The President will attend the 12th APEC Economic Leaders’ Meeting (AELM) to be held on 20-21 November 2004 in Santiago, Chile. The annual gathering of 21 APEC Economic Leaders will be the highlight of the Chilean APEC year under the theme “One Community, Our Future.” To prepare for the APEC Leaders’ summit, the 16th APEC Ministerial Meeting will be held on 17-18 November 2004. I and Trade and Industry Secretary Cesar V. Purisima will lead the Philippine delegation.

The participation of the President in the AELM is important for the following reasons:

            1. The Philippines is a founding member of APEC. The commitment of the Philippines to this international economic forum was further strengthened when we hosted the 4th AELM in 1996 in Subic.

            2. APEC is the only forum where Leaders meet every year. In Santiago, the President has the opportunity to exchange views on political, economic, trade and other issues with the Presidents of the U.S., Russia, China, South Korea, Mexico, and Chile and the Prime Ministers of Japan, Canada, Australia, and New Zealand. The Leaders of six other ASEAN countries – Indonesia, Singapore, Malaysia, Vietnam, Thailand, and Brunei– are also expected to attend the 12th AELM.

            3. The AELM is an important occasion for Leaders representing the most dynamic economies in the Asia Pacific to tackle important issues, which are vital for the future and welfare of the region. These issues include counter-terrorism and the Doha Development Agenda of the World Trade Organization (WTO). To balance the Leaders’ discussion on these areas, the President will articulate the perspective of developing economies like the Philippines.

During the AELM and AMM, APEC Leaders and Ministers are expected to exchange views on two areas of common interest – Human Security and Regional Economic Issues. These general themes will include counter-terrorism, the development of secure trade, the control of infectious diseases. Support to the Doha round of WTO negotiations, free trade agreements (FTAs), the international financial architecture, the rise in oil prices, and transparency and the fight against corruption.

APEC Leaders will discuss for the first time the issue of anti-corruption as it relates to trade. They will also discuss the recommendations of the first meeting of APEC anti-corruption experts held on 25-26 September 2004 in Santiago. The experts outlined specific domestic measures to combat corruption and promote transparency in APEC member Economies. The Philippines supported this initiative as anti-corruption measures are high in the agenda of the President.

APEC Leaders will also hold a dialogue with one of APEC’s major stakeholders – the business sector – to be represented by the APEC Business Advisory Group (ABAC). One specific agenda to be discussed during their dialogue is ABAC’s proposal for a free trade area that will encompass the Asia-Pacific region. The Philippines supports a proposal that a feasibility study be conducted to determine the impact of such a free trade area would be on APEC member Economies. Decision will be taken up after the results of the feasibility study to be conducted by an independent group.

After the AELM, the Leaders will issue a Leaders’ Declaration which could serve as APEC’s roadmap for the next APEC year and beyond. The Declaration will also outline structural reforms in APEC to make it more responsive to Leaders’ directives and able to implement their decisions. Details on the elements of the Leaders’ Declaration will be reflected in the Joint APEC Ministerial Joint Statement.  END.