- Keynote Address by
His Excellency Dr. Surakiart Sathirathai
Minister of Foreign Affairs of Thailand
?Prospects of the World Economy and the Role of APEC?
at the APEC Business Advisory Council (ABAC) Luncheon
Los Cabos, Mexico, 23 October 2002
July 8, 2003, 8:59 am
Delivered
Keynote Address by
His Excellency Dr. Surakiart Sathirathai
Minister of Foreign Affairs of Thailand
?Prospects of the World Economy and the Role of APEC?
at the APEC Business Advisory Council (ABAC) Luncheon
Los Cabos, Mexico, 23 October 2002
-------------------------
Honourable Mark Vaile, Minister for Trade of Australia,
Mr. Chairman of the APEC Business Advisory Council for 2002,
Distinguished Members of ABAC,
Distinguished Guests,
Ladies and Gentlemen,
It is indeed an honour and a pleasure for me to address this luncheon and be among the distinguished leaders of the Asia-Pacific business community. The APEC Business Advisory Council or ABAC is a key vehicle in pushing forward the APEC process. Your recommendations to the APEC Leaders and your part in implementing their commitments are valuable contributions in propelling trade and investment liberalization.
This year's theme chosen by ABAC on ?Sharing Development
to Reinforce Global Security? is most relevant in reviving business confidence in times of uncertainty stemming from global economic slowdown and terrorist threats. I, therefore, wish to share with you APEC's efforts in balancing security measures with trade facilitation as well as regional initiatives in enhancing economic dynamism in the Asia-Pacific region.
Distinguished Guests,
Since the last quarter of 2001, the world economy has experienced a downturn. This was compounded by the tragic 9-11 incident which had widespread repercussions on global economic stability. Terrorist activities are now expanding across the Asia-Pacific region, as recently witnessed in Bali, Indonesia, two weeks ago. Such security concerns affect the movement of goods and persons. The increase in transaction and insurance costs arising from security measures have a direct impact on business confidence and consumer demand.
However, international uncertainty must not prevent us from moving closer towards realizing the Bogor goals of trade and investment liberalization in the Asia-Pacific region. Nor should security measures disrupt other programmes which are central to APEC's economic agenda such as Individual Action Plans (IAPs), ECOTECH, trade facilitation principles, and trade policies that promote SME networking.
Security and economic development are mutually reinforcing in enhancing prosperity. In combating terrorism, APEC economies have made significant progress in implementing the Shanghai Leaders' Statement on Counter-Terrorism as well as strengthening domestic security and other international cooperative efforts. This year, the issue of counter terrorism is unfortunately again high on the Leaders? agenda. We are working on a Leaders? Statement on counter-terrorism to establish an APEC cooperation framework in areas such as combating financing of terrorism, security to facilitate trade, and cybersecurity. APEC Ministers will continue this morning's discussions on counter-terrorism measures and economic stability at today's dinner.
Amongst the issues on the table is the US proposed initiative
on Secure Trade in the APEC Region or STAR. This initiative contains useful measures in balancing security with trade facilitation such as ship and port security plans, air cargo and container security, and safety of airline passengers. We welcome this initiative as it would send a clear and strong signal to the international community that we are united in our resolve to fight terrorism. However, flexible and differentiated time-frame between developed and developing economies should be addressed for effective implementation. Capacity building and technical support as well as required equipment and machinery should be provided with necessary training of human resources capable of operating the system effectively. I also believe that the private sector especially in the travel and transport industries should be brought in from the very beginning.
Indeed, the private sector has a crucial role to play in the design and implementation phases of counter-terrorism measures to help ensure that they are compatible with trade facilitation, investment promotion, and transportation convenience. In this context, Thailand welcomes ABAC's proposal for the promotion of secure Trans-Pacific Multi-modal Security System. This public-private sector partnership in linking Mexico with Asia is an innovative system for APEC economies to gain benefits from economies of scale and security for trade flows.
Distinguished Guests,
The Asian economies form part and parcel of Asia-Pacific dynamism. The pressures of globalization make it incumbent upon us to reinvigorate Asia's foundations of growth so as to contribute to prosperity in the Asia-Pacific region.
Based on openness, positive thinking and inclusiveness, a regional initiative in strengthening the Asian economies was launched in Thailand in June of this year known as the Asia Cooperation Dialogue or ACD. Similar to APEC, the ACD is of diverse geographical coverage spanning from East Asia to West Asia, ten out of eighteen ACD participants belong to APEC. Asia has been lacking a region-wide forum for cooperation and dialogue to create synergy among our Asian partners. The ACD will fill in this "missing link" of the continent by bringing together the Asian economies of existing inter-regional groupings such as APEC and ASEM, and existing sub-regional groupings such as ASEAN, SAARC, and GCC.
We envisage the ACD to complement APEC's ongoing efforts to facilitate more trade and investment in the Asia-Pacific region. ACD would enhance Asia's competitiveness and open up business opportunities. ACD would make Asia a stronger trading and investment partner for APEC and beyond.
The APEC Leaders' Declaration last year in Shanghai welcomed the progress in implementing the Chiang Mai Initiative which is aimed at utilizing international reserves to promote financial stability in the East Asian region. Last month, the APEC Finance Ministers' Meeting here in Los Cabos endorsed a proposal by Hong Kong, China; the Republic of Korea and Thailand on the development of securitisation and credit guarantee market. This idea is also being considered in the context of a regional bond by the ACD. Informal discussions are being undertaken with groups of experts on the process of developing a market-based Asian Bond.
One of the approaches suggested for the development of the Asian Bond market is to establish a fund to purchase bonds issued by Asian countries through mobilizing, on a voluntary basis, one percent of each country's total international reserves. Asia also needs a reliable Asian credit rating agency to have a transparent and impartial analysis of bond issuers and credit ratings. I see the development of a market-based regional bond as leading not only to greater mobilization of financial resources in facilitating regional trade and investment but also to the promotion of openness, diversity and competitiveness in the world financial market as a whole.
My Prime Minister floated the idea of an Asian Bond market with his Asian and European counterparts at ASEM 4 in Copenhagen last month. It was well received. Under the ASEM framework, an action-oriented Task Force will be set up to study areas of cooperation between the two regions including the potential of an Asian bond market and a Eurobond market.
Distinguished Guests,
The theme for APEC 2002 "Expanding the Benefits of Cooperation for Economic Growth and Development - Implementing the Vision" demonstrates the Leaders' commitment to realize the Bogor goals. The decisions and outcomes of APEC 2002 will be further pursued at APEC 2003 in Thailand. As host country, Thailand has prepared the main themes and sub themes to lead APEC closer to the Bogor goals.
At APEC 2003, we intend to launch a cooperative framework
in which diversified strength and potentials of all APEC members would be harnessed to enhance prosperity and dynamism in the Asia-Pacific region. As a community with diverse economies, resources, and development potentials, APEC has the advantage of realizing its vision of the Asia Pacific community and the Bogor goals through forging a sense of equal and strong partnership.
Amongst the issues to be highlighted at APEC 2003 is SMEs
development. Small and medium enterprises including Micro-enterprises are recognized as a locomotive for economic growth and a major source of income, employment, and entrepreneur innovation. We appreciate ABAC's recommendations on SMEs promotion. My Prime Minister will elaborate on SME development in Thailand at the Leaders dialogue with ABAC.
The private sector and other stakeholders play an integral part
in the APEC 2003 process. It is encouraging that ABAC has already chosen its theme for 2003 on "Harmonization of Differences" which reinforces our main themes of forging partnership for mutual prosperity.
In concluding, I can assure you that in the midst of global economic downturn and security concerns, Thailand as APEC's next host reaffirms her commitment to APEC?s noble goals. Even months before we formally assume the chairmanship, the Thai Government has already been involved very closely with the private sector, particularly with three Thai ABAC members represented here by Dr.Viphandh, the incoming ABAC Chair, Dr.Vachara, the incoming CEO Summit Chair, and Dr.Twatchai, the co-chair of CEO Summit to ensure a resounding success for APEC 2003. But that can only be made possible with ABAC's continued support and leadership role in translating APEC's commitments and promises into concrete action, spreading benefits to all for our shared Asia-Pacific destiny.
Press Release
