APEC Implementation Plan for the Boracay Action Agenda to Globalize MSMEs

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1 2018/SMEWG47/008a Agenda Item: 11.1 APEC Implementation Plan for the Boracay Action Agenda to Globalize MSMEs Purpose: Information Submitted by: Philippines Doc. No.: 2015/AMM/ th Small and Medium Enterprises Working Group Meeting Port Moresby, Papua New Guinea September 2018

2 APEC Implementation Plan for the Boracay Action Agenda to Globalize MSMEs This plan identifies possible work streams and indicators to guide APEC fora and sub-fora in the implementation of the Boracay Action Agenda to Globalize MSMEs (BAA-MSMEs) as well as to maximize APEC fora and sub-fora contributions to the APEC common goal of enabling MSMEs to go global. It calls for close cooperation between relevant APEC fora and the APEC Business Advisory Council (ABAC). Joint programs and partnerships will be explored with international organizations to implement the plan effectively. Priority Actions 1. Facilitate the access of MSMEs to FTAs/RTAs by simplifying and streamlining rules of origin (ROO) procedural and documentary requirements and harnessing IT to ease documentation and procedures. a. APEC will encourage the following policy options: For certificate of origin (CO)-based systems, where relevant, APEC economies when reviewing or negotiating their RTAs/FTAs may consider a commerciallysignificant threshold CTI, MAG, SCCP World Bank, WCO, ERIA CTI: Stock-taking and experiencesharing of best-practice policy options relevant to increasing FTA utilization by business, especially MSMEs MAG: Update the APEC Elements for Simplifying Documents and Procedures Relating to Rules of Origin MAG: Capacity-building on FTA utilization monitoring CTI: Information-sharing on the level of thresholds for CO waiver under APEC economies RTAs/FTAs MAG: Update the information gathering exercise on APEC Elements for Simplifying Documents and Procedures Relating to ROO 1 SCCP: Continue to implement capacity-building activities relevant to SCFAP Chokepoint 5 Number of enforced trade agreements that have MSME-related provisions Decrease in the number of documentary requirements, lead time and cost (EoDB) 1 In 2009, the Market Access Group (MAG) endorsed the proposal on APEC Elements for Simplifying Documents and Procedures Relating to Rules of Origin (ROO). Document 2010/SOM3/MAG/014 was circulated to share information on economies validity period of certificates of Origin (CO)/declarations and provisions for the waiver of COs/declarations for low-value shipments. 1

3 value for the waiver of Cos Encourage the adoption of the self-certification system for ROO as a best practice in trade facilitation and participation in the APEC Pathfinder for Self-certification of Origin b. APEC will promote greater use of IT and automated systems to increase the efficiency of complying with RTA/FTA-related requirements, including encouraging more active participation of member economies in the implementation of the Electronic Certificate of Origin (eco) Project led by the Electronic Commerce Steering Group (ECSG). 2. Streamline customs-related rules and regulations and assist in the compliance of MSMEs a. APEC will encourage the establishment of commercially useful de CTI, SCCP, SMEWG MAG and SCCP: Exchange of experience and sharing of success stories of exporters and importers using self-certification through joint meetings, workshops, etc. MAG and SCCP: Discussions to understand challenges in adopting a self-certification regime (workshop) ECSG and SCCP: Closer collaboration between the ECSG-PTS and SCCP on facilitating the movement of goods through crossborder e-commerce ECSG: Promote the use of e-co and more automated systems relevant to FTA administration and compliance among the economies which do not accept self-certification of origin Increased participation in the APEC Pathfinder for the Self-certification of origin or in the workshops on exchange of information and sharing of success stories of exporters and importers using selfcertification Increased no. of participants in the eco Pathfinder Project among the economies which do not accept self-certification of origin WCO, CAPEC Decrease in the number of documents, cost and time necessary to export and import (EoDB) CTI/SCCP: Updating on the implementation of WCO Guidelines for the Immediate Release of 2

4 minimis values that will exempt low-value express and postal shipments from customs duties and from certain entry documentation requirements, in accordance with economies legislation. b. APEC will encourage the removal of the requirement for the Certificate of Non Manipulation (CNM) for transshipped goods and consider the use of other existing commercial documents as evidence of non-manipulation, or making the issuance of CNMs more expeditious. 3. Provide timely and accurate information on export and import procedures and requirements. a. APEC will enhance information sharing and transparency, through the development of guidebooks on doing business in sectors where MSMEs are most CTI, MAG, SCCP, SCSC, SMEWG,GOS Consignments including the publication of de minimis thresholds for low-value shipments under which duties are waived. Economies: Information-sharing on the implementation of de minimis thresholds for waiving duties on lowvalue shipments SCCP: Information-sharing on the use of CNM and other procedures and documentary requirements relevant to transit and transshipment Streamlined customs procedures for transshipped goods WTO, ISO Increased usage/website visitors of APECTR and other APEC information portals Improved website quality and relevance of the APECTR and other APEC information portals CTI and relevant sub-fora: Completion and launch of the APEC Trade Repository (APECTR) in 2015; Regular updates made on the APECTR and ensure active links CTI and subfora: Continuous 3

5 concentrated, as well as strengthen and promote the usage of trade information portals on goods and services trade, e.g., APEC Trade Repository proposal, APEC STAR Database. b. APEC will encourage the review of import licensing requirements and administration, with a view to increasing their transparency and predictability acknowledging that such import licensing requirements are particularly burdensome for MSMEs. c. APEC will intensify information exchange on food packaging and labeling requirements, and undertake regular stocktake initiatives and capacity building for the compliance enhancement and identification of other pertinent information that may be included in the APECTR; improvements in functionality and features CTI, MAG and SMEWG: Exchange of information on NTMs SMEWG: Develop (mobile-first and online) Guidebooks on Doing Business leveraging existing APEC work to avoid duplication SCSC: Dissemination and exchange of Standards and Conformance Learning Materials among SCSC members (Work Plan of SCSC-SMEWG) CTI and MAG: Discussion of economies import licensing requirements as shared in WTO, IAP Bogor Goals reports and the APEC Trade Repository SCSC: Sharing of information on packaging and labeling requirements for pre-packaged food products SCSC: Information on packaging and labeling requirements for prepackaged food products incorporated/added in the APEC 4

6 of MSMEs. 4. Widen the base of Authorized Economic Operators (AEO) and trusted trader programs (TTP) to include SMEs in order for them to contribute to security, integrity and resiliency in supply chains. a. APEC will further advance the formulation of best practice guidelines for the development and enhancement of AEO and TTP programs, and work towards forming an APECwide network of AEOs/TTPs. b. APEC will continue to carry out capacity building on SCSC website and other relevant APEC information portals (APECTR et al) SCSC and SMEWG: Development of a work plan to address the SME issues in standards and conformance in coordination with SMEWG SCSC, SMEWG: Effective collaboration between SCSC and SMEWG SCCP, SMEWG WCO Implement AEO programs and promote AEO mutual recognition between member economies Increased no. of participants, including SMEs if possible, in AEO and TTP programs SCCP: Consider further compliance with the WCO instruments for secure supply chains SCCP: Implement targeted capacity building activities SCCP: Discussions, workshops on implementing and understanding the challenges in adopting Pillar 3 of the WCO SAFE Framework (Customs-toother Government and Inter- Government Agencies for the SAFE Framework of Standards) Economies: Capacity building on AEO/TTP to increase SME awareness 5

7 AEO and TTP, including increasing SMEs awareness and understanding of and compliance with AEO/TTP requirements. 5. Support measures to widen options on financing for MSMEs and further develop the infrastructure to facilitate lending to them. a. APEC to promote inclusive finance mechanisms with focus on broad-based financial products and services such as equity finance, venture capital mechanisms, trade and supply chain finance and business risk protection, including resilience against crises such as financial crises, natural disasters and, economic instability. b. APEC to cooperate in developing efficient and effective infrastructure for credit information and secured transactions/movable collateral systems to realize the seamless MSME SFOM, SMEWG, EC, SELI World Bank, OECD, ABAC, IFC, ERIA and compliance SCCP, SMEWG: Joint SCCP SMEWG dialogues/workshops on MSMEs participation in AEO programs SFOM: Report on the development of a Financial Infrastructure Development Network as a specialized subgroup within the APFF 2 that will facilitate workshops, dialogues and studies SFOM and SMEWG: Exchange of information and views for implementing the priority actions SMEWG and EC: Targeted capacity building programs EC & SELI: Legal infrastructure multi-economy diagnostic on contract enforcement, secured transactions and movable collateral systems SFOM: Report on the establishment of legal frameworks of interested Number of financing schemes / programs dedicated to MSMEs Loans made to MSMEs Institutions providing coverage against natural disaster Increased no. of economies participating in secured transactions capacity building programs as a result of the multi-economy diagnostic Legal frameworks for 2 The Asia-Pacific Financial (APFF) was proposed by ABAC in 2012 and endorsed by APEC Finance Ministers in It is a platform for institutions, organizations and initiatives together to work towards the development and strengthening of financial markets in the Asia-Pacific region. 6

8 financing environment throughout the APEC economies to strengthen global value chain. c. APEC will promote innovative and diversified financing options to meet the needs of MSME at different stages of growth, particularly financing early-stage investment, including through taking into account not only financial data but their own business model strategies - e.g. growth potential, anticipated earnings - to assess individual companies creditworthiness d. APEC will enhance cooperation among financial institutions, and promote designated loans for MSMEs in supporting mutual investment across member economies. e. APEC will support open and transparent business environments through discussions on possible codes of ethics in sectors of export interest to MSMEs. 6. Expand internationalization CTI, ECSG, OECD, PAA, economies for Credit Information Systems (CIS) based on the World Bank s General Principles of Credit Reporting SMEWG and SFOM: Exchange of information on innovative and diversified financing options referencing work done by the OECD Working Party on SMEs and Entrepreneurship (WPSMEE) SFOM: Report on the establishment of policy frameworks for alternative finance SMEWG: Sharing of information on designated loans SMEWG: Utilization of the APEC Business Ethics Web Portal to enhance SMEs ethics compliance knowledge and capacity building skills. CIS in place in interested economies Innovative and diversified financing options in place in all economies Increased number of sectors with business ethics codes 7

9 opportunities for micro and small enterprises providing goods and services through ICT and e- commerce. a. APEC will cooperate with ABAC in identifying and promoting strategic e- commerce platforms and innovative business models for micro and small enterprises to support buying and selling activities (B2C), business matching opportunities (B2B), and online-to-offline commerce (O2O). b. APEC will implement capacity building in order to promote international networking and to increase cross-border business opportunities for MSMEs by localizing/customizing ABAC s Cross-Border E- Commerce Training (CBET) Programme and other similar platforms. c. APEC will encourage the availability of nextgeneration high-speed broadband/internet and promote its widespread uptake and effective use by MSMEs. TELWG, SMEWG, ABAC ISOC SMEWG and ECSG: Promote industry best practices in MSME friendly e- commerce platforms ECSG and SMEWG: Identify and address barriers to adopting ICT and e- commerce for MSMEs SMEWG and ECSG: Develop capacity building programs to promote diffusion and use of e-commerce ECSG, SMEWG, ABAC: Conduct capacity building programs and trainings on business utilization of e- commerce, including the CBET Programme of ABAC TELWG: Effective projects/ activities developed in order to access next generation high-speed broadband networks and services by 2020 MSME-friendly e- commerce platforms and business models identified MSMEs trained on e- commerce Improvement in the average speed of broadband networks 8

10 d. APEC will identify and promote policies and regulatory frameworks for creating conducive environment for e- commerce and address unnecessary regulations that constrain the ability of MSMEs to participate in e- commerce 7.Strengthen institutional support for MSMEs a. APEC will foster clustering of MSMEs, including through cooperatives, to gain economies of scale in both product and export markets. b. APEC will exchange best practices in data collection on MSME statistics and build economies capacity to identify their contribution to growth, trade and employment. c. APEC will build a regional network of MSME innovators and accelerators (e.g. internship consortium, APEC SME Service Alliance (ASSA), innovation centers, supply chain institutes, women and CTI and subfora, SMEWG, PPSTI, EPWG OECD CTI, ECSG: Conduct a stocktake of APEC s previous work and identify best practices and policy options to improve policies and regulatory frameworks on e-commerce in support of MSMEs participation in e- commerce. SMEWG: Sharing of best practices on MSME clustering SMEWG: Complete the SME Internationalization Index SMEWG: Discussions / information sharing on best practices on data collection SMEWG: Underpin the regional networking of accelerators and start-up communities SMEWG: Exchange of experiences on the innovative development of SMEs in APEC economies PPSTI: Promote the use of science, technology and innovation (STI) in Increase in number of MSMEs engaged in e- commerce MSME statistics in place for each economy Identify /Mapping of e- commerce innovation and development research centers Establishment of APEC SMEs database on innovative best practices 9

11 youth networks) as part of an ecosystem which supports enterprise creation and increases the innovation capabilities of MSMEs. d. APEC will promote wider linkage between small and large enterprises in pursuing greater MSME participation in regional and global value chains. e. APEC will foster MSME Business Continuity Planning (BCP) and implementation to build sustainable and resilient businesses and communities. f. APEC will support the establishment of the APEC SME database on innovative best practices, such as those best practices published at the APEC Small and Medium Enterprise Technology Conference and Fair (SMETC). 8.Strengthen focus on MSMEs led by women raising the quality of products and services of MSMEs for global markets PPSTI: Develop STI policy recommendations in support of MSMEs CTI, AD, CD, LSIF, SMEWG: Promote international networking and increase the cross border business opportunities for MSMEs EPWG and SMEWG: Identify best practices to promote business continuity planning among MSMEs; continue to implement the multi-year capacity building training program for MSMEs SMEWG: Development of a database on innovative best practices; Development of an online platform for easier communication and information exchange. Number of MSMEs trained on BCP MSME database on innovative best practices established PPWE IFC Gender disaggregated data on MSMEs (number of enterprise, employees, GDP, trade) a. APEC will foster the use of PPWE: Promote the use of gender- Adoption of the Women 10

12 gender-disaggregated data in measuring the economic and social impacts on MSMEs. b. APEC will promote an understanding of the divergent constraints faced by male and female-led MSMEs. c. APEC will encourage exchange of best practices on women-friendly interfaces with customs and other border authorities. Common Goal towards 2020: APEC will grow dynamic, global MSMEs by widening and deepening their involvement in international markets and global value chains, thus harnessing their full potential to innovate and drive economic growth and prosperity. To this end, APEC will identify indicators in order to track the region s progress and the progress of individual members and seek future actions to enable MSMEs in the region to go global. disaggregated data PPWE: Information sharing on experiences of male and female-led MSMEs Relevant fora: Sharing of best practices and business models of women exporters on their experiences, stories with customs related transactions and the Economy Dashboard Qualitative indicators: Case studies of MSMEs direct and indirect participation in international markets and global value chains Quantitative indicators: Increase in MSMEs share in total exports Increase in the number of MSME exporters Increase in internationalization activities 11