets to minimize the costs of structural change.  They
commended the initiatives undertaken by APEC whic h aim to empower vulnerable people, especially
the jobless workforce, and to better manage the impact of structural change and ensure more equitable
distribution of the benefits brought about by globalization.  They welcomed an event in this regard to
be held in China in 2004. Ministers instructed Senior Officials to redouble their efforts in workforce
retraining programs through the Human Res ources Development Working Group and the Social
Safety Nets Capacity Building Network (SSN-CBN).  This work will build on APEC’s current workin areas such as health, financing, human resources development, micro-enterprises and SMEs, gender
integration and youth, access to ICT and social safety nets. They requested Senior Officials to report
progress on the issue of workforce retraining at the 16th AMM in 2004.
4. Framework for the Integration of Women in APEC
91. Ministers recognized the important roles undertaken by women in APEC economies and the
need to eliminate gender inequalities in social and economic life.  They welcomed initiatives to ensure
that women are integrated into the activities, programs and projects undertaken by all APEC fora and
the establishment of the Gender Focal Point Network (GFPN) to provide a sustainable and effective
mechanism for the implementation of the Framework for the Integration of Women in APEC  and
looked forward to GFPN’s  deliverables beyond this first year.  They also welcomed the training
program for women’s IT capacity building held in August in 2003 in Korea.
92. Ministers also welcomed the recommendations of the 8th Women Leader’s Network meeting
held in Thailand in July/August 2003, and suppo rt the Network’s commitment to strengthening
partnerships with APEC fora.  They appreciate the pro-active role played by this APEC advisory
group to promote economic opportunities for women, in particular they recognize the importance ofremoving barriers that prevent marginalized and displaced women from fully participating in and
benefiting from economic growth.
5. Youth
93. Youth form the foundation of APEC’s future. Engaging the youth of APEC economies and
bringing them together in cooperative activities wi ll ensure that the Asia-Pacific community develops
on the basis of understanding and cohesiveness.  In  this regard, Ministers welcomed the successful
completion of the APEC International Youth Camp in Thailand, which was undertaken under theAPEC Sister Schools Networking (ASSN) initiative, an APEC 2003 Year deliverable.  This year’s
youth camp focused on scientific and environmental issues. Ministers further welcomed the proposal
to hold the 2004 APEC International Youth Camp in Chinese Taipei.
V. FINANCIAL ARCHITECTURE FOR A WORLD OF DIFFERENCES
94. Reducing economic and financial vulnerabilities, enhancing investment and trade between
differing social systems and economies requires a sound international financial infrastructure.  Post
1997, APEC is in a position to play a substantial role in reforming the global financial system.
Attention to best practices of financial regulations and corporate governance is applicable to allWT/L/543
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economies regardless of the level of economic development. A financial infrastructure that recognizes
the differences between APEC economies will also generate more options for investment and trade.
1. New Financial Architecture
95. Ministers recognized the benefits of the financial cooperation to pursue the shared vision of
establishing a sound and resilient financial system in the region.  They also acknowledged thatchanneling both domestic and foreign resources into their most productive forms of investment is one
crucial element to sustainable long-term economic growth.  It is therefore essential to put in place the
institutional framework and structural reforms that allow the most efficient allocation of savings.
96. Ministers acknowledged that promoting the development of bond markets in the region will
provide an alternative means of mobilizing savings, providing investment alternatives, and achieving
deeper financial markets.  Ministers welcomed the APEC Finance Ministers’ work on the promotion
of the regional bond market.  They also welcomed the studies and work currently pursued in thefollowing areas: On regional bond market issues by the Asian Development Bank and the World
Bank, the APEC initiative to promote the development of securitization and credit guarantee markets,
as well as the development new products for regional bond markets.
2. Economic Research and Analysis
97. Ministers endorsed the Economic Committee’s Report for 2003, the 2003 APEC Economic
Outlook; and the Drivers of the New Economy in  APEC: Innovation and Organizational Practices
report.  They commended the report on the Eco nomic Impact of SARS on the APEC Region which
demonstrates the Economic Committee’s ability to respond to APEC’s priorities and initiatives.
98. Ministers welcomed the 2003 APEC Economic Outlook , particularly its structural chapter on
the role and development of Specialized Financial Institutions (SFIs) in APEC.  The analysis on theeconomic and social impact of SFIs provides policy makers with options on the appropriate policy
response with regard to the issue of SFIs in AP EC.  They also welcomed the inclusion in the Outlook
beginning this year, of individual economy reports on structural reform, which describe the policies
and progress made by economies in this area, as a way of sharing information and encouraging further
progress in such reforms. Ministers also instruct ed the Economic Committee to continue to work on
KBE and New Economy-related research works.
99. Ministers welcomed progress in the other research projects under the Economic Committee’s
2003-2004 Work Program, namely:  (1) EC report on the New Economy/Knowledge-based Economy
Issues;  (2) Corporate Restructuring Project, which addresses the non-performing assets issue in
APEC member economies; and  (3) report on TILF-related issues.
100. Ministers welcomed the Economic Committee’s efforts towards deepening APEC’s
understanding of the region’s growing interest in the development of RTAs/FTAs.  The structuraltheme of the 2004 APEC Economic Outlook  will focus on the analysis and the description of the
current RTAs/FTAs to discuss the impact of these mechanisms on the achievement of the Bogor
Goals.
101. Ministers also welcomed the closer communication achieved between the Finance Ministers’
Process and the Senior Officials’ process in 2003.
VI. NEW GROWTH ENTERPRISES: SMES AND MICRO-ENTERPRISES
102. There is an abundance of untapped entrepreneurial capacity in the APEC region.  Reducing
red tape to make it less complicated and less costly for small to medium businesses to trade acrossWT/L/543
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borders will make local economies stronger and create jobs.  Extending resources for the creation of
micro-businesses in both developed and  developing economies strengthens the foundations for a
broader distribution of income, enhanced economic stability and greater community development.
APEC is building upon the work initiated in th e APEC 2002 Year.  Ministers welcomed the
establishment of an APEC Sub Group on Micro-enterprises  and endorsed the Micro-Enterprise
Development Action Plan which outlines potential work program for micro-enterprise development.
Ministers also commended the initiative to promote micro-enterprises development with emphasis on
economic growth and shared prosperity.
103. Ministers took note that SMEs are still underrepresented in agricultural trade and welcomed
the progress made by economies in the identification of impediments to trade for SMEs and
welcomed the decision made by the 2003 APEC SME Ministerial Meeting to establish an ad hoc
small working committee within the SME Working Group to address and evaluate the identifiedimpediments to trade for SMEs.
104. Ministers welcomed the support extended by the Finance Ministers to the SME Ministers for
the development of micro-enterprises and SMEs in  the APEC economies, especially in the areas of
financing, corporate governance, and entrepreneurship.  Ministers also recognized the importance of
information and expertise sharing, which is crucial for improving the production and managementcapabilities of micro-enterprises and SMEs. Ministers also welcomed the signing of the Memorandum
of Understanding (MOU) on Cooperation among the APEC Financial Institutions dealing with SMEs
and micro-enterprises  by financial institutions from partic ipating economies.  The MOU, which
encourages financial and technical cooperation among the participating institutions, is the initial step
towards the establishment of a network among APEC SME financial institutions.
105. Recognizing that the promotion of SMEs and Micro-Enterprises is a cross-cutting issue in
APEC’s ECOTECH priorities, Ministers empha sized recommendations in the Action Plan on
innovative micro-financing approaches, developing a database on SMEs and Micro-Enterprises,
internet access in communities and villages, expansion of networking to promote trade cooperation
and development of market strategy and channel.  They noted these should be implemented as amatter of priority in 2004. Ministers encouraged  the close collaboration between the APEC SME
Working Group (SME WG) and other APEC fora, as well as the Finance Ministers’ Process, on
capacity building initiatives to assist SMEs and Micro-Enterprises in accessing information
technology, networking, markets and finance.  They also instructed the APEC SME WG to implement
the APEC Action Plan on Micro-Enterprises and to explore the possibility of establishing an APEC
Fund for Micro-Enterprises Capacity Building as a matter of priority in 2004.
106. Ministers acknowledged the importance of business incubation in fostering entrepreneurship
and new businesses.  They applauded the success of the First APEC Incubator Forum hosted by
Chinese Taipei in July and August 2003 and encouraged economies to use the outcomes to strengthen
the capacity of new businesses on technology development, commercialization and marketing.
Ministers welcomed the positive momentum that has been established in order to focus on innovation
and entrepreneurship in APEC’s SME agenda for 2004 and noted that a Second APEC IncubatorForum would be held in 2004.
107. Ministers recognized the importance of financing start-up companies and SMEs at different
growth stages and welcomed the convening of a symposium on Best Practices for Enhancing
Financing Chain for SMEs at different Growing Stages  in August 2003 in Chinese Taipei.  They
encouraged all relevant APEC fora to apply the APEC Best Practices Guidelines for Enhancing
Financing Chain for SMEs at Different Growing Stage  which were agreed at the symposium.WT/L/543
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VII. APEC REFORM
108. Ministers commended recent efforts to make APEC meeting arrangements more interactive,
to reinvigorate and redesign APEC’s process, as well as to make the agenda of APEC more focused
and policy oriented.  They agreed on the need to further streamline the process and to make APEC
more responsive to the rapidly changing environment as well as the needs of major APECstakeholders, especially the public at large.
109. In this regard, Ministers requested Senior Officials to develop proposals for broader APEC
reform and to report the progress to 16th AMM. Ministers also instructed the APEC Secretariat to
facilitate this process of review and assessment by providing a report on APEC’s working profile,
covering its structure, decision-making process, work areas and activities to the Senior Officials
process as soon as possible.
VIII.  OTHER ISSUES
1. SOM Report to Ministers
110. Ministers approved the SOM Report, including the decision points contained therein, in
particular the proposed APEC budget and assessment of members’ contributions for 2004.
2. APEC Secretariat
111. Ministers noted with satisfaction the Report of the Executive Director of the APEC
Secretariat and commended the work of the APEC Secretariat as the core support mechanism of the
APEC process, including in implementing the Co mmunications and Outreach Strategy.  In this
connection, Ministers welcomed the success of Viet Nam’s APEC Week, held with the support of the
APEC Secretariat in Viet Nam during 2-7 September 2003, as one of the effective activities in
increasing people’s awareness and participation in  the work of APEC.  They also noted that on
6 September 2003, Prime Minister Goh Chok Tong of the Republic of Singapore and Prime Minister
Thaksin Shinawatra of the Kingdom of Thailand in his capacity as Chair of the APEC 2003 Year,
officially opened the new Secretariat building in Singapore and also celebrated the tenth anniversary
of the Secretariat, which was first established on 12 February 1993.
3. Statements by Observers
112. Ministers noted the statements by the ASEAN Secretariat, PECC and PIF.
4. APEC 2004
113. Ministers thanked Chile for the briefing on preparations for the 16th AMM and the 12th
APEC Economic Leaders’ Meeting.
5. Future Meetings
114. Ministers noted that future APEC Ministerial Meetings will be held in Korea in 2005, Viet
Nam in 2006, Australia in 2007 and Peru in 2008.
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