Defense Secretary Voltaire Gazmin inspected the International Media Center, where foreign and local journalists will be stationing for the entire duration of summit.
Gazmin was accompanied by Communications Secretary Herminio Coloma Jr, Executive Secretary Paquito Ochoa Jr, and Armed Forces of the Philippines chief of staff Hernando Iriberri.

In an interview with reporters, Gazmin said they are satisfied with the preparations being undertaken by the organizers.

Asked about the overall security preparations in light of the recent attacks in France, Gazmin said: “We are preparing for all contingencies and we… That’s why we’re doing our last minute check to make sure that no stones are kept unturned.”
On Sunday, Interior and Local Government Secretary Mel Senen S. Sarmiento issued a public advisory on APEC.

He said that following the deadly attacks in Paris, President Aquino has ordered a heightened level of security for the delegates and participants of APEC next week.

“We would like to forewarn the public to expect heavy traffic that may cause inconvenience in areas where APEC activities will be conducted,” he said in the advisory.

“We advise them to, as much as possible, avoid APEC venues to include all roads leading to these areas next week.”

At present, security forces are positioned in Metro Manila beyond the regular deployment scale.

He said this should add to the peace of mind and high level of confidence of the public and provide optimism for a fruitful and orderly APEC 2015 leaders’ summit.

More than 100 people died in Paris, France, in simultaneous attacks claimed by Muslim extremists. (PCOO-APEC Communications Team)

“Trade has contracted in 2015 and this major contraction is a reflection of the slow economic recovery,” said Denis Hew, APEC Secretariat’s director of policy support.

The foreseen recovery would be due to external demand and imports, particularly of developing countries among the 21 members of the Asia
Pacific Economic Cooperation, he said.

The actions of the United States and China are particularly seen to affect this recovery.

“The concern is with China’s economy, if it will have a hard or a soft landing,” Hew said. “For the US, will they lower interest rates this year or early next year?”

At the same time, Hew said private consumption remains the main driver of APEC economies.

“Since the crisis, the responses have been more specific to private consumption,” he said.

Alan Bollard, APEC Secretariat executive director, said the economies in the Pacific Rim are also concerned about the integration between manufacturing and services.

This year, APEC is focused on making the economies more inclusive to include small business, the services sector, environment and disaster recovery-related issues, he said.

Advancements in technology, particularly in e-Commerce, will help micro, small, and medium enterprises to become part of the global value chain, Bollard said.

APEC initiatives are working on doing this for MSMEs, particularly on free trade agreements and trade facilitation.

“Goods must move across the borders for small businesses, as well as larger business, as part of global value chains,” he said.

While APEC does not lead in the services sector, the Philippines can show the way, particularly in the trade in services, Bollard said.

Most of the concerns on the services sector do not concern tariff, but non-tariff barriers such as regulation on moving capital, people, and data, he said.

Bollard noted that there are 150 FTAs in the region. “It is all very complicated. But we will judge it by where they are going, if they are in conflict with each other, if it helps to integrate the region to move to the future,” he said.

All these are part of its study on the Free Trade Agreement in Asia and the Pacific, a major project of the formation, to be finalized next year, he added. (PCOO-APEC Communications Team)

“APEC is about economic methods, only about economic methods. We are not like ASEAN (Association of Southeast Asian Nations) that would include security issues,” Dr. Alan Bollard said during a press briefing at the International Media Center at the World Trade Center in Pasay City.

“Formally, around APEC tables, those things get discussed, and they are not part of formal APEC agenda. Personally, I’m not hearing about concerns like that on the trade side,” he added.

China, the Philippines, Taiwan, Vietnam, Malaysia and Brunei Darussalam–all members of the APEC–are claimants to the Spratlys chain of islets and reefs in the West Philippine Sea, with the Philippines even filing an arbitration case against China’s nine-dash line claim that covers 90 percent of the entire resource-rich area.

Concerns about freedom of navigation and trade in the region, where an estimated US$5 trillion of annual seaborne trade pass, have intensified since China transformed a number of reefs into islands.

However, China, whose president, Xi Jinping, will be arriving on Tuesday to attend the APEC leaders’ meeting on Wednesday and Thursday (November 18 and 19), earlier asked the Philippines not to bring up the issue during the summit.

The Philippines agreed, but said it cannot control topics that other nations would like to raise, especially during their bilateral meetings.

Bollard agreed that the forum, which brings together 21 economies from the Pacific Rim, is not the proper venue to discuss maritime and security issues.

He said a number of leaders and representatives will be meeting in private, “taking advantage of the fact that they are all here”.

However, he said he is not privy to those talks, and whether or not maritime security and freedom of trade in the region would be tackled.

Bollard said leaders would also have the chance to talk about their security concerns at the ongoing G20 Meeting in Turkey.

“They are clearly talking about security methods,” he said.

After the APEC meeting in Manila, the leaders would also be heading to Malaysia for the ASEAN Summit, “where they can talk about security matters”.

Traditionally, Bollard said, leaders and ministers of the APEC economies work to “get trade up” and “to treat this as an economic forum”.

“We are confident that it will continue this year,” he added. (PCOO-APEC Communications Group)

Dr. Alan Bollard said the Philippines “is showing leadership” on women’s activities in the country’s economy.

“The Philippines is the only economy in APEC where women own most of businesses. Clearly, it is a big opportunity for the Philippines to talk about that and lead a number of economies,” he said during a media briefing at the International Media Center at the World Trade Center in Pasay City.

He cited the Philippines’ initiatives and programs that pave the way for women to participate freely in the economy.

Bollard noted the role of women in small businesses and in technology, and lauded the Philippines for making finance more accessible to women entrepreneurs.

He added that the Philippines is also “very advanced” in the services sector, specifically in business process outsourcing (BPO), backroom services and “increasingly”, in front office services.

This year’s APEC agenda included looking at the barriers that hinder the progress of the service sector.

However, Bollard said, most of these are non-traditional barriers, “likely regulatory (and) getting people capital information”. (PCOO-APEC Communications Team)

“It is very complicated,” Dr. Alan Bollard told reporters during a press briefing held at the Main Briefing Room of the International Media Center at the World Trade Center here on Monday.

To ensure that there is no overlap or that no conflict arises out of the copious free trade agreements among APEC member economies, the Free Trade Area of the Asia Pacific (FTAAP) was proposed, Bollard said.

“We are working on a strategic study on the Free Trade Area of the Asia Pacific,” he noted.

Bollard explained that the APEC sees the FTAAP “as the way we can judge where all those initiatives are going”.

“We’ll bring (all trade agreements) into the study, see how they fit together, and move forward from there,” he stated.

Although the proposal for such an area has been around since at least 1966, with the proposal for a Pacific Free Trade, the APEC formally began discussing the concept of FTAAP during its summit in 2006 in Hanoi.

The FTAAP would create a free trade zone that would considerably expand commerce and economic growth in the region.

Its development, however, is expected to take many years, involving essential studies, evaluations and negotiations among member economies. According to experts, it is also affected by the absence of political will and popular agitations, as well as lobbying against free trade in domestic politics.

At the 2014 APEC summit in Beijing, APEC leaders agreed to launch “a collective strategic study” on the FTAAP and instruct officials to undertake the study, consult stakeholders, and report the result by the end of 2016.

“The FTAAP will be reviewed by the ministers,” said Bollard who earlier predicted that the FTAAP will be the “APEC’s big goal out into the future”.

“It will be finalized next year,” he said. “It is chaired by both China and the United States.” (PCOO-APEC Communications Team)

President Benigno S. Aquino III and Chilean President Michelle Bachelet witnessed the signing of the Letter of Intent by Philippine Trade and Industry Secretary Gregory Domingo and Chilean Foreign Affairs Minister Heraldo Muñoz in Malacañang Palace.

The Letter of Intent signifies the Philippines’ and Chile’s intent to commence discussions on developing a framework for negotiating a mutually beneficial trade agreement that is flexible and pragmatic as to its depth and scope, which may contribute to an increase in trade, in goods and investments, and the promotion of technical cooperation in areas of mutual interest.

“The Philippines and Chile have enjoyed warm relations for almost seventy years: relations founded on a shared history, and commonalities in faith, tradition, culture, and values. Our gathering today is indicative of our shared desire to advance this partnership. The President and I had engaging and broad-ranging discussions on the need to strengthen our relationship and also to explore new opportunities for cooperation,” President Aquino said during a joint press conference with President Bachelet at the Palace’s Reception Hall.

“President Bachelet and I witnessed the signing of a Letter of Intent on Enhancing Trade Relations. Through this, we mandate the Department of Trade and Industry of the Philippines and the General Directorate for International Economic Relations of Chile to continue talks in 2016 and develop a framework for a mutually beneficial trade agreement between our countries,” President Aquino further said.

President Bachelet, on the other hand, said her state visit “has been an excellent opportunity to deepen ties and to establish a substantial work agenda in bilateral areas”.

“In the bilateral area, Chile and the Philippines are seeking to promote and diversify trade, and because of that, we are initiating talks regarding free trade agreement,” said the Chilean leader, who is also attending the Asia-Pacific Economic Cooperation (APEC) Summit.

“In order to take the first step, today we signed the Letter of Intent in which we commit ourselves to conclude a feasibility, joint study to evaluate the potential benefits of a free trade agreement. Our wish is to start negotiation during the first semester of 2016 because we think it would be a good way to commemorate the 70 years of diplomatic relations between both countries,” she added.

The Letter of Intent on Enhancing Trade Relations is one of two agreements signed by the Philippines and Chile after President Aquino and President Bachelet’s expanded bilateral meeting held at Malacañang’s Aguinaldo State Dining Room.

Present during the bilateral meeting were Foreign Affairs Secretary Albert Romulo and Undersecretary Luningning Lacanlale; Presidential Management Staff head, Secretary Julia Abad; Presidential Spokesperson Edwin Lacierda; Energy Secretary Zenaida Monsada; Finance Secretary Cesar Purisima; Executive Secretary Paquito Ochoa, Jr.; Defense Secretary Voltaire Gazmin; Social Welfare and Development Secretary Corazon Soliman; Communication Secretary Herminio Coloma, Jr., Cabinet Secretary Jose Rene Almendras; National Disaster Risk Reduction and Management Council Undersecretary Alexander Pama; and Philippine Ambassador to Chile Consuelo Puyat-Reyes.

The officials from Chile were Minister Counselor Camilo Sanhueza; Minister Counselor Patricio Victoriano, Ministry of Foreign Affairs Office of Asia and Pacific Affairs director; Ambassador Gloria Navarrete, Ceremonial and Protocol general director; Ambassador Jorge Montero, Embassy of Chile chargé d’affaires; Ambassador Andres Rebolledo, vice minister of Commerce; Ambassador Maria del Carmen Domingues, Ministry of Foreign Affairs Strategic Planning director; Haydee Rojas, chief of press of the Presidency; Paulina Nazal, director of Multi-lateral Economic Affairs of the General Directorate of International Economic Relations; and Maria Fernanda Vila, consul at the Embassy of Chile. PND (jm)

Following their expanded bilateral meeting in Malacañang Palace, President Benigno S. Aquino III and his Chilean counterpart, Michelle Bachelet, witnessed the signing of the MOU, led by Defense Secretary Voltaire Gazmin, who also chairs the National Disaster Risk Reduction and Management Council, and Chilean Foreign Affairs Minister Heraldo Muñoz.

Geographically situated in the Pacific Ring of Fire, the Philippines and Chile often deal with earthquakes that range from mild to disastrous.

The MOU aims to strengthen the two countries’ cooperation in the area of disaster risk reduction and management, with special emphasis on the process of prevention and mitigation, preparedness, response and rehabilitation.

“In that way, we will diminish and prevent the impact caused by natural disasters in our territories and strengthen at the same time, the bilateral coordination of humanitarian response,” President Bachelet told reporters during a joint press conference with President Aquino at the Palace’s Reception Hall.

For his part, President Aquino noted that disaster relief is one area where the Philippines and Chile have always stood united.

He said the agreement would institutionalize cooperation between both governments in preparation for and during the onset of natural disasters.

He thanked Chile and its people for their assistance and sympathy in the aftermath of super typhoon ‘Yolanda’ (Haiyan) in 2013, as President Bachelet extended the same for the Philippines’ expression of solidarity during Chile’s most recent brush with disaster.

A magnitude 8.3 quake hit Chile’s Illapel town last September, which was followed by several aftershocks. The Chilean government reported 13 casualties from the incident with six people missing.

Both countries suffered devastating quakes these past five years. In 2010, a magnitude 8.8 earthquake rocked Chile’s offshore Maule region, where more than 500 people died and 25 were reported missing.

Three years later, a magnitude 7.2 earthquake shattered several towns in Central Visayas, particularly the provinces of Bohol and Cebu, resulting in more than 200 casualties with nearly 1,000 people injured.

President Bachelet is on a state visit to the Philippines, coinciding with her participation in the 27th Asia-Pacific Economic Cooperation Leaders’ Meeting in Manila on Wednesday and Thursday (November 18 and 19). PND (hdc)

“This is a very challenging environment for growth,” Eduardo Pedrosa, Secretary General of the Pacific Economic Cooperation Council (PECC), said during a press briefing held at the Main Briefing Room of the International Media Center at the World Trade Center here.

Founded in 1980, the PECC is a network of member committees composed of individuals and institutions dedicated to promoting cooperation across the Asia-Pacific region. It has 23 full member committees, including the Philippines.

According to Pedrosa, what the world is seeing now is the lowest growth rate for the Asia-Pacific region since 2010, hence the urgent need for growth strategies.

“There are many things the region needs to do to further promote inclusive growth in the APEC region,” he noted.

Pedrosa identified the priorities that APEC leaders should focus on — progress towards the Bogor Goals and free trade area within the region; the APEC’s growth strategy; micro, small and medium enterprises (MSME) participation; anti-corruption efforts; and climate change cooperation and disaster resilience.

The question is, where will future growth come from, considering that much of the growth post-crisis was sustained via stimulus, fiscal or monetary, he said.

“There are some initiatives that could provide a substantial boost to growth,” said Pedrosa. “For example, TPP (Trans-Pacific Partnership) negotiations.”

The TPP is a trade agreement among 12 Pacific Rim countries concerning a variety of matters of economic policy.

Among other things, the TPP Agreement contains measures to lower trade barriers, such as tariffs, and establish an investor-state dispute settlement mechanism.

The agreement’s goals include promoting economic growth; supporting the creation and retention of jobs; enhancing innovation, productivity and competitiveness; raising living standards; reducing poverty; and promoting transparency, good governance, and enhanced labor and environmental protections.

Pedrosa said other propositions that could help boost economic growth include the APEC Connectivity Blueprint, and the Association of Southeast Asian Nations (ASEAN) Economic Community. (PCOO-APEC Communications Team)

The PwC network’s 5th annual APEC CEO Survey, covering 800 chief executive officers (CEOs) and industry leaders, indicates that about half of them still intend to raise investments next year, particularly in the Philippines, Vietnam and Singapore.

The majority of CEOs (53 percent) planned to increase investments, with most of that investment (68 percent) aimed at the APEC region, despite their dwindling confidence in revenue growth.

Chairman and senior partner at PwC Philippines, Alexander Cabrera, identified the huge domestic market and availability of talent as the Philippines’ competitive advantage.

“The Philippines is a nation of very good professionals – doctors, accountants, architects and engineers… Because the skills will move more freely and they know that the Philippines is a source of those skills, that is really raising their (CEOs) confidence level that if they come here, if they bring the business to the Philippines, that there will be enough (human) resource here to support that business,” he said in an interview.

To further attract investments, Cabrera underscored the need to simplify doing business in the Philippines to be on a par with global economies.

He noted that the country should also continue to focus on the development of small and medium enterprises (SMEs).

“If these SMEs will be assisted during their formative stage, if the time that they can access the foreign markets will be shortened, if they will be part of the value chain of the big corporations, that will produce the inclusive growth that is really important,” he added.

Cabrera further said that the country’s middle class needs to be enlarged.

“That effectively expands the domestic market of these businesses in the Philippines. That is also a big source of business growth,” he said.

Meanwhile, the PwC survey shows a clear diversification of investments within the APEC region, with China, the United States and Indonesia remaining as the main draw for CEO business investments.

“I think (on) diversification of the investment locations, we are really beneficiaries of the slowdown in China,” Cabrera said.

He observed that Philippine CEOs appear to be unaffected by the coming elections.

“I think the fact they remained optimistic about revenue growth may prove maybe the point of some prophets of boom. They are saying that regardless of who wins in the next elections, the economic gains of the Philippines are irreversible,” added Cabrera.

More of the 800 APEC business leaders surveyed – PwC’s largest sample ever — think that expanded broadband access and increased participation in the digital economy hold the most promise for their business from regional connectivity, ahead of regional trade projects or new infrastructure in underdeveloped areas of the region.

They are also optimistic a free trade area in the Asia Pacific could be a reality by 2020, as regional integration proceeds on several fronts.

The CEOs consider the ASEAN Economic Community as the ‘mega regional’ game changer, while there are also hopes that the Trans-Pacific Partnership (TPP) would boost exports and fuel regional growth.

The PwC’s 2015 APEC CEO Survey, conducted between June 23 and August 21, was released on Monday ahead of the annual APEC Leaders Meeting on Wednesday and Thursday (November 18 to 19). (PCOO-APEC Communications Team)

Executive director of the APEC Secretariat, Dr. Alan Bollard, said on Monday that although there are a number of initiatives underway to address climate change issues in the Asia-Pacific region, there was no final statement yet from the leaders regarding the big meeting in France.

Bollard said all he could share was that there are discussions focusing on climate change issues, such as the more efficient use of energy, a list of environmental goods whose tariff has to be reduced to 5 percent, and low carbon cities.

“So, they will be pointing to all of those. We have to wait and see if they will talk specifically about the coming climate change (conference),” he said.

Preparations for the Climate Change Conference (COP21) in Paris, scheduled from November 30 to December 11, were rocked by the Friday the 13th attacks that killed almost 130 people and injured more than 300, 100 of whom were critical.

It is not clear if the APEC leaders will issue a statement on the attacks, although climate change issues and disaster preparedness and management have been important topics for this year’s meet.

In particular, the meetings placed special focus on the resiliency of the global value chain against natural disasters.

Noting that the Philippines, specifically, is prone to disasters, Bollard said the APEC discusses the issue of disasters and how they affect the Asia-Pacific economies.

Discussions range from defining how disaster impacts the economies to identifying methods to predict them better.

Prior to the APEC leaders’ week, senior officials have already expounded on the need to address the effects of disasters on economies because they derail and disrupt economic activities once the country is hit by disasters. (PCOO-APEC Communications Group)