Monday, October 29, 2001
Volume 37, Issue 43; ISSN: 0511-4187
APEC Economic Leaders' Declaration, Shanghai, China
� October 21, 2001
� Meeting New Challenges in the New Century
� 1. We, the Economic Leaders of APEC, gathered today in Shanghai for
the first time in the twenty-first century. We are here to explore
ways to meet the new challenges confronting us. Convinced of the
great potential of the Asia-Pacific region, we have resolved to
achieve common prosperity through broader participation and closer
cooperation.
� 2. Our meeting has taken place at a crucial juncture. The major
world economies are experiencing a slowdown more severe than
anticipated. Most economies in the Asia-Pacific region have
experienced an economic downturn, with some emerging economies
particularly affected by unfavorable external market conditions. In
addition, the terrorist attack on the United States risks
undermining some industries as well as consumer and investor
confidence. In the long run, a major challenge for the Asia-Pacific
community is to manage the profound changes brought forth by
globalization and the New Economy and to benefit from the
opportunities that abound.
� 3. As the premier forum for regional economic cooperation in the
Asia Pacific, APEC is well suited to play a leading role in helping
its member economies embrace these opportunities and challenges. We
wish to send a clear and strong message on the collective resolve of
the Asia-Pacific community to counter terrorism. We are determined
to reverse the current economic downturn and maintain public
confidence at a time of uncertainty by fighting protectionism and
committing to the launch of the new WTO round at the upcoming WTO
Ministerial Conference. These efforts are consonant with and
contribute to the pursuit of the APEC vision of peace, harmony and
common prosperity.
� 4. Inspired by such a vision, we are determined to work together
for a more dynamic and prosperous Asia Pacific in the new century by
promoting sustainable economic growth, sharing the benefits of
globalization and the New Economy, and advancing Trade and
Investment Liberalization and Facilitation (TILF). To this end, we
reaffirm our commitment to achieving the Bogor Goals of free and
open trade and investment in the Asia Pacific by 2010 for developed
economies and 2020 for developing economies. We have also charted
the course for the development of APEC in its second decade and
beyond by adopting the Shanghai Accord.
� Promoting Sustainable Growth
� 5. We affirm our unwavering confidence in the medium and long-term
growth prospects for the Asia-Pacific region since the fundamentals
of the region remain sound. As reforms and restructuring following
the 1997-1998 financial crisis take effect, many emerging economies
are now in a much stronger position to cushion themselves against
the impact of the economic slowdown and unexpected shocks.
� 6. We undertake to adopt appropriate policies and measures to
increase economic growth and resolve to enhance macroeconomic policy
dialogue and cooperation not only to resume growth but also to build
a stronger foundation for sustainable growth and broad-based
development. It is important for all economies to take timely policy
actions to strengthen markets and facilitate an early pick-up in
global economic activity.
� 7. In this context, we pledge to accelerate our domestic efforts to
build capacity and deepen structural reform so as to strengthen the
market fundamentals across the region. To this end, we emphasize the
importance of sound economic policies and corporate governance as
well as the important role and responsibility of governments in
shaping the legal and regulatory framework that encourages
competition and innovation, with an increased emphasis on capacity
building. Developing the social safety net is a high priority, as it
can make an important contribution to reducing the harmful effects
of economic shocks on vulnerable groups. As noted in the 2001
Economic Outlook, enhancing financial efficiency is also essential
to promoting growth. We thus welcome efforts made in these areas in
APEC, including strengthening economic legal infrastructure,
supervision of capital markets, corporate gover-nance, and
implementation of international financial standards, as exemplified
by the work done through the Finance Ministers' process. We also
welcome contributions by Pacific Economic Cooperation Council (PECC)
in these areas. We direct responsible Ministers and Officials to
build on their work.
� 8. Recognizing the importance of promoting financial stability and
crisis prevention, we stress the need to strengthen the
international financial system. We urge continued efforts to enhance
the effectiveness of mechanisms to prevent the recurrence of
financial crisis. We welcome the important steps that have been
taken to strengthen the international financial architecture
including, for example, the review by the Financial Stability Forum
of the effectiveness and the progress in implementing the
recommendations from the Working Group on Offshore Financial Centers
and Highly Leveraged Institutions. We emphasize the importance of
ensuring that representation on the International Monetary Fund
(IMF) Board and IMF quota/share allocation appropriately reflects
the current world economy. While the IMF and other international
financial institutions play a pivotal role, regional cooperation can
also be very useful in complementing efforts by these institutions
to promote financial stability. In this connection, we welcome the
substantial progress in implementing the Chiang Mai Initiative to
strengthen cooperative financing arrangements among the Association
of Southeast Asian Nations (ASEAN) countries and China, Japan and
the Republic of Korea. We also note the ongoing work in the Manila
Framework Group. We support all these efforts and urge them to be
strengthened.
� 9. The current economic slowdown underlines, above all, the
importance of APEC's work towards more open and stronger economies.
We reaffirm our unyielding commitment to free and open trade and
investment and resolve to work together to fight against
protectionism in all forms. We render the strongest support for an
open, equitable and rules-based Multilateral Trading System, which
is essential to sustain global economic growth. APEC must also stay
on track with its own agenda on trade and investment and on capacity
building.
� Sharing the Benefits of Globalization and the New Economy
� 10. We are convinced that globalization is a powerful vehicle that
stimulates economic growth, and holds great promises for delivering
higher living standards to people and improving social well-being
for our communities. We acknowledge that the New Economy has broad
potential to raise productivity, stimulate innovation in economic
organization and entrepreneurship, and create and disseminate
knowledge and wealth. However, the opportunities arising from these
processes are not sufficiently shared among and even within
economies. Hence the need to enable all individuals in our
communities to benefit from them. We emphasize the importance of
capacity building, both human and institutional, as a key answer to
the challenges and opportunities of globalization and the New
Economy. Capacity building constitutes a key element of the balanced
approach essential to the success of APEC along with market opening
and full participation.
� 11. In this context, we reiterate that human capacity building
(HCB) remains a central theme this year and the years ahead. We
commend the success of the High-Level Meeting on Human Capacity
Building, and welcome the Beijing Initiative as a comprehensive set
of principles for human capacity building, which also provides
opportunities for further work in the New Economy. We call on APEC
fora and member economies to under-take follow-up activities in
specific areas of their interest in the spirit of developed and
developing economies complementing each other. We support the
engagement of all key stakeholders in the region and, in particular,
the establishment of the partnership of government, business,
academic and training institutions for this purpose. We welcome the
launch of the Consortium for APEC Cyber Education Cooperation
initiated and sponsored by the APEC Education Foundation, the Human
Capacity Building Promotion Program and the APEC Finance and
Development Program. We also welcome the outcomes of the 4th Human
Resources Development Ministerial meeting and support the Kumamoto
Statement that makes a contribution to APEC Human Resources
Development activities in the 21st Century as a basis for advancing
social and economic development and the sharing of prosperity by our
people.
� 12. Reaffirming the importance of Economic and Technical
Cooperation (Ecotech) in achieving equitable growth and sustainable
development, we welcome the progress that APEC has made in advancing
Ecotech goals and underscore that Trade and Investment
Liberalization and Facilitation and Ecotech should be mutually
reinforcing. We call for efforts to this end to be further
strengthened. We commend the formulation and submission of Ecotech
Action Plans by individual member economies as a major step forward
for promoting sound and balanced development of APEC and ask
Ministers and Officials to develop the exercise as lessons are
learned.
� 13. We also welcome the progress made in other areas of Ecotech. We
endorse the APEC Strategy for Combating Infectious Disease and call
on members and relevant fora to implement its recommendations.
� 14. Given the importance of Small and Medium-sized Enterprises
(SMEs) and micro-enterprises, we instruct Ministers and Officials to
build on APEC's Integrated Plan of Action for SMEs and place special
emphasis on micro-enterprises. In this context, we welcome the High
Level Meeting on Microenterprises to be hosted by Mexico next year.
� 15. Building on work done in Brunei last year, we have made further
progress by formulating and delivering a long-term, forward-looking
and more action-oriented e-- APEC Strategy for the development of
the New Economy through the promotion of information and
communications technology (ICT) and its application in our region.
The goal is to build APEC towards a digital society, with higher
growth, increased learning and employment opportunities, improved
public services and better qualities of life by taking advantage of
advanced, reliable and secure ICT and networks and by promoting
universal access. Such a society should bring equal opportunities
and widely shared benefits for all member economies and individuals,
including women, the disabled and others. We commend the
crosscutting character of the e-APEC Strategy and urge APEC fora and
member economies to implement the programs for collective and
individual actions set out in the Strategy, as appropriate. Under
the current circumstances, the early implementation of the Strategy
will also support the revival of the ICT sector. We also welcome the
progress in advancing e-commerce.
� 16. In September 2002 many of us will be meeting in Johannesburg
for the World Summit on Sustainable Development, to reinvigorate our
commitment to sustainable development in pursuit of enhancing
economic growth, promoting human and social development and
protecting the environment as interdependent objectives. We will
consider how APEC, which has undertaken a broad range of activities
in this area, can contribute to the success of the World Summit and
take forward the outcomes in its work program.
� 17. We realize that there is an ongoing public debate on the
benefits and costs of globalization. Such debates are healthy when
they are informed by rigorous and comprehensive analysis of the
impact of globalization. The time has come for APEC to come forward
and lead the public debate in a constructive manner. We instruct
Officials to convene an APEC Dialogue on Globalization and Shared
Prosperity, focusing on, among other issues, structural adjustment
and its impact. At the same time, APEC should reach out to business
and other stakeholders to communicate APEC's objectives, activities
and benefits to ensure that they participate in and benefit from the
APEC process and globalization at large. In particular, we thank
APEC Business Advisory Council (ABAC) for its report and value the
interaction with the Council and other business representatives. We
also direct our Ministers and Officials to develop and implement
programs to give effect to the APEC Communications and Outreach
Strategy as well as the conclusions of the Ad Hoe Group on APEC
Interaction.
� 18. Noting that sustainable growth in the APEC region also requires
the ability to feed a growing and increasingly prosperous
population, Leaders call for accelerated implementation of the APEC
Food System initiative. Recognizing the benefits of biotechnology in
improving productivity, increasing nutrition, and reducing the
environmental impact of agricultural production, we reaffirm the
importance of safe introduction and use of biotechnology products
based on sound science. We also welcome the initiative to hold a
policy-level dialogue on agricultural biotechnology and call for
more related capacity building activities.
� 19. We take satisfaction at the significant progress made, through
the leadership of the Ad Hoc Group on Gender Integration, in the
capacity of APEC to address gender equity in its work. Our
commitment to a wide distribution of the economic opportunities of
our era requires the application of gender perspectives in APEC's
work, we welcome the decision to hold a Second Ministerial Meeting
on Women in Mexico in 2002, as an opportunity to make further
progress.
� Supporting the Multilateral Trading System
� 20. Trade and investment liberalization and facilitation hold
another key to realizing our vision for reduced disparities and
common prosperity. They have taken on increased importance at a time
when rapid changes are reshaping the global marketplace. Hence, we
commit to further efforts in advancing trade and investment
liberalization and facilitation both within our region and globally.
� 21. In November, a major decision will be taken at the Fourth WTO
Ministerial Conference. Its outcome will have long-term implications
for our future. Our choice is unmistakably for a stronger
Multilateral Trading System with greater opportunities for all. We
strongly support the launch of the WTO new round at the conference,
recognizing that the current slowdown in the world economy has added
to its urgency. We agree that, once launched, the new round should
be concluded expeditiously.
� 22. We emphasize the need for a balanced, sufficiently broad-based
agenda, which is achievable. This is essential to the successful
launch and conclusion of the New Round. We agree that the agenda for
the New Round should include further trade liberalization, the
strengthening of WTO rules, implementation issues, and reflect the
interests and concerns of all members, especially those of the
developing and least developed ones. We also agree that such an
agenda should address the challenges in the 21st century and support
the goal of sustainable development. This will help ensure that the
prosperity flows from growing trade and investment is accessible and
equitably distributed to all. In this context, we also emphasize the
importance that the New Round be supported by all WTO members, and
hence the need for effective implementation of special and
differential treatment and for enhancing WTO's internal
transparency.
� 23. We reconfirm the commitment to the APEC-wide moratorium on the
imposition of custom duties on electronic transmissions, and agree
on its extension until the Fifth WTO Ministerial Conference,
recognizing the importance of relevant WTO agreements for electronic
commerce.
� 24. We reaffirm the importance of APEC WTO-related capacity
building activities which realize the objectives of the Strategic
APEC Plan as a unique, substantial contribution to strengthening the
Multilateral Trading System, and call for the accelerated
implementation of the Plan to assist developing economies in
implementing the WTO agreements.
� 25. We applaud the conclusion of all negotiations on the terms for
China's membership in the WTO as a historic development that not
only helps make WTO a truly world organization but also reinforces
the underpinnings for global economic cooperation. We urge that the
decision on final approval of China's accession be taken at the
upcoming Ministerial Conference. We also reiterate strong support
for the final approval of the accession by Chinese Taipei at the
Conference and the advancement of WTO accession by the Russian
Federation and Viet Nam.
� 26. We reaffirm that regional and bilateral trade agreements should
serve as building blocks for multilateral liberalization in the WTO.
We affirm that the existing and emerging regional trading agreements
should therefore be consistent with WTO rules and disciplines. We
also believe that these arrangements should be in line with APEC
architecture and supportive of APEC's goals and principles. We note
the initiatives on exchange ofinformation in this regard.
� Sharpening the Vision for the Future
� 27. APEC has come a long way since its inception in 1989. So has
the world around it. These changes have not in any way lessened the
need for a vehicle of cooperation like APEC in our region. On the
contrary, they have made it more compelling for us to remain fully
committed to the APEC process, to the vision of a peaceful and
prosperous Asia-Pacific community of diverse yet interdependent
economies that has evolved from Seattle to Brunei, and above all, to
the Bogor Goals. We also reaffirm our belief in the unique APEC
Approach based on the fundamental principles of voluntarism,
consensusbuilding, combination of individual and collective actions,
flexibility, comprehensiveness and open regionalism, which has
inspired and underpinned our successes.
� 28. At the same time, we recognize that APEC must demonstrate its
dynamism in advancing with the times by responding and adapting to
changes in the global and regional economy. As it enters the second
decade, it is important for APEC to enrich, update and sharpen its
vision for the future. In this respect, we envision that APEC's
objectives in the second decade are to make continuous progress in
achieving the Bogor Goals; deepen the spirit of community by sharing
the benefits of growth more widely and equitably; and build APEC
into a closer, stronger partnership for regional economic
cooperation.
� 29. To this end, we announce today the Shanghai Accord as a
strategic, forward agenda for the development of APEC in the coming
years. The Accord not only gives voice to our common resolve to
fulfill our commitments, it also stands as a template laying out
some key steps to be taken to achieve our Goals and Objectives.
Reflecting the diversity of APEC's membership, it incorporates trade
and investment as well as economic and technical cooperation as two
mutually supportive and reinforcing elements.
� 30. In the Shanghai Accord, we commit to:
� Broadening APEC's vision for the future by identifying a conceptual
and policy framework to guide APEC in the new century. Such a
framework recognizes the changes entailed by globalization and the
New Economy and reflects the need to extend the APEC agenda to cover
reforms and capacity building at both domestic and international
levels;
� Clarifying APEC's roadmap for achieving the Bogor Goals on schedule
with a mid-term stocktake of the overall progress in 2005, including
by broadening and updating the Osaka Action Agenda, adopting a
pathfinder approach in advancing selected APEC initiatives towards
achieving the Bogor Goals, promoting the adoption of appropriate
trade policies for the New Economy, following up on the APEC Trade
Facilitation Principles, pursuing greater transparency in economic
governance; and
� Strengthening APEC's implementation mechanism by strengthening the
Individual Action Plan Peer Review process, reinforcing Ecotech and
capacity building efforts.
� 31. We direct our Ministers and Officials to follow up actively on
the Accord. We have no doubt that with our concerted efforts the
vision we set here will over time come to full fruition, culminating
in a stable, secure and prosperous Asia-Pacific community.
� Appendix I Shanghai Accord
� I. Broadening the APEC Vision
� Globalization and the New Economy have transformed the global and
regional economy significantly since the Bogor Goals, bringing
forward extraordinary opportunities as well as challenges. APEC's
vision needs to reflect these changes. While trade liberalization is
at the core of APEC agenda, Leaders also agree that the Bogor Goals
need to be placed within the context of an updated and expanded
vision that addresses trade and investment liberalization and
facilitation and economic and technical cooperation in an integrated
manner to maximize the benefits for all economies in the region. One
of the greatest challenges to materialize such a vision is to
intensify the collective and individual actions that economies take
at domestic and international levels on reforms and capacity
building across a range of areas.
� The strategic goals of the Finance Ministers' Process should also
be reflected in a broader vision for APEC, given the important role
of sound macroeconomic policies, good economic governance, stable
financial systems and greater economic interaction have in improving
prosperity for the region.
� II. Clarifying the Roadmap to Bogor
� Broadening and updating the OAA
� Leaders applaud the work done this year on the Osaka Action Agenda
(OAA), and recognize its importance in reflecting APEC's
accomplishments and ability to respond to changes in our regional
and global situation. Leaders agree that the OAA should be broadened
to reflect fundamental changes in the global economy since Osaka,
such as the development of new economy including through the
implementation of relevant aspects of e-APEC Strategy, and
Strengthening the Functioning of Markets. Leaders direct Ministers
to follow this up. Officials should present an interim report at the
2002 Meeting of Ministers Responsible for Trade (MRT) and a full
report at the 2002 APEC Ministerial Meeting (AMM) on their
recommendations with regard to broadening the OAA.
� Adopting a pathfinder approach in advancing some APEC initiatives
� Leaders reaffirm that those economies ready to initiate and
implement a cooperative arrangement may proceed to do so, consistent
with the Bogor Declaration. Leaders encourage the development of
such "pathfinder initiatives' and agree that in adopting such an
approach, APEC principles of voluntarism, comprehensiveness,
consensus-based decision-making, flexibility, transparency, open
regionalism and differentiated timetables for developed and
developing economies should be observed. Use of 'pathfinder
initiatives' based on a group of members piloting the implementation
of the initiatives, will invigorate progress towards the Bogor Goals
and provide a framework to encourage broader participation through
enhanced capacity building programmes. Leaders also agree that these
initiatives should be transparent and open, with clearly defined
objectives and framework for implementation to encourage the
broadest participation by other APEC members when they are ready to
join.
� Promoting the adoption of appropriate trade policies for the New
Economy
� Leaders recognize the importance of adopting appropriate trade
policies to reflect the new context and encourage the development of
the New Economy. As part of this effort, Leaders instruct officials
to undertake by mid-2002 an exchange of appropriate trade policy
information, such as information on the status of liberalization of
services, and adherence to tariff and intellectual property regimes.
On this basis, economies may develop targets by the Ministerial
Meeting in 2002. In this exercise, account should be taken of the
implementation of relevant recommendations endorsed in the e-APEC
Strategy. Given the diversity among member economies, Leaders agree
that the development of the New Economy would also involve
developing and implementing concrete capacity building programs to
improve performance.
� Follow up on the Trade Facilitation Principles
� Leaders instruct Ministers to identify, by Ministerial Meeting in
2002, concrete actions and measures to implement the APEC Trade
Facilitation Principles by 2006 in close partnership with the
private sector. The objective is to realize a significant reduction
in the transaction costs by endeavoring to reduce them by 5 percent
across the APEC region over the next 5 years. Leaders also instruct
Ministers to explore the possibility of setting objective criteria
on trade facilitation, taking fully into account the diversity among
the members as well as progress achieved in respective economies so
far. Leaders also agree that assistance programmes to help build the
capacity of developing economies in trade facilitation is
particularly important.
� Adoption of transparency principles
� Leaders recognize the importance of transparency in economic
governance. In this regard, APEC has developed, menus of options and
principles in different areas that contain transparency provisions.
Leaders direct Ministers to pursue the implementation of APEC's
agreed transparency principles, taking into account economies'
specific circumstances and report on the progress in their IAPs in
2002 and thereafter. Leaders also underline the importance of
well-targeted assistance to help the developing economies make
progress towards greater openness and transparency. Leaders note the
importance of cooperation on e-government for achieving this
objective.
� III. Strengthening the Implementation Mechanism
� Strengthening the IAP Peer Review Process
� Leaders welcome the decision by Ministers to strengthen the
Individual Action Plan (IAP) peer review process, and encourage
member economies to volunteer their IAPs for peer review on the
basis of the new approach. Leaders also agree that upon completion
of such a review cycle, involving all volunteer economies, a
mid-term stocktake of the overall progress towards the Bogor Goals
should be undertaken in 2005.
� Strengthening Ecotech and capacity building efforts
� Leaders recognize that in addition to promoting sustainable
development and narrowing disparity, Ecotech helps to enable all
member economies to achieve prosperity through activities that both
directly support trade and investment liberalization and
facilitation and strengthen the competitiveness of our economies.
Leaders applaud the efforts undertaken this year to update the OAA
Part II and call for greater integration of Ecotech efforts with all
APEC priority goals. Leaders underscore the need to give a strong
impetus to ensuring the effective implementation of various Ecotech
initiatives, especially crosscutting issues such as human capacity
building.
� Leaders recognize the importance of substantially enhancing the
profile of Ecotech and improving the coordination and management of
Ecotech activities of all fora. In this context, Leaders welcome the
review to be undertaken on the mandate and role of the SOM
Subcommittee for Ecotech (ESC), and look forward to early progress.
Leaders also recognize the need to encourage the incorporation of
the priorities of micro, small and medium enterprises throughout the
APEC agenda.
� Leaders agree to further develop Ecotech Action Plans (EAPs), as an
instrument to gauge and encourage Ecotech activities, drawing from
the experience and lessons learned in the pilot phase. Leaders also
call on all members to take part in this exercise on a voluntary
basis. Leaders agree that APEC should strengthen ties with
bilateral, multilateral, and private funding entities with a view to
minimizing duplication and maximizing the delivery of capacity
building programs. Leaders instruct Ministers and officials to
intensify Ecotech activities and report the progress to the
Ministerial Meetings next year.
� NOTE: The joint statement was made available by the Office of the
Press Secretary but was not issued as a White House press release.
An original was not available for verification of the content of
this joint statement.
