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RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 03 SINGAPORE 000115 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
EAP/EP FOR SENIOR OFFICIAL HASLACH 
USTR FOR AUSTR CUTLER AND AUSTR WEISEL 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EINV APEC SN
SUBJECT: APEC - GOS REVIEWS 2009 GOALS WITH SENIOR OFFICIAL 
HASLACH 
 
¶1.  (SBU) Summary:  Singapore's main focus when it takes over 
the Asia-Pacific Economic Cooperation (APEC) chair in 2009 
from the current chair, Peru, will be regional economic 
integration and laying the groundwork for an eventual Free 
Trade Area of the Asia Pacific (FTAAP), Ministry of Trade and 
Industry (MTI) Second Permanent Secretary Ravi Menon told 
U.S. Senior Official to APEC Patricia Haslach on January 24. 
He highlighted six proposed work areas that Singapore has 
identified to help move the economic integration agenda 
forward, including a study to assess the feasibility of 
"docking" or merging existing free trade agreements (FTAs) 
and ways to promote investment.  Singapore will also push 
hard for reform of the APEC Secretariat in 2009, to include 
implementation of a fixed appointment system for the 
Secretariat's Executive Director position and creation of a 
 
SIPDIS 
Policy Support Unit.  End summary. 
 
¶2.  (SBU) Senior Official Haslach visited Singapore January 
24 to discuss progress toward achieving a broad range of APEC 
objectives related to regional economic integration and 
reform of the APEC Secretariat.  She focused on Singapore's 
goals after it takes over from Peru as APEC Chair in 2009 
during her meeting with Second PermSec (and APEC Senior 
Official) Ravi Menon.  She met separately with Ministry of 
Foreign Affairs and Ministry of Health officials, as well as 
Singapore-based academics and business representatives.  She 
also gave an interview with the Straits Times. 
 
Regional Economic Integration (REI) Tops the Agenda 
--------------------------------------------- ------ 
 
¶3.  (SBU) Singapore's main focus for 2009 will be regional 
economic integration and laying the groundwork for an 
eventual FTAAP, PermSec Menon said.  Singapore also hopes to 
highlight that 2009 marks the 20th anniversary of APEC. 
Important to these efforts will be for APEC's key members 
such as the United States, Japan, and China to reach 
consensus on a way forward.  The starting point is APEC's 
report issued in September 2007 on "Strengthening Regional 
Economic Integration" that takes into account a possible 
FTAAP as a long-term prospect.  PermSec Menon expressed his 
hope that senior officials will carry forward the work plan 
laid out in the report during the SOM-1 (first Senior 
Officials Meeting) in February 2008 in Lima.  He cited six 
proposed work areas, which Singapore had recently identified 
based on the report and distributed to other senior officials 
(see note below).  Peru, host of APEC in 2008, needs 
assistance from other APEC economies to begin the 
implementation process, he said. 
 
¶4.  (SBU) Singapore is on track to complete a study that 
examines the feasibility of "docking" or merging existing 
FTAs in time for the Committee on Trade and Investment (CTI) 
meeting in March, CTI Chair and MTI Director (APEC and 
Americas) Mary Elizabeth Chelliah said.  PermSec Menon 
suggested that the FTAAP could be created either by 
"stitching" together various FTAs such as NAFTA or by 
expanding on existing plurilateral FTAs such as the "P-4" 
(Trans-Pacific Economic Partnership) Agreement between 
Brunei, Chile, New Zealand, and Singapore.  Senior Official 
Haslach said that the P-4 approach, which could allow other 
economies to eventually join the agreement, appeared to be a 
feasible long-term option.  PermSec Menon expressed his hope 
that an FTAAP can be launched during the U.S. year in 2011. 
 
Recommended Action Plans:  An Overview 
-------------------------------------- 
 
¶5.  (SBU) Note:  Singapore recently proposed six work areas 
to promote regional economic integration within APEC.  These 
work areas encompass the following initiatives that build on 
action items agreed to in the September 2007 APEC REI report 
(to view the report, go to 
 
SINGAPORE 00000115  002 OF 003 
 
 
http://www.apec.org/apec/publications.html#La test): 
 
-- Merging FTAs:  Conduct a study of the issues to be 
considered in "docking" or merging existing agreements and to 
recommend a preferred approach.  To be completed by the March 
2008 CTI meeting for endorsement at the APEC Economic 
Leaders' meeting (AELM) in Lima in November 2008. 
 
-- Demonstration Chapters:  Work with Peru to complete an 
analysis of existing bilateral and plurilateral FTAs among 
APEC economies.  Identify high convergence areas for 
development of possible demonstration chapters, in part to 
enable economies to identify possible ways to advance the 
FTAAP concept. 
 
-- Rules of Origin (ROO):  Expand the current examination of 
various types of preferential ROO used in the APEC region. 
ROO studies for automotive and chemicals chapters commenced 
January 2008; Singapore intends to propose extending the ROO 
studies to other chapters at the February 2008 CTI for 
completion at the February 2009 CTI.  Singapore also suggests 
that APEC launch a ROO "pathfinder" at the 2008 AELM for 
completion at the 2009 AELM. 
 
-- Trade Facilitation:  Develop a trade facilitation 
demonstration chapter, taking into account WTO negotiations 
and possibly based on the relevant P-4 chapter.  If feasible, 
launch a Trade Facilitation Agreement at the 2008 AELM. 
 
-- Investment:  Build on the existing work of the APEC 
Investment Expert Group (IEG) to identify core 
investment-related elements of existing FTAs and with a view 
to developing principles for investment agreements.  Table a 
paper on suggested core elements at the 2008 IEG and CTI 
meetings. 
 
-- Investment Facilitation Action Plan (IFAP):  Develop an 
IFAP for endorsement at the 2008 APEC Ministers Responsible 
for Trade (MRT) meeting. 
 
End note. 
 
Investment Facilitation Action Plan 
----------------------------------- 
 
¶6.  (SBU) PermSec Menon said that the Japanese are especially 
interested in the recommendation made in the REI Report to 
develop an IFAP within APEC.  He surmised that Japan will 
likely push for conclusion of an investment agreement during 
its APEC year in 2010. 
 
Secretariat Reform 
 
SIPDIS 
------------------ 
 
¶7.  (SBU) Singapore will continue to promote reform of the 
APEC Secretariat in accordance with the Busan Roadmap and the 
Hanoi Action Plan, PermSec Menon told Senior Official 
Haslach.  In particular, Singapore will push during its APEC 
year for a change to a fixed appointment system for the APEC 
Secretariat Executive Director position (Note:  The Executive 
 
SIPDIS 
Director position currently rotates annually among APEC 
host-economies.  End note.) 
 
Policy Support Unit 
------------------- 
 
¶8.  (SBU) PermSec Menon expressed his hope that APEC would 
have a Policy Support Unit (PSU) operational by the end of 
¶2008.  He suggested that APEC convene a PSU-related seminar 
to help build momentum for this initiative.  Director 
Chelliah said that the existing APEC Study Centers could 
serve as a resource to promote the PSU concept.  (Note: 
Australia and Japan spearheaded the PSU initiative during the 
 
SINGAPORE 00000115  003 OF 003 
 
 
2007 APEC year as a way to enhance the analytical capacity of 
APEC on regional trade and economic reform issues.  End note.) 
 
¶9.  (U) Senior Official Haslach cleared this message. 
 
Visit Embassy Singapore's Classified website: 
http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm 
HERBOLD