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

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

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

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

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

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

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

Primary Resources AN INTEGRATED REGIONAL GOODS SUPPLY CHAIN The Pathway to Market Markets and Consumers Land Water Oceans Minerals Forests etc Automotive Chemicals Electronics Pharmaceutical Food etc 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) Discovery and Innovation Primary Production Primary Processing Secondary Processing Finished Product Manufacture Storage and Handling Freight and Logistics Marketing and Distribution Primary Services AN INTEGRATED REGIONAL SERVICES SUPPLY CHAIN/NETWORK The ‘Pathway‘ to Market Markets and Customers Financial professional, technical telecoms, IT, audiovisual transport/logistics business services, tourism, health, education etc etc Planning Design Evaluation Selection team formation Sourcing people m ovement Quality control Re-engineering Execution After sales service Diagnostics Imagination Innovation Contracting, outsourcing Legal Financial Engineering Architecture Accounting etc

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

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

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

Untangling the noodles ! FTAAP?

Can APEC deliver? Only if informed and supported business!

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