Project Title

Study on Enhancement of Integration of Regional Value Chains in Asia and Latin America and the Caribbean (LAC) 

Project Year

2015   

Project Number

CTI 08 2015T 

Project Session

Session 1   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

CTI 08 2015T 

Project Title

Study on Enhancement of Integration of Regional Value Chains in Asia and Latin America and the Caribbean (LAC) 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

TILF Special Account 

Sub-fund

None 

Project Year

2015 

Project Session

Session 1 

APEC Funding

195,000 

Co-funding Amount

Total Project Value

195,000 

Sponsoring Forum

Committee on Trade and Investment (CTI) 

Topics

Trade Facilitation 

Committee

Committee on Trade and Investment (CTI) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Japan; Peru 

Co-Sponsoring Economies

Australia; Chile; Malaysia; Mexico; Philippines; Chinese Taipei; Thailand 

Expected Start Date

01/08/2015 

Expected Completion Date

31/12/2016 

Project Proponent Name 1

Shigehisa Iwamoto (new PO wef 30 November 2015) 

Job Title 1

Official 

Organization 1

Ministry of Foreign Affairs 

Postal Address 1

2-2-1, Kasumigaseki, Chiyoda-ku, Tokyo 100-8919, Japan 

Telephone 1

81-3 55018342 

Fax 1

Not Applicable 

Email 1

shigehisa.iwamoto@mofa.go.jp; apec.japan@mofa.go.jp 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Shigehisa Iwamoto 

Project Summary

While Regional Value Chains in Asia and LAC are evolving respectively, there are important elements of complementarity in trade and investments between the two regions, taking into account of the role of other economies outside Asia and LAC. From a standpoint of enhancing connectivity in the APEC region, linking the two regions beyond the current chain of production network is critical. This project will explore the measures for enhancement of integration of Regional Value Chains in Asia and LAC, in particular those of the APEC region, considering the importance of strengthening the engagement of Micro, Small and Medium Enterprises (MSMEs) and business partnership between MSMEs and Multi-National Corporation (MNCs). The main objectives of this project are as follows:

a)  To conduct a study composed of two elements: (1) Assessing the present state of respective Regional Value Chains in Asia and LAC from the cross-cutting and sectoral approaches. (2) Exploring the measures for enhancement of integration of the Regional Value Chains in Asia and LAC, in particular those of the APEC region, based on the assessment.

b)  To hold a seminar with the participation of the public and private sectors as well as academia to provide feedback to the study.

Relevance

Relevance - Benefits to Region: At the APEC Economic Leaders’ Meeting (“AELM”) held in Beijing on 10-11 November, 2014, recognizing that Global Value Chains (“GVCs”) have become a dominant feature of the global economy and offer new prospects for growth, competitiveness and job creation for APEC economies at all levels of development, Leaders endorsed the “APEC Strategic Blueprint for promoting GVCs Development and Cooperation (“GVCs Strategic Blueprint”)” as a mechanism to strengthen mutual economic cooperation within the global value chain network.

While Regional Value Chains in Asia and the LAC are evolving respectively, there are important elements of complementarity in trade and investments between the two regions: Asia has become LAC’s second largest trading partner, right behind the United States. From a standpoint of enhancing connectivity in the APEC region, linking the two regions beyond the current chain of production network is critical. This project will explore the measures for enhancement of integration of Regional Value Chains in Asia and LAC, in particular those of the APEC region. Given that Asia and Latin America-Caribbean (LAC) regions have a significant degree of economic complementarity with one another (Asian economies importing great amounts of commodities from LAC, and LAC importing high levels of manufactured goods from Asian economies), and that this dynamic is set to continue for many years to come, the potential for increased growth on both sides of the Pacific, through enhanced economic cooperation, is truly significant.

This study will examine these issues from a cross-cutting perspective that looks at obstacles and issues that affect multiple components of a given value chain – or even across and between separate value chains – as well as from the intra-sectoral perspective that focuses on obstacles or issues specific to each of the commodities and manufactured goods sectors, respectively. After a thorough literature review of recent studies (conducted by OECD, USAID, IDB, ADB, JICA, etc.), and other relevant economic, investment, and trade statistics (available via World Bank, OECD, ADB, and IDB databases and elsewhere), the researchers may decide to employ case studies of very specific industries within the broader “commodities” and “manufactured goods” sectors to make illustrative points or show-case best-practice, but the study will generally maintain a higher-level perspective so that its results, conclusions, and recommendations will be relevant to the broader APEC community.

The key to the above is efficient and trouble-free international and inter-regional trade, which is the basis of APEC’s Osaka Action Agenda. In line with the Osaka Action Agenda, section A, point 1 on “Comprehensiveness,” this study will involve looking at existing bilateral and multilateral tariff and non-tariff barriers to trade and investment between the two regions, with an eye to working towards lowering – or eliminating -- such barriers, in order to facilitate freer and more mutually beneficial gains for all APEC economies in the broadest possible sense. 

In-line with the Osaka Action Agenda, section A, point 4 on “Non-discrimination,” the study will focus on three economies that will represent high, medium, and low levels of economic development (based on per-capita GDP or as otherwise defined by the World Bank or the OECD) for each of the two regions, in order to be inclusive and not discriminate against – or marginalize – any APEC member economies. This means six economies in total. The research team will actually visit these economies in order to conduct in-depth review and analyses of existing regulatory regimes governing trade, investment and taxes, and examine tariffs, customs procedures, and through interviews and in-person surveys, examine other aspects of the value chains for those economies. The researchers will select the six economies after a literature view of recent studies, records, and relevant statistics on the value chains of these two regions. While the primary foci of this study will be APEC economies, Caribbean cannot feasibly be excluded from the review of the LAC value chains, because the economies of the Caribbean are well-integrated with those of Latin America. As these economies are at different levels of economic development, and have different levels of trade and investment capacity, and as stipulated by the Osaka Action Agenda, section A, points 3 on “Comparability” between APEC economies and point 4 on “Non-discrimination” , the results and lessons-learned generated by this study, will then apply not only to the specific six specific economies that will serve as the foci of be more broadly extrapolated in the final report in order to  benefit of all APEC member economies. The study will also examine the role of other economies outside the two regions with regard to the value chains of both regions and may play in creating enhanced integration of value chains between the two regions, if deemed necessary by the six foci economies.

Objectives

This project will explore the measures for enhancement of integration of Regional Value Chains in Asia and LAC, in particular those of the APEC region. The main objectives of this project are as follows:

1) To conduct a study which is composed of two elements:

a) Examine the current state of RVCs in Asia and LAC by a literature review of recent studies, records and statistics of the composition and level of integration of the primary commodities value chain in LAC and manufactured goods value chain in Asia.

b) Interviews with regulators, industry bodies etc. identified based on a study described above (1) in six APEC economies (three in LAC and three in Asia; candidates will be identified on the basis of the literature review and six economies will only be determined based on full consent) to determine:

i) the obstacles and measures that affect Regional Value Chains in Asia and LAC from a cross-cutting and sectoral perspective; and

ii) measures to enhance the integration of Regional Value Chains in Asia and LAC, considering the importance of strengthening the engagement of Micro, Small and Medium Enterprises (MSMEs) and business partnership between MSMEs and Multi-National Corporation (MNCs).

2) To hold a seminar with the participation of the public and private sectors as well as academia to provide feedback on the study and develop trade and investment policy recommendations for trade and investment liberalization and facilitation that further the integration of Regional Value Chains in Asia and LAC, which enable to strengthen private sector engagements or legitimate business matching and partnerships, including between Multi-National Corporations (MNCs) and Micro, Small and Medium Enterprises (MSMEs), and to strengthen the networking among the public and private sectors as well as academia in the Asia and LAC. Members from relevant fora (CTI sub-fora, EC, CPLG TPTWG and SMEWG etc.) will be encouraged to participate in a seminar.

Alignment

This project will reinforce and contribute to GVCs Strategic Blueprint through providing outcomes of the above mentioned study and seminar, and will refer to outcomes of GVCs Strategic Blueprint as well.

Building on Osaka Action Plan’s general principles of the of WTO-Consistency, Comprehensiveness, Transparency, Flexibility, Non-discrimination, and Cooperation, and the implementation of the Bogor Declaration, this project will support expansion of Trade and Investment Liberalization and Facilitation, taking into consideration the relative differences in levels of economic development and capacities of APEC economies, within and between the LAC and Asian regions of APEC.

Given that non-tariff measures and non-regulatory barriers can often pose an equally daunting barriers to trade, and in line with the Osaka Action Agenda, part C, section 2 on “Non-Tariff Measures” that calls for “progressively reducing NTMS to the maximum extent possible…” by APEC economies,  as well as “[e]limination of any measures inconsistent with WTO agreements,” a key component of this study will also involve a review of the current level of compliance with WTO agreements, and separately examine the current state of transport infrastructure, logistical concerns, and the human resources capacities for customs, transport and shipping management – including a review of port infrastructure, automated systems for processing and authorizing imports.

TILF/ASF Justification

This proposal is for a study that will focus on the best ways to enhance and integrate value chains between the Latin American-Caribbean (LAC) region and the Asian region. This places the study in direct consonance and harmony with the Osaka Action Agenda, Part 1, Section C “Objective” on reduction of tariff barriers in Asia that states, “APEC economies will achieve free and open trade in the Asia-Pacific region by: a) progressive reduction of tariffs until the Bogor Goals are fully achieved; and b) ensuring the transparency of APEC economies’ respective tariff regimes.” This study will involve a thorough examination of existing regulatory regimes that relate to tariffs, tariff quotas, customs, and protected industries (and the history of protected sectors in specific economies) in the selected economies (above) of both regions, as well as the alignment of these rules and regulations with WTO agreements and commitments, to the degree possible. The study will also focus on the level of regulatory enforcement and regulatory transparency of the selected economies with regard to trade.

Given that this study on value chains will focus on the existing linkages and barriers to linkages to more free and open trade between the economies and regions of APEC, it also squarely aligns with the Osaka Action Agenda, section C, part 1 “Guideline” that calls for APEC economies to “take into account…intra-APEC trade trends, economic interests, sectors or products related to industries in which this process may have positive impact on trade and economic growth in the Asian region and developments in the new economy.”   To elaborate, this study will examine the two main types of products that are exported from each respective region, primary commodities (LAC) and manufactured goods (Asia), and various ways – often not specifically focused upon – that processing/improvements of each are, in fact, dependent on one another. For instance, agriculture and mining are dependent on advanced machinery and technologies involved with large scale irrigation, harvesting, baling, etc. on the one hand and large scale mineral extraction on the other. Of course, development of manufactured goods in the Asian region – exported in very high volumes to the LAC region – is heavily dependent on mineral produced in the LAC.

Considering that non-tariff measures and non-regulatory barriers can often pose equally daunting barriers to trade, and in line with the Osaka Action Agenda, part C, section 2 on “Non-Tariff Measures” that calls for “progressively reducing NTMS to the maximum extent possible…” by APEC economies,  as well as “[e]limination of any measures inconsistent with WTO agreements,” a key component of this study will also involve a review of the current level of compliance with WTO agreements, and separately examine the current state of transport infrastructure, logistical concerns, and the human resources capacities for customs, transport and shipping management – including a review of port infrastructure, automated systems for processing and authorizing imports. This may include a review of any existing paperwork or identification of processing redundancies or delays in imports and exports; and focus on border management more broadly (including customs enforcement) as it relates to free trade. Related to this area, will also be a look at the current internal policies and practices of various officials working at ports, customs offices, and airports in order to get a representative view of the constraints and obstacles they face in terms of human resources, processes/policies, technology, and infrastructure.

Beneficiaries and Outputs

Outputs: The final report will also make specific recommendations for improvement or enhancement of regulations, and for the lowering tariff restrictions, improving the social and environmental landscape, reducing corruption and/ or arbitrary behavior, protecting investors, that are broad enough to be instructional and useful to all APEC economies. The report will also identify best-practices in specific bilateral or multilateral trade regimes that exist between the two regions, and/or for specific sub-sectors of the broader “commodities” and/or “manufactured goods” sectors.

The results of this study also include the specifics on the documents, regulations, policies, and agreements examined, officials consulted, and barriers identified. Part of this report will also identify the various obstacles to promoting efficient value chains, including lack of transparency, lack of protection for investors’ assets/property (including IPR), unreasonable arbitration with investors, lack of competition (including protected sectors), lack of social/environmental protections, and corruption at various stages of the value chain (e.g. borders/customs, production, approval/certifications of social and/or environmental standards, etc.).

Based on our results and best practices, we intend to hold a seminar in conjunction with the CTI3/SOM3 2016 in Lima, Peru in the August-September 2016 timeframe as a follow-up to this study, and for the benefit of policy makers and ports/customs managers. This seminar may also be coordinated in consultation with relevant international organizations.

Outcomes: One of the anticipated outcomes of this study will be increased and enhanced knowledge and awareness of interconnectedness product processing and trade between the two regions, the understanding of how jobs are created at different points along an international value chain, and the way that restrictive tariff and other regulatory measures may adversely impact smaller – or lower-value– producers in a GVC. The interconnectedness of the global economy and the pursuit of low-cost and efficient production drives certain industry sectors to specialize in only one stage of product development. This study should help support the idea that free and open trade benefits all links/stages of an elaborated value chain. This study also intends to illustrate the ways that corruption; poor protections for investorsthe environment lack of gender equality among workers, can all create inefficiencies in the overall value chain. This study will highlight the tremendous value added by taking steps to improve in those areas.

According to the OECD, a lack of understanding of the GVCs and an inaccurate perception of the origin of trade imbalances often leads to misguided protectionist policies that target the economies at the end of the GVC (final product producing economies), and through which, “‘beggar thy neighbour’ strategies can turn out to be ‘beggar thyself’ miscalculations” (OECD. 2015. “What is Trade in Value-Added? Why is it Important?” http://www.oecd.org/sti/ind/whatistradeinvalueadded.htm ).

In terms of behavior change, the focus would be policy makers and authorizing officials in APEC governments. The results of the study will assist policy makers in creating appropriately tailored policies that can complement reduce (or eliminated) tariffs for their specific economies. Each economy is different and the mix of goods traded, and the sub-sector or stage of product processing at which they add to the value chain will also be specific to their respective economies. However, it must start with the simple realization that for a global economy increasingly defined by value chains and interconnectedness, freer trade means higher gains for all parts of a value chain, and that restricted trade hurts all parts of the value chain. This idea should create the incentive for policy makers to promote cooperative economic partnerships that lower tariffs and encourage the understanding that a true measure of economic value takes into account the value added by all economies along a value chain (referred to by OECD as “Trade in Value-Added”).

The project will identify the structural/institutional barriers (e.g. lack of regulatory transparency, redundancy of paperwork, slow authorization of imports, high transport costs, lack of sufficient port/transport infrastructure) that creative punitive spill-overs at each stage of the value-chain. An anticipated outcome of this study also will be proposed policy-changes and regulatory fixes (i.e. streamlining admin procedures, creating automation for authorization of imports, creating/adopting a “single window” among LAC and Asian APEC economies for imports and exports, tightening penalties for corruption, promoting investment, creating a policy for competition and removing unnecessary  protections for currently protected sectors, etc.).   

As this study also will include perceptions of the workers in domestic industries, of barriers to trade and /or promotion of the participating economies’ products, it will be a great way to highlight any possible differences in perception between the policy-makers and the common people of the economy.

Moreover, given the primacy of a work environment that promotes social and environmental protections, as well as an evolving and developing work force that includes and promotes women as well as men, in the enhancement of GVCs, the final report of this study will make specific recommendations.

It is anticipated that this study is not an end in itself, but merely the first step towards further and gradual attainment of the Bogor Goals via enhanced regional value chains. The predicted end-results are more open, investment-friendly economies, with a greater awareness of the intricacy of the trade in value-added as it relates to regional and inter-regional value chains – and based on wide and public dissemination of the results (through APEC database, etc.), as well as the public and private sector feedback from the Aug-Sept 2016 seminar – an improved regional policy environment for investment and the integration of value chains.

Beneficiaries: The direct beneficiaries of this study will be government policy makers, the private sectors, research institutions, port and transport infrastructure managers, education and academic institutions, and international and regional organizations which are in the position of promoting GVCs. They will be targeted and selected in the course of the study, in consultation with member economies, in particular the co-sponsoring economies. These stakeholders will be involved in the implementation of the study. Indirect beneficiaries include MNCs and MSMEs that could take benefit of strengthened GVCs.

Dissemination

The results of this report will be included in a final project report document that will first be sent to the CTI members actively and cooperatively having participated in the study for comment, and then once all feedback has been addressed or incorporated, we will present the final report to the broader APEC community at the CSOM, AMM and AELM in 2016 scheduled for the August-September 2016 timeframe. The target audience is policy makers in the field of trade and investment, transport and port/infrastructure, of APEC member economies.

For the purpose of dissemination, the output of the Study (a recommendation report) will be published on the APEC publication website so that relevant fora (CTI sub-fora, EC, CPLG, TPTWG and SMEWG etc.). Specific recommendations from the study which relate to specific sub-fora or group can be further discussed by the relevant sub-fora or group. It is also encouraged member economies to share the report with relevant Ministries and Authorities. This will enable these particular economies, or economies with obstacles similar to those identified in the study, to use the results, recommendations, and subsequent public and private input from the seminar, to take economy- and context-specific domestic policy steps to enhance and integrate key value chains for their economies.

As for the specific format or number, this will not be one issue of a set series of volumes published by a specific think tank or academic institution, so this does not apply.

There is no intention to sell any of the outputs arising from this project, merely to make them widely available to all interested APEC economies.

Gender

This project will address gender equity mainly by seeking to include women among those we engage to discuss policies, regulations, and practices that relate to GVCs and barriers to GVCs. This category includes those working in sub-sectors of commodities and manufactured goods production in the LAC and Asian economies, which are part of those value chains. We also intend to include women among those surveyed or interviewed with their perceptions to existing trade barriers to international and regional trade of the main products produced in their respective economies, and how this affects their lives. The targeted number of female interviewees may be decided when a whole interview would be designed during the study (e.g. 1-2 females out of 5 interviewees.).

The PPD seminar will also encourage participation of women in the targeted audience.

Work Plan

Date

Tasks

After SOM2 in 2015

Launch the study in the September-October 2015 timeframe (Quarterly progress reports are reported to CTI3/SOM3 in 2015, and CTI1/SOM1, CTI2/SOM2 in 2016)

Conduct bilateral consultation to identify 6 economies based on full consent

Seek comments on the preliminary results as well as any recommendations of the study from member economies

At the margin of CTI3/SOM3 in the August-September 2016 timeframe

Hold a seminar to discuss the results of the report and the policy and process recommendations made by the research team, generate feedback for follow-up action.

CSOM, AMM and AELM in 2016

Submit the Final Report of the study including recommendations

Risks

There are several significant risks to a study like this.

1)  Obfuscation/Resistance:  The participants, especially at the government level, might not view this study as a legitimate and worthwhile chance to correct inefficiencies. They may see it as a type of punitive audit and try to obfuscate the real situation by hiding or destroying records, choreographing “average” working conditions at a given company workplace for the study team, or otherwise refuse to cooperate. To prevent this sort of unhelpful response, we intend to have open, iterative, and ongoing communication with individuals with whom we will be speaking, interviewing, etc.

2)  Communication/Interview Delays: There is a risk that the project could run late due to a delay of first hand interviews of a researcher. The scheduling of interviews would need to be considered and cooperation of relevant economies will be sought. This may be resolved through advanced planning and the use of regular communication across multiple channels (phone or video-call, e-mails, back-ups for those unavailable – speaking to a Deputy when the superior is unavailable, etc.), and creating a schedule that allows for flexibloty in terms of unforeseen circumstances (e.g. concentrating on update reporting if weather creates transport delays, etc.).

3)  Inclusion of Women:  APEC includes several economies in which the equal participation of women can be seen as a challenge to traditional norms and the existing power structure. Thus the women in these economies may feel too intimidated to participate, or the study team may be told that there are no women qualified enough to do interviews or participate in surveys, etc. To solve this issue, we will approach local female associations (women’s chamber of commerce) to seek participants; we will speak to women who work at the trade and infrastructure industries who may have insight into the type of information we seek; and when talking to the industry/sector groups, we will seek out sub-sectors that hire many women so that it does not seem out of the ordinary to engage women in conversation.

4)  Extrapolation of Results across APEC:  Extrapolating results from the specific data/info set gathered through document review, existing statistics (OECD, ADB, World Bank, IDB, etc.) review, and 1st hand  interviews and surveys in order to a make broader assumptions is never an exact science. There will be outliers – for instance Panama among Central American economies due to the Panama Canal – and instances where the results may not apply 100% to all APEC economies. To reduce the risk of creating recommendations and collating best practices that are not germane to all of APEC, we will pursue case studies that demonstrate specific results within specific industries (as best practice), but will primarily seek to couch reporting and results in terms that are broad and general enough to be relevant and applicable to all APEC economies. This project will also be made available to all APEC economies through subsequent transmission to, and storage in, the APEC project database. This will enable these particular economies, or economies with obstacles similar to those identified in the study, to use the results, recommendations, and subsequent public and private input from the seminar, to take economy- and context-specific domestic policy steps to enhance and integrate key value chains for their economies.

Monitoring and Evaluation

This project views Monitoring and Evaluation (M&E) as an ongoing process that begins at the very outset of the project, if not earlier. In order to have an effective M&E plan, this project will begin with a literature review of all similar region-wide and inter-regional value chains project studies and reports – most likely the IDB, OECD, ADB, and World Bank will be the main sources of these studies. This will be useful as we cannot realistically run a separate baseline study, and then use the currently proposed funds to start working directly with relevant policy-makers and others. This review will help us avoid any possible delays and/or mishaps in the deployment of our contract-based specialists’ team by understanding where other projects went off-track or got bogged down. From this information, we will also develop realistic and achievable project objectives and periodic milestones.

The contract specialists will be in regular contact with Japanese MOFA’s APEC Division to report on current progress, provide any written updates (as may be required), and for help with trouble-shooting any administrative difficulties that may have arisen since the prior week.

This project will make use of existing statistical data and project information in international finance and development organizations, multilateral development banks, and international development agencies and NGOs to develop a proxy for baseline information on the two regions (sub-regions of APEC), and the specialist team will make use of surveys, interviews, and local/national document review on the ground in the chosen representative economies. Existing data sets could provide examples of meaningful indicators of success in the development of value chains, for use in follow-up to the study.

However, in terms of indicators or success during the project, numbers of completed interviews and surveys per economy, numbers of industries and trade associations visited, and numbers of women involved at each government agency and /or workplace will be indicators of success. The study aims at conducting interviews as many as possible, however due to time constrains etc., 5 interviewees of each foci economy may on average be targeted (Note: An interview plan will be designed in the course of study.). The PPD seminar to be held in Lima, without enough travel budgets, is envisaged to invite two participants from each member economy and is assumed constrain of time for non-member participation (NMP) process. Thus it is expected to receive 80 participants to the seminar.

In terms of a final evaluation, the final report can serve this purpose, as it will also include the initial expected outcomes, based on the preliminary literature review, in comparison with the actual results.

A survey will be conducted among seminar participants to assess the impact of the study on their understanding of the issues. Once input to the APEC project Database, upon final completion – and accompanied by the results of the survey – this may serve as the foundation for separate follow-up capacity-building or cooperative policy development work among Asian and LAC APEC economies.

Linkages

This project will make reports to, and ask inputs from the FotC Group on GVCs and then the CTI; Non-APEC stakeholders from the private sectors, research institutions, education and academic institutions, and international and regional organizations will be involved in the implementation of this study in an appropriate way.

This project may have linkages to a project recently implemented via the OECD that sought to explore GVC links between Asia and Africa, and to collect any valuable lessons-learned from that project. The publicly accessible OECD websites also have been a good source of information to date in the elaboration of this project proposal.

APEC is the best source of funds for this project for a number of reasons. This project is focused specifically on APEC member economies, with the fundamental goal of providing policy-makers, industry leaders and managers, and transportation hub-managers in APEC economies a good assessment of where things currently stand with regard to GVCs, and a solid set of trade and investment policy recommendations on how to move forward for the mutual benefit of all 21 economies. Furthermore, this study seeks to link the two main sub-regions of APEC: Latin America and the Caribbean, and Asia. Therefore APEC funding makes more sense than any other funding source.

China also recently conducted a project called “Building Asia Pacific Partnership through Global Value Chain Collaboration” (CTI 22 2013T) for a study on regional value chains and that study may provide solid and publicly-accessible information on Asian value chains.

Sustainability

This project is intended to be a first step towards a much larger goal: the further integration of LAC and Asian regions of APEC via an improved understanding of GVCs by government officers in charge of trade, investment, and infrastructure; and by those working in the industries at transportation hubs on the import-export of key national and regional products.

By creating a study that informs policy makers and others of why a GVC perspective is so important, stresses the potential for mutual gains across the GVCs of enhanced free trade, and then examines and identifies the key elements of their (respective) domestic GVCs that relate to commodities and manufactured goods, and making key recommendations – these people are empowered and encouraged to move forward with constructive and beneficial changes and policy-fixes. Moreover, by making the final report available to all APEC economies, and also holding a follow-up PPD seminar in Lima, Peru to be held in conjunction with the CTI3/SOM3 2016 in August or September 2016, local policy makers and others are given incentive to use their new knowledge and their own judgment in moving further towards enhanced free trade and more efficient and effective value chains.

The outcome of this study will constitute one of the inputs to “GVCs Strategic Blueprint” endorsed by the Leaders, and it will contribute to enhancing the mechanism to strengthen mutual economic cooperation within the global value chain network.

Project Overseers

This project will be run primary by contract –based specialists in trade and investment, especially those who have been involved with elaboration and enhancement of inter-regional value chains; and/or have special practical knowledge of the Trade in Value-Added principles of value chains. The IDB, OECD, ADB, and World Bank may also be consulted in the development of the Scope of Work and contract TOR for this study. The project is seeking two bilingual specialists (English-Spanish) with at least 10 years of specialized experience in international trade and finance, especially with regard to work on negotiation of lowering industrial tariff regimes and/or working on free trade and investment agreements. Given the total project budget ($195,000) and estimated project timeline (6 weeks), this is all we can reasonably afford.

At the moment Yumiko Honda of the Government of Japan’s Ministry of Foreign Affairs’ APEC Division is the project overseer. The draft Scope of Work will be developed by the contract specialists, and the final Scope of Work will have been reviewed and approved by Japan’s Ministry of Foreign Affairs’ APEC Division.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

There are two categories of positions to be funded with funds requested from APEC for this project:

1.  Primary Researcher:

A) 2 bilingual (English-Spanish) researchers required

B) Estimated hourly rate: $85/hr.

This position will include the bulk of the data collection and analysis for this study and be the source of the information/data that will go into the quarterly and final reports. The work will include a literature of review of similar studies that have been conducted in recent years – or that are currently ongoing – with regard to enhancement and integration of intra-regional and inter-regional value chains, the visits to the six selected APEC economies and the interviews and survey data collection in those economies, and the data analysis, and on making recommendations for enhancement and integration of value chains based on the results of the data/information collected, the current state of the value chains, barriers identified, etc.

These researchers will be contract –based specialists in trade and investment, especially those who have been involved with elaboration and enhancement of inter-regional value chains; and/or have special practical knowledge of the Trade in Value-Added principles of value chains. The OECD or World Bank, as well as JICA and/or JBIC, may also be consulted in the development of the Scope of Work and contract TOR for this project study. The project is seeking two bilingual (English-Spanish) specialists with at least 10 years of specialized experience in international trade and finance, especially with regard to work on negotiation of lowering industrial tariff regimes and/or working on free trade and investment agreements.

2. Clerical Support Staff:

A) 1 clerical support person required

B) Estimated hourly rate: $35/hr.

C) Clerical support will be charged with the collating of the researchers notes for each of the required quarterly reports, at about 1 week per quarterly report, and with assistance in the compilation of the final project report that will include the research specialists’ recommendations for future improvement. The work on the final report is estimated to take approximately two weeks.

Waivers

Participants to the seminar in Lima, Peru may request advance payment of travel and per diem costs, rather than post-event reimbursement based on receipt submission. We request a waiver in order to provide advance payment of these costs to participants to the seminar.

The project seeks waiver to cover travel costs for the speakers from academic, public and private sector and international organizations to participate in the post-study PPD seminar.

The seminar may need to invite the speakers who have deep knowledge of Regional Value Chains in Asia or LAC but with limited English language skills. To bring maximum inputs from those experts to the seminar to be held in Lima, Peru, the project seeks waiver to hire an interpreter providing simultaneous interpretation from Spanish to English, for participants’ convenience.

Are there any supporting document attached?

No 
Attachments
Version: 6.0 
Created at 27/07/2015 11:57  by Lucy Phua 
Last modified at 26/05/2017 10:08  by Lucy Phua 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
Attachments
Content Type: Standard Proposal
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