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Transcripts from the Prime Ministers of Australia

Transcript 9419


Photo of Keating, Paul

Keating, Paul

Period of Service: 20/12/1991 to 11/03/1996

More information about Keating, Paul on The National Archive website.

Release Date: 15/11/1994

Release Type: Media Release

Transcript ID: 9419

The Bogor declaration charts an extraordinary new path for the region towards
extraordinary new goals.
The economies of the region have committed themselves to achieve free and open
trade and investment no later than the year 2020. The commitment is to free trade in
goods and services; the path there is removal of tariffs and non-tariff barriers. Just as
important is the commitment to remove obstacles to doing business in the region by
harmonising and simplifying customs procedures, standards, and regulatory
structures. The significance of this commnitmnent is enormous. It is stronger than that made by
parties to the GATT or by G7 countries.
The benefits for Australia will be huge. And our economy and businesses are
increasingly set up to reap these benefits.
By 2020, APEC will include seven of the ten largest economies in the world. The
declaration commits advanced economies such as Japan to bring down their barriers
to trade by 20 10. It engages the United States in a process of liberalisation in
cooperation with the rest of the region. It commits developing economies such as
China to have fully opened their markets by 2020. Australia's trade ties with the
region are sinews in an economic body which will grow faster than any other in the
world. The commitment is to achieve free trade nolt than these dates. Leaders have asked
ministers to begin immediately preparing proposals to implement the decision. At our
next meeting in Osaka I hope we will be able to agree on a comprehensive action plan
for achieving the free trade goal.
Of course, many difficult issues will need to be negotiated. But we are building on
directions which APEC economies have already chosen. For example, as a result of
its own deregulation programs, average tariffs in Indonesia have already fallen from
per cent to 20 per cent and are continuing to fall. In Korea, they've fallen from 32
per cent to 10 per cent. And I am confident that, because moving together multiplies
the benefits, many member economies will liberalise even faster.

We estimate that the Uruguay Round outcome will increase annual real income in
APEC economies by $ 112 billion. We will do even better from APEC free trade,
over three times the Uruguay Round result.
It is no accident also that pressure is coming from Asia for further global trade
liberalisation. The fact that President Soeharto, the leader of one of the world's largest
developing countries, has taken the initiative is a sign of the fundamental
transformations which are taking place in the world economy.
I want to record my esteem for the leadership President Soeharto has shown the
region in preparing the Bogor declaration. I also want to recognise the vision and
courage I should say that has been shown by the other APEC leaders. Many have
had to make difficult decisions and overlook short-term considerations for a greater
long-term good.
It is also no accident that the lead has been taken by APEC, which has shown how
economic diversity can be a strength. The future of the world's economy is going to
depend in no small part on the capacity of the industrialised economies and
developing economies to integrate in a way which promotes growth and encourages
The commitments made by the APEC economies will see new streams of technology
and capital flowing to the developing economies of APEC. We will all benefit.
These will be flows driven by ineluctable economic forces, rather than trickles from
Government-directed aid programs.
The undertakings in the declaration will mean that barriers will be reduced not only
within APEC but also between APEC economies and the rest of the world. Free trade
in APEC will be reached in a way which will be consistent with the GATT, will
strengthen the multilateral trading system and will promote further trade liberalisation
in the world economy.
APEC members have committed themselves not only to carry out their Uruguay
Round obligations and support the WTO but to achieve them earlier and to go beyond
them. We have invited other countries to respond.
I hope that the agreement to a standstill that is, not to increase existing levels of
protection will be respected by APEC members and so become a clear signal to our
business communities about the seriousness of our commitments.
All this is of enormous significance to Australia and Australians.
We are entering a new epoch as a result of the strategic shifts that will occur in this
region during the next 25 years. The process of liberalisation and economic
integration that the Bogor declaration will encourage is an important insurance of
security and stability as we cope with these shifts. Through their informal meetings,
the region' s leaders can help ensure the process of economic integration stays on

f 3
For Australian business, the Bogor commitments hold the prospect of vastly improved
access for their products and services to the fastest growing markets in the world. The
day-to-day task of doing business will be easier. Our business people cannot expect
good results automatically. But the structure is being put in place which will allow
Australian business to plan on the basis of access over the next 25 years to an
increasingly large and integrated regional market.
The importance of this can be seen from the fact that in the past four years our
merchandise exports to APEC grew at more than 9 per cent per annum, more than
twice the rate of growth of our global exports. Manufactures accounted for over
per cent of our exports to APEC. And APEC takes two-thirds of Australia's services
exports. And Australia's growing trade links with APEC will make Australia more attractive to
investors from the rest of the world.
What does Bogor mean for Australians? It means a more prosperous economy. It
means a better lifestyle. It means not only more employment opportunities but also
more interesting ones. It means wider horizons for our young people and more scope
for them to exercise their skills as they learn the languages of a wider family and
become part of it. Not only business and industry will be challenged, but also
education and culture.
The Bogor declaration will help ensure that Australia, this generation of Australians
and its successors have a dynamic role in their own region.
JAKARTA November 1994

Bogor, Indonesia 1
November 15, 1994
We. the economic leaders -of APEC, came together in. Bogor, Indonesia
today to chuxt the future course of our economic cooperation which will
enhance the pro specis of an accelerated, balanced and equitable economic
growth not only In the Asia Pacific region but throughout the world
as well.
2. A year ago on Blake bsland in Seattle, USA, we recognized that our
diverse economies are becoming more interdependent and are maoving
toward a community of Asia Pacific economiles. We have issued
a vision. statement in which we pl edged:
-to find cooperative, -solutions to the challenges of our rapidly
changing regional and global economy',
to 6upport -an expanding world economy and an open multiateral
trading system;
-to continue to reduce baffiers to trade and In-vestment to enable
goods, services and capital to flow freely among our econies;

to ensure that our pcople share the benefits of economic growthi,
improve education and training, link our economies through advances
in telecmmunication and transportattion, nd use our resourcou
su~ tainubly.
3. We set our vision for the, community of Asia Pacific economies bmasd
on a recognition of the growing interdependence of our economnically
diverse region, which comprises developed, newly industrializing and
developing economies. The Asia Pacific -Industrialized economies will
provide opportunities for devoloping economies to increase further
their economic growth and their level of development. At the. same time
developing. economies will strive to maintain high growth rates with
the. aim of attaining the level of prosperity now enjoyed by the newly
industrializing economies. The approach will be coherent and
comprehensive, embracing the three pillars of sustanable growth,
equitable development and national stability. Thbe narrowing-gap in the
stages of development. among the Asia Pacific economies wHi benefit
all. me mbers and promote the attainment of Asia Pacific economic
p~ rogress. as a whole.
4. As we -approach the twenty-first century, APEC needs to reinforce
economic cooperation in the " sa Pacific region on the basis of equal
partnership, shared responsibility, mutual respect, common interest,
and common benefit, with the objective of APEC leading the way in:
strengthening the open multilateral trading system;
enhancing trade and investment liberalization in Asia Pacific; and
intensifying Asia Pacific development cooperation.

the foundation of our market-diven economio growth has beeon
the open multilateral trading system, it Is -fitting that APEC builds on
the momentum generated by. the-outcome of t Uruguay Round of
-Multilateral Trade Negotiations and takes the lead in strengthening the
open multilateral trading system.
We are planed to. note the significat. contribution APEC made in
briuiging about a successful conclusion of the Uruguay Round. We
agree to caMr out our. Uruguay Round commitments fully and without
delay and call on all participants in the Uruguay Round to do the -same.
To strengthen the open multilateral trading system we decide to
accelerate tie implemnentation of our Uruguay Round commitmntsi
and to undertake* work # Ined. at deepening und broadening tie out
comec of-the Uruguay Round. We also agree to commit ourselves to our
continuing process of unilateral trade And investment llberallzadon.
As evidence of our commitment to thie open multilateral trading system
we further agree to a standstill under which we will endeavour to refrain
from using measures which would have tile effcct of increasing levels
of protection.
We call for the successfuil launching of the World Trade OrganIzation
( WTO). Full and active participation In and support of the WTO by all
ecnomies Is key to our ablity to lead the way in strengthening
the multilateral trading system. We. call on all non-APEC members
of the V/ TO to work together with APEC economies toward further
multilateral liberalization.

4. CI
64With respect to our Objective of enhancing trade and investment in
Asda Pacific, We asre to adopt tho long-term goal of free and open trade
and Invostment, in Asia Pacific. This goal will We pursued promptly by
further reducing barrics to trade. and investment and by promoting
the ftee flow of -goods, services and capital amnong our economies. We
will achieve this goal in a OAIT-consistent manner and believe. our
actions will be a powerful Impetus for further liberalization at the
multilateral level to which we remain fuly-committed.
We further agree to announce our commitment to complete the achievemerit
of our goal of free and open trade and investmnent in Asia Pacific no
later than fth year 2020. The pace of implementation will take Into
account the differing levels of economic development amnong APEC
economies, with the industriilized ecnomies achieving the goal of free
and open trade and Investment -no litter tihan the year 20 10 and developing
economics no later d= a the yea 2020.
We wish to emphasize our strong opposition to the creation of an
inward-looking trading bloc that would divert from the pursuit of
global free trade. Wo are-detetmined to-pursue free and open trade and
Investment in Asia Pacific In a manner that will encourage and strengthen
trade and investment liberalization In the world as a whole. Thbus,
the outcome of trade and investment liberalization in Asia PacifIc will
not only-be the actual reduction of barriers among APEC economies but
also between APEC economies and nion-APEC economies. In this
respect we will -give particular ailcotion to our trade with non-APEC
developing countries to ensure that they will also benefit, fromn ouir
trade and investment liberaLzation, in conformity with GATTIWTO

7. To complement and support this substantial process of liberallsaeioa,
we decide to expand and accelerate APEC'a trade and Investment
facil itation programs. This will promote further the flow of goods, services
and capital amons APEC economies by eliminating administrative
and other impediments to trade. and investment.
We emphasi:. the importance of trade facilitation because trade
liberalization efforts alone arm Insufficient to generate trade expansion.
Efforts at facilitating trade -are important if the benefits of trade arc
to -be truly enjoyed by both business and consumers. Trade facilitation
has also a pertinent role in fuirthering our goal of achieving the fullest
Uiberalizadon within tho global~ context.
In paricular we ask our ministers and officials to submilt proposalsS On
APEC arrangements on customs, standards, Investment principles and
administrative barriers to market access.
To facilitate -regionial Investment flows and to strengthen APEC's
dialogue on economic policy issues, we agree to continue the valuable
consultations on economic growth strategies, regional capital flows
and, other macro-economic -issues.
8. O~ ur objective to intensify development cooperation among the community
of Asia Pacific, economies will enable us to develop more effec
tively the human and natural resources of the Asia Pacific region so
as to attain sustainable growth'and equitable development of APEC
economies, while reduicing economic disparities among them, and
improving the economic and social well-being of -our peoples. Such
efforts will Also facilitate, -the growth of trade and investment In the,
Asia Pacific region.

Cooperative programs in this area cover expanded hunian resource
devalupmout ( such as education and training and especially improving
manasemcnt and technical sklils), the development of AY'EC study
Centres, cooperation in scienci and tchnology ( including technology
transfer), measures aimed at promoting small and medium scae enter.
pises and steps to improve economic Infrastructure, such as energy,
transportation, information, telecommunications and tourism. Effective
cooperation wil also be developed on environmental issues. with the
aim of contributing to sustainable development.
Economic growth and development of the Asia Pacific region has
mainly been market-driven, based on the growing Interlinkages between
our business sectors in the region to support Asia Pacific economic
cooperation, Recognizing the role of the businiess sector in economic
development, we agre to Integrate the business sector in our programs
and to create an ongoing mechanism for that purpose.
9. In order to facilitate and accelerate our cooperation, we agree that
APEC economies that are ready to initiate, and implement a cooperative
arrangement may proceed to do so while those that axe not yet ready to
parficipatc may join at a later date,-
Trade and other economic disputes among APEC economnies have
negative implications for the implementation or agrced cooperative
arrangements as weU as for the spirit of cooperation. To assist in resolving
such disputes and In avoiding 1W recurrencc, we agree to examine the

possibility Of A Voluntary Consultative dispute mediation service, to
supplement the WTO dispute settlement mechanism, which should
continue to be the primary channel for. resolving disputes.
it]. Our Soul is an ambitious one. But we are determined to demonstrate
APECs leadership in fostering f~ jrter global trade and investment
liberalization. Our goal entails a multiple year effort We wil start our
concerted liberalization process from the very date of this statement.
We direct our minister$ and offcial to immediately begin preparing
detailed proposals for implementing our present decisions. The
proposals are to be submitted sQQoh to the APEC econom~ ic leaders for
their consideration and subsequent decisions. Such proposas should
also address all impediments to achieving our goal. We ask ministers
and officials to give serious consideration In their deliberations to the
important . recommendation contaned In the reports of the Eminent
Persons Croup and the Pacif~ c Business Forumn.
11. We express our appreciation for the importatit and thoughtful recommendations
contained in the reports of the, Unitiont Persons Groups and the
Pacdf& Business Forum. The reports will be used as valuable points of
reference in formulating policies in the cooperative framework of the
community of Asia Pacific economies. We-agree to ask the two groups
to continue with their activitles to provide the APEC economic leaders
with asmesments of te progress of APEC and -further recommendations
for * wpplng up our cooperation.

W -also ask the Eminent Persons Oroup and the Pacific B uiness Forum to
review the interreazonghps betwesn APEC and the existing sub-regional
anigimtitis ( AFrA, ANZERTA and NAFTA) and to examine possible
options to prevent obstacles to each other and to promote conslstency in
their relations. APEC Economic Leaders
Bogor, Indonesia
November 15, 1994

Transcript 9419