What the Aotearoa plan of action means

We have done our best to drive Apec’s agenda forward but the highlight is the beginning of the end of fossil fuel subsidies.

Covid may have dominated the headlines this year but alongside our domestic response and recovery efforts, Aotearoa New Zealand has proudly played its role on the Asia-Pacific international stage as chair of Apec.

This year saw a firm focus on accelerating the region’s economic recovery, responding to climate change, and building growth that is inclusive of all our people.

Our year as host culminated in last weekend’s leaders’ meeting where the leaders from Apec’s 21 economies agreed to the new ‘Aotearoa Plan of Action’.

Supporting the Putrajaya Vision, which was endorsed last year, this plan of action will guide the next 20 years of Apec’s work. Work that New Zealand has ensured will include some of the issues of greatest importance to us – including environmental sustainability, inclusion of women and indigenous peoples, and digitalisation.

While unwelcome, Covid has presented the region with an opportunity to reset. So the action plan fulfils Apec’s mission of growing trade and our economies, but also gives us the opportunity to focus on the choices that will support the Asia-Pacific’s future generations, such as decarbonisation and empowering our indigenous peoples.

I believe the work done through Apec this year has delivered tangible and practical outcomes that will benefit New Zealand and our partners in the region.

Achievements include seeing 17 Apec economies lower or remove tariffs on vaccines and associated medical goods, such as syringes and PPE.

This is more than a simple administrative change. Our region is the world’s largest manufacturer of Covid-19 vaccines, so the removal of export and import tariffs has made a meaningful difference to speed up the movement of life-saving goods across borders while lowering their cost.

Everyone benefits. Smaller economies especially so. We have also worked hard to maintain free, fair, and open international trade links. It is well understood within Apec that trade is the driver that will pull us through the economic crisis that the pandemic has left in its wake. Together, we have identified numerous ways to simplify and streamline customs processes, and to digitise and innovate. In recent months, most Apec economies have introduced permanent digital customs processes, saving businesses time and money. It would typically take years to implement a programme of this scale. But the pandemic has changed everything and we have responded. It has certainly changed our ability to travel. To address this obstacle, we have driven work to look at how we can simplify Covid measures for foreign air crew and make airline operations less complicated. We know people want to reconnect with families and friends, and make important business trips, when it is safe to do so.

We have sent a strong message of support to the World Trade Organisation, as it works to achieve trade and health outcomes, and to resolve negotiations related to fisheries and agricultural subsidies that have languished for years.

We have promoted more sustainable food production practices within the AsiaPacific, and reached agreement to review and update our official list of environmental goods. With verified environmental sustainability credentials, these goods enjoy a lower border tariff rate, making them more competitively priced and appealing to consumers who are increasingly seeking to reduce their environmental impact.

But of all the environmental sustainability policies Apec leaders have considered and discussed this year, I am particularly proud of the progress the institution has made to turn the tide on fossil fuel subsidies, worth some US$500 billion a year.

While it will take time to remove such entrenched and complex policies, I am pleased that we have reached consensus to stop growth in their use as part of protecting the planet that we all depend on for survival.

It will be another 20 years before we have the opportunity to host the Apec delegation again. I am hopeful that the policies we have progressed this year will have contributed to something of our prepandemic life.