1. Ministers from Australia; Brunei Darussalam; Canada;  Chile; the People's Republic of China; Hong Kong, China; Indonesia;  Japan; the Republic of Korea; Malaysia; Mexico; New Zealand;  Papua New Guinea; Peru; the Republic of the Philippines; the  Russian Federation; Singapore; Chinese Taipei; Thailand; the  United States and Viet Nam participated in the Thirteenth Asia-Pacific  Economic Cooperation (APEC) Ministerial Meeting in Shanghai  on 17-18 October 2001. The APEC Secretariat was present. The  Association of South-East Asia Nations (ASEAN) Secretariat,  the Pacific Economic Cooperation Council (PECC), and the Pacific  Island Forum (PIF) attended as observers.

2. The meeting was chaired by H.E. Mr. Tang Jiaxuan, Minister  of Foreign Affairs and H.E. Mr. Shi Guangsheng, Minister of  Foreign Trade and Economic Cooperation, of the People's Republic  of China. The theme for APEC 2001 was: "Meeting New Challenges  in the New Century: Achieving Common Prosperity through Participation  and Cooperation". The agenda of the meeting was structured to  reflect the three sub-themes of APEC 2001: a. Advancing Trade  and Investment; b. Sharing the Benefits of Globalization and  the New Economy; and c. Promoting Sustainable Economic Growth.

3. Since the end of last year, the slowdown in the United  States, Japan and Europe has dampened the prospect of global  and regional economy, with some members in the region affected  considerably by the declining global demand. The recent terrorist  attacks in the United States risk undermining some industries  as well as consumer confidence. In the face of the less favorable  global and regional economic environment, Ministers affirmed  their confidence in the medium and long-term prospects of growth  in the APEC region and agreed to strengthen cooperation to tackle  the short-term economic difficulties. In this connection, Ministers  reaffirmed the importance of promoting dialogue and cooperation  with a view to achieving sustainable and common development.  In addition, Ministers emphasized the importance of achieving  the Bogor goals in accordance with the agreed timetables as  a key element of APEC's response to current economic conditions,  and stressed the importance of structural reform and sound domestic  policies to create a more favorable macro-economic environment  for growth in the region.

Advancing Trade and Investment

Strengthening the multilateral trading system

4. Ministers firmly underlined their commitment to open  regionalism and strong support for an open, equitable, transparent  and rules-based multilateral trading system, as represented  by the WTO.

5. Ministers reaffirmed the strong commitment to launch  the WTO new round of multilateral trade negotiations in 2001.  Given the global economic slowdown, Ministers agreed on the  critical importance and urgency of successfully launching the  round at the Fourth WTO Ministerial Conference to reenergize  the global trading system.

6. Ministers called on parties concerned to demonstrate  strong political will and flexibility in agreeing on a balanced  and sufficiently broad-based agenda to launch the new round,  which should include further trade liberalization and the strengthening  of WTO rules and reflect the interests and concerns of all members  especially those of the developing ones,address the challenges  in the 21st century and support the goal of sustainable development.  Ministers urged that the new round focus on trade-related issues,  including existing WTO rules and not duplicate the work of other  international organizations. They further agreed that internal  transparency within WTO will facilitate the participation of  all members.

7. Ministers reaffirmed that the concerns of developing  economies should be addressed through the effective implementation  of special and differential treatment and ongoing effort for  capacity building and technical assistance so as to facilitate  their full participation in the WTO.

8. Ministers reaffirmed APEC's determination on expediting  the full and effective implementation of the Uruguay Round agreements  and commitments, and called on the WTO to give due consideration  to the concerns of members, especially developing ones, on the  implementation issues emanating from the Uruguay Round agreements  and commitments when formulating the agenda for the new round.

9. Recalling previous Leaders' Declarations and Ministerial  Statements, Ministers reaffirmed that APEC would actively and  constructively contribute to the mandated WTO negotiations on  agriculture and services.

10. Ministers reiterated their commitment to continuing  to contribute to the WTO work on industrial tariffs and other  related areas, without prejudice to the overall agenda for negotiations.

11. Ministers agreed to continue mobilizing APEC's expertise  to maintain and enhance the momentum of the WTO negotiations  on services. In this respect, they recognized the progress made  in 2001 on the APEC Menu of Options for Voluntary Liberalization,  Facilitation and Promotion of Economic and Technical Cooperation  in Services Trade and Investment, which will continue in 2002.  Ministers expected this work to make an important contribution  to the on-going WTO negotiations.

12. Ministers undertook to refrain from using measures that  increase levels of trade protectionism. To this end, they reaffirmed  their commitment to the APEC-wide moratorium on the imposition  of custom duties on electronic transmissions until the Fourth  WTO Ministerial Conference, and agreed to extend the moratorium  until the Fifth Ministerial Conference. Ministers also supported  a vigorous continuation of the WTO's work program on E-commerce.

13. Ministers reaffirmed the importance of the implementation  of APEC WTO-related capacity building Strategic Plan, as an  unique, substantial and value-adding contribution to strengthening  the participation of developing economies in the multilateral  trading system, improving the implementation of existing commitments,  and building confidence for a WTO new round. They recognized  the initiative as a concrete example of the way in which technical  and economic cooperation in APEC and the policy commitment to  trade liberalization can be mutually reinforcing. In this regard,  Ministers commended progress made on a number of projects and  noted that twelve TILF projects in support of the plan have  received funding this year. They stressed the need for new projects  to be accorded continued priority in allocating the APEC TILF  fund in accordance with the established TILF approval process,  decided that both developed and developing members would continue  to prioritize as appropriate the plan in the developmental programs,  and affirmed the importance of involving bilateral development  agencies, relevant regional and international organizations  including WTO, ADB and World Bank in implementing the plan.

14. Ministers congratulated China on the successful conclusion  of negotiations on its accession to the WTO. They urged that  China's accession be finalized at the forthcoming WTO Ministerial  Conference. Ministers also reiterated strong support for approval  of accession to the WTO by Chinese Taipei at that Conference  and the advancement of WTO accession by the Russian Federation  and Viet Nam. Ministers supported the participation of all acceding  economies in the new round of WTO negotiations.

Trade and Investment Liberalization and Facilitation (TILF)

Individual Action Plans

15. Reaffirming the central role of Individual Action Plans  (IAPs) in achieving APEC's trade and investment liberalization  and facilitation goals, Ministers commended the refinements  and improvements made to the e-IAP system to enhance its functionality  and user friendliness. They also welcomed the presentation of  2001 IAPs by member economies in the e-IAP system and recognized  the usefulness of delivering further technical assistance in  their preparation. Ministers encouraged member economies to  publicize the new e-IAP system to their business communities  and work with the private sector to ensure that the system meets  its needs. They commended the Russian Federation for the submission  of its IAP for peer review this year.

16. Acknowledging the need for the IAP peer review process  to be further strengthened, Ministers endorsed the proposal  for strengthening the IAP peer review process, including organizing  the IAP Review Teams to conduct studies of economies under review.  The new process is aimed at increasing the rigor of the peer  review regime and encouraging member economies to make greater  progress in achieving the Bogor Goals. They affirmed that the  principle of voluntarism should be respected. For this purpose,  they decided to use the APEC funding including the TILF special  account through the funding approval process. Ministers welcomed  the offer made by Mexico and Japan to submit their IAPs for  review under the new peer review process in 2002. They also  called on other member economies to actively participate in  this process.

Review of OAA Part I

17. As a major roadmap providing the guidelines for achieving  the Bogor Goals, the OAA must remain relevant for APEC to face  the emerging global challenges and to seize new opportunities  in the new century. Ministers thus endorsed the updated OAA  Part I, which reflects the new changes and developments in the  area of trade liberalization and facilitation since 1995. The  major elements include a commitment to progressive reduction  of tariffs until the Bogor goals are fully achieved, a commitment  to progressively reducing NTMs to the maximum extent possible  to minimize possible distortion to trade, and a commitment in  the services area to provide for the fair and transparent development,  adoption and application of regulations and regulatory procedures  in regulated service sectors. Ministers further underlined the  strategic significance of the updated of OAA Part I in providing  a long-term framework for advancing to APEC TILF agenda. Ministers  encouraged member economies to take the updated OAA Part I into  account when updating their IAPs for 2002 and beyond.

Collective Action Plan

18. Ministers approved and endorsed the Annual Report of  the Committee on Trade and Investment (CTI) and the revised/enhanced  Collective Action Plans (CAPs) it contains. Emphasizing the  importance of the CAPs in ensuring APEC is on track towards  Bogor Goals, Ministers welcomed the commendable progress CTI  made in implementing CAPs in 2001 and highlighted some key achievements,  which included, ? the further expansion of the CAPs to intensify  work on Non-Tariff Measures (NTMs); ? the completion of APEC  Principles on Trade Facilitation; ? the completion of the new  CAPs on Intellectual Property Rights; ? the completion of the  review and revision of the Mid-term Technical Infrastructure  Development Program; and ? the completion of an assessment/evaluation  of the thirteen SCCP CAP items.

19. Ministers welcomed the progress report and its achievements  from the APEC Automotive Dialogue and encouraged the Dialogue  to continue its work. They took note of the ongoing reform and  economic and technical cooperation activities in the automotive  sector. Ministers also took note of the establishment of the  Chemical Dialogue and welcomed Mexico's offer to host the first  Chemical Dialogue in 2002.

20. Ministers welcomed the report APEC Economies Breaking  Down the Barriers: Case studies in regulatory and administrative  reforms, which indicated that the reforms undertaken by APEC  members had generated significant economic benefits. Ministers  also noted the importance of adopting the revised Kyoto Convention  on the Simplification and Harmonization of Customs Procedures,  and encouraged the adoption of the Convention at the earliest  possible opportunity.

21. Ministers directed CTI to continue to give priority  in its 2002 work program, to producing tangible deliverables  in CAPs, as envisaged in the Osaka Action Agenda.

22. Ministers welcomed the success of the Second APEC Investment  Mart held in Yantai, the People's Republic of China, during  9-15 June 2001. They reiterated the importance of ensuring stable  investment flows into the APEC region. In this regard, Ministers  welcomed the offer by the Russian Federation and Thailand to  host the Third and the Fourth APEC Investment Marts in 2002  and in 2003 respectively. Ministers also welcomed the project  to review current literature on cross-border mergers and acquisitions  to enable better understanding of its development on investment  flows.

23. Emphasizing the benefits of trade facilitation, Ministers  instructed officials to identify concrete actions and measures  to implement the APEC Trade Facilitation Principles in 2002  to promote the flow of goods and services in the region, and  stressed that capacity-building should remain a central component  of APEC's work on trade facilitation.

24. Recognizing the importance of enhancing the mobility  of business people as a means to facilitate APEC trade and investment  goals, Ministers noted the progress made in the APEC Business  Travel Card Scheme and welcomed the participation of the People's  Republic of China and Chinese Taipei in the scheme, leading  to a majority of APEC members being part of the Scheme. Ministers  also commended the progress of capacity building strategies  towards implementing streamlined border processing of genuine  travelers, and noted the multilateral Advance Passenger Processing  (APP) trial as a new technology standard in regional travel  facilitation system. Ministers supported the Informal Experts'  Group on the Mobility of Business People (IEGBM) capacity building  strategies, which uses agreed standards for economies to improve  their immigration capacity and contributes to the APEC goals  of facilitating trade and investment.

25. Ministers emphasized the importance of strengthening  competition in the APEC region and welcomed the Mexican proposal  to host a training program in 2002 on promoting competition  in regulated sectors so as to enhance interaction among APEC  economies in this field. Ministers also welcomed the proposal  of Mexico to hold a workshop on regional and bilateral investment  rules and agreements.

26. Ministers praised the work that the CTI has done over  the past year and expressed appreciation to Mr. Joe Damond for  his contribution as CTI Chair. Ministers also welcomed Ms. Ng  Kim Neo to serve as the CTI Chair for the next two years commencing  in 2002.

Sharing the Benefits of Globalization and the New Economy

Human Capacity Building Initiatives

27. Ministers recognized that human capacity building is  a vital means to meet the challenges of Globalization and the  New Economy, and affirmed its importance as one of the core  priorities in APEC. Ministers applauded the various initiatives  undertaken in this respect, particularly the Beijing Initiative  adopted at the APEC High Level Meeting on Human Capacity Building  and agreed to submit the Beijing Initiative to Leaders as a  way to provide opportunities for further work on human capacity  building in the context of the New Economy. Ministers also supported  the engagement of all key stakeholders in the region and the  development of tripartite partnerships between government, business,  academic and training institutions for this purpose. Ministers  welcomed the "Human Capacity Building Promotion Program" as  a follow-up project to the Beijing initiative. Ministers instructed  Senior Officials, working through APEC fora, to further develop  and carry out initiatives for future work as appropriate to  translate the shared vision into action. Ministers also noted  the benefits of active engagement with the private sector in  the provision of IT training.

28. Ministers welcomed the significant progress in formulating  an APEC Human Capacity Building Strategy on New Economy done  by the Human Capacity Building Coordinating Group (HCBCG) as  an effective response to the present and future need for transforming  the "digital divide" into "digital opportunities",so that the  opportunities of the New Economy can be widely shared in the  APEC region and encouraged HCBCG to finish their work by SOM  I 2002, with the active participation of all working fora and  economies. Ministers urged implementation of the human capacity  building projects, including Information Sharing and Best Practices  on Teleworking and Preparing Human Resources for the New Economy.  Ministers also welcomed Thailand's proposal to explore the possibility  of networking schools in APEC economies and instructed SOM to  examine the proposal.

29. Ministers welcomed the outcome of the Fourth APEC Human  Resources Development Ministerial Meeting, held in Kumamoto,  Japan and commended the significant progress in achieving human  resources development goals. Ministers resolved to increase  APEC's understanding of the forces that shape and drive the  New Economy, inter alia, by increasing access to quality basic  education, skills training-retraining and lifelong learning  to address the challenges that it presents to the workforce  of the 21st century, and to foster an environment which assures  greater access to the opportunities generated. Ministers welcomed  the meeting's focus on knowledge and skills development, formulation  of proactive labor market policies, and involvement of stakeholders  such as labor and business.

30. Ministers expressed their appreciation to the APEC Education  Foundation for its leadership in launching the APEC Cyber Education  Cooperation Consortium and recognized the Foundation's potential  as a useful vehicle for HCB efforts, especially in the area  of cyber education cooperation. Ministers encouraged further  participation in the work of the Foundation and the Consortium  by member economies, business, academia and other stakeholders  with a view towards realizing an APEC cyber education community.

Ecotech Issues

31. Ministers endorsed the SOM Report on Ecotech and its  recommendations. Ministers reaffirmed the role of Ecotech in  contributing to sustainable growth and achieving common prosperity.  Ministers commended the progress made this year in advancing  the Ecotech agenda and reinforcing the complementarity of TILF  and Ecotech. Ministers also recognized the need for APEC to  interact with bilateral, regional, and international organizations  and financial institutions with a view to fostering cooperation,  broadening support and leveraging financial resources to boost  Ecotech activities.

32. Since its inception, SOM Subcommittee on Ecotech (ESC)  has played a significant role in managing and coordinating Ecotech  activities to ensure a more effective and action-oriented agenda.  Ministers endorsed the work that ESC has done over the past  year and expressed appreciation to Dr. Medhi Krongkaew for his  excellent contribution as the ESC Chair. Ministers also welcomed  Ambassador Elard Escala from Peru to serve as the incoming ESC  Chair and the Senior Official of the Philippines as the Vice  Chair for the next two years commencing in 2002. Ministers also  directed Senior Officials to review the function and mandate  of the ESC with a view to making recommendations to the next  Ministerial Meeting on any adjustments required to ensure the  most effective possible leadership and coordination of APEC's  Ecotech work.

33. Ministers welcomed the development of Ecotech Action  Plans (EAPs) in the area of Human Resources Development as a  pilot and affirmed its role in substantially enhancing the opportunity  for cooperation in field of HRD, and facilitating a more focused  and intensified agenda. Ministers welcomed the submission of  EAPs by 16 economies and encouraged continued and broader participation.

34. Ministers commended the completion of updating Osaka Action  Agenda (OAA) Part II and its Annex. Ministers reaffirmed the  role of OAA in shaping the road map for APEC in the new century.  The revised OAA Part II incorporates new initiatives and priorities  since 1995, and will continue to function as a fundamental guide  in future Ecotech activities. Ministers also instructed Working  Groups to make sure their future activities are consistent with  the updated OAA II and include in their annual report to the  SOM information on the implementation of OAA II so that progress  can be monitored.

35. Ministers commended the completion of the first APEC  Science & Technology Policy Forum held in Penang, Malaysia,which  was organized by the Industrial Science and Technology Working  Group (ISTWG). The Forum identified numerous recommendations  for building innovation capacity within APEC economies and fostering  linkages among science, technology and innovation communities  across APEC. Noting the contribution to the success of the Forum  made by the participation of academic, business, and other non-governmental  groups, Ministers urged the ISTWG to continue to involve these  stakeholders in implementing these recommendations.

APEC Food System (AFS)

36. Reaffirming the importance of addressing the three areas  of the AFS on rural infrastructure development, promotion of  trade in food products, and dissemination of technological advances  in food production and processing, Ministers welcomed and endorsed  the SOM report on the implementation of the AFS. They also asked  the Senior Officials to give further thought to ways to increase  the momentum in AFS implementation, requested SOM to report  annually on progress in implementation of the AFS recommendations,  and instructed officials to examine how to respond to ABAC's  recommendations on the AFS in 2000 and 2001.

Biotechnology

37. Ministers reaffirmed the importance of transparent and  science-based approaches to risk assessment and management in  the introduction and use of biotechnology products, and of technical  cooperation, and information exchange on new technology and  capacity building in this area. They recognized the importance  of economies' efforts to enhance consumers' awareness, confidence  and understanding of biotechnology products to facilitate the  realization of the potential benefits of this technology.

38. Ministers endorsed the SOM Report on Agricultural Biotechnology  and asked Senior Officials to report on progress next year.  They welcomed the initiative to hold a policy-level dialogue  on agricultural biotechnology and requested Senior Officials  to report on progress in 2002.

Infectious Disease

39. In recognition of the challenges posed by infectious  diseases, Ministers endorsed the APEC Strategy to address HIV/AIDS  and other infectious diseases and commended the efforts and  contribution made by ISTWG in developing the strategy in less  than a year. Ministers asked related APEC fora, notably the  ISTWG to take actions as laid out in the Strategy in the six  categories of electronic networking, surveillance, outbreak  response, capacity building, partnering across sectors, and  political and economic leadership. Ministers also noted that  the APEC Healthcare Services Accreditation Project and a project  to conduct training in infectious disease surveillance were  approved at the 21st meeting of the ISTWG in Penang, Malaysia.  Ministers welcomed these initiatives in response to the APEC  Infectious Disease Strategy and requested ISTWG to report outcome  to the SOM.

Strengthening the Functioning of Markets

40. Ministers commended the significant efforts made by  member economies in strengthening the functioning of markets,  which complement the APEC trade and investment liberalization  and facilitation process. Acknowledging the importance of developing  transparent, favorable and predictable policy as well as legal  and regulatory environment for business, Ministers:

---- Took note of the progress made regarding the APEC-OECD  Cooperative Initiative on regulatory reform led by Peru, welcomed  the outcomes arising from the Opening Conference of the Initiative  held in Singapore, the First APEC-OECD Workshop on Regulatory  Reform held in Beijing on 19-20 September 2001 and commended  Mexico's offer for hosting the Second Workshop;

---- Took note of the work of the coordinating group on Strengthening  Economic Legal Infrastructure led by Australia, Japan and Peru,  particularly the completion of Menus of Options for Strengthening  Economic Legal Infrastructure, called for early implementation  and the development of cooperative projects in capacity and  institutional building, corporate law and competition policy,  based on the Cooperation Framework, and urged continuous efforts  in building capacity and skills of individuals, institutions  and agencies in developing and applying commercial, corporate  and competition law;

---- Took note of the progress made in the cooperation program  in the area of SME and New Business Support, and welcomed the  progress achieved in the Cooperation Programs, which consists  of holding seminars, dispatching experts and related activities,  based on the Evolving Cooperation Initiative by Japan;

---- Endorsed the Guidelines for Good Corporate Governance  Practice developed by PECC and encouraged APEC members to implement  the Guidelines on a voluntary basis;

---- Welcomed the Guidelines of Best Practices for Entrepreneurship  and Start-up Companies, which was the principal outcome of a  Symposium in this regard held on August 2-3 2001 in Chinese  Taipei, and encouraged relevant APEC fora to apply the Guidelines  to their future work; and

---- Recognized the importance of capacity building for the  implementation of APEC Principles to Enhance Competition and  Regulatory Reform, and welcomed further work in this area, such  as training programs.

New Economy Issues

E-APEC

41. The information technology revolution is one of the  major forces transforming the world and the APEC region into  the 21st century. Ministers reaffirmed their confidence in the  immense potential of Information and Communications Technology  (ICT) and its applications in upgrading the welfare and living  standard of our people in the APEC region. Ministers emphasized  the importance of the development of New Economy, the ICT revolution  and its applications.

42. As instructed by the Leaders, a long-term,  forward-looking and action-oriented e-APEC Strategy has been  formulated by developing and expanding the Action Agenda for  New Economy this year. Ministers commended the efforts made  by the e-APEC Task Force, and endorsed the e-APEC Strategy,  which demonstrated APEC's resolve to spur ICT development with  the vision of an approaching digital society. Ministers urged  members to take concrete and concerted actions to implement  the e-APEC Strategy so as to maximize the benefits of the ICT  revolution, address the digital divide and benefit from the  opportunities presented by the emerging New Economy.

43. The e-APEC Strategy consists of the following three  pillars:

---- Create an environment for strengthening market structure  and institutions; Ministers urged economies to implement appropriate  policies and actions to promote sustainable and sound macroeconomic  policy framework, sustained structural reform, an effective  competition regime, good financial and corporate governance,  etc. and actions to promote sustainable growth.

---- Create an  environment for infrastructure investment and technology development;  Ministers encouraged economies to create a policy environment  conducive to competitive investment and the widespread uptake  of beneficial technologies.

---- Enhance human capacity building and entrepreneurship  development.

Ministers urged economies to take actions to improve human  capacity building and promote entrepreneurship. Ministers also  encouraged economies to develop innovation-oriented policies  and promote the participation of SMEs in New Economy activities.

44. Ministers urged member economies to take concrete actions  to turn the e-APEC vision into reality, which would definitely  help facilitate spreading the benefits of the New Economy, enhancing  the momentum of economic development and revitalizing not only  regional, but also the global economy. Ministers encouraged  member economies and relevant APEC fora to implement the e-APEC  Strategy through broad cooperation and collaboration. In this  regard, Ministers directed Senior Officials, in cooperation  with the Finance Deputies, where appropriate, to facilitate  and oversee the process of implementing the Strategy and report  the outcomes to the responsible Ministers at their next year's  meeting in Mexico. Ministers welcomed the report on progress  in developing the Network of Skills Development Centres and  encourage full participation by members.

E-commerce

45. Ministers noted and welcomed the progress made by Electronic  Commerce Steering Group (ECSG) on promoting and coordinating  E-commerce-related activities across APEC sub-fora, including  the completion of the APEC 2001 Electronic Commerce Stocktake.  In this regard, Ministers endorsed the recommended work program  on E-commerce in APEC. Ministers also endorsed the proposal  by the ECSG to develop APEC guidelines for online consumer protection  and noted the proposal to organize a public/private sector forum  regarding online privacy and E-commerce during 2002.

46. Noting the different roles of private and public sectors  in promoting the development of E-commerce as well as the needs  to strengthening the linkage between them in this field, Ministers  endorsed the proposal of the establishment of the APEC E-commerce  Business Alliance. Ministers also welcomed the proposal to strengthen  economic and technical cooperation in the area of E-commerce  with a view to narrowing the gap between member economies in  the application of E-commerce.

47. Ministers welcomed Individual Action Plans on Paperless  Trading submitted by some member economies, encouraged other  member economies to participate in the delivery of Paperless  Trading IAPs, and instructed SOM to report on progress to the  MRT Meeting in 2002. Ministers also welcomed the report on Paperless  Trading: Benefits to APEC, and encouraged APEC members to reduce  regulatory and institutional barriers to paperless trading.

48. Ministers recognised the growth of global electronic  commerce and the importance of a legal and policy framework  which both ensures business and public confidence and avoids  unnecessarily restrictive trade barriers while respecting national  policy objectives in order to allow E-commerce to develop its  full potential to create new opportunities for trade.

Other Existing and New Initiatives

49. Ministers welcomed the progress report made by lead  economies on various existing and new initiatives on e-APEC  activities. Ministers welcomed the implementation of Phase I  of the project on Transforming the Digital Divide into a Digital  Opportunity by Chinese Taipei and urged the early implementation  of Phase II work in 2002. Ministers welcomed Korea's offer to  host a high-level conference on strengthening APEC cooperation  for establishing e-government, and a seminar on empowering people  with disabilities in the Information and Technology (IT) age  in 2002. In response to Vietnam's New Economy Initiative on  Strengthening the Legal Framework for E-Commerce, Ministers  agreed to convene an E-Commerce Legal Infrastructure Workshop  at the 25th TEL meeting in 2002 in Hanoi, Vietnam.

50. Ministers  reaffirmed commitments to triple access to the Internet by 2005,  and to ensure that all groups within an economy have access  individually or through community-based services to the Internet  by 2010; and they commended the TEL for developing a Digital  Divide Blueprint for Action and called for its completion and  implementation.

51. Ministers welcomed efforts and policy findings by TEL  on ICT development and diffusion, for the creation of a policy  environment in the APEC region for universal access, the liberalization  of the market, the realization of digital opportunities, and  the security of information infrastructure and networks. Ministers  recognized the important role of the private sectors in developing  and diffusing ICT and encouraged enhanced cooperation among  members and all stakeholders with the effective leadership of  governments in upgrading capacity into a digital and prosperous  future. In this regard, Ministers instructed the e-APEC Task  Force, TEL, ECSG, HRD, and SME WGs, and other APEC fora to continue  their endeavors in carrying forward the e-APEC activities in  various areas within APEC and enhance their cooperation in ICT  development in the region.

Development of SMEs

52. Ministers welcomed the outcomes from the 8th SMEs Ministerial  Meeting held in Shanghai under the theme of "New Century, New  Challenges: Innovation and Environment for SME Development".  They acknowledged the vital role and importance of SMEs in promoting  economic recovery and long-term sustainable economic growth.  Ministers urged member economies to consider the key strategies  recommended by the SME Ministerial Meeting in the development  of SMEs and continue to examine thoroughly the obstacles faced  by SMEs. The recommendations identified are: Advancing Technological  Innovation through Cooperation, Facilitating Financing and Improving  the Environment for SME Development.

53. In times of economic uncertainty, Ministers acknowledged  the need to redouble efforts to support growth and development  of small and micro enterprises. Recognizing the importance of  enhanced cooperation in human capacity building and information  sharing for the benefit of SMEs across the Asia Pacific region,  Ministers welcomed efforts by the Philippines and Canada as  lead economies' to further on-going SME programs for training  and certification of APEC SME Counselors and developing commercial  alliances under the Business Partnership Initiative for SMEs.  Ministers welcomed the "International Cooperation Forum on Innovative  Management Skills" to be implemented by Russia in 2002 and encouraged  active participation by all economies. Recognizing the benefits  to SME policy makers to better serve SME constituencies across  APEC, Ministers also endorsed the "Voluntary Visitor Program  for APEC SME Government Officials" and called for the United  States to hold the program next spring and report on results  to the 9th APEC SME Ministerial Meeting in August 2002.

Sectoral Ministerial Meetings

54. Ministers took note of the report presented by Peru  regarding the postponement of the 3rd Transportation Ministerial  Meeting due to the cancellation of the Ministers of several  members after the terrorist attacks in the United States last  September, and welcomed Peru's offer to host the event in March  2003.

55. Ministers welcomed the progress made towards assisting  economies to implement the operational plan under Transportation  Working Group including the progress in implementing the recommendations  for more competitive air services on a voluntary basis. Ministers  noted the ongoing efforts in transportation safety and security,  and supported efforts to promote international cooperation for  the suppression of terrorism, piracy, and armed robbery.

56. Ministers welcomed Korea's offer to host the 1st APEC  Ocean Related Ministerial Meeting in 2002 and recognized that,  it would contribute to strengthening cooperation on sustainable  marine and fisheries resources development.

57. Ministers acknowledged that the review on the implementation  of initiatives of APEC Sectoral Ministerial Meetings is vital  to ensuring the overall effectiveness of the APEC process. Ministers  commended officials for their efforts and directed them to urge  APEC fora to continue to implement the decisions and initiatives  of various Sectoral Ministerial Meetings.

Promoting Sustainable Economic Growth

Economic Committee Report

58. Ministers endorsed the Economic Committee (EC)'s Report  for 2001 and welcomed the progress made in its four core projects:  (1) 2001 APEC Economic Outlook; (2) the New Economy and APEC;  (3) the Benefits of TILF; (4) the Implementation Plan for KBE  Recommendations. Ministers welcomed the 2001 APEC Economic Outlook  especially its thematic study on financial development and economic  growth, which is particularly timely in face of the current  global economic slowdown and member economies' collective resolve  to foster long-term economic vitality. They also endorsed The  New Economy and APEC report that offers a conceptual framework  and useful elements for creating an environment in which the  New Economy could develop. Ministers acknowledged the importance  of the Benefits of TILF projects, which emphasized the creation  of more open and free trade and investment environment. Ministers  urged the continuous implementation of the KBE Recommendations  and instructed the EC to continue its work on KBE issues. Interaction  with the Finance Ministers' Process

59. Ministers welcomed the outcomes from the 8th APEC Finance  Ministers' process, and were encouraged by the efforts and contribution  made by the Finance Ministers under the policy theme of "Growth  with Restructuring, Stability and Equity" in the year of 2001.  They acknowledged the important role of the Finance Ministers'  process in taking appropriate policies in a timely manner and  constructing a stronger macroeconomic foundation for the region  in the long run.

60. Ministers welcomed the practice of strengthening linkages  and communications between the Finance Ministers' process and  the SOM process in 2001 with a view to ensuring the work programs  coordinate and complement each other. Given the current global  and regional economic downturn, Ministers further underlined  the importance of continuing the inter-process briefing and  exchange of views between the Finance Ministers' process and  SOM on a regular basis so as to facilitate information sharing  and coordination.

61. Ministers welcomed the APEC Finance and Development  Program proposed by China, which aims at enhancing capacity  building in the areas of financial market management especially  for developing economies across the APEC region.

62. Ministers also welcomed the report "Towards Better Company  Accounting and Financial Reporting" prepared for and accepted  by the APEC Finance Ministers, and encouraged member economies  to raise awareness of the importance of robust financial reporting,  accounting, auditing and enforcement practices supported by  a sound legal, professional and regulatory infrastructure.

Social Impact of the Crisis

63. Ministers welcomed the recommendations of the Ad Hoc  Task Force on Strengthening APEC Social Safety Nets (SSN). They  endorsed the proposed establishment of an APEC SSN Capacity  Building Network that, in the first instance, would focus on  capacity building to implement the SSN recommendations made  by the Finance Ministers and in the study conducted in the HRDWG.  Ministers welcomed the proposals by Korea and Thailand to co-organize  an international meeting to address specific capacity building  issues on SSN.

Energy

64. Energy security stands as an important issue for economic  development and regional prosperity. In light of the terrorist  attacks in the United States, Ministers directed the EWG to  intensify its work on strengthening the security and reliability  of affordable energy to all in APEC, through such means as exchange  of information and experience on oil stockpiling, on facilitating  energy efficiency and conservation, and on facilitating improved  stability in the provision of energy supply to meet demand.  They called for further energy technology development, exchange,  application and deployment, and for the facilitation of a diverse  and efficient supply mix to avoid the risks posed to the economy  by volatility in the international oil market. Ministers welcomed  the progress made on the Energy Security Initiative and directed  the EWG to implement the concrete work in the progress report  on the Initiative. They also called on economies to encourage  greater private sector involvement in the EWG work program and  the EWG to cooperate closely with the EWG Business Network.  Ministers requested Senior Officials to report in 2002 on progress  made in the Initiative.

Interaction with the Community

Dialogue with ABAC

65. Ministers welcomed the ABAC Report to Leaders, Common  Development through Market Opening, Capacity Building and Full  Participation. They noted the four key messages to the Leaders,  calling on APEC economies (1) to accelerate progress towards  the Bogor Goals of trade and investment liberalization and facilitation;  (2) to demonstrate strong support for the launch of new WTO  round; (3) to take decisive measures to stimulate economic growth  and accelerate financial reforms; and (4) to adopt a balanced  approach to globalization that combines market opening, capacity-building  and full participation. In light of the broadening and deepening  of regional and global economic integration, Ministers noted  that the four messages presented by the ABAC Report contribute  to the APEC process in the new century. Ministers recognized  that regular consultation with business, including SMEs, would  ensure that APEC work remains focused and has practical usefulness  for business. Ministers also noted the importance of the BizAPEC  website for APEC's engagement and communication with business.

Youth

66. Ministers commended China and Canada for their initiative  in organizing the highly successful APEC Youth Festival/Young  Leaders and Entrepreneurs Forum, welcomed in particular the  complementarity between this event and APEC work in connection  with engagement with the private sector, the new economy and  human capacity building, and encouraged that complementarity  with the APEC agenda be a key characteristic of future APEC  projects aimed at young people.

67. Ministers commended Mexico's offer to organize the 2002  APEC Youth Festival.

Framework for Integration of Women

68. Ministers commended Ad-hoc Group on Gender Integration  (AGGI)'s achievements over the past two years and endorsed SOM's  report on the Implementation of the Framework for the Integration  of Women in APEC. They endorsed SOM's recommendations including  the extension of AGGI's term to the end of 2002 in order to  enable it to complete its work.

69. Ministers emphasized the importance of and their commitment  to the involvement of women in the activities of APEC. They  instructed officials and APEC fora to continue to ensure that  women are involved in and benefit from their work. Ministers  tasked officials to complete the development of monitoring mechanisms  to ensure the sustainability of gender mainstreaming initiatives  in APEC.

70. Ministers welcomed Mexico's offer to host the Second  Ministerial Meeting on Women in 2002, and urged members to ensure  full participation in the lead up to and during the meeting.  Ministers took note of the proposed research project on fostering  SMEs and micro-businesses through IT capacity-building for women.

Communications and Outreach Strategy

71. The movement towards global integration presented the  greatest opportunity to deliver higher living standards and  improved social well-being for APEC communities. Ministers reaffirmed  that the benefits of globalization should be shared by and be  better communicated to APEC communities. In this regard, Ministers  welcomed the report on "Globalisation and Poverty: Turning the  Corner". Ministers also noted that ABAC has expressed its intentions  to improve its outreach and encouraged continuous efforts in  fostering productive partnership and cooperation with the private  sector.

72. In this regard, Ministers accepted the SOM Report on  APEC Interaction and on Public Outreach and Communications,  reinforcing the importance for APEC of ensuring appropriate  community engagement and input in its work, and endorsed the  APEC Communications and Outreach Strategy. In this connection,  they welcomed commitments by economies to provide resources  to support APEC-wide work in outreach, as well as to encourage  domestic programs that explain APEC's work and the benefits  of open markets. Ministers further instructed relevant APEC  fora to identify and invite the participation of outside groups  that can make a contribution to their work. Ministers also directed  Senior Officials to make further progress in examining the possibility  of simplifying the management and administration of the guidelines  on non-member participation within the existing policy principles  and report the result next year.

Management Issues

2002 Budget

73. Ministers endorsed the SOM Chair's report on budget  and management issues and approved the contributions from member  economies for 2002 to the APEC Central Fund totaling US$3,338,000  and the 2002 budget totaling US$8,576,395.

74. Ministers further instructed Senior Officials to continue  their work in improving efficiency and effective use of time  in all APEC fora, particularly by undertaking further work in  the area of reporting requirements and project-related procedures,  as well as clarifying a standard expectation of Secretariat  support for APEC fora, and to report to the next Ministerial  meeting on the progress made.

APEC Secretariat

75. Ministers took note and welcomed the report of the Executive  Director of the APEC Secretariat, and expressed their appreciation  to Amb. Zhang Yan and the staff of the Secretariat for their  devotion and contribution to the APEC process. Ministers also  thanked the Singapore government for its generosity in constructing  a new office building for the Secretariat to be ready in 2002.

Other Issues

Statement by Observers

76. Ministers took note of the statements by ASEAN Secretariat,  PECC and PIF.

APEC 2002

77. Ministers thanked Mexico for the briefing on preparations  for the Fourteenth APEC Ministerial Meeting and the Tenth APEC  Economic Leaders' Meeting in Los Cabos, Mexico. The preliminary  list of priority issues embodies, inter alia:

---- Growth policies for the new economy, including appropriate  trade and investment, macro-economic, financial and business  facilitation policies;

---- Building capacities to reap the benefits  of economic development including the promotion of SMEs and  micro-enterprises;

---- Making APEC a more relevant forum to our  people, including fostering greater participation of youth and  women, stepping up our efforts in communicating the benefits  of globalization and the improvement of the functioning of APEC.

The overall framework is to implement our shared vision  of expanding the benefits of economic growth and development.

Future Meetings

78. Ministers noted the 2003 to 2005 Ministerial Meetings  will be held in Thailand, Chile and the Republic of Korea respectively.