International agreements

• Agreements concluded by the European Communities with non-member countries

or with international organizations in their specific areas of responsibility;
• Agreements concluded jointly by the Member States and the European
Communities in areas of shared responsibility (‘mixed type’ agreements);
• Decisions of joint committees set up pursuant to an international agreement and
comprising representatives of the signatories for the purpose of administering the
agreement.

1. The World Organization for Animal Health (OIE)

The need to fight animal diseases at global level led to the creation of the Office
International des Epizooties through the international Agreement signed on January 25th
1924. In May 2003 the Office became the World Organization for Animal Health but
kept its historical acronym OIE.

The OIE is the intergovernmental organization responsible for improving animal health
worldwide.

It is recognized as a reference organization by the World Trade Organization (WTO) and

as of April 2009, had a total of 174 Member Countries and Territories. The OIE
maintains permanent relations with 36 other international and regional organizations and
has Regional and sub-regional Offices on every continent.

Objectives
 Transparency
 Scientific information
 International solidarity
 Sanitary safety
 Promotion of Veterinary Services
 Food safety and animal welfare

How does the organization function?

The organization is placed under the authority and control of a World Assembly of
Delegates consisting of Delegates designated by the Governments of all Member
Countries.

The day-to-day operation of the OIE is managed at the Headquarters situated in Paris and
placed under the responsibility of a Director General elected by the World Assembly of
Delegates. The Headquarters implements the resolutions passed by the International
Committee and developed with the support of Commissions elected by the Delegates:

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 • Council
• Regional Commissions (5)
• Specialist Technical Commissions (4)

The OIE’s financial resources are derived principally from compulsory annual
contributions backed up by voluntary contributions from Member Countries and
Territories.

The OIE was created in 1924 by 28 countries, and thus predates the United Nations. The
founding countries wished to implement an international agreement that would enable
them to work together to try to put an end to the epizootics that were devastating their
livestock. In particular, they sought an undertaking from infected countries to inform the
others in case of an important sanitary event, thereby enabling them to take protective
action. They also wished to have information on the most effective methods of
controlling the most dangerous animal diseases.

Today, these objectives of sanitary and scientific information in the veterinary field are
still among the priority missions of our organization, both for diseases solely affecting
animals and those also transmissible to humans.

In 1994, the Agreements that led to the creation of the World Trade Organization (WTO)
included specific measures on the management of sanitary and phytosanitary problems
(SPS Agreements) relating to the risks posed by trade in animals and animal products.
The standards, guidelines and recommendations issued by the OIE were designated as the
international reference in the field of animal diseases and zoonoses. The WTO’s choice
of the OIE stems mainly from the fact that our organisation’s decisions are exclusively
science-based.

The objectives described above all convert hinge on the implementation of the main
mission of our organization:

To improve the health and the welfare of animals all over the world regardless of the
cultural practices or the economic situations in member countries.

I have had the honour of leading this organization since January 2001, after having long
known and appreciated its role, first as a National Delegate to the OIE, then as elected
President of the International Animal Health Code Commission. Visitors to our Web site
will find answers to most of their questions on animal health, as well as on animal
diseases transmissible to humans and several new topics for the OIE, such as animal
welfare and animal production food safety.

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Official Acts

Final Reports of the General Session of the OIE International Committee

Resolutions adopted by the OIE International Committee

Recommendations of the Conferences of the OIE Regional Commissions
and Reports of the meetings of the Regional Commissions organized during the General
Session

New Member Countries

Appointment of official Delegates
OIE Awards
Agreements concluded with other Organizations

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 2. IATA – International Air Transport Association

Air Transport Industry’s side

Air transport is one of the most dynamic industries in the world. The International Air
Transport Association (IATA) is its global trade organization.
Over 60 years, IATA has developed the commercial standards that built a global industry.
Today, IATA’s mission is to represent, lead and serve the airline industry. Its members
comprise some 230 airlines - the world’s leading passenger and cargo airlines among
them - representing 93 percent of scheduled international air traffic.
Representing…
IATA seeks to improve understanding of the industry among decision makers and
increase awareness of the benefits that aviation brings to national and global economies.
It fights for the interests of airlines across the globe, challenging unreasonable rules and
charges, holding regulators and governments to account, and striving for sensible
regulation.
Leading…
IATA’s aim is to help airlines help themselves by simplifying processes and increasing
passenger convenience while reducing costs and improving efficiency. The
groundbreaking Simplifying the Business initiative is crucial in this area. Moreover,
safety is IATA’s number one priority, and IATA’s goal is to continually improve safety
standards, notably through IATA’s Operational Safety Audit (IOSA).
Another main concern is to minimize the impact of air transport on environment.
Serving…
IATA ensures that people and goods can move around the global airline network as easily
as if they were on a single airline in a single country. In addition, it provides essential
professional support to all industry stakeholders with a wide range of products and expert
services, such as publications, training and consulting. IATA’s financial systems also
help carriers and the travel industry maximize revenues.
… For the benefit for all parties involved:
• For consumers, IATA simplifies the travel and shipping processes, while keeping
costs down. Passengers can make one telephone call to reserve a ticket, pay in one
currency and then use the ticket on several airlines in several countries.
• IATA allows airlines to operate safely, securely, efficiently and economically under
clearly defined rules.
• IATA serves as an intermediary between airlines and passenger as well as cargo
agents via neutrally applied agency service standards and centralized financial
systems.
• A large network of industry suppliers and service providers gathered by IATA
provides solid expertise to airlines in a variety of industry solutions.
• For governments, IATA seeks to ensure they are well informed about the
complexities of the aviation industry to ensure better, long-term decisions.

4
 IATA (International Air Transport Association) was founded in Havana, Cuba, in
April 1945. It is the prime vehicle for inter-airline cooperation in promoting safe,
reliable, secure and economical air services - for the benefit of the world’s consumers.
The international scheduled air transport industry is now more than 100 times larger
than it was in 1945. Few industries can match the dynamism of that growth, which
would have been much less spectacular without the standards, practices and procedures
developed within IATA.

At its founding, IATA had 57 members from 31 nations, mostly in Europe and North
America. Today it has some 230 members from 126 nations in every part of the globe.

The modern IATA is the successor to the International Air Traffic Association founded
in the Hague in 1919 - the year of the world’s first international scheduled services.

The old IATA was able to start small and grow gradually. It was also limited to a
European dimension until 1939 when Pan American joined. The post-1945 IATA
immediately had to handle worldwide responsibilities with a more
systematic organization and a larger infrastructure.

This was reflected in the 1945 Articles of Association and a much more precise definition
of IATA’s aims than had existed before 1939.
• To promote safe, regular and economical air transport for the benefit of the peoples
of the world, to foster air commerce, and to study the problems connected therewith;
• To provide means for collaboration among the air transport enterprises engaged
directly or indirectly in international air transport service;
• To cooperate with the newly created International Civil Aviation Organization (ICAO
- the specialised United Nations agency for civil aviation) and other international
organizations.
The most important tasks of IATA during its earliest days were technical, because safety
and reliability are fundamental to airline operations. These require the highest standards
in air navigation, airport infrastructure and flight operations. The IATA airlines provided
vital input to the work of ICAO, as that organization drafted its Standards and
commended Practices. By 1949, the drafting process was largely complete and reflected
in “Annexes” to the Chicago convention, the treaty which still governs the conduct of
international civil aviation.

In those early days, ICAO coordinated regional air navigation and support for airports
and operational aids in countries which could not themselves afford such services. IATA
provided airline input to ICAO and to sessions of the International Telecommunications
Union on wavelength allocation.

The standardisation of documentation and procedures for the smooth functioning of the
world air transport network also required a sound legal basis. IATA helped to mesh
international conventions, developed through ICAO, with US air transport law which had
developed in isolation prior to World War Two. The Association made a vital input to the
development of Conditions of Carriage the contract between the customer and the

5
transporting airline. One early item on the legal agenda was revision and modernisation
of the Warsaw Convention - originally signed in 1929 - on airline liability for passenger
injury or death and cargo damage or loss. This work continues.

Once they were operating within a sound technical and legal framework, airlines’ next
requirements were for answers to questions such as: who can fly where? What prices are
to be charged? How is the money from multi-airline journeys - that is, interlining - to be
divided up, and how do airlines settle their accounts?

The Chicago Conference of 1944 which gave birth to the Chicago Convention tried to
achieve a multilateral answer to the first two questions, but failed to do so. The questions
of who flies, and where, were resolved on a bilateral basis. The benchmark Bermuda
Agreement of 1946 between the US and the UK was the first of almost 4,000 bilateral air
transport agreements so far signed and registered with ICAO.

In the early days, governments insisted on the right to oversee the prices charged by
international airlines but could not, in practical terms, develop those prices for
themselves. IATA was delegated to hold Traffic Conferences for this purpose, with all
fares and rates subject to final government approval. The aim was twofold: ensuring that
fares and rates would not involve cut-throat competition, while ensuring that they could
be set as low as possible, in the interests of consumers.

The first worldwide Traffic Conference was held in Rio de Janeiro in 1947. It reached
unanimous agreement on nearly 400 resolutions covering all aspects of air travel.

Fare construction rules for multi-sector trips, revenue allocation - pro-rating - rules,
baggage allowances, ticket and air waybill design and agency appointment procedures
were typical details agreed at this pioneering meeting.

Today, that pioneering work is reflected in the currently applicable IATA Resolutions
dealing with these and many other subjects. Notable examples are:
• The Multilateral Interline Traffic Agreements: These are the basis for the airlines’
interline network. Close to 300 airlines have signed them, accepting each others’
tickets and air waybills - and thus their passenger and cargo traffic - on a reciprocal
basis.
• Passenger and Cargo Services Conference Resolutions: These prescribe a variety of
standard formats and technical specifications for tickets and air paybills.
• Passenger and Cargo Agency Agreements & Sales Agency Rules: These govern the
relationships between IATA Member airlines and their accredited agents with regard
to passenger and cargo.

Debt Settlement between airlines, largely arising from interlining, takes place through the
Clearing House, which began operations in January 1947. During its first year, 17 airlines
cleared (US) $26 million. The IATA Clearing House today.

6
 3. World Heritage Convention: UNESCO.
United Nations Educational, Scientific and Cultural Organization.

Convention concerning the Protection of the World Cultural and Natural Heritage, 1972.
Protecting natural and cultural properties of outstanding universal value against the threat
of damage in a rapidly developing world

As early as 1942, in wartime, the governments of the European countries, which were
confronting Nazi Germany and its allies, met in the United Kingdom for the Conference
of Allied Ministers of Education (CAME). The Second World War was far from over, yet
those countries were looking for ways and means to reconstruct their systems of
education once peace was restored. Very quickly, the project gained momentum and soon
took on a universal note. New governments, including that of the United States, decided
to join in.

Upon the proposal of CAME, a United Nations Conference for the establishment of an
educational and cultural organization (ECO/CONF) was convened in London from 1 to
16 November 1945. Scarcely had the war ended when the conference opened. It gathered
together the representatives of forty-four countries. Spurred on by France and the United
Kingdom, two countries that had known great hardship during the conflict, the delegates
decided to create an organization that would embody a genuine culture of peace. In their
eyes, the new organization must establish the “intellectual and moral solidarity of
mankind” and, in so doing, prevent the outbreak of another world war.

At the end of the conference, thirty-seven countries founded the United Nations
Educational, Scientific and Cultural Organization. The Constitution of UNESCO, signed
on 16 November 1945, came into force on 4 November 1946 after ratification by twenty
countries: Australia, Brazil, Canada, China, Czechoslovakia, Denmark, Dominican
Republic, Egypt, France, Greece, India, Lebanon, Mexico, New Zealand, Norway, Saudi
Arabia, South Africa, Turkey, United Kingdom and United States. The first session of the
General Conference of UNESCO was held in Paris from 19 November to 10 December
1946 with the participation of representatives from 30 governments entitled to vote.

The ashes of the Second World War are reflected in the composition of the founding
Member States of UNESCO. Japan and the Federal Republic of Germany became
members in 1951, Spain in 1953. Other major historical factors, as the Cold War, the
decolonization process and the dissolution of the USSR, also left their trace on UNESCO.
The USSR joined UNESCO in 1954 and was replaced by the Russian Federation in 1992.
Nineteen African States became Members in 1960. Twelve Republics from the former
Soviet Union joined UNESCO in the period 1991 to 1993.

As a consequence of its entry into the United Nations, the People’s Republic of China has
been the only legitimate representative of China at UNESCO since 1971. The German
Democratic Republic was a Member from 1972 to 1990, when it joined the Federal
Republic of Germany.

7
UNESCO - the United Nations Educational, Scientific and Cultural Organization
(UNESCO) was founded on 16 November 1945. For this specialized United Nations
agency, it is not enough to build classrooms in devastated countries or to publish
scientific breakthroughs. Education, Social and Natural Science, Culture and
Communication are the means to a far more ambitious goal : to build peace in the minds
of men.

Today, UNESCO functions as a laboratory of ideas and a standard-setter to forge

universal agreements on emerging ethical issues. The Organization also serves as a
clearinghouse – for the dissemination and sharing of information and knowledge – while
helping Member States to build their human and institutional capacities in diverse fields.
In short, UNESCO promotes international co-operation among its 193* Member States
and six Associate Members in the fields of education, science, culture and
communication.

*As of October 2009

UNESCO is working to create the conditions for genuine dialogue based upon respect for
shared values and the dignity of each civilization and culture.
This role is critical, particularly in the face of terrorism, which constitutes an attack
against humanity. The world urgently requires global visions of sustainable development
based upon observance of human rights, mutual respect and the alleviation of poverty, all
of which lie at the heart of UNESCO’s mission and activities.

Through its strategies and activities, UNESCO is actively pursuing the Millennium
Development

Goals, especially those aiming to:

• halve the proportion of people living in extreme poverty in developing countries by

2015
• achieve universal primary education in all countries by 2015
• eliminate gender disparity in primary and secondary education by 2005
• help countries implement a national strategy for sustainable development by 2005 to
reverse current trends in the loss of environmental resources by 2015.
• UNESCO and the United Nations Millennium Goals

2007: Montenegro becomes UNESCO’s 192nd Member State.

2005: Brunei Darussalam becomes UNESCO’s 191st Member State.

2003: The United States returns to UNESCO.

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2001: UNESCO Universal Declaration on Cultural Diversity is adopted by the General
Conference.

1999: Director-General Koïchiro Matsuura undertakes major reforms to restructure and

decentralize the Organization’s staff and activities.

1998: The Universal Declaration on the Human Genome and Human Rights, developed
and adopted by UNESCO in 1997, is endorsed by the UN.

1997: The United Kingdom returns to UNESCO.

1992: Creation of the Memory of the World programme to protect irreplaceable library
treasures and archive collections. It now includes sound, film and television archives.

1990: The World Conference on Education for All, in Jomtiem, Thailand, launches a
global movement to provide basic education for all children, youths and adults. Held ten
years later in Dakar, Senegal, the World Education Forum commits governments to
achieving basic education for all by 2015.

1984: The United States withdraws from the Organization citing disagreement over
management and other issues. The United Kingdom and Singapore withdraw in 1985.
The Organization’s budget drops considerably.

1958: Inauguration of UNESCO’s permanent Headquarters in Paris designed by Marcel

Breuer (US), Pier-Luigi Nervi (Italy) and Bernard Zehrfuss (France).

1948: UNESCO recommends that Member States make free primary education
compulsory and universal.

November 16, 1945: representatives of 37 countries meet in London to sign UNESCO’s

Constitution which comes into force on November 4, 1946 after ratification by 20
signatories.

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 4. South Asian Association for Regional Cooperation (SAARC)

The South Asian Association for Regional Cooperation (SAARC) is an economic and
political organization of eight countries in Southern Asia. In terms of population, its
sphere of influence is the largest of any regional organization: almost 1.5 billion people,
the combined population of its member states. It was established on December 8, 1985 by
Bangladesh, Bhutan, Maldives, Nepal, Pakistan, India and Sri Lanka. In April 2007, at
the Association's 14th summit, Afghanistan became its eighth member.

The objectives of the Association as defined in the Charter are:

• To promote the welfare of the people of South Asia and to improve their quality
of life;
• To accelerate economic growth, social progress and cultural development in the
region and to provide all individuals the opportunity to live in dignity and to
realize their full potential;
• To promote and strengthen collective self-reliance among the countries of South
Asia;
• To contribute to mutual trust, understanding and appreciation of one another's
problems;
• To promote active collaboration and mutual assistance in the economic, social,
cultural, technical and scientific fields;
• To strengthen cooperation with other developing countries;
• to strengthen cooperation among themselves in international forums on matters of
common interest; and
• To cooperate with international and regional organisations with similar aims and
purposes.

The Declaration on South Asian Regional Cooperation was adopted by the Foreign
Ministers in 1983 in New Delhi. During the meeting, the Ministers also launched the
Integrated Programme of Action (IPA) in nine agreed areas, namely, Agriculture; Rural
Development; Telecommunications; Meteorology; Health and Population Activities;
Transport; Postal Services; Science and Technology; and Sports, Arts and Culture. The
South Asian Association for Regional Cooperation (SAARC) was established when its
Charter was formally adopted on 8 December 1985 by the Heads of State or Government
of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka

Afghanistan was added to the regional grouping at the behest of India on 13 November
2005, and became a member on 3 April 2007. With the addition of Afghanistan, the total
number of member states were raised to eight (8). In April 2006, the United States of
America and South Korea made formal requests to be granted observer status. The
European Union has also indicated interest in being given observer status, and made a
formal request for the same to the SAARC Council of Ministers meeting in July 2006. On
2 August 2006 the foreign ministers of the SAARC countries agreed in principle to grant
observer status to the US, South Korea and the European Union. On 4 March 2007, Iran
requested observer status. Followed shortly by the entrance of Mauritius.

10
Secretariat

The SAARC Secretariat was established in Kathmandu on 16 January 1987 and was
inaugurated by Late King Birendra Bir Bikram Shah of Nepal.

It is headed by a Secretary General appointed by the Council of Ministers from Member

Countries in alphabetical order for a three-year term. He is assisted by the Professional
and the General Services Staff, and also an appropriate number of functional units called
Divisions assigned to Directors on deputation from Member States. The Secretariat
coordinates and monitors implementation of activities, prepares for and services
meetings, and serves as a channel of communication between the Association and its
Member States as well as other regional organizations.

The Memorandum of Understanding on the establishment of the Secretariat which was

signed by Foreign Ministers of member countries on 17 November 1986 at Bangalore,
India contains various clauses concerning the role, structure and administration of the
SAARC Secretariat as well as the powers of the Secretary-General.

In several recent meetings the heads of state or government of member states of SAARC
have taken some important decisions and bold initiatives to strengthen the organisation
and to widen and deepen regional co-operation.

The SAARC Secretariat and Member States observe 8 December as the SAARC Charter
Day1..

Criticism

Not enough is being done to for rapid economic integration of the region. Apart from the
fact that the recently approved south asian university and the creation of new rail lines
linking the region, people to people contacts and connectivity of region needs to be
strengthened.

Political issues

SAARC has intentionally laid more stress on "core issues" mentioned above rather than
more decisive political issues like the Kashmir dispute and the Sri Lankan civil war.
However, political dialogue is often conducted on the margins of SAARC meetings.
SAARC has also refrained itself from interfering in the internal matters of its member
states. During the 12th and 13th SAARC summits, extreme emphasis was laid upon
greater cooperation between the SAARC members to fight terrorism.

11
Free trade agreement

Over the years, the SAARC members have expressed their unwillingness on signing a
free trade agreement. Though India has several trade pacts with Maldives, Nepal, Bhutan
and Sri Lanka, similar trade agreements with Pakistan and Bangladesh have been stalled
due to political and economic concerns on both sides. India has been constructing a
barrier across its borders with Bangladesh and Pakistan. In 1993, SAARC countries
signed an agreement to gradually lower tariffs within the region, in Dhaka. Eleven years
later, at the 12th SAARC Summit at Islamabad, SAARC countries devised the South
Asia Free Trade Agreement which created a framework for the establishment of a free
trade area covering 1.4 billion people. This agreement went into force on January 1,
2006. Under this agreement, SAARC members will bring their duties down to 20 per cent
by 2007.

Dhaka 2005 Summit

The summit accorded observer status to People's Republic of China, Japan, South Korea
and United States of America. The nations also agreed to organize development funds
under a single financial institution with a permanent secretariat, that would cover all
SAARC programs and also ranging from social, to infrastructure, to economic ones.

12
 5. Asia-Pacific Economic Cooperation (APEC)

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries

(styled 'member economies') to cooperate on regional trade and investment liberalisation
and facilitation. APEC's objective is to enhance economic growth and prosperity in the
region and to strengthen the Asia-Pacific community. Members account for
approximately 40% of the world's population, approximately 54% of world GDP and
about 44% of world trade.

An annual APEC Economic Leaders' Meeting, attended by the heads of government of

all APEC members (with the exception of Chinese Taipei which is represented by a
ministerial-level official). The location of the meeting rotates annually among the
member economies, and a famous tradition involves the attending Leaders dressing in a
national costume of the host member.In January 1989, Australian Prime Minister Bob
Hawke called for more effective economic cooperation across the Pacific Rim region.
This led to the first meeting of APEC in the Australian capital Canberra in November,
chaired by Australian Foreign Affairs Minister Gareth Evans. Attended by political
ministers from twelve countries, the meeting concluded with commitments for future
annual meetings in Singapore and South Korea.

The initial proposal was opposed by countries of the Association of Southeast Asian
Nations (ASEAN) which instead proposed the East Asia Economic Caucus which would
exclude non-Asian countries such as the United States, Canada, Australia and New
Zealand. The plan was opposed and strongly criticised by Japan and the United States.

The first APEC Economic Leaders' Meeting occurred in 1993 when US president Bill
Clinton, after discussions with Australian prime minister Paul Keating, invited the heads
of government from member economies to a summit on Blake Island. He believed it
would help bring the stalled Uruguay Round of trade talks on track. At the meeting, some
leaders called for continued reduction of barriers to trade and investment, envisioning a
community in the Asia-Pacific region that might promote prosperity through cooperation.
The APEC Secretariat, based in Singapore, was established to coordinate the activities of
the organisation.

During the meeting in 1994 in Bogor, Indonesia, APEC Leaders adopted the Bogor Goals
that aim for free and open trade and investment in the Asia-Pacific by 2010 for
industrialised economies and by 2020 for developing economies. In 1995, APEC
established a business advisory body named the APEC Business Advisory Council
(ABAC), composed of three business executives from each member economy.

APEC has worked to reduce tariffs and other trade barriers across the Asia-Pacific region,
creating efficient domestic economies and dramatically increasing exports. Key to
achieving APEC's vision are what are referred to as the 'Bogor Goals' of free and open
trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020
for developing economies. These goals were adopted by Leaders at their 1994 meeting in
Bogor, Indonesia.

13
Free and open trade and investment helps economies to grow, creates jobs and provides
greater opportunities for international trade and investment. In contrast, protectionism
keeps prices high and fosters inefficiencies in certain industries. Free and open trade
helps to lower the costs of production and thus reduces the prices of goods and services -
a direct benefit to all.

APEC also works to create an environment for the safe and efficient movement of goods,
services and people across borders in the region through policy alignment and economic
and technical cooperation.

APEC currently has 21 members, including most countries with a coastline on the Pacific
Ocean. By convention, APEC uses the term member economy to refer to one of its
members.

India has requested membership in APEC, and received initial support from the United
States, Japan and Australia. Officials have decided not to allow India to join for various
reasons. However, the decision was made not to admit more members until 2010.
Moreover, India does not border the Pacific which all members do. The Philippines trade
negotiator was quoted as saying that there is concern that "Once the Indians come in, the
(Asian) weighting would become heavier in this part of the world."

In addition to India, Mongolia, Pakistan, Laos, Bangladesh, Colombia, and Ecuador are
among a dozen countries seeking membership in APEC by 2008. Colombia applied for
APEC's membership as early as in 1995, but its bid was halted as the organization
stopped accepting new members from 1993 to 1996 and the moratorium was further
prolonged to 2007 due to the 1997 Asian Financial Crisis. Colombia and Ecuador hope to
become members in 2010. Guam has also been actively seeking a separate membership,
citing the example of Hong Kong, but the request is opposed by the United States, which
currently represents Guam. APEC is one of the few international level organizations that
Taiwan is allowed to join, albeit under the name Chinese Taipei.

The APEC Business Advisory Council (ABAC) was created by the APEC Economic
Leaders in November 1995 with the aim of providing advice to the APEC Economic
Leaders on ways to achieve the Bogor Goals and other specific business sector priorities,
and to provide the business perspective on specific areas of cooperation.

Each economy nominates up to three members from the private sector to ABAC. These
business leaders represent a wide range of industry sectors.ABAC provides an annual
report to APEC Economic Leaders containing recommendations to improve the business
and investment environment in the Asia-Pacific region, and outlining business views
about priority regional issues.ABAC is also the only non-governmental organisation that
is on the official agenda of the APEC Economic Leader’s Meeting.

Since its formation in 1989, APEC has held annual meetings with representatives from all
member economies. The first four annual meetings were attended by ministerial-level
officials. Beginning in 1993, the annual meetings are named APEC Economic Leaders'

14
Meetings and are attended by the heads of government from all member economies
except Taiwan, which is represented by a ministerial-level official. The annual Leaders'
Meetings are not called summits. The location of the meeting is rotated annually among
the members. As a tradition, the leaders attending the meeting participate in a photo op in
which they dress in a costume that reflects the culture of the host member.

To meet the Bogor Goals, APEC carries out work in three main areas:
1. Trade and Investment Liberalisation
2. Business Facilitation
3. Economic and Technical Cooperation

When APEC was established in 1989 average trade barriers in the region stood at 16.9
percent, by 2004 they had been reduced to 5.5%

APEC has long been at the forefront of reform efforts in the area of business facilitation.
Between 2002-2006 the costs of business transactions across the region was reduced by 6
percent, thanks to the APEC Trade Facilitation Action Plan (TFAPI). Between 2007 and
2010, APEC hopes to achieve an additional 5 percent reduction in business transaction
costs. To this end, a new Trade Facilitation Action Plan has been endorsed. According to
a 2008 research brief published by the World Bank as part of its Trade Costs and
Facilitation Project, increasing transparency in the region's trading system is critical if
APEC is to meet its Bogor Goal targets.

Free Trade Area of the Asia-Pacific

APEC is considering the prospects and options for a Free Trade Area of the Asia-Pacific
(FTAAP) which would include all member economies of Asia-Pacific Economic
Cooperation (APEC). Since 2006, the APEC Business Advisory Council, promoting the
theory that a free trade area has the best chance of converging the member nations and
ensuring stable economic growth under free trade, has lobbied for the creation of a high-
level task force to study and develop a plan for a free trade area. The proposal for a
FTAAP arose due to the lack of progress in the Doha round of World Trade Organization
negotiations, and as a way to overcome the 'spaghetti bowl' effect created by overlapping
and conflicting elements of free trade agreements between members - there are as many
as 60 free trade agreements and 117 being negotiated in Southeast Asia and the Asia-
Pacific region. The FTAAP is more ambitious in scope than the Doha round, which limits
itself to reducing trade restrictions. The FTAAP would create a free trade zone that would
considerably expand commerce and economic growth in the most dynamic region in the
world The economic expansion and growth in trade could exceed the expectations of
other regional free trade areas such as the ASEAN Plus Three (ASEAN + China, Japan,
and South Korea). Some criticisms include that the diversion of trade within APEC
members would create trade imbalances, market conflicts and complications with nations
of other regions The development of the FTAAP is expected to take many years,
involving essential studies, evaluations and negotiations between member economies. It
is also affected by the absence of political will and popular agitations and lobbying
against free trade in domestic politics.

15
 1. TRADE BLOC-FRAMEWORK AGREEMENT FOR ESTABLISHING FREE
TRADE AREA
BETWEEN
THE REPUBLIC OF INDIA
AND
THE KINGDOM OF THAILAND

****

Preamble

The Governments of the Republic of India and the Kingdom of Thailand hereinafter
referred to in this Agreement individually as "the Party" and collectively as "the Parties";

Desiring to strengthen the special bonds of friendship and economic relationship and also
cooperation that exist between the Parties with a view to improving living standards,
deepening economic linkages, promoting economic growth, investment opportunities,
minimising barriers, and creating a larger and more integrated market with greater
opportunities;

Have agreed as follows:

Objectives

The Parties shall make every effort to:

1. Create favourable conditions for greater economic cooperation and promote fair
competition;

2. Progressively liberalize and eliminate barriers to trade in, and facilitate the cross-
border movement of goods and services between the territories of the Parties on a
reciprocal basis as well as create a transparent, liberal and facilitative investment regime;
and

3. Explore new areas and develop appropriate measures for closer economic cooperation
between the Parties.

Measures for Comprehensive Free Trade Area (FTA)

The Parties agree to expeditiously negotiate for establishing an India-Thailand FTA with
a view to strengthening and enhancing liberalization of trade through the following:

Progressive elimination of tariffs and non-tariff barriers in substantially all trade in goods
between the Parties; progressive liberalization of trade in services between the Parties
with substantial sectoral coverage;establishment of an open and competitive investment
regime that facilitates and promotes investment within and between the Parties;

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establishment of effective trade and investment facilitation measures, including, but not
limited to, simplification of customs procedures and development of mutual recognition
arrangements; expansion of economic co-operation in areas as may be mutually agreed
between the Parties that will complement the deepening of trade and investment links
between the Parties and formulation of action plans and programmes in order to
implement the agreed sectors/areas of cooperation; and establishment of appropriate
mechanisms for the purposes of effective implementation of this Agreement.

Investment

1. To promote investments and to create a liberal, facilitative, transparent and competitive

investment regime, the Parties shall endeavour to:

(i) Enter into negotiations in order to progressively liberalise their respective investment
regimes;

(ii) Strengthen co-operation in investment, facilitate investment and improve

transparency of investment rules and regulations; and

(iii) Provide for the protection of investments.

2. With regard to the promotion and protection of investments, the Parties shall keep in
view the provisions of the Agreement for the Promotion and Protection of Investments
signed by them on 10 July 2000.

Other Areas of Economic Cooperation

1. The Parties agree to strengthen their cooperation, but not limited to, in the following
areas:

(i) Trade Facilitation:

Mutual Recognition Arrangements (MRAs), conformity assessment, accreditation

procedures, and standards and technical regulations;

Removal of non-tariff barriers (NTBs);

Customs cooperation;

Trade finance; and

Business visa and travel facilitation.

(ii) Sectors of Cooperation:

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(a) Fisheries and Aquaculture;

(b) Information & Communications Technology;

(c) Space Technology;

(d) Biotechnology;

(e) Finance and Banking;

(f) Tourism;

(g) Infrastructure Development;

(h) Health Care;

(i) Construction;

(j) Education; and

(k) Government Procurement.

(iii) Trade and Investment Promotion:

Trade and investment fairs and exhibitions;

India-Thailand portal; and

Business sector dialogues.

2. Co-operation shall be extended to other areas, including, but not limited to, industrial
cooperation, intellectual property rights, small and medium enterprises (SMEs), civil
aviation, environment, forestry and forestry products, mining, energy and sub-regional
development.

3. Measures to strengthen co-operation shall include, but not be limited to:

Promotion and facilitation of trade in goods and services, and investment;

Increasing the competitiveness of SMEs;

Promotion of electronic commerce;

Capacity building; and

Technology transfer.

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 2. TRADE BLOC- FRAMEWORK AGREEMENT
ON COMPREHENSIVE ECONOMIC COOPERATION BETWEEN THE
REPUBLIC OF INDIA AND
THE ASSOCIATION OF SOUTH EAST ASIAN NATIONS

Preamble

WE, the Heads of State/Government of the Republic of India (India), and Brunei
Darussalam, the Kingdom of Cambodia (Cambodia), the Republic of Indonesia
(Indonesia), the Lao People’s Democratic Republic (Lao PDR), Malaysia, the Union of
Myanmar (Myanmar), the Republic of the Philippines (the Philippines), the Republic of
Singapore (Singapore), the Kingdom of Thailand (Thailand), the Socialist Republic of
Viet Nam (Viet Nam), Member States of the Association of South East Asian Nations
(collectively, “ASEAN” or “ASEAN Member States”, or individually, “ASEAN Member
State”);

Desiring to minimise barriers and deepen economic linkages between the Parties; lower
costs; increase intra-regional trade and investment; increase economic efficiency; create a
larger market with greater opportunities and larger economies of scale for the businesses
of the Parties; and enhance the attractiveness of the Parties to capital and talent

Have agreed as follows:

Objectives

The objectives of this Agreement are to:

• Strengthen and enhance economic, trade and investment co-operation between the
Parties;
• Progressively liberalise and promote trade in goods and services as well as create
a transparent, liberal and facilitative investment regime;
• Explore new areas and develop appropriate measures for closer economic co-
operation between the Parties; and
• Facilitate the more effective economic integration of the new ASEAN Member
States and bridge the development gap among the Parties.

Measures For Economic Cooperation

The Parties agree to enter into negotiations in order to establish an India-ASEAN

Regional Trade and Investment Area (RTIA), which includes a Free Trade Area (FTA) in
goods, services and investment, and to strengthen and enhance economic cooperation
through the following:

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 a. Progressive elimination of tariffs and non-tariff barriers in substantially all trade
in goods;
b. Progressive liberalisation of trade in services with substantial sectoral coverage;
c. Establishment of a liberal and competitive investment regime that facilitates and
promotes investment within the India-ASEAN RTIA;
d. Provision of special and differential treatment to the New ASEAN Member
States;

Provision of flexibility to the Parties in the India-ASEAN RTIA negotiations to address

their sensitive areas in the goods, services and investment sectors with such flexibilities
to be negotiated and mutually agreed based on the principle of reciprocity and mutual
benefits;

establishment of effective trade and investment facilitation measures, including, but not
limited to, simplification of customs procedures and development of mutual recognition
arrangements; expansion of economic cooperation in areas as may be mutually agreed
between the Parties that will complement the deepening of trade and investment links
between the Parties and formulation of action plans and programmes in order to
implement the agreed sectors/areas of co-operation; and establishment of appropriate
mechanisms for the purposes of effective implementation of this Agreement.

Investment

To promote investments and to create a liberal, facilitative, transparent and competitive

investment regime, the Parties agree to:

Enter into negotiations in order to progressively liberalise their investment regimes;

Strengthen cooperation in investment, facilitate investment and improve transparency of

investment rules and regulations; and

Provide for the protection of investments.

Areas of Economic Cooperation

1. Where appropriate, the Parties agree to strengthen their cooperation in the

following areas, including, but not limited to:
a. Trade Facilitation:

i. Mutual Recognition Arrangements, conformity assessment, accreditation

procedures, and standards and technical regulations;
ii. non-tariff measures;

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 iii. customs cooperation;
iv. trade financing; and
v. business visa and travel facilitation.

b. Sectors of Cooperation:

i. agriculture, fisheries and forestry;

ii. services: media and entertainment, health, financial, tourism, construction,
business process outsourcing, environmental;
iii. mining and energy: oil and natural gas, power generation and supply;
iv. science and technology: information and communications technology, electronic-
commerce, biotechnology;
v. transport and infrastructure: transport and communication;
vi. manufacturing: automotive, drugs and pharmaceuticals, textiles, petrochemicals,
garments, food processing, leather goods, light engineering goods, gems and
jewellery processing;
vii. human resource development: capacity building, education, technology transfer;
and
viii. others: handicrafts, small and medium enterprises, competition policy, Mekong
Basin Development, intellectual property rights, government procurement.

c. Trade and Investment Promotion:

i. fairs and exhibitions;

ii. India-ASEAN weblinks; and
iii. business sector dialogues.

2. The Parties agree to implement capacity building programmes and technical

assistance, particularly for the New ASEAN Member States, in order to adjust
their economic structure and expand their trade and investment with India.
3. Parties may establish other bodies as may be necessary to coordinate and
implement any economic cooperation activities undertaken pursuant to this
Agreement.

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