State of Trade and Development in the APEC Region Enrico L. Basilio Philippines 6th APEC...

State of Trade and Development in the APEC Region

Enrico L. BasilioPhilippines

6th APEC Transportation Ministerial Meeting (TMM6) 27-29 April 2009, Manila, Philippines

Global economic slowdown, downward trend of trade in the APEC region

APEC Key Priorities for 2009, Transport Working Group action areas and accomplishments

Enhancing regional connectivity

Outline

MANILA, THE PHILIPPINES 2009

6th APEC Transportation Ministerial Meeting 27-30 April 2009

Global Economic Slowdown



0.0

1.0

2.0

3.0

4.020

02

2003

2004

2005

2006

2007

2008

F

2009

F

US Euro Area Japan

SOURCE: IMF

APEC Trade (Growth Trend)



-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2002 2003 2004 2005 2006 2007

Gro

wth

Rat

e

Canada

China

Japan

United States

APEC

SOURCE: IMF

As of February 2009, 6% of total containership fleet has been laid up – roughly 750,000 TEUs (Lloyds Register)

Backlash on shipbuilding (cancellations), reduction in demand for seafarers

On a positive note, it represents an increased demand for lay-up facilities

Slow trade, ship lay ups



“SUSTAINING GROWTH, CONNECTING THE REGION

“… To support economic growth, address the global crisis, accelerate regional economic integration, and resist protectionism”

APEC 2009 Theme



Rise in protectionist pressures globally

Reaffirmed commitment to resist protectionist measures in domestic policies responses to the global economic crisis

To refrain from raising new barriers to trade and investment or stimulating exports in a manner inconsistent with WTO rules

1. Resisting Protection



Liberalizing trade and investment flows AT THE BORDER

Improving the business environment BEHIND THE BORDER

Enhancing physical connectivity ACROSS THE BORDER

2. Accelerating Economic Integration



Accelerating Economic Integration

Liberalizing trade and investment flows AT THE BORDER

Make the rules of origin of existing Free Trade Agreements (FTAs) more business-friendly

Identify possible vehicles for a future FTA of the Asia-Pacific (FTAAP)

Deepen the analysis of an FTAAP

2009 APEC Key Priorities



Accelerating Economic Integration

Improving the business environment BEHIND THE BORDER

Simplify business regulations

Enhancing physical connectivity ACROSS THE BORDER

Improve logistics and transport networks

2009 APEC Key Priorities



Transportation plays a key role in the APEC agenda for trade facilitation and economic integration in the Asia-Pacific Region

The mandate of the APEC Transportation Working Group (TPTWG) are:

Promote liberalization of transport services Balance safety, security and environmental requirements

with trade facilitation Develop inter-modal supply chains and secure transport

activity Integrate CSR and build capacity of all stakeholders

Transport Working Group (TPTWG)



Aggressive road safety strategies

Harmonization of security measures

Compliance with global security requirements

Liberalization of air services

Address greenhouse gas emissions from aviation

TPTWG Priority Action Areas



Conferences and workshops on Trade security, vulnerabilities of the global SC, trade

recovery, PPP to counter terrorism, air cargo security and aviation emissions

Five (5) transport-related studies endorsed for implementation –

International visitor flows and greenhouse gas emissions

Increased use of inland rivers for inter-modal transport

Managing operations and risk in global supply chain operations

Secure and smart container development Compendium of best practices on motorcycle and

scooter safety

TPTWG Accomplishments, Expected Outcomes



On Road Safety, The Philippine Government thru DOTC spearheaded the creation of the Global Road Safety Partnership – Philippines (GRSP-Phil. Inc.)

On Marine Transport, DOTC with support from NORAD and research institutions crafted a Philippine Merchant Shipping Law to provide an environment conducive to the development and modernization of the maritime sector

On Aviation, the Philippines successfully concluded several bilateral air talks in 2008 to increase both air passenger and cargo capacities with the following countries: Hong Kong, Macau, Malaysia, Russia, Japan, South Korea, Dubai among others

On Transport Infrastructure Development. Government developed key transport infrastructures (ports, airports, toll roads) in support of the establishment of a transport-logistics hub in Subic-Clark area

Actions undertaken by RP Government



The Challenge



Enhanced Connectivity in the East Asian Region

Strong Republic Nautical Highway (SRNH)



Matnog, Sorsogon

Allen, Samar

Liloan, SouthernLeyte

Lipata, SurigaoDel Sur

Pilar, Sorsogon

Aroroy, Masbate

Cawayan, Masbate

Daanbantayan,Cebu

Mandaue City,Cebu Tagbilaran,

Bohol

Jagna, Bohol

Mambajao,Camiguin

Guinsiliban,Camiguin

Balingoan, Misamis Oriental

Batangas City,Batangas

Calapan, OrientalMindoro

Roxas, OrientalMindoro

Caticlan, Aklan

Dumangas, Ilolio

Dumaguete, NegroOriental

Dapitan, Zamboangadel Norte

Bacolod, Negros Occidental

CENTER FOR RESEARCH CENTER FOR RESEARCH AND COMMUNICATIONAND COMMUNICATION

Western Nautical Highway

Central Nautical Highway

Eastern Nautical Highway

Legend:

SRNH East-West Lateral Links



Dumangas, Iloilo

Cebu

Bohol

Punta Enganio,

Jetafe, Bohol

Toledo, Cebu

San Carlos, Negros

Bacolod

Ubay, Bohol

To Caticlan To Masbate To Samar

To CamiguinTo Zamobanga

CENTER FOR RESEARCH CENTER FOR RESEARCH AND COMMUNICATIONAND COMMUNICATION

Maasin, S. Leyte

Increased regional trade

Enhanced tourism

Efficient distribution of agro-fishery products

Reduced transport cost and improved transport services

Area development

Economic Impact on Domestic Inter-island Trade and Regional Development



Increased Inter-island / Regional Trade



Fruits and Fruits and VegetablesVegetables

Fishery ProductsFishery Products

Live HogsLive Hogs Rice and PalayRice and Palay

Increased Inter-island / Regional Trade



Southwestern Mindanao RO-RO Links



Enhanced Tourism and Mobility of People



Tourism Growth



One tourist, one job.One tourist, one job.

From 2003 to 2006, tourism receipts in From 2003 to 2006, tourism receipts in Boracay grew by 50%, Iloilo by 30%, Boracay grew by 50%, Iloilo by 30%,

Bacolod by 15% and Dapitan by 200%.Bacolod by 15% and Dapitan by 200%.

RO-RO Traffic in Select Routes



Regional Connectivity



Bridges across the ocean: connectivity promoting trade in the Greater Southeast Asian archipelago

ADB Conference (November 2008)

Paul Apthorp/TNT Logistics suggested the expansion of the Philippine SRNH Program

Southeast Asia Regional Nautical Highway




Regional Transport in Asia

Intermodal Transport (Land and Sea) Ro-Ro Transportation

Current Regional Cross Border Transportation (heavy infrastructure development in the Greater Mekong Sub-region)

VTE

Singapore

Kuala Lumpur

Phnom Phen

Malaysia

Bangkok

Ho Chi Minh

Vietnam 越南

Laos

Myanmar

Danang

Guangzho

PXG

Cambodia

Hanoi China中国

Nanning

Thailand

ZVK

VTE

Strong REGIONAL Nautical Highway

In theArchipelagic SEA




Cargo traffic to/ from the Pacific

North Sea Ro-Ro Routes from Newcastle

Mediterranean France to North Africa

North Sea Ro-Ro Ferry ..Freight Only

Mediterranean Freight Only Service

Freight only Shipping Lines !!North Sea Freight Only Services

Benefits of Freight Ro RoBenefits of Freight Ro Ro

• Speed

– Quick loading and unloading of Ferries– Roll up and Roll on… cuts lead times– Turn around time in port. As low as a couple of hours.

• Infrastructure Cost– Do not require the deep draft ports that Container ships need

• Dan Nang• Hai Phoung• Sihanouk Ville

• User Friendly– Complementary to CBTA– Can bypass infrastructure and congestion black spots

SOURCE: Paul Apthorp (2008)

Thank You.



State of Trade and Development in the APEC Region Enrico L. Basilio Philippines 6th APEC...

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