Business Executives Call for APEC Leaders to Lead WTO Negotiations

Senior Asia-Pacific business executives have called on APEC Member Economies to take the lead in ensuring the success of the crucial upcoming World Trade Organization meeting in Hong Kong.

In their 2005 report to Leaders, the APEC Business Advisory Council (ABAC) also called for further reforms to pursue APEC's own economic integration and development goals, strengthen financial systems and bond markets, improve emergency preparedness and respond effectively to volatile energy prices.

ABAC Chair, Mr Jae-Hyun Hyun, said he believes that the time has come for APEC Member Economies to take a leading role in bringing the Doha Round to a successful conclusion.

"We call on APEC Leaders to instruct their negotiators to exercise flexibility so as to reach agreement on all modalities of the negotiations by the WTO Ministerial Conference in Hong Kong," Mr Hyun said.

"Among our recommendations ABAC calls on economies to eliminate agricultural export subsidies within five years, eliminate or at least substantially reduce trade barriers for non-agricultural products, and offer meaningful new services liberalisation.

"ABAC has also proposed the adoption of check-lists for Member Economies to advance WTO negotiations in financial services and to promote foreign direct investment in the region's financial services sectors.

"APEC Member Economies represent around half of total global trade flows, so this places Leaders in a unique situation to demonstrate leadership in WTO negotiations."

Mr Hyun said the ABAC recommendations seek reform in areas that have a direct impact on APEC's capacity to reach its core free trade and investment goals.

"ABAC calls for increased measures to assist economies to be more resilient in the face of volatile capital flows. This includes the strengthening of bond markets to ensure financial stability and broaden sources of financing for infrastructure and corporate expansion. ABAC also advocates the promotion of private pension schemes to strengthen budgets and to respond to the problems of ageing communities.

"Energy sources need to be conserved and diversified and ABAC recommends policy and reform that focuses on conservation and provides preferential treatment to energy efficient products.
Mr Hyun presented an advance copy of ABAC's report to Korean President, Roh Moo-hyun on Friday. President Roh will chair the APEC Leaders' Meeting in Busan this November where the report will be formally presented.

The report will be available from October 14 at www.abaconline.org.