USATAARI_annual-report-2014.pdf

August 2015

This publication was produced by Nathan Associates Inc. for review by the United States Agency for International Development.

ANNUAL REPORT: NOVEMBER

1, 2013–DECEMBER 31, 2014

U.S.-APEC Technical Assistance to Advance Regional Integration (US-ATAARI)

ATAARI-15-082

ANNUAL REPORT: NOVEMBER

1, 2013–DECEMBER 31, 2014

U.S.-APEC Technical Assistance to Advance Regional Integration (US-ATAARI)

DISCLAIMER

This document is made possible by the support of the American people through the United States Agency for International Development (USAID). Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the United States government.

CONTENTS

Acronyms v

Executive Summary viii Key Achievements: November 01, 2013 – December 31, 2014 viii

1. Introduction 1

2. General Program Management 3

Start-Up Operations 3

Work Planning 4

3. Component I: Building Capacity for Regional Economic Integration 5

TRADE AND INVESTMENT LIBERALIZATION 5

BUSINESS FACILITATION 14

HUMAN SECURITY AND HUMAN DEVELOPMENT 16

4. Component II: Support for APEC’s Institutional Development 33

5. Conclusion 35

Annex A: Progress Summary 37

Annex B: Success Stories 39

Annex C: US-ATAARI Assistance to the GOB 42

Annex D: 2014 Outstanding Activities 43

ACRONYMS

A2C2 APEC Alliance for Supply Chain Connectivity AEPR APEC Economic Policy Report APEC Asia-Pacific Economic Cooperation ANSSR APEC New Strategy for Structural Reform ARCAM APEC Regulatory Cooperation Advancement Mechanism ASEAN Association of Southeast Asian Nations BIM Building Information Modeling BMC Budget and Management Committee CBNI Capacity‐Building Needs Initiative CD Chemical Dialogue CENComm Customs Enforcement Network Communication System CHNC Clearing House on New Chemicals CISR Critical Infrastructure Security Resilience COP Chief of Party CORE Community Open Respect Excellent CTI Committee on Trade and Investment CT/ST Strategy APEC Consolidated Counter-Terrorism and Secure Trade Strategy CTWG Counter-Terrorism Working Group DCOP Deputy Chief of Party DHS Department of Homeland Security (U.S.)

DOC Department of Commerce (U.S.)

DOE Department of Energy (U.S.)

DOS Department of State (U.S.)

DOT Department of Transportation (U.S.)

E3/TRR Economic Growth, Education, and Environment’s Office of Trade and Regulatory Reform (USAID) EAP/EP Office of Economic Policy (DOS) EC Economic Committee ECOTECH Economic and Technical Cooperation ED U.S. Department of Education ED Executive Director EGS environmental goods and services EV electric vehicle EoDB Ease of Doing Business EWG Energy Working Group FAO Food and Agriculture Organization FAS Foreign Agriculture Service FFSR fossil fuel subsidies reform FOTC Friends of the Chair

V I A N N U A L R E P O R T : N O V E M B E R 1 , 2 0 1 3 – D E C E M B E R 3 1 , 2 0 1 4

FSCF Food Safety Cooperation Forum FTA free trade agreement GMP good manufacturing practices GOB Government of Burma GRP good regulatory practices G-TRIP Global Trade Recovery Information Platform HLPDAB High Level Policy Dialogue for Agricultural Biotechnology HRDWG Human Resources Development Working Group ICT information and communications technology IP Intellectual Property IPEG Intellectual Property Experts Group IPR intellectual property rights ISAAA International Service for the Acquisition of Agri-biotech

Applications IT information technology KPI key performance indicator LSIF Life Sciences Innovation Forum M&E Monitoring and Evaluation MRL maximum residue limit MYP multi-year project NPS New Payment Systems OECD Organisation for Economic Co-operation and Development OSINERGMIN Peruvian Ministry of Economy and Finance, Energy and Mines

Regulator OTS Office for Transportation Security (Philippines) PAP pre-arrival processing PD Program Director PHL post-harvest loss PhRMA Pharmaceutical Research and Manufacturers of America PMU Project Management Unit PNG Papua New Guinea PO Project Overseer PPFS Policy Partnership on Food Security PPWE Policy Partnership on Women and the Economy PSC Public Safety Canada PSU Policy Support Unit PTIN Partnership Training Institute Network RDMA Regional Development Mission for Asia (USAID) RHSC Regulatory Harmonization Steering Committee REI regional economic integration SCE Steering Committee on Economic and Technical Cooperation SCFAP Supply Chain Connectivity Framework Action Plan SCSC Subcommittee on Standards and Conformance SOM Senior Officials’ Meeting SPOC Single Point of Contact

V I I

STEM science, technology, engineering, and math TA technical assistance TOR terms of reference TPM technological protection measures TPTWG Transportation Working Group TSA Transportation Security Administration (U.S.)

UNCITRAL United Nations Commission on International Trade Law USAID United States Agency for International Development US-ATAARI US-APEC Technical Assistance to Advance Regional Integration USDA U.S. Department of Agriculture USGBC United States Green Building Council USPTO United States Patent and Trademark Office USTR Office of the United States Trade Representative WCO World Customs Organization WE-APEC Women’s Entrepreneurs in APEC WEF Women’s Economic Forum WEN Wildlife Enforcement Network WHO World Health Organization WRF Wine Regulatory Forum WTO World Trade Organization

V I I I A N N U A L R E P O R T : N O V E M B E R 1 , 2 0 1 3 – D E C E M B E R 3 1 , 2 0 1 4

EXECUTIVE SUMMARY

The US-ATAARI team is pleased to present its first annual report covering project activities implemented November 1, 2013 – December 31, 2014 from the First and Second Annual Work Plans.

KEY ACHIEVEMENTS: NOVEMBER 01, 2013 – DECEMBER 31,

During its first year, US-ATAARI was able to quickly focus on the implementation of key deliverables that directly built capacity for developing member economies, while also enhancing APEC’s 2014 priorities of advancing regional economic integration, promoting innovative development, economic reform and growth and strengthening comprehensive connectivity and infrastructure development. Table 1 summarizes progress on key performance indicators (KPIs) from the draft US-ATAARI Monitoring and Evaluation (M&E) Plan during this period. Enabling US-ATAARI and United States Agency for International Development (USAID) staff to measure progress toward expected results, the KPIs generate the performance information necessary to guide adaptive management of the activity to ensure resources go where they have most positive impact.

Component I: Building Capacity for Regional Economic Integration Under component 1, US-ATAARI worked with more than 15 U.S. government agencies and offices to implement more than 40 activities on a range of technical areas. To develop longer term initiatives that build off of a series of related activities working towards a specific outcome or set of outcomes, USAID facilitated a new process that requested 5-year plans from key U.S. agencies requesting support from US-ATAARI. US- ATAARI used the five-year plans to develop its 2014 US-ATAARI work plan. This approach will address long-term development objectives and identifiable outcomes to deliver sustainable technical assistance activities. Key project achievements included the following:

• Women’s economic empowerment: US-ATAARI developed the “Women and the Economy Dashboard,” a groundbreaking achievement ultimately endorsed by APEC leaders in November 2014. The dashboard will be used to create a common baseline across focus areas of APEC and the Policy Partnership on Women and the Economy (PPWE), to identify gaps, and to develop evidence-based policy recommendations and capacity building priorities to advance women’s economic participation. The resulting framework includes 75 indicators across the five core areas of PPWE’s focus in APEC: 1) access to capital, including financial inclusion;

2) access to trade and labor markets; 3) skills, capacity building and health, including policies related to domestic violence and discrimination against women; 4) leadership, including national identification; and 5) innovation and

I X technology, including access to cell phones and the internet as well as science, technology, engineering, and math (STEM) education.

• Supply chain connectivity: US-ATAARI supported APEC’s expanding work in supply chain connectivity through completion of several diagnostic reports that serve as the foundation for a multi-year effort in capacity building. As a whole, the analysis formed a basis for APEC to highlight supply-chain connectivity performance gaps and set out capacity building recommendations. US-ATAARI subsequently launch two economy level programs on pre-arrival processing in 2014, which will expand to include 4-5 additional technical areas in multiple economies in 2015 as APEC works to meet its 10 percent improvement in supply chain performance target by the end of 2015.

• Fossil fuels subsidies reform peer review: To support progress toward APEC’s shared goal of phasing out inefficient fossil fuel subsidies, US-ATAARI piloted a peer review approach in APEC’s first volunteer economy, Peru, in 2014. The resulting report provides Peru with concrete recommendations on ways to reform their fossil fuel subsidy programs as well as allow for more consistent metrics for reporting on reform efforts. Peru’s peer review also laid the foundation for further analysis of progress made by APEC economies’ phasing out of subsidies.

• Global supply chain resilience: Under a multi-year effort on supply chain resilience, US-ATAARI’s 2014 workshop focused on developing and sharing practical information to improve the resilience of the global supply chain, as well as developed an action plan that identifies a prioritized set of actions targeting the 7 global supply chain resilience principles. The action plan will be implemented over the next four years, through both APEC wide and economy specific activities with the objective of reducing vulnerabilities of and disruptions to the global supply chain in APEC economies.

• APEC host year capacity building: Developing APEC member economies will be hosting APEC from 2015 – 2020. In 2014, US-ATAARI worked with the Philippines (2015), Peru (2016), Viet Nam (2017), and Papua New Guinea (2018) to design capacity building programs aimed to increase their understanding of APEC and thus engagement in APEC in the lead up to and during their host years. This component is demand driven and each program addresses specific needs of the economy and its line ministries.

Component II: Support for APEC’s Institutional Development US-ATAARI also worked to strengthen APEC as an institution through training to increase the capacity of the APEC Secretariat to provide the logistical, policy, and substantive leadership needed to advance APEC’s work

• Financial Realignment Recommendations: US-ATAARI support continues USAID’s past efforts to support APEC in bringing its financial processes up to date and to better support financial operations. US-ATAARI worked with the APEC Secretariat on a report that detailed how the Secretariat can better align its

X A N N U A L R E P O R T : N O V E M B E R 1 , 2 0 1 3 – D E C E M B E R 3 1 , 2 0 1 4 budgeting, accounting, reporting and fund management practices with industry standards.

• Steering Committee on Economic and Technical Cooperation (SCE) Strategic Planning Process Support: US-ATAARI supported the APEC Senior Officials’ Meeting (SOM) SCE in revising their strategic plans.

Table 1 Summary of Results to Date

Indicator Baseline Actual

FY14

Q1-Q4

Target

FY15

Q1-Q4

Actual

FY15

Q1

Annual Performance Achieved to the End of Reporting Period (%)

On Target

Y/N

OT1: Number of studies produced on trade- and investment-related issues

0 5 15 4 27% Y

IN1: Number of days of technical assistance (TA) on trade and investment environment provided to counterparts or stakeholders

0 1,297 2,000 437 22% Y

IN2: Person-hours of training in trade and investment capacity building supported by U.S. government assistance

0 13,960 25,000 3,485 14% Y

Note: The Results Performance Column depicts level of achievement expressed as a percentage of Actual versus Planned.

1. INTRODUCTION

Launched November 1, 2013, US-APEC Technical Assistance to Advance Regional Integration (US-ATAARI) is a five-year activity that aims to strengthen the capacity of the Asia-Pacific Economic Cooperation (APEC) Secretariat and APEC’s foreign-assistance eligible developing member economies to advance regional economic integration and achieve the Bogor Goals of free and open trade and investment in the region. The activity is implementing a series initiatives that address selected elements of each of APEC's three “pillars” (Trade and Investment Liberalization; Business Facilitation; and Economic and Technical Cooperation), and also strengthening the APEC Secretariat's institutional capacity and strategic focus.

US-ATAARI builds upon past assistance provided to APEC by the U.S. government to assist APEC in achieving its policy objectives by delivering targeted technical assistance ranging from policy studies and assessments to capacity building, training, and expert advice on regional economic integration, trade liberalization and institutional management.

US-ATAARI is co-managed by USAID’s Regional Development Mission for Asia (RDMA) and the Washington-based Bureau for Economic Growth, Education, and Environment’s Office of Trade and Regulatory Reform (E3/TRR) with funding and strategic direction from the U.S. Department of State. It is managed by Chief of Party (COP), Victoria Waite, and Deputy Chief of Party (DCOP), Ann Katsiak. The activity is housed in the APEC Secretariat and also has resident staff based in Washington, D.C.

The purpose of this annual report is to present the key achievements for US-ATAARI over the course of its first year (November 1, 2013 – December 31, 2014)1 and will cover both the annual report as well as the fourth quarter report for October 1, 2014-December 31, 2014.The annual report includes the following content: status updates on program management tasks; technical activities carried out in this report period; and next steps/implementation issues if appropriate. Annex A provides the latest update of the Performance Monitoring Indicators from our draft M&E Plan. Annex B presents two success stories that highlight US-ATAARI efforts on supply chain connectivity diagnostic reports as well as the PPWE dashboard. Annex C reports the instances and amounts of approved assistance provided by US-ATAARI to the Government of Burma (GOB). Annex D details interventions under the Second Annual Work Plan that were subject to scheduling delays and/or cancellations.

1 US-ATAARI was launched November 1, 2013. Rather than draft an annual report covering a two-month period, it was decided to include November and December 2013 in the 2014 Annual Report for US-ATAARI.

2. GENERAL PROGRAM

MANAGEMENT

This is the first annual report for US-ATAARI and covers the period from project launch on November 1, 2013 through the end of the fourth quarter on December 31, 2014.

Activities carried out in this timeframe fall under both the First and Second Annual Work Plans. Our program management activities have centered on the start-up and expansion of project operations, management and administration of operations, management of financial resources, and adherence to reporting requirements.

START-UP OPERATIONS

Administrative Start-Up The period of performance for the US-ATAARI Activity began on November 1, 2013.

Initial start-up included: procuring additional computer equipment for the field office;

renewing a memorandum of agreement with the APEC Secretariat for an administrative fee associated with office space on the Secretariat premises; soliciting proposals for the US-ATAARI web portal development; and formalizing subcontracts with US-ATAARI partners.

With regard to staffing, Ms. Victoria Waite formally became COP of US-ATAARI on January1, 2014 after concluding her tenure as COP on the predecessor APEC Technical Assistance and Training Facility (APEC TATF) project. Ms. Waite, remaining in Singapore upon the close of the APEC TATF, was joined by Program and Training Specialist Amna Bajwa and Economic and Sector Specialist Kyle Hathaway in January 2014. US-ATAARI expanded its team through a rigorous recruitment process, adding a Trade Specialist and Program Manager, Ms. Mariella Amemiya, and a Project Assistant, Ms. Siti Mardiana Idrus (Yana). With Ms. Idrus commencing work on May 19 and Ms. Amemiya mobilizing to the field on July 12, the Singapore-based office reached full staffing.

US-ATAARI’s second project office, based in Washington, DC, includes Deputy Chief of Party, Ms. Ann Katsiak; Project Coordinator and M&E Specialist, Ms. Jessica Cross; and part-time Program Assistants, Ms. Tess Perselay and Ms. Caroline Rubin. As the US- ATAARI work plan continued to evolve and expand during the first year, an additional technical position was added to the D.C. office. The selected candidate, Ms. Marwa Abdou, formally commenced her assignment as APEC Coordinator in early September 2014. US-ATAARI continues to discuss possible staffing developments in light of growing work requests and will continue these consultations with USAID as the project progresses. Please find the US-ATAARI team in Table 2 below.

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Table 2 US-ATAARI Personnel

Team Member Responsibilities Start Date

Singapore Office

Victoria Waite Chief of Party January 01, 2014

Kyle Hathaway2 Economic and Sector Specialist January 10, 2014

Mariella Amemiya Trade Specialist and Program Manager July 12, 2014

Amna Bajwa Program and Training Specialist November 01, 2013

Siti Mardiana Idrus (Yana) Project Assistant May 19, 2014

DC Office

Ann Katsiak Deputy Chief of Party November 01, 2013

Jessica Cross Project Coordinator/M&E Specialist3 November 01, 2013

Marwa Abdou Program Coordinator September 02, 2014

Tess Perselay Program Assistant4 November 01, 2013

Caroline Rubin Program Assistant5 November 01, 2013

Nancy Wong Project Accountant6 March 4, 2014

WORK PLANNING

The US-ATAARI team worked closely with USAID, State’s Office of Economic Policy in the Bureau of East Asian and Pacific Affairs (EAP/EP) and other U.S. government counterparts to develop the 2014 work plan. Once five-year plans, including itemized activities for 2014, were received from all U.S. government agencies, US-ATAARI developed an outcome-oriented work plan that built out activities approved under these five-year plans. The team also held consultations with the APEC Secretariat for activities related to Component 2. The plan, after going through revision in the second quarter, was approved on August 6, 2014 (ATAARI-14-041 REV).

2 We note that very late in this reporting year, Mr. Kyle Hathaway submitted his resignation to the US- ATAARI activity to pursue another opportunity. We anticipate a replacement for Mr. Hathaway will be named in Quarter 1, 2015.

3 The reflected Project Coordinator/M&E Specialist duties are on a 70% time basis.

4 The reflected Program Assistant duties are on a flexible part-time basis based on need.

5 The reflected Program Assistant duties are on a flexible part-time basis based on need.

6 The reflected Project Coordinator/M&E Specialist duties are on a 60% time basis.

3. COMPONENT I: BUILDING

CAPACITY FOR REGIONAL

ECONOMIC INTEGRATION

APEC’s framework for strengthening regional economic integration (REI) is organized by three pillars:

• Trade and Investment Liberalization. Promotes and supports the liberalization of trade in goods and services and investment flows. This work falls under the Committee on Trade and Investment (CTI).

• Business Facilitation. Works to reduce the cost of business transactions, improve access to trade information and to align policy and business strategies to facilitate free and open trade. This work is primarily coordinated by the Economic Committee (EC).

• Economic and Technical Cooperation (ECOTECH).7 Promotes knowledge-sharing and cooperation to build the capacity of member economies to fully participate in global trade. ECOTECH activities are coordinated by the SOM SCE.

In the first two work plans, US-ATAARI’s activities under Component I follow the structure of APEC’s three pillars and are further organized by working group or committee. The following section provides an overview of progress made by US-ATAARI to enhance regional economic integration and cooperation within the Asia-Pacific by more efficiently and effectively delivering and providing capacity building and assisting APEC member economies and the APEC Secretariat.

TRADE AND INVESTMENT LIBERALIZATION

Committee on Trade and Investment

Good Regulatory Practice (GRP)8 Supporting GRP helps to address non-tariff barriers to trade and regulatory divergences among member economies, promotes regulatory coherence and transparency among APEC economies and is a priority for many developing economies. APEC Leaders have

7 ECOTECH activities are reported as Human Development and Human Security under the US-ATAARI contract.

8 GRP is a cross-cutting issue also being addressed in the APEC Economic Committee.

6 A N N U A L R E P O R T : N O V E M B E R 1 , 2 0 1 3 – D E C E M B E R 3 1 , 2 0 1 4 committed to take specific actions by 2015 to strengthen the implementation of GRPs by: (1) ensuring internal coordination of rulemaking; (2) assessing impacts of regulations;

and (3) conducting public consultations.

As part of this broader initiative, in 2014, US-ATAARI focused on the use of web portals as a primary means for stakeholders to comment on and review regulations. In July 2014, US-ATAARI designed a stakeholder survey to collect data on relevant economy experiences for an APEC GRP Public Consultations in the Internet Era Stakeholder Report that identifies best practices on how comments on regulations are incorporated into the rulemaking process as a method to improve domestic-level public consultation frameworks. Initially there were close to one hundred respondents; however, the majority came from one member economy and the survey timeframe was extended in an effort to gather a wider-range of inputs across APEC.

In conjunction with the launch of the report, US-ATAARI also organized the “GRP: Public Consultations in the Internet Era Workshop” on the margins of SOM 3 in August in Beijing, China to inform APEC member economies of existing practices on internet consultations for regulations across the region. Over 60 participants from 16 APEC member economies attended the workshop, which highlighted the role of public consultations to promote more economically efficient regulations and avoid the establishment of non-tariff barriers to trade. The United States also requested comments from member economies on draft GRP actions for the APEC region, including suggestions of potential capacity building activities, which could inform GRP-related activities for US-ATAARI’s 2015 work plan. In an effort to garner more responses and data, the stakeholder survey was extended, and the Stakeholder Report is expected to be finalized before SOM 3 in 2015.

STATUS: In progress.

DELIVERABLES

DURING THIS

REPORT PERIOD:

• Launched stakeholder survey and best practices study.9

• Implemented one-day APEC Workshop on GRPs: Public Consultations in the Internet Era, at which preliminary results of survey were presented, on margins of SOM 3 in Beijing, China in August 2014.

NEXT STEPS • Finalize stakeholder survey and report.

• Explore economy-level capacity building programs.

Protecting Creative Content in the Digital Environment Developing a legal environment that provides effective protection for creative content in the digital environment is critical for promoting foreign trade and investment, as well as for boosting economic development. The digital environment fosters both the creation of new works and also their dissemination to public. Unfortunately, the same technology makes it possible for individuals and organizations to disseminate vast quantities of

9 This survey began in July 2014, and to allow for robust responses from APEC economies, the activity was extended into 2015, and is expected to be complete before SOM 3 2015.

unauthorized copies of such works. Despite efforts by creators, authors, artists and business to use technological protection measures (TPMs) to control access and duplication of their work, individuals and even larger entities are able to circumvent and undermine such controls. Building on the APEC Ministers endorsement of the Three Model Guidelines for the APEC Anti-Counterfeiting and Piracy Initiative in 2005, which addressed issues relevant to promoting an online environment conducive to effective intellectual property rights (IPR) protection. In 2012 the United States proposed that APEC develop Model IPR Guidelines for the Creation and Dissemination of Creative Content in the Digital Environment. This initiative emphasized adequate and effective legal mechanisms to protect against the unauthorized circumvention of TPMs and trafficking in devices, products, or services that are primarily designed, produced or performed for the purposes of enabling the circumvention of TPMs.

In February 2014, US-ATAARI supported the APEC Intellectual Property Experts Group (IPEG), by funding two speakers to the “Protecting Creative Content in the Digital Environment Workshop,” who provided presentations on non-governmental perspectives on TPMs in the Asia-Pacific region. The speakers provided presentations on innovative business models made possible by strong protections for TPMs, and the benefits that flow to creators and consumers alike in markets where such business models can be introduced. More than 38 delegates were in attendance to the workshop which not only outlined private sector and legal perspectives on the TPM issues, but also laid the groundwork for establishing Model Guidelines for use by all APEC economies.

STATUS: Completed.

DELIVERABLES

DURING THIS

REPORT PERIOD:

Supported two speakers to Protecting Creative Content in the Digital Environment Workshop during IPEG on margins of APEC First Senior Officials Meeting (SOM 1) in Ningbo, China in February 2014.

NEXT STEPS None anticipated at this time.

APEC Regulatory Cooperation Advancement Mechanism (ARCAM): Electric Vehicles (EVs) EVs and smart grid programs are important components in the Asia Pacific region’s transition to low-carbon economies and reduced dependence on fossil fuels. In 2014, through the ARCAM process --- where trade officials, relevant regulators and other stakeholders are able to conduct work on emerging regulatory issues relevant to strengthening regional economic integration --- APEC is addressing issues related to EVs. Divergent EV regulations in APEC economies could have a significant impact on trade and investment flows. Helping developing APEC member economies improve their understanding of the technical standards applied to EVs and the ecosystem for their use will create greater certainty and predictability for the production and use of EVs as well as improve environmental conditions over time.

In 2014, US-ATAARI undertook both analytical work as well as implemented a capacity building activity related to EV standards development. Specifically, the project completed a literature review of studies on EVs standards and EVs standards development efforts in

8 A N N U A L R E P O R T : N O V E M B E R 1 , 2 0 1 3 – D E C E M B E R 3 1 , 2 0 1 4 the region, as well as an initial stocktake of how APEC economies are regulating EVs.

Both analytical pieces were presented to APEC economies at a one-day “ARCAM Dialogue on EVs,” which was organized by US-ATAARI in cooperation with Office of the United States Trade Representative (USTR), and held in May 2014 on the margins of APEC SOM 2 in Qingdao, China. With over 40 participants, the dialogue provided an opportunity for delegates to discuss current efforts underway on EV standards development generally, with particular focus on the EV charging infrastructure. The dialogue demonstrated that there is a significant opportunity in APEC to move forward on the harmonization of EV standards where vehicle, battery and charging technology, best practices, and commercialization continue to rapidly evolve. The May event served as the first step in developing an APEC roadmap to focus efforts on the harmonization of EV standards in the coming years.

STATUS: Completed.

DELIVERABLES

DURING THIS

REPORT PERIOD:

• Completed literature review and stocktake on how APEC economies are regulating EVs in target areas.

• Implemented the one-day ARCAM Dialogue on EVs, including presentation on literature review, on margins of SOM 2 in in Qingdao, China May 2014.

NEXT STEPS: Support efforts to finalize the draft roadmap for electric vehicles.

APEC Workshop on Scheduling of Non-Conforming Services and Investment Measures in Free Trade Agreements (FTAs) Cross-border investment and trade in services are critical facilitators of economic growth and job creation in the Asia-Pacific region. Obligations governing services and investment have increasingly become a standard feature of APEC economies’ FTAs and developing economies continue to demonstrate a need to build capacity in negotiating these provisions. Nevertheless, the negotiation of these provisions can be quite challenging, in particular, the very technical exercise of negotiating the scope of application of certain core obligations, and the associated task of drafting FTA annexes that lay out measures that do not conform to these core obligations. This challenge has been identified as part of APEC’s Regional Economic Integration Capacity‐Building Needs Initiative (CBNI), which was endorsed by Ministers in 2011 to be implemented during 2012-2014.

US-ATAARI, in coordination with USTR, implemented a two-day workshop on “Capacity Building for Scheduling of Services and Investment Commitments in FTAs” from October 28-29, 2014 in Singapore, which welcomed 38 attendees from 14 economies to build upon their experience in the negotiation of FTAs. The program addressed the importance of services in the global economy; the role of services and investment provisions in trade negotiations, including the World Trade Organization (WTO) and FTAs; and, scheduling certain commitments using the “non-conforming measures” approach. Throughout both public sector and non-governmental attendees – including the Organisation for Economic Co-operation and Development (OECD) and the WTO – shared experiences on the challenges and successes of negotiating non-conforming measures including how they prepared to engage in comprehensive discussions on each of services and investment topics.

STATUS: Completed.

DELIVERABLES

DURING THIS

REPORT PERIOD:

Implemented the two-day APEC Workshop on Capacity Building for Scheduling of Services and Investment Commitments in FTAs in October 2014.

NEXT STEPS None anticipated at this time.

Supply Chain Connectivity Framework Action Plan (SCFAP) and Capacity Building APEC’s focus on supply chain connectivity works to holistically identify and systematically address impediments to moving goods and services throughout the Asia-Pacific region.

APEC has prioritized improving the flow of goods and services within the region by 2015, to be measured by a 10 percent improvement in supply-chain performance in terms of reduced time, cost, and uncertainty. Economies that offer the most efficient platforms to do business are most likely to take advantage of the productivity enhancements, workforce upgrading, employment opportunities, and hence economic growth, afforded by participation in global supply chains. US-ATAARI’s 2014 work plan advanced this target in two ways: (1) the completion of diagnostic reports on previously identified supply chain chokepoints that underscore APEC efforts to reduce the constraints on traders, and ensure that supply chains operate more quickly, efficiently, and reliably; and,

(2) the development and implementation of capacity building projects under the APEC Supply Chain Capacity Building sub-fund.

US-ATAARI worked with APEC lead economies to finalize 3 of 8 diagnostic reports assessing region-wide performance and to make recommendations for Chokepoints 4 (Inefficient Clearance of Goods at Customs, Lack of Coordination among Border Agencies), 6 (Multimodal Transport Capabilities and Connectivity) and 7 (Variations in Cross-Border Regulations and Standards for Movements of Goods, Services, and Business Travelers). US-ATAARI presented the final reports to the CTI during SOM 3 in August 2014 in Beijing, China, in addition to the inaugural meeting of the APEC Alliance for Supply Chain Connectivity (A2C2) – a group of APEC region public and private sector experts on supply chain issues. US-ATAARI also developed an overview paper that presented the cumulative findings of the 8 supply chain diagnostic reports and made recommendations on areas where APEC could target capacity efforts to not only move APEC towards its 10 percent improvement goal but to also identify changes needed by APEC economies to implement the WTO’s Trade Facilitation Agreement.

Finally, US-ATAARI launched a significant multi-year capacity building effort to assist economies, particularly developing economies, in overcoming specific obstacles they face to improving supply chain performance. Through the diagnostic reports, 5 initial priority areas, or gaps, were identified by APEC members for targeted economy-level capacity building assistance. Working closely with USTR, US-ATAARI finalized concept notes on 1) pre-arrival processing (PAP), 2) expedited shipments, 3) advance rulings, 4) release of goods and 5) electronic payments, which were subsequently approved for

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APEC co-funding. Malaysia, Peru and Viet Nam volunteered to participate in the economy level project on PAP. The assessment of Peru’s PAP system took place in December 2014 and an assessment report is currently being drafted. It is envisioned that 8-12 additional economy-level activities in the 5 priority areas will occur in various developing economies in 2015, all of which will be coordinated by US-ATAARI. Following the economy-level support, it is the responsibility of each volunteer economy to report back to APEC members on progress and actions taken in response to capacity building programs and recommendations. US-ATAARI will continue implementing the proposed activities under this initiative through 2015.

STATUS: In progress.

DELIVERABLES

DURING THIS

REPORT PERIOD:

• Completed 3 chokepoint diagnostic reports.

• Drafted overview paper that addressed all 8 diagnostic reports.

• Developed 5 APEC concept notes: pre arrival processing;

expedited shipments; advance rulings; electronic payment of taxes, duties, and fees; and release of goods.

• Finalized Terms of References (TORs) for 2 APEC projects.

• Launched economy-level capacity building activity in Peru.

NEXT STEPS: • Launch additional economy level programs including pre arrival processing in Malaysia and Viet Nam and expedited shipments in The Philippines and Viet Nam.

• Work to identify additional economy volunteers for other capacity building programs.

• Support future A2C2 Meetings.

Trade Secrets As economies globalize their manufacturing, services and research activities, the protection and enforcement of trade secrets is increasingly important in fostering a culture that promotes innovation. In recognition of this, in 2011, APEC Leaders agreed to implement a series of policies designed to promote effective, market-driven and non-discriminatory innovation policies. Such policies are especially important to allow APEC economies to utilize the economic advantages of providing strong intellectual property (IP) protections both for protecting domestic small businesses as they develop and attracting needed foreign investment into economies.

In support of APEC’s broader trade secrets initiative, US-ATAARI undertook a region-wide study on the current legal and regulatory regimes governing trade secrets protection in APEC member economies. The study provides a general overview of the economic importance of trade secrets and considers the role of trade secrets protection and enforcement in the context of the protection and enforcement of IP rights more broadly. US-ATAARI in coordination with USTR and the U.S. Patent and Trademark Office (USPTO), organized the one-day “APEC Workshop on Trade Secrets Protection and Enforcement” in August 2014 in Beijing, China on the margins of SOM, which was attended by 50 participants from 17 economies. The study results were presented at the

1 1 workshop and participants discussed shared challenges on enforcing trade secrets protection across APEC and possible responses to inform planning and goals to foster continued investment and innovation.

STATUS: Completed.

DELIVERABLES

DURING THIS

REPORT PERIOD:

• Completed survey and report of APEC economies on how they protect and enforce trade secrets.

• Drafted study cataloguing the legal regimes of all APEC member economies in regards to trade secrets protection and enforcement.

• Implemented one-day APEC Workshop on Trade Secrets Protection and Enforcement, in August 2014 on margins of SOM 3 in Beijing, China; presented initial results of survey and study.

NEXT STEPS: • Implement economy-level capacity building programs.

• Continue to build knowledge on best practices on trade secrets.

Subcommittee on Standards and Conformance (SCSC)

Green Buildings Green building is a new technological area that will thrive if the standards and conformity assessment requirements that underpin trade in these technologies do not create trade barriers for industry. Greening the commercial building sector, which accounts for between 30 and 40 percent of energy usage in most industrialized economies, can yield significant energy savings and, contribute to meeting greenhouse gas emissions targets, and boost energy security. With guidance from APEC Leaders and Ministers to support the transition towards low carbon economies in the Asia-Pacific region, APEC is working to increase the capacity of member economies to achieve energy and other resource savings in commercial buildings by establishing guidelines and mechanisms to foster more energy efficient practices and to reduce the energy intensity of their economies.

Building on work on green building standards, codes and rating systems that the United States has championed since 2011, US-ATAARI implemented two capacity building workshops for APEC and non-APEC Association of Southeast Asian Nations (ASEAN) members (Cambodia, Lao PDR and Myanmar) as well as began compiling the APEC Green Code Infrastructure Guide.

First, US-ATAARI implemented the “APEC-ASEAN Utilizing Building Information Modeling (BIM) to Increase Building Performance Workshop” on the margins of SOM 3 in Beijing, China from August 7-8, 2014. This two-day workshop had 53 attendees from 16 APEC and ASEAN economies to discuss strategies to achieve energy and other resource savings in commercial buildings by establishing guidelines and mechanisms to foster more energy efficient practices.

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Second, US-ATAARI drafted the APEC Green Code Infrastructure Guide which highlights best practices in the region, and includes precursor infrastructure elements, such as authorities/jurisdictional clarity, planning, stakeholder engagement, transparency assurance, access to existing solutions (codes and international standards), training, outreach to affected communities, and metrics and linkages between code objectives and economy-level priorities. US-ATAARI also collaborated with the U.S. Green Building Council (USGBC) and the US Department of Commerce (DOC) on the “APEC-ASEAN Workshop on Utilizing Green Building Codes to Increase Building Performance,” that was held on the margins of the Greenbuild International Conference and Expo, October 20- 21 in New Orleans, Louisiana. The workshop provided a forum for public and private stakeholders to interact and gain a better understanding of green building codes and the elements that will ensure the success of such codes. The APEC Green Code Infrastructure Guide will be completed in early 2015.

STATUS: In progress.

DELIVERABLES

DURING THIS

REPORT PERIOD:

• Initiated drafting of the APEC Green Code Infrastructure Guide [in progress].

• Implemented the two-day APEC-ASEAN Utilizing BIM to Increase Building Performance Workshop on the margins of SOM 3 in Beijing, China in August 2014.

• Implemented the two-day APEC-ASEAN Workshop on Utilizing Green Building Codes to Increase Building Performance in New Orleans, LA in October 2014.

NEXT STEPS: • Finalize APEC Green Code Infrastructure Guide.

• Launch metrics assessment on APEC’s green buildings work.

Regulatory Cooperation on Energy Efficiency in the Information and Communications Technology (ICT) Sector Economy-specific energy standards and regulations for ICT products have expanded rapidly over the past decade. This has resulted in regulatory divergences in many markets, threatening to create non-tariff barriers, which could undermine the competitiveness of the ICT sector as a whole, and constrain ICT deployment across the globe. Economies, particularly developing economies, can benefit from aligning their requirements with international standards in this sector through the implementation of programs that promote innovation, increase access to these technologies, and, ultimately, create energy savings across sectors. In 2011, APEC leaders reaffirmed the need for greater reform and alignment of regulatory approaches and use of international standards as necessary steps to prevent unnecessary barriers trade. In line with APEC Leader’s commitment to regulatory cooperation on ICT issues, US-ATAARI supported the implementation of the “APEC ICT Global Energy and Efficiency Convergence Workshop and Forum,” which took place on the margins of SOM 3 in Beijing, China on August 7-8, 2014. The workshop and forum brought together regulators, business, conformity assessment experts, and other stakeholders to examine the alignment of energy efficiency regulations for ICT products as a way to prevent

1 3 unnecessary market access barriers and to increase the use of innovative, energy efficient products.

STATUS: Completed.

DELIVERABLES

DURING THIS

REPORT PERIOD:

Implemented two-day ICT Global Energy and Efficiency Convergence Workshop and Forum in Beijing, China on margins of SOM 3 in August 2014.

NEXT STEPS: None anticipated at this time.

Food Safety In developing economies, improving food safety is especially important not only to foster robust systems that assure a safe food supply, but also to improve public health outcomes, enable producers to trade food commodities in regional and global food supply chains, and to strengthen food security. A globalized food supply necessitates cross-border cooperation to prevent food incidents and to ensure food safety. Since the establishment of the APEC Food Safety Cooperation Forum (FSCF) and the U.S.-led Partnership Training Institute Network (PTIN) in 2007 and 2008 respectively, APEC has promoted greater regulatory coherence in food safety.

In 2014, US-ATAARI supported the FSCF and PTIN through several different activities.

First, in an effort to engage ASEAN developing economies, US-ATAARI provided travel support to non-APEC ASEAN member economies to attend the “APEC FSCF PTIN Workshop on Improved Food Inspection Capacity Building Based on Risk Analysis” which took place on May 21-23, 2014 in Seoul, Korea, and was hosted by Korea. Additionally, US-ATAARI supported various activities held on the margins of the FSCF in Beijing, China in September 2014 to further regulatory harmonization on food safety. US-ATAARI provided travel support for participants from Lao PDR to attend the “APEC FSCF PTIN Proficiency Testing Workshop,” the APEC High-Level Regulator-Industry Food Safety Dialogue, and the APEC FSCF Special Session to further cooperation with ASEAN.10 And, in close coordination with DOC, US-ATAARI led the logistical implementation of the Wine Regulatory Forum (WRF) that was held on September 11-12, 2014 in Beijing, China with over 72 participants from food regulatory agencies, taxation units, and the private sector from 16 APEC economies. The two-day forum provided APEC delegates an opportunity to discuss and endorse the papers of the WRF’s 4 working groups: (i) export certificates; (ii) maximum residue limits (MRLs); (iii) Codex, and (iv) a compendia on requirements across APEC economies.

STATUS: Completed.

DELIVERABLES

DURING THIS

REPORT PERIOD:

• Provided travel support for participants from non-APEC ASEAN members to attend APEC FSCF PTIN Workshop on Improved Food Inspection Capacity Building Based on Risk

10 US-ATAARI also provided limited travel support for a participant from Chile to attend the FSCF Special Session.

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Analysis in Seoul, Korea in May 2014.

• Provided travel support for participants from non-APEC ASEAN member, Lao PDR, to attend APEC FSCF activities in Beijing, China in September 2014.

• Implemented WRF on margins of APEC FSCF activities in Beijing, China in September 2014.

NEXT STEPS: • Develop metrics assessment on food safety activities in

APEC.

• Continue to support APEC-ASEAN coordination.

BUSINESS FACILITATION

Economic Committee (EC)

2014 APEC Economic Policy Report (AEPR)

The EC publishes annually an AEPR to communicate policy findings and insights on key issues from the EC’s work program. In 2013, EC delegates chose GRPs as the focus area for the 2014 AEPR, which was led by Japan – the coordinator of the Friends of the Chair (FoTC) on GRPs – and supported by China and the United States. The United States volunteered to draft a chapter on Principles of GRPs that highlighted APEC’s ongoing efforts to promote GRPs, including in collaboration with international fora such as the OECD, and also included potential challenges that the APEC region may face in implementing such measures. In 2014, US-ATAARI worked with the United States EC delegates to outline and draft the United States’ AEPR chapter for this year. In 2015, US- ATAARI will continue to work with U.S. government on the AEPR, pending the EC’s selection of the 2015 AEPR topic and also the United States’ level of contribution for the report.

STATUS: Completed.

DELIVERABLES

DURING THIS

REPORT PERIOD:

Drafted the initial draft of Chapter 1 for the 2014 AEPR.

NEXT STEPS: Support 2015 AEPR as appropriate.

APEC Ease of Doing Business (EoDB) Multi-Year Project (MYP) (2012-2015)

USAID supports APEC’s objective of improving the region-wide effort to improve domestic regulations to increase economic growth. In 2010, APEC members set out to achieve an aspirational APEC-wide target of 25 percent improvement by 2015 across the five APEC EoDB priority areas (starting a business, enforcing contracts, getting credit, trading across borders and dealing with construction permits) to make it cheaper, faster and easier to do business in the Asia-Pacific. Following up on the 2013 APEC Policy

1 5

Support Unit (PSU) interim assessment of improvement across the five EoDB priority areas, US-ATAARI collaborated with EAP/EP and the PSU to organize an EoDB policy discussion during the EC meeting held in SOM 1 2014, in Ningbo, China. During the policy discussion, US-ATAARI, the PSU and APEC members discussed 1) lack of progress in certain indicators (e.g., trading across borders) and potential ways to strengthen capacity building efforts, and 2) initiated a broader conversation on possible next steps for APEC EoDB post-2015.

US-ATAARI worked with EAP/EP and the PSU to implement the APEC “2014 EoDB Stocktake Workshop,” on the margins of SOM 3 in Beijing, China on August 15-16, 2014.

The two-day workshop was attended by more than 70 participants from 19 APEC economies and provided a brief overview on the current progress towards achieving the APEC-wide Ease of Doing Business objectives, with APEC member economies presenting their progress. The program also included a special session on tools available in other multilateral fora such as the World Bank, the Hague Convention, and the United Nations Commission on International Trade Law (UNCITRAL) that could be used by APEC members to work towards APEC’s EoDB objectives. US-ATAARI and the PSU presented findings from the 2014 EoDB Questionnaire that aimed to gauge APEC members’ EoDB priorities for activities after 2015, and small group discussed the current APEC priorities and the potential for APEC’s future capacity building efforts with in EoDB.

Finally, under the EoDB MYP,11 US-ATAARI also managed the implementation of two diagnostic studies on dealing with permits and starting a business in Brunei Darussalam, which are currently under review by Brunei.

STATUS: Completed.

DELIVERABLES

DURING THIS

REPORT PERIOD:

• Organized EODB Policy Discussion at EC during SOM 1 in Ningbo, China in February 2014.

• Circulated EODB Questionnaire to EC members in the lead up to the stocktake workshop.

• Implemented the two-day 2014 EoDB Stocktake Workshop on margins of SOM 3 in Beijing, China in August 2014, which included a special session on UNCITRAL instruments.

• Managed implementation of two diagnostic reports under APEC MYP (in progress).

Next Steps • Continue management of APEC EoDB MYP.

• Draft proposed next steps for EC on a post-2015 APEC EoDB agenda.

APEC New Strategy for Structural Reform (ANSSR) In 2011, the ANSSR called on individual APEC member economies to set forth their structural reform priorities and identify objectives, policies, and approaches for

11 The United States and US-ATAARI serve as APEC Project Overseers (POs) for the APEC EODB MYP, which runs from 2011-2015.