Finance Usec says CAP realization to take time

CEBU, Philippines - The realization of the objectives set in the Cebu Action Plan for the Asia-Pacific Economic Cooperation is seen to take time but a Philippine finance official believes there is unanimity within the APEC for it to move forward.

Department of Finance Undersecretary Gil Beltran said yesterday the Philippines has gained broad support for all the pillars of CAP, a development roadmap initiated by the country for APEC.

However, Beltran admitted that concerns from APEC economies would come from the legal basis for many of the reforms being pushed by CAP.

"Many of these economies can join these initiatives once they get the full backing of their Congress. They need legal basis to participate," Beltran told a press briefing yesterday after the morning session of the ongoing Finance Ministers' Meeting in Mactan Island, Cebu.

Beltran assured that development partners are looking forward to assisting APEC members to achieve integration and liberalization.

The CAP road map seeks to achieve four long-term objectives: financial integration, fiscal reforms and transparency, financial resiliency and infrastructure development and financing.

In the same briefing, Fabier Roca Fabianis, director general for international economic affairs at the Ministry of Economy and Finance of Peru, said that financial integration is key factor to facilitate trade and investment, which are the essence of the CAP. Peru is next year's host of APEC.

"The Cebu Action Plan has an impressive agenda. Peru is fully committed to the four pillars," Fabianis said.

For Peru's APEC hosting in 2016, Fabianis said that they are already preparing for discussion and implementation phase of the road map which he described as an ambitious proposal to support building inclusive economies.

"One idea that Peru is working to implement is the financial literacy strategy," the official said, pointing out that his country wants APEC members to have clear and transparent structures toward financial literacy.

Another issue that Peru may tackle in 2016 is the use of innovative financial instruments to mitigate natural disaster, he said.

As for CAP's implementation, DoF's Beltran said they have various action plans that will be implemented within various time frames.

Fabianis added there will be one-year, five-year and 10-year action plans.

Beltran said: "Despite being a driver of the global economy, Asia-Pacific is vulnerable to risks. But with the measures proposed under the CAP, the region can be better guided on how to ensure sustainability and to improve inclusivity of growth in a coordinated manner."

Yesterday finance officials from the 21 member economies of APEC attending the meeting started to negotiate on the deliverables under each of CAP's four pillars, Beltran said.

The DoF official said the meeting was expected to come out with an endorsement from deputy officials as to how the CAP will look like for final approval from ministers and official launching tomorrow.

Beltran said about 212 delegates are attending the finance ministers meeting while about 100 are participating the CEOs' meeting. (FREEMAN)