APEC Business Advisory Council

1. APEC Business Advisory Council Voices of the Future for APEC King’s College Auckland, 2009 Tony Nowell, Founding Director Valadenz Limited New Zealand ABAC Representative

2. Agenda • APEC • ABAC • Business in the Asia Pacific Region • The career of a CEO • Some thoughts on leadership

3. Scope of Work • APEC’s “Three Pillars” focus on three key areas: • Trade and Investment Liberalisation • Reduces and eventually eliminates tariff and non-tariff barriers to trade and investment • Business Facilitation • Focuses on reducing the costs of business transactions, improving access to trade information and aligning policy and business strategies to facilitate growth, and free and open trade • Economic and Technical Co-operation (ECOTECH) • Dedicated to providing training and co-operation to build capacities in all APEC economies to take advantage of global trade and the New Economy

4. Individual Action Plans • Each member economy submits an annual IAP with reporting on 15 issue areas: • Tariffs • Non-tariff measures • Services • Investment • Standards and Conformance • Customs Procedures • Intellectual Property • Competition Policy • Government Procurement • Deregulation / Regulatory review • WTO obligations (incl. Rules of Origin) • Dispute Mediation • Mobility of Business People • Information Gathering and Analysis

5. APEC Business Advisory Council • A private sector body that offers recommendations to APEC Leaders and advises APEC officials on business sector priorities and concerns • Comprises up to three senior business people from each APEC economy, appointed directly by the Member Economy Leader • Represents a diverse range of sectors and includes small and large enterprises • Against the backdrop of the global economic and financial crisis, the suspension of the WTO Doha Development Agenda negotiations, and the challenges posed by climate change, food and energy security, ABAC adopted the theme “Building Towards the Bogor Goals with One Community.” ABAC 2009 will focus on the following priorities: • Accelerating regional economic integration; • Championing a model of sustainable growth; and • Strengthening capacity building and enhancing connectivity.

6. ABAC Structure • Capacity Building and Action Plan Working Group (CBAPWG) • Sustainable Development Working Group (SDWG) • Facilitation Working Group (FWG) • Liberalization Working Group (LWG) • Finance and Economics Working Group (FEWG)

7. Industry Dialogues • Close consultations with the business community through Industry Dialogues are an effective method of seeking early voluntary sectoral liberalisation initiatives as part of APEC: • Current dialogues: • The APEC Automotive dialogue • The APEC Chemical dialogue • The Life Sciences Innovation Forum • A Food dialogue is currently under consideration

8. History (1) • 1989 – Canberra, Australia • APEC begins as an informal group with 12 members • 1993 – Blake Island, United States • APEC economic leaders meet for fist time; outline vision “stability, security and prosperity for our peoples” • 1994 – Bogor, Indonesia • APEC sets the Bogor goals: “free and open trade and investment in the Asia-Pacific by 2010 for developed economies and 2020 for developing economies” • 1995 – Osaka, Japan • APEC adopts Osaka Action Agenda, which provides a framework for meeting the Bogor goals • 1996 - Manila, The Philippines • APEC adopts the Manila Action Plan, outlining the trade and investment liberalisation and investment measures to reach Bogor goals • 1997 – Vancouver, Canada • APEC endorses a proposal for Early Voluntary Sectoral Liberalisation (EVSL) • 1998 – Kuala Lumpur, Malaysia • APEC agrees on the first nine sectors for EVSL • 1999 – Auckland, New Zealand • APEC commits to paperless trading by 2005 in developed economies and 2010 in developing economies. APEC business travel card scheme is approved. • 2000 – Bandar Seri Begawan, Brunei Darussalam • APEC establishes an electronic Individual Action Plan (e-IAP) system

9. History (2) • 2001 – Shanghai, People’s Republic of China • APEC adopts the Shanghai Accord, which focuses on broadening the vision, clarifying the roadmap and strengthening the implementation mechanism • 2002 – Los Cabos, Mexico • APEC adopts a Trade Facilitation Action Plan, Policies on Trade and the Digital Economy and Transparency Standards • 2003 – Bangkok, Thailand • APEC agrees to re-energise the WTO Doha Development Agenda and dedicates itself to promoting both the prosperity and security of its peoples • 2004 – Santiago, Chile • APEC shows strong support for WTO Doha progress., increases focus on security and makes a strong political commitment to fight corruption • 2005 – Busan, Korea • APEC adopts the Busan Roadmap, completes a mid-term Bogor Plan stocktake, and completes the APEC Privacy Framework • 2006 – Ha Noi, Viet Nam • APEC endorses the Ha Noi Acion Plan which identifies specific actions to implement the Bogor goals and support capacity-building measures • 2007 – Sydney, Australia • APEC issues a declaration on Climate Change, Energy Security and Clean Development • 2008 – Lima, Peru • APEC commits to strengthening the social dimension of globalization and ensuring that all members and all sectors of APEC economies can access the skills and opportunities to participate in, and benefit from, regional and global trade and investment. It resolves to address the deteriorating global economic situation, and support a prompt, ambitious and balanced conclusion to the WTO Doha Development Agenda (DDA) negotiations.

10. Achievement and Benefits • Economic Growth • Since its inception in 1989, the APEC region has consistently been the most economically dynamic part of the world. • Benefits to the People in APEC Region • Consumers have both directly and indirectly benefited from the collective and individual actions of APEC member economies; job opportunities, training programmes, social safety nets, poverty alleviation, lower cost of living through reduced trade barriers and more competitive economies.

11. Stakeholder Participation • Strong and vibrant economies are not built by government alone and APEC actively involves key stakeholders across economies: • Business participation • Academic and Research Institution Participation • Women’s Participation

12. APEC Structure • Leaders Meeting • APEC Business Advisory Council • Sectoral Ministerial Meeting • Ministerial Meeting • Senior Officlals Meeting (SOM) • Budget & Management Committee (BMC) • Committee on Trade & Investment (CTI) • Economic Committee (EC) • SOM Steering Committee on ECOTECH (SCE)

14. Budget & Management Committee (BMC) • Advises the SOM on budgetary, administrative and managerial issues • Key responsibility is to prepare the APEC budget and recommend approval of projects • Monitors and evaluates projects • Makes recommendations for improved efficiency and effectiveness

15. Policy Level • Policy Development • APEC policy direction is provided by the 21 APEC Economic leaders. Strategic recommendations provided by APEC Ministers and APEC Business Advisory Council are considered by the leaders as part of the process • The following meetings are conducted to help shape APEC’s policy direction • APEC Economic Leaders’ Meeting • APEC Ministerial Meeting • Sectoral Ministerial Meetings • APEC Business Advisory Council (ABAC)

16. Working Level • Working level activities and projects are guided by APEC Senior Officials from the 21 APEC Member Economies, with four high level committees guided by the Senior Officials’ Meeting (SOM) • Committee on Trade and Investment (CTI) • SOM Committee on Economic and Technical Co-operation • Economic Committee (EC) • Budget and Management Committee (BMC) • Assisted by Working Groups / SOM Special Task Groups / Ad-hoc Groups

17. Action Plans • The Osaka Action Agenda provides a framework for meeting the Bogor Goals, with the following general principles applied to the liberalisation and facilitation process: • Comprehensiveness • WTO consistency • Comparability • Non-discrimination • Transparency • Standstill • Simultaneous start, continuous process and differentiated timetables • Flexibility • Cooperation

18. APEC Observers • APEC has three official observers who participate in APEC meetings and have full access to documents and information. These observer groups provide partnership, expertise and insight to assist APEC deliberations: • ASEAN: the Association of South East Asian Nations • PECC: the Pacific Economic Co-operation Council • PIF: the Pacific Islands Forum

19. The Career of a CEO • 1973 – 81 Hotel Management • 1981 – 87 Operations Management - L’Oreal New Zealand • 1987 – 90 President Director – L’Oreal Indonesia • 1991 – 94 President Director – Sara Lee Indonesia • 1995 – 96 Zone GM – Sara Lee Indonesia / Philippines / Thailand • 1997 – 99 Regional Vice President – Sara Lee Asia • 2000 - 06 Managing Director, Griffin’s Food Limited, New Zealand • 2007 - 08 Chief Executive Officer, Zespri International Limited • Current Founding Director, Valadenz Limited

20. Some thoughts on leadership • Values • Vision • Consultation • Decisiveness • Execution • Reciprocity • Understanding culture

21. Values and leadership at work On Values….. You don’t have a choice whether you work with values. You do have a choice how.

22. What values are not • Ethics – are agreed codes of behaviour • Morals – are adopted viewpoints pertaining to good or bad • Principles – are agreed upon time-tested truths of a natural, scientific or man-made nature • Judgements – are defining labels representing our beliefs • Attitudes – are the culminating effect of a collection of beliefs • Virtues – are the preferred personal characteristics of something or someone • Needs – are perceived necessities • Beliefs – are very close to values. A value can be seen as what you believe in. A belief is why you believe in it.

23. What are the principles behind values? • Values are the priorities and preferences of individuals and groups, which reflect what is important to them • Un-prioritised values create conflict • An organisation’s values are it’s real leader • Values are the DNA of all organisations’ culture • Organisations do not put their values into practice, people do • Decisions are based more on values than rational analysis • Values determine quality • The values at work within an organisation influence behaviour

24. Reciprocity Business Related • 2003 – 06 Chair New Zealand Food & Grocery Council • 2004 – 06 Co-Chair NZ Government Food & Beverage Taskforce • 2004 – Present Chair NZ Packaging Accord Governing Council • 2004 – 2008 Chair ASEAN NZ Combined Business Council • 2006 - Present NZ Rep APEC Business Advisory Council (ABAC) Community Related • 2004 – Present D. Chair Leadership New Zealand • 2004 – Present Board The Royal New Zealand Ballet Company • 2007 – Present Trustee Asia:New Zealand Foundation • 2002 – Present Trustee Anew New Zealand Trust • 2005 – Present Trustee Snowvision New Zealand Trust • 2002 – 06 Board Kids Help Foundation Trust

25. Understanding Culture • PDI = Power distance • IDV = Individualism vs collectivism • MAS = Masculinity vs femininity • UAI = Uncertainty avoidance • LTO = Long term orientation

26. APEC Business Advisory Council Voices of the Future for APEC King’s College Auckland, 2009 Tony Nowell, Founding Director Valadenz Limited New Zealand ABAC Representative