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Volume 3, Issue 1
April 2010
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Greetings,
We hope that you find this issue of APEC Insights useful and
informative. As always we welcome your thoughts and comments.
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Leadership Corner
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It has been a pleasure for me to serve and represent
American business interests in APEC first as NCAPEC Chairman in 2007, and then as a U.S. ABAC member from September 2007
through 2009. My work with APEC and ABAC has given me a profound understanding
of the importance of both institutions. In addition, I have come to appreciate the work that NCAPEC has done
facilitating U.S.
private sector engagement in the APEC process, elevating issues of concern to senior
levels of APEC member governments, and working hard to identify potential
solutions. With APEC economies leading the way, the global economy is
recovering from its worst downturn since the Great Depression. I can tell you that, having returned to Europe, the pace of economic activity here is in stark
contrast to many of the economies of APEC, and the switch of economic power is
evident. APEC members have worked on
their own and together to help stimulate economic growth while ensuring that
the recession did not lead to a depression. I firmly believe that APEC and ABAC must continue to reinforce the view
that a robust trading climate and policies that enable innovation and
entrepreneurship are essential to sustaining a healthy global economy. In parallel, we need continued vigilance against
protectionism as well as strong business support for the Free Trade Area of
Asia Pacific (FTAAP) and one of its potential building blocks, the
Trans-Pacific Partnership. Other issues
related to trade at the border, behind the border, and across the border also remain
as relevant today as ever. APEC has made significant progress. However, its ultimate achievement will come
when it meets the goals it set for itself in 1994 - namely the Bogor
Goals. They include the achievement of
free and open trade and investment in Asia Pacific no later than 2010 for
industrialized economies and no later than 2020 for developing economies. There is still a lot more work to do. At the last APEC Leaders Summit in Singapore, a common message from the U.S. business community to the U.S. government was that the private sector
needed the strong engagement of the U.S.
in APEC and in the Pacific Rim in
general. As the host of APEC 2011, the U.S. is in an
excellent position to demonstrate strong leadership and continue APEC's
progress toward meeting the Bogor Goals. At the same time, the U.S.
private sector has a prime opportunity to become engaged more than ever before.
I would like to thank APEC, NCAPEC, ABAC, and their members,
as well as the representatives from the U.S. government for your support
and for making my time with APEC so rewarding. U.S. ABAC is in good hands under Deb Henretta and Peter Scher. Please continue your strong support of them
and I encourage you all to continue playing an active role and raising your
issues with NCAPEC and ABAC members. Nick Reilly President General Motors Europe |
Countdown to 2011
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In November 2011 when President Obama hosts
APEC leaders in Honolulu, it will be the
culmination of four years of determined work stemming from the 2007 Australia
APEC Leaders Meeting, when the United
States first announced it would host
APEC. The U.S. year starts in earnest immediately
after the Yokohama APEC meetings this November, with the first informal meeting of Senior Officials slated for December. This meeting will
identify key objectives and set the tone for the year. Through strong leadership, the
United States has the
opportunity to project a vision that can set APEC - and the United States -
on an ambitious path toward an economically integrated Asia-Pacific. Ever since
the U.S.
announced it would host APEC 2011, both the U.S. government and the private
sector have been developing long-range initiatives within a broad spectrum of
APEC work streams. Private sector
committees and working groups coordinated by the National Center
have been laying out strategic frameworks. They have also been setting objectives for APEC action in energy
security, trade facilitation, food security, information and communications
technology, life sciences, health innovation, and digital
prosperity. The U.S. Government, U.S.
ABAC members, and National Center members have been working intensely to
position issues, build support from key economies, and coordinate closely with
the previous APEC chairs from
Singapore, and Japan to
build a robust agenda for the U.S.
year. The private sector led APEC
2011 USA Host Committee has been launched, and already a number of
companies have committed their support. Craig Mundie of Microsoft and Michael Ducker
of FedEx - both veterans of many APEC summits - will serve as chair and
vice-chair, respectively, of APEC 2011 USA. The Committee will be charged with organizing, coordinating, and
conducting meaningful private sector activities to be held in conjunction with
APEC meetings in the United States throughout 2011. In addition to organizing and conducting the
CEO Summit in November, the Committee will also organize and support
complementary business activities with the Senior Officials' meetings, as well
as Ministerial meetings. It will also undertake an extensive outreach effort to
entrepreneurs, small businesses, and the policy/academic community
throughout the United States. On April 16, the
Steering Committee of the APEC 2011 USA Host Committee will meet for the
first
time. The U.S.
Government has begun to name the host cities for 2011 APEC meetings including Big Sky, Montana for the Meeting of Ministers Responsible for Trade; Honolulu, Hawaii for the Leaders
Meeting;
and Washington, D.C. for the first Senior Officials meeting. National Center President Monica Whaley recently returned from Honolulu after attending an APEC Honolulu Host Committee
launch with veteran Senator Daniel K. Inouye. Left to Right: U.S. Senior Official to APEC Amb. Kurt Tong, Bank of Hawaii CEO & President Peter Ho, Senator Daniel K. Inouye, and Governor Linda Lingle attended the Honolulu Host Committee Launch last week.
| The APEC 2011 USA Host Committee will be working closely with the Honolulu Host Committee on local issues in advance of the Leaders Meeting in November. The National Center will be co-sponsoring an APEC policy discussion with the Mansfield Foundation later
this month, as well as co-hosting a major APEC address by Deputy USTR Demetrios Marantis in May. APEC 2011 at a glance:
December
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Informal Senior
Officials' Retreat
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Honolulu, HI
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January
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NCAPEC 2011 Executive Roundtable
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TBD
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February
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SOM I
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Washington, DC
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ABAC I
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Beijing, China (tentative)
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May
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ABAC II
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Seoul, South Korea
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SOM II
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Big Sky, MT
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Meeting of Ministers Responsible for Trade
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Big Sky, MT
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Meeting of Ministers Responsible for SMEs
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Big Sky MT
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August
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ABAC III
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TBD
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September
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SOM III (tentative)
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TBD
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Meeting of Ministers Responsible for Energy and Transportation (tentative)
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TBD
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APEC Clean Energy Transport Symposium (tentative)
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TBD
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Digital Prosperity Summit
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TBD
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Health Innovation Summit
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TBD
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APEC Life Sciences Innovation Forum
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TBD
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November
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APEC Concluding
Senior Officials Meeting
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Honolulu, HI
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APEC Joint Ministerial
Meeting
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Honolulu, HI
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Concluding ABAC
Meeting
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Honolulu, HI
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APEC CEO Summit
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Honolulu, HI
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APEC Leaders
Dialogue with ABAC
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Honolulu, HI
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APEC Economic
Leaders Meeting
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Honolulu, HI
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Why APEC is Important to America
| Click the image to watch the interview (Courtesy of the U.S. State Department) | | Ambassador Kurt Tong, Senior U.S. Official to APEC, recently spoke on the importance of APEC to America. Ambassador Tong discussed the role of APEC in global economic recovery, the themes that will be addressed in the Japan 2010 year, and the priorities that are being developed for the U.S. hosting of APEC in 2011.
Click here to read the transcript. |
Eight APEC Economies Conclude First Round of TPP Negotiations
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than 200 delegates from the United States,
Australia, Brunei
Darussalam, Chile, New Zealand, Peru,
Singapore, and Vietnam convened in Melbourne, Australia
from March 15 - 19 to commence negotiations on the Trans Pacific
Partnership
(TPP). Negotiators considered
possible approaches to further open markets between TPP members, expand
trade,
and support good jobs. Delegates had robust discussions on how to design
the
agreement so that it promotes regional integration, regulatory
coherence,
transparency, competitiveness, and development. Delegates also discussed
ways to encourage the
participation of small- and medium-sized businesses in trade and advance
other
key issues, such as labor and the environment.
| Delegates
from eight APEC economies (including Australian delegates seen here
during the opening plenary) attended the first round of TPP
negotiations. | On the negotiations, USTR Ron Kirk described the TPP as, "...a unique opportunity to shape a
high-standard, broad based regional pact. In line with the President's goal of
supporting two million additional American jobs through exports, a robust TPP
agreement would expand our exports to one of the world's fastest-growing
regions." While the TPP is not specifically an APEC initiative, APEC should be credited for laying the groundwork for such discussions through its strong commitment to open and free trade in the Asia Pacific. The second
round of negotiations is scheduled to take place from June 14 - 18 in the United States.
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APEC Japan 2010: In Search of a New Vision
| NCAPEC
President Monica Hardy Whaley moderated a luncheon discussion at the
Japan Society inNew York on March 15 entitled, "APEC Japan 2010: In
Search of a New Vision."
Left to Right: U.S. Senior
Official for APEC Ambassador Kurt Tong, APEC 2010 SOM Chair Ambassador
Shigeru Nakamura of Japan, and NCAPEC President Monica Whaley. (Ken
Levinson photo) | |
APEC 2010 SOM Chair Amb. Shigeru Nakamura of Japan and U.S. Senior
Official for APEC Ambassador Kurt Tong, joined in discussions on principal
themes for APEC Japan 2010 such as: increasing regional economic integration, promoting
balanced, inclusive and sustainable economic growth, as well as furthering emphasis on
human security issues to protect societies against a multitude of threat.
A full summary of the event will be available in the coming weeks.
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APEC Tariff Database
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The National
Center for APEC, along
with the U.S. ASEAN Business Council and U.S. Council for International
Business, is finalizing a proposal to launch an APEC-wide customs and tariff
database. Businesses based in the APEC region have expressed
interest in a
robust trade database that would be fully searchable based on Harmonized System
classification numbers. A pilot demonstration is slated for spring/ summer
2010. In preparation for the launch of a
pilot phase, the National
Center has been
collecting input and comments from interested stakeholders.
We invite interested companies and trade associations to contact the National Center for additional details.
Further Resources:
Enhancing Customs Transparency in APEC: Next Generation APEC Tariff Database
The Next Generation Interactive APEC Tariff Database - A tool for SMEs
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Supply Chain Connectivity Framework
| On March 10th, the National
Center held a post-SOM trade
facilitation briefing with Ms. Arrow
Augerot, Deputy Assistant USTR for
APEC, during which the National
Center was able to summarize and comment on key highlights and outcomes
from the
APEC and ABAC Meetings. One of the key
documents discussed during the briefing was the APEC Supply Chain
Connectivity Framework, which focuses on the eight identifiable supply
chain choke points that APEC economies are working on alleviating. Since
the briefing, the National Center has been compiling private sector
input on
specific actions business would like to see APEC
economies implement under each choke point. NCAPEC has also solicited
input
from ABAC economy secretariats on what issues they would like
addressed. The input collected will be shared with the Committee
on Trade and Investment (CTI) in the coming weeks for the
purpose of sharing the private sector perspective on the choke
points. Please contact
the National Center for additional details.
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ABAC Update
| U.S. ABAC member Deb Henretta converses with Alex Parle, NCAPEC Vice President, ABAC Relations, during the Melbourne meeting. | ABAC
members gathered in Melbourne,
Australia from
February 9 - 12 for their first meeting of 2010. ABAC members
were joined by 15 APEC Senior Officials or their representatives,
forming a dialogue
to exchange views on the APEC 2010 priorities.
U.S. ABAC member Deb Henretta
of Procter & Gamble, Chair of the Facilitation Working Group,
represented the
interests of the U.S.
private sector at the meeting along with representatives from fellow ABAC member JPMorgan
Chase
& Co. and NCAPEC staff. During
the meeting, ABAC Chair Gempachiro Aihara of Mitsui and Co., Ltd. presented the themes for ABAC 2010,
and ABAC Working Group Chairs presented their respective work plans for the
upcoming year, laying the groundwork for the Council's key messages and
recommendations to APEC Leaders. The
APEC 2010 SOM Chairs also elaborated on the APEC 2010 priorities. APEC 2010
seeks to create a new vision for APEC with three pillars: regional economic
integration, new growth strategy, and human security. ABAC members and APEC
Senior Officials discussed at length the subject of "APEC Growth Strategy"
which included such elements as balanced growth, inclusive growth, sustainable
growth and knowledge-based growth. . Delegates attend the Facilitation Working Group meeting, chaired by U.S. ABAC member Deb Henretta.
| ABAC
members continued discussions on the Trans Pacific Partnership (TPP), whose APEC economies are home to 470 million people and account for a
combined gross domestic product of more than US$16 trillion. ABAC
Chair Aihara noted that, "To realize long term growth there is no substitute
for expanding trade and investment. Making concrete progress towards the Free
Trade Area of the Asia Pacific therefore is a major step in that
direction." U.S. ABAC member Deb
Henretta reaffirmed U.S.
business support for the initiative as a means to promote US engagement in Asia.
She noted however that U.S.
companies are still waiting for the scope and modalities of the TPP to be more clearly articulated. The first round of negotiations for the TPP
was held in Melbourne during the week of 15 March, ( see related article)
with the second round scheduled to take place from June 14-18 in the United
States. Prior to ABAC II in Taipei, U.S. ABAC members will be meeting with senior U.S. officials in Washington D.C. The meetings will provide an opportunity to share U.S. private and public sector priorities in APEC and the region, as well as identify areas of collaboration through 2011. ABAC members will then reconvene in Taipei from May 18 - 21 for the second ABAC
meeting of the year. The two
major deliverables for ABAC II in Taipei
will be finalizing and endorsing the ABAC Letter to APEC Ministers Responsible
for Trade (MRT), and the ABAC Letter to APEC Energy Ministers. The former will be presented at the Meeting
of APEC Ministers Responsible for Trade (5-6 June, Sapporo,
Japan), and the latter will
be presented at the APEC Energy Ministerial Meeting (19-20 June, Fukui City, Japan). Through upcoming meetings, U.S. ABAC members
will also be working closely with their Singaporean and Japanese counterparts to
incorporate lessons learned and continue to prepare for ABAC in
2011. |
SOM I Outbrief | Ms. Wendy Cutler, Assistant USTR for Japan, Korea, and APEC at the SOM I retreat on February 22. |
The first meeting of APEC Senior Officials, SOM I, was held
21-22 February in Hiroshima,
Japan. The main elements of discussion were the
three key areas identified as priorities for APEC in 2010 - regional economic
integration (REI), a proposed new growth strategy for the region, and human security. U.S. APEC Senior Official Kurt Tong and
Assistant USTR Wendy Cutler highlighted some key developments of these meetings during a debrief held in Washington, D.C. in late March, which was organized by the National
Center on behalf of the
U.S. APEC Business Coalition. Ambassador Tong noted that the Hiroshima meetings
focused on following up to APEC's 2009 work on the application of the World Banks'
'Ease of Doing Business Indicators' in an APEC context. The U.S. has lead agency within APEC for work
on the 'starting a business' indicator - other APEC economies have come forward
to work on various other indicators and to seek assistance in advancing the
project, as was hoped.
Senior Official to APEC Ambassador Kurt Tong at SOM Ecotech meeting February 23. | On the issue of food security, Ambassador Tong noted that Japan will host
a Meeting of Ministers Responsible for Food Security, which should result in a clear statement of APEC commitment to priorities of work
including improving productivity, trade, investment, and reliable access to food
in APEC. It is also hoped this will lead
to creation of some form of public-private partnership as a followup mechanism
to ensure implementation of food security commitments. Assistant USTR Cutler noted that trade-related work at Hiroshima and through
2010 to date has focused on regional economic integration, building off of
APEC's work last year in this regard on services. It is expected that much of this year's work
will focus on investment issues and include work on capacity building, as well as the establishment of shared principles. The U.S.
also anticipates increased emphasis on work in the area of trade in
environmental goods and services, with priorities on identifying and addressing existing or potential non-tariff measures that would impact trade in this area.
Given the ambitious agenda and large amount of work to be
done in 2010, APEC Senior Officials have agreed to meet intercessionally in late
April for "SOM 1.5" to sustain momentum on 2010 work efforts and ensure
successful results by November's Leaders Meeting. Officials will meet again for SOM II in Sapporo in late May and
early June, followed by the annual meeting of APEC's Ministers Responsible for
Trade (MRT) June 5-6.
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IPEG - Private Sector Dialogue | Dr. Francis Gurry (second from left) delivered the opening remarks during the private sector dialogue with APEC's Intellectual Property Rights Experts' Group on March 4. |
The National
Center, through its role
as Secretariat to the U.S. ABAC Members,
led the organization of a private sector dialogue with APEC's Intellectual
Property Rights Experts' Group on March 4. The event was held in Hiroshima, Japan
as part of a series of APEC meetings held after the first Senior Officials'
Meeting of 2010. The Dialogue was opened by World Intellectual Property
Organization (WIPO) Director General Dr. Francis Gurry, who spoke on three
current issues and trends in intellectual property: -
Demand management: there is currently a backlog
of 3.5 million unprocessed patents around the world. With global R&D investment around the
world topping $1.1 trillion annually (3% of global economic output) the
situation is not likely to improve. He suggested that widespread systems for work
sharing are needed to manage the increasing demands on patent offices.
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Broadened scope of WIPO discussions: after a
patent has been granted, Dr.Gurry mentioned the need to address issues such as
valuation and securitization of IP. He also highlighted the intersection between IP as well as science
in the fields of health and environment.
- Platforms: platforms are important vehicles for international cooperation. You Tube and Twitter have
triggered behavioral transformations that could not likely be achieved with a
treaty. The membership of APEC, with both developed and developing economies,
comprised a unique cross-section of WIPO's overall membership making it an
excellent forum for discussion of IP issues.
Dr. Gurry's remarks were followed by two panel sessions with
both government and private sector speakers. The first panel focused on patent
cooperation, including a presentation identifying the benefits that cooperation
among patent offices brings to users, examples of cooperative efforts, and work-sharing
and harmonization. Widely used documentation such as Common Application Format, Common
Citation Document, and Patent Prosecution Highway were cited as examples of
ways to reduce costs.
The second panel session focused on enforcement of
IP at the border, including a presentation that highlighted the importance of
border enforcement in light of the highly organized manner in which counterfeit
and pirated goods are distributed. Proposals
included the establishment of a global corporation framework to help active
engagement against counterfeit and piracy in a coordinated matter, information
sharing among customs agencies, as well as sharing between industry and customs
agencies.
The outcomes of the dialogue will be used to inform ABAC's
recommendations to Leaders and Ministers in 2010. APEC officials found the
first-ever dialogue with the private sector to be a valuable event and have
asked that a similar dialogue on emerging IP issues be held again in the near
future.
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Competition Policy Dialogue
| The National
Center for APEC, in
cooperation with the U.S. Chamber's Global Regulatory Cooperation
project, organized
a dialogue with APEC's Competition Policy and Law Group on procedural
fairness
in competition policy regimes on February 28 in Hiroshima, Japan.
The dialogue was held as part of an
ABAC-endorsed initiative to raise awareness of the importance of
procedural
fairness as an increasing number of economies in the region are
establishing
competition policy regimes and taking first steps toward implementation. The
event began with a presentation on steps the OECD has
recently taken to address the issue. This was followed by three sessions
featuring panelists from the public and private sectors on procedural
fairness
in merger cases, the investigation and inquiry phases, as well as the
deliberation and
determination phases. In the closing summary, private sector
representatives
encouraged APEC officials to develop and adopt guidelines or best
practices for
procedural fairness. The event proved to be an effective means to
introduce
procedural fairness concepts and share best practices with APEC
officials, many
of whom are involved in establishing and shaping competition policy
regimes in
their respective economies.
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2010 Calendar of Events
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January
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14
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State Department CEO
Roundtable
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Washington, DC
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19 - 20
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NCAPEC Executive Roundtable
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Half Moon Bay, CA
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February
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9 - 12
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ABAC I
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Melbourne, Australia
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22 Feb - 7 Mar
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Senior Official Meeting (SOM1), Related Meetings
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Hiroshima, Japan
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March
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5-6
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30th Meeting of Intellectual Property Experts Group
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Hiroshima, Japan
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April
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TBA
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36th Tourism Working Group
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Lombok Island, Indonesia
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May
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18 - 21
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ABAC II
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Taipei, Rep. of China
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24 May-4 June
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Senior Official Meeting (SOM2), Related Meetings
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Sapporo, Japan
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June
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5 - 6
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Meeting of Ministers Responsible for Trade
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Sapporo, Japan
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19 - 20
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Energy Ministerial Meeting
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Sapporo, Japan
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July
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August
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7 - 8
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Economic Committee High Level Policy Roundtable
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Beppu, Japan
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24 - 27
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ABAC III
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Bangkok, Thailand
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September
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1-2
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NCAPEC Board Retreat
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Seattle, WA
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TBA
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3rd APEC Oceans-Related Ministerial Meeting
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Paracas, Peru
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15 - 26
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Senior Official Meeting (SOM3), Related Meetings
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Sendai, Japan
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October
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2 - 3
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SME Ministerial Meeting
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Gifu, Japan
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16 - 17
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Agricultural Ministerial Meeting
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Niigata, Japan
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30 - 31
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Ministerial Meeting on Telecommunications and Information Industry
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Nago, Japan
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November
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6
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Finance Ministers' Meeting
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Kyoto, Japan
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7 - 8
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Concluding SOM (CSOM)
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Yokohama, Japan
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10 - 11
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22nd APEC Ministerial Meeting
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Yokohama, Japan
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12 - 13
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CEO Summit
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Yokohama, Japan
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13 - 14
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18th APEC Economic Leaders' Meeting
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Yokohama, Japan
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The U.S. National Center
for Asia-Pacific Economic Cooperation (NCAPEC) is the only U.S. business
association focused exclusively on facilitating American private sector input to
the APEC process. NCAPEC serves as the official coordinator of business
activities for the 2011 APEC Meetings. National Center membership is limited to
U.S. corporations. The National Center also functions as a conduit for U.S.
businesses into APEC by serving as the Secretariat for the three U.S. executives
who are appointed members of the APEC Business Advisory Council. Learn more.
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