Speech
at an ABAC Luncheon
Los Cabos, Mexico, 23 October 2002
APEC - Building Stability, Security and Growth
Distinguished guests, Ladies and Gentlemen.
I am very pleased to have this opportunity to speak today at this
APEC Business Advisory Council (ABAC) luncheon.
ABAC continues to play an important role in APEC, not least through
the proposals it makes to Leaders.
ABAC's report to Leaders this year - "Sharing Development to Reinforce
Global Security"- is an excellent example of your contribution to
APEC.
The report states - very cogently - that APEC should help rebuild
trust in a global economy that has been eroded, amongst other things,
by concerns about security and the threat of terrorism.
The recent terrorist attacks in Bali that killed and maimed hundreds
of innocent people, including Indonesians and tourists from more than
20 countries, underscore the relevance of this message.
So I want today to reflect on the challenge international terrorism
presents for the Asia-Pacific regionand how we - Australia and its
regional neighbours - are responding.
I would also like to share with you with some thoughts on the negative
impact of instability on economic growth - focusing on what APEC members
and the business community can do to respond to the threats posed
by terrorism to the region's stability and prosperity.
Terrorism in the Asia-Pacific Region
On 12 October, a little more than a year after the terrorist attacks
in the United States, an equally senseless and barbaric terrorist
attack in Bali claimed the lives of around 180 innocent people, many
of whom were Australians.
The attack confirmed what we already knew, that dangerous terrorists
are operating in South East Asian countries - with deadly determination.
Indeed, since September 11 2001, the Australian government has warned
that terrorists can strike anywhere, at any time and that our own
region is not immune to the tragic consequences of such attacks.
That is why Australia has made a substantive military commitment
to the war against terrorism, including through the deployment of
special forces in Afghanistan.
That is why Australia has strengthened its domestic legislation to
outlaw terrorist organisations and give relevant agencies the powers
they need to hunt down terrorists and sever their sources of finance.
And that is why Australia has been working closely with other regional
countries - particularly in South East Asia - to strengthen intelligence,
law enforcement, and counter-terrorism capabilities:
- We have concluded cooperative arrangements with Malaysia, Thailand
and Indonesia on counter-terrorism.
- We have recently signed an agreement with Singapore to prevent
money laundering.
- We have co-hosted two regional counter-terrorism workshops, in
Honolulu and Bangkok.
- We will jointly host, with Indonesia, a conference to combat
terrorist financing and money laundering in December this year.
And above all, in the aftermath of the shocking attack in Bali, we
are leaving no stone unturned, together with Indonesia, to hunt down
and bring the perpetrators to justice.
Australia and Indonesia have agreed to establish a Joint Investigation
and Intelligence Team to investigate the Bali bombing.
The very best of Australian and Indonesian expertise will be applied
to this crucial task.
Australia strongly supports APEC's determined stand on terrorism.
This is as it should be: terrorism is a threat to the region's goals
of prosperity and stability, and as such it requires a strong regional
response.
APEC's support for the campaign against terror was a key issue for
the Leaders' meeting in Shanghai last year.
I have no doubt, that in the aftermath of the Bali bombings, APEC
leaders will renew their commitment in the strongest terms this year
and announce new measures.
But words are not enough. Together, we need to take firm action
to stem the flow of funds to terrorists, to deny terrorist networks
a foothold in the region and to protect the safety of our people,
our businesses and our economies.
In practical terms APEC has taken an active role in three key areas:
First, APEC is supporting international efforts to suppress the financing
of terrorism. APEC has agreed to an 'Action Plan on Combating the
Financing of Terrorism'.
The Action Plan focuses on law enforcement - including criminalising
the financing of terrorism - international agreements and standards
as well as the sharing of information through Financial Intelligence
Units.
The Action Plan puts forward practical, concrete measures to sever
the flow of funds to terrorists, including freezing their assets,
denying them access to the international financial system and ensuring
they do not misuse alternative remittance systems.
Secondly, APEC economies are working together to enhance air and
maritime transport security as wellas border control measures.
Thirdly, APEC economies are implementing an APEC Energy Security
Initiative and developing a Cyber-security Strategy to protect sensitive
and vital sectors.
I know that many businesses are concerned about the cost of addressing
terrorism.
There are many areas where we can both improve security and lower
business costs. For example, the introduction of electronic date interchange
can improve security - by preventing the potential for fraudulent
paper documentation - and also produce efficiency dividends in the
form of lower costs to business.
The events in New York, Washington and Bali demonstrate that the
costs of not addressing terrorism far outweigh the costs required
to achieve a safer, secure and more prosperous region.
The Impact of instability and terrorism on economic growth
Indeed I believe economic security is a concern that will be with
us for a long time.
As well as claiming the lives of innocent victims, terrorism can
inflict serious and lasting economic damage.
I am sure that, as business leaders, you are keenly aware of this.
On September 11 2001, the terrorists did not choose their targets
randomly:
In New York they struck at the heart of the international financial
system and in Washington they struck at the nerve centre of US defence
and intelligence systems.
In targeting New York, Washington, and more recently the tourist
centre of Bali, the terrorists sought to cripple economic activity,
to paralyse financial relations, to create new barriers between economies,
countries and people.
They knew that the shockwaves of the attacks would be felt well beyond
and well after the first point of impact.
Indeed, in the aftermath the attacks on the United States, we saw
the direct and ongoing impact on the international airline industry
- seriously affecting international business travel and tourism -
and the impact on the global insurance industry.
And the Bali Bombings - and the threat of other attacks in the region
- could undermine confidence, at a time when many economies in South
East Asia are striving to return to strong sustainable economic growth.
Certainly in Indonesia, the Bali bombings will further undermine
business and investor confidence.
We have already seen the devastating affects on the tourism industry.
The potential to affect trade is obvious. This is a critical concern
in view of the significant and growing contribution of trade to growth
in APEC economies.
APEC and the business community's contribution to promoting stability
and growth
Part of the terrorist agenda is to force economies to turn borders
into barriers, to erect walls behind which people live in fear, behind
which businesses avoid risk and behind which economies - including
those most in need of development - stagnate.
To retreat from today's integrated world economy would be a terrible
mistake: it would play into the hands of the terrorists.
Openness is an important precondition for reducing poverty and addressing
some of the conditions that produce instability and extremism.
We cannot - indeed, must not - shirk our shared responsibility to
openness, transparency and accountability in the Asia Pacific region
- in government, in business, and in the wider community.
They are not ends in themselves, but means to an end: our security
and our prosperity.
It is essential, therefore, that APEC economies continue to push
forward with trade and investment liberalisation and that APEC provides
a leadership role in support of the new round of WTO multilateral
trade negotiations.
As you know a new round of global trade negotiations was launched
last year in Doha. We have set ourselves an ambitious deadline to
complete the negotiations by January 2005.
The Doha Round is much more complex and broader than previous rounds
of trade negotiations. As well as encompassing trade in agriculture,
industrial products, and services the agenda covers intellectual property
rights issues trade in the environment, the interaction between trade
and competition policy, the relationship between trade and investment,
government procurement policies and trade facilitation, international
rules on anti-dumping and countervailing measures, electronic commerce
and dispute settlement procedures.
The path before us is an extremely challenging one. We have made
a good start in the past 12 months and we have now entered a new phase
of engagement. I believe we can achieve our 2005 objective. To that
end, Australia will be hosting a meeting of ministers next month in
an effort to sustain the political leadership which is required.
You in the business sector know only too well why we need to continue
the process of global engagement and economic reform. But business
needs to contribute by explaining the benefits of trade expansion
and and the rationale of our multilateral trading system.
It is also essential that APEC help member economies to deal with
the challenges and maximize the opportunities presented by globalisation.
In these uncertain times, we must not lose sight of the considerable
gains made by globalising developing economies: During the past 20
years or so, many developing economies have joined early trailblazers
like Korea and become the 'new globalisers'.
These economies have embraced trade liberalisation and opened up
to foreign investment. They have gained access to foreign savings,
technology and the global economy.
APEC can help member economies manage better in a globalised world
by improving standards of governance - both in the public sector and
the corporate sector.
Australia has just completed a study Strengthening Economic Legal
Infrastructure in the APEC Region: Supporting Trade, Investment and
Economic Development.
This report highlights the importance of strengthening economic legal
infrastructure, including corporate governance practices, to create
a more stable environment for trade and investment.
Australia believes in leading by example: During 2001-02 the Australian
Government funded governance activities worth A$157 million in APEC
developing economies.
Trade facilitation is another important area where APEC works for
business, and more broadly for the Bogor goal of free and open trade
and investment.
By simplifying regulatory and administrative arrangements, and reducing
the cost of business procedures and transactions, trade facilitation
measures allow more businesses to become involved in international
trade.
A recent study estimated that reducing the costs of international
trade transactions- in areas such as customs, quarantine, immigration
and foreign investment procedures - by just 5 percent by 2006 could
add US$154 billion (in 1997 prices) to APEC's GDP each year.
By delivering real and significant benefits to business, APEC is
generating wealth and improved living standards.
This will contribute to the prosperity and stability of the region.
Australia has taken a leading role in APEC to explain the benefits
of globalisation, good governance and domestic structural reform.
Australia's focus on trade liberalisation and facilitation, privatisation,
deregulation, capital and labour market reform has certainly paid
off handsomely.
During a period of considerable global economic instability, Australia's
GDP growth has averaged more than four percent per annum since 1996.
But we have also learnt that on-going economic reform is not an easy
task.
Business in APEC member economies have an extremely important role
to play in pressuring their governments to implement policies which
promote healthy competition, economic growth and employment.
Conclusion
Ladies and gentlemen,
APEC faces a challenging environment shaped by forces such as global
uncertainty, terrorism and economic slowdown.
This environment calls for an integrated regional approach: we must
extinguish the evil forces of terrorism, intolerance and fear while
lowering the barriers that stand in the way of greater economic integration
and regional prosperity.
Indeed, an integrated and prosperous region, trading and investing
with the rest of the world, is the basis for stability and peace.
The task ahead is of no small magnitude.
APEC is making a significant contribution, through the initiatives
I outlined earlier.
The importance of direct business input into these initiatives cannot
be overstated. I commend the close cooperation established between
APEC and the business community, especially ABAC, and trust this relationship
will continue to grow and therefore through that growth and interaction
deliver the economic and social outcomes that we are all pursuing
in our current activities, both at a governmental level and at a business
level.
Thank you.
Local Date:
Saturday, 22-Nov-2008 05:21:52 EST
