APEC is best known for the annual parade of flowery shirts and dresses worn by Leaders when they meet for their annual Summit. Business people may also know the APEC Business Travel Card, which provides visa free access to most of the organisation's 21 members. APEC is the region's pre-eminent forum for economic co-operation. APEC's value ranges from the largely ceremonial to the thoroughly practical.
This week's meeting of the APEC Business Advisory Council (ABAC) falls more into the second category. ABAC is made up of three senior business leaders from each "economy" appointed by the Government. Tony Nowell, Maxine Simmons and Wayne Boyd have all been appointed by Prime Minister John Key. ABAC members meet four times a year to develop recommendations which are presented directly to Leaders in a face to face meeting at the end of the year.
Why does this matter? Because APEC's work in accelerating business growth needs to be grounded in business sense. APEC is unusual in that it is a voluntary and non-binding forum. It is not a negotiating body like the World Trade Organisation (WTO). Economies will implement APEC's recommendations only if they perceive there to be a benefit in doing so. ABAC therefore plays a key role in keeping governments honest - honest to the lofty objectives they sign up to - such as the goal of free and open trade and investment in the region by 2020 - and honest in terms of evaluating the progress made.
This year APEC is being chaired by China and it's something of a feather in New Zealand's cap to host this first meeting in the Year of the Horse. As well as the 250 ABAC delegates, a sizeable Chinese delegation is coming to New Zealand to examine the prospects for even closer trade and investment links. With the progress being made under our groundbreaking FTA and the need to strengthen further New Zealand's value proposition in China, this visit becomes a key opportunity to demonstrate New Zealand expertise and capabilities.