APEC Services Competitiveness Roadmap 26 Apr 2017 – EWG, Singapore Presented by Gloria O. Pasadilla APEC Policy Support Unit Copyright © 2017 APEC Secretariat

Presentation outline Background Objectives and overarching targets of ASCR APEC-wide actions Responsibilities of fora and PSU Expectations and timeline

Background In 2015, APEC Leaders called for development of a strategic and long-term Services Competitiveness Roadmap. In 2016, the Roadmap and its accompanying Implementation Plan were endorsed. They contain actions and mutually agreed targets to be achieved by 2025, with mid-term review to be conducted in 2021.

Flowchart Objectives Overarching targets Enabling factors APEC-wide actions Targets & indicators

Objectives To provide the means to deliver the desired outcomes of the APEC Services Cooperation Framework (ASCF) in terms of: Increased services value-adding capacity of APEC economies Cultivation of globally competitive services sectors of APEC economies Expansion of trade and investment in services in APEC economies via improvements in physical, institutional, and people-to-people connectivity Enhancement of GVC participation of all businesses especially MSMEs Wider access to more efficient and greater variety of services for APEC and its people Job creation and growth while promoting social inclusion and human development Addition of measures in pursuit of the APEC Leaders’ Growth Strategy for inclusive, innovative, balanced, secure, and sustainable growth

Overarching targets of ASCR Ensuring an open and predictable environment for access to services markets by progressively reducing restrictions to services trade and investment. Increasing the share (%) of services exports from APEC economies in the total world services exports so that it exceeds the current share in world services exports by 2025 (i.e. 38.38 percent). Increasing trade in services in the APEC region so that, by 2025, the compound average annual growth rate exceeds the historic average of 6.8 percent and the share (%) of value-added of the services sector in the total GDP of the APEC region exceeds the global average level by 2025.

APEC-wide actions Indicated in Annex 3 of the ASCR Implementation Plan (http://mddb.apec.org/Documents/2016/MM/AMM/16_amm_012.pdf) A total of 14 APEC-wide actions. Additional APEC-wide actions can be agreed at any time. Fora identified as accountable for APEC-wide actions: CTI • AHSGIE EC • PPFS HRDWG • TPTWG BMG • FMP GOS • TWG ECSG

APEC-wide actions (Update from SOM1) Paper submitted by Australia. GOS be mandated to support SOM in tracking progress of ASCR implementation and report periodically to Ministers. Also have responsibility for coordinating and encouraging action within APEC, including engaging other fora which are not included in the Roadmap at the moment: IEG • TELWG EWG • SMEWG PPSTI

Responsibilities of fora and PSU for each APEC-wide action Ownership of APEC-wide action and corresponding assessment. Identify and propose APEC-wide action (incl. background, outputs, targets and indicators). Report annually to Senior Officials through GOS. PSU: Work with fora to identify possible statistics that fora may collect to monitor progress. Collect data/information to monitor progress (with fora support).

APEC-wide action APEC-wide action What action would the group like to propose in support of the ASCR? Background What is the background behind this APEC-wide action? Is it to build on existing strategic/work plan? Outputs What are the expected outputs of this APEC-wide action? Targets What are the expected timeline for delivery of outputs? Indicators What indicators would the group want to be assessed in relation to the specific action? More details on indicators in subsequent slides.

More examples can be found in Annex 3 of the ASCR Implementation Plan Sample APEC-wide action (in the case of CTI/BMG) APEC-wide action Enhancing flexibility for business visitors, building on initiatives such as the APEC Business Travel Card (ABTC). Background The ABTC allows business travelers pre-cleared, facilitated short-term entry to fully participating member economies. The ABTC removes the need to individually apply for visas or entry permits, saving valuable time, and allows multiple entries into fully participating economies during the time the card is valid. Card holders also benefit from faster immigration processing on arrival via access to fast-track entry and exit through APEC lanes at major airports in participating economies. …...... Outputs CTI/BMG to present a strategic plan on enhancing flexibility for business visitors to SOM that includes: Suggestions to further enhance flexibility for business visitors. An outline of progress towards implementing the BMG-endorsed recommendations of the ABTC scheme Targets Strategic plan to be presented to SOM2 in 2017. The BMG is committed to the growth of the ABTC scheme to continue to better facilitate business travel in the Asia-Pacific region. Indicators The development and implementation of an optional APEC-wide online lodgement for ABTC applications. More examples can be found in Annex 3 of the ASCR Implementation Plan (http://mddb.apec.org/Documents/2016/MM/AMM/16_amm_012.pdf)

Proposed indicators - How does your group want to be assessed in relation to the APEC-wide action? Availability Is it available? If not publicly, would it be made available? Comparability Will it be comparable across time and economies? Characteristics of ideal indicators Regularity Will it be updated? What is the update frequency? Credibility Can it be used by governments to promote policy reforms?

Examples of ideal indicators – Development and implementation of an optional APEC-wide online lodgment for ABTC applications (in the case of CTI & BMG) Availability → Information is available internally within the fora → Indicator also serves as KPI Regularity → Information can be obtained at regular intervals through updates by fora members Comparability → Binary indicator (i.e. yes/no) and stage of implementation Credibility → Reported by economies at fora

More examples can be found in Annex 3 of the ASCR Implementation Plan Sample APEC-wide action (in the case of TWG) APEC-wide action Support APEC’s work on developing the travel and tourism sector for sustainable and inclusive growth, building on the work of the APEC Tourism Strategic Plan. Background One of the TWG key priority areas in its Strategic Plan 2015-19 is to promote competitiveness and regional economic integration through policy alignment and structural reform. The TWG is working on improving connectivity that will stimulate economic growth through its projects: Developing traveler-friendly airports and improving air connectivity in the APEC region; Developing smart traveler programmes to ensure traveler safety and improve crisis communications in APEC economies; Publishing an annual state of tourism report in the APEC region. Outputs The TWG’s Strategic Plan 2015-19 provides for target start and completion dates for each of its projects as well as lead fora and cooperating bodies that have agreed to undertake the projects. Targets TWG to provide annual updates to SOM on the achievement of objectives under the APEC Tourism Strategic Plan and on progress of projects under the Plan in light of the targets set. Indicators Growth in tourist numbers in APEC economies. Reduced visa requirements amongst APEC economies. More examples can be found in Annex 3 of the ASCR Implementation Plan (http://mddb.apec.org/Documents/2016/MM/AMM/16_amm_012.pdf)

Examples of ideal indicators – Tourist arrivals (in the case of TWG) Availability → Tourist arrivals data can be obtained from UN World Tourism Organization (UNWTO) Regularity → Annual data is generally available but there maybe time lag Comparability → Data is collected based on agreed methodological frameworks to ensure comparability across economies Credibility → Compiled by economies and reported by UNWTO

Examples of indicators that need to be improved – MSMEs’ access to global trade incl. retail platforms (in the case of CTI) Availability → No data is available publicly. Economies may or may not have the data Regularity → How often is it collected? Maybe not even collected Comparability → Since it is collected by individual economy using probably different methodology, comparability may be an issue Credibility → This would be dependent on methodology and purpose of collection

Report on APEC Work on Services and Baseline Indicators In 2015, PSU published a report identifying some services baseline indicators that can potentially be used for monitoring progress (http://publications.apec.org/publication-detail.php?pub_id=1688). A total of 20 indicators were identified: 11 measures of trade in services. 9 indicators of regulatory conditions. Could be a starting point for fora to identify and propose indicators.

To be filled up by the group Expectations and timeline Fora: Fora to submit proposed APEC-wide action (incl. indicators) to PSU/Secretariat for future evaluation of the group under the ASCR. Timeline: Ideally, group to discuss now (and inter-sessionally if necessary) Followed by submission to PSU/Secretariat (no later than end-May 2017?) PSU: To assess proposed indicators. To collect information on viable indicators and prepare fora’s baseline indicators. APEC-wide action To be filled up by the group Background Outputs Targets Indicators

Thank you! Policy Support Unit APEC Secretariat 35 Heng Mui Keng Terrace Singapore 119616 Telephone: (65) 6891 9600 Fax: (65) 6891 9690 Email: PSUGroup@apec.org APEC Website - www.apec.org