Promoting supply chain connectivity – can APEC deliver?

1. Promoting supply chain connectivity – can APEC deliver? Address to CBAFF Conference Stephen Jacobi, Executive Director Auckland, 10 May 2012

2. APEC and ABAC • APEC stimulates economic growth and raises incomes • ABAC advises APEC Economic Leaders and ensures the agenda makes business sense

3. Today’s agenda • About APEC’s supply chain agenda • About the role of ABAC • About the Trans Pacific Partnership

4. Linking global supply to demand • A one day loss in exports can lead to a loss in export value of 1 % • World Bank says that improving trade-related transparency in the region could increase trade by 7.5 percent or US$148 billion

5. APEC supply chain agenda • Trade Facilitation Action Plans (TFAPs) targeted a reduction in trade transaction costs by 5 % over 2 x 5 year timeframes • Supply Chain Connectivity Initiative targets a 10% improvement in s/chain performance by 2015

6. APEC supply chain agenda • APEC Single Window • 13 out of 21 economies have implemented systems • 5 economies have systems under development

7. ABAC is the voice of business • Support regional economic integration • Accelerate the supply chain work plan • Assess progress • Promote integrated supply chain and value chain framework

8. Primary Resources AN INTEGRATED REGIONAL GOODS SUPPLY CHAIN The Pathway to Market Markets and Consumers Finished Product Manufacture Discovery and Innovation Automotive Chemicals Electronics Pharmaceutical Food etc Land Water Oceans Minerals Forests etc Secondary Processing Storage and Handling Freight and Logistics Primary Production Marketing and Distribution Primary Processing SUPPORTED BY REGIONAL VALUE CHAIN COMPONENTS Quality Assurance Frameworks and Regimes (e.g. food standards, PSP, mutual recognition of qualifications) Innovation Development Frameworks (e.g. science, R&D, commercialization, multidisciplinary collaboration) Business & Capability Development Frameworks (e.g. education, human resource development, knowledge infrastructure) Human resources (e.g. availability, mobility, standards, immigration, social security) “Border” Flows (e.g. customs, tax, profit repatriation, biosecurity, visas, licences and their scope of business) Funding and Investment (e.g. venture / private / merchant / public / sovereign) Market Access (e.g. WTO, regional and bilateral trade and investment agreements, FTAAP, commercial presence, IP) Overarching Frameworks (e.g. regulatory coherence, transparency and efficiency, cross-border inter-operability, recognition) Primary Services AN INTEGRATED REGIONAL SERVICES SUPPLY CHAIN/NETWORK The ‘Pathway‘ to Market Markets and Customers Legal Financial Engineering Architecture Accounting etc Diagnostics Imagination Innovation Evaluation Selectionteam formation Sourcingpeople movement Quality control Planning Design Contracting, outsourcing Execution After sales service Re-engineering Financial professional, technical telecoms, IT, audiovisual transport/logistics business services, tourism, health, education etc etc

9. ABAC is the voice of business • Support concept of APEC Single Window Cloud • Ease of access • Flexibility • Availability • Lower cost

10. USC Marshall School Study • Co-ordinate and share supply chain best practice information • Improve data collection • Accelerate harmonization of customs requirements and procedures • Provide leadership, governance, and oversight of standardization initiatives • Develop APEC wide systems for ICT based systems for sharing information • Eliminate non-tariff barriers http://classic.marshall.usc.edu/assets/148/24584.pdf

11. Trans Pacific Partnership • Nine economies • Rules bound framework • High quality, ambitious comprehensive FTA • Facilitating supply chains • Range of commitments

12. FTAAP? Untangling the noodles !

13. Can APEC deliver? • Only if informed and supported business!

14. Promoting supply chain connectivity – can APEC deliver? Address to CBAFF Conference Stephen Jacobi, Executive Director Auckland, 10 May 2012