Introduction   

            The consultative process between the subregional organizations and UNESCAP was initiated in February 1994. At the first meeting four areas were identified for exploring possibilities of cooperation : trade and investment; transport and communications; human resources development; and energy. In addition, it was agreed to initially exchange information on poverty alleviation activities with possibilities of cooperative efforts emerging in due course.

            In the eight meetings held since its inception 10 years ago ( no meetings were held in 1996 and 1999 ), various forms of cooperation have been discussed , with concrete actions resulting in some cases. As the consultative process enters its second decade, it would appear timely to consider operationalising such cooperation through the development of a Cooperative Framework. The broad contours of such a framework could encompass the already identified priority areas with the option to include other issues of contemporary interest.

            The Cooperative Framework would incorporate two important principles: one, cooperation will be on a voluntary basis and there is no binding commitment on any  organization ; and two, as a corollary of the first , involvement of all organizations in every cooperation initiative is not necessary. A three-dimensional approach to cooperation is envisaged , namely :

1.         cooperation between UNESCAP and a subregional organization

2.         cooperation between UNESCAP and more than one subregional organization

3.         cooperation between and among subregional organizations.

The three forms of cooperation are not mutually exclusive but could in fact co-exist and be mutually reinforcing.

Within the proposed Cooperative Framework, an UNESCAP perspective on possibilities of cooperation with and among the subregional organizations in the originally identified areas of trade, transport , energy and poverty reduction ( and food security ) as well as in an area of  current concern, human trafficking , are elaborated in this document.

The Executive Heads are requested to:

1. agree in principle on establishing a Cooperative Framework ; and

2. respond to the UNESCAP proposals for cooperation.  

Background

            While virtually all countries profess their commitment to the multilateral trading system and to continued negotiations under the DDA, already before Cancun there has been a clear trend towards bilateral trade agreements (BTAs) and regional trading arrangements (RTAs), linking subregions as well as continents. The collapse of the Fifth WTO Ministerial Conference in Cancun has added increased impetus to this trend. While BTAs and RTAs derogate from the principles of the multilateral trading system they tend to include other areas of economic cooperation, such as investment, intellectual property rights (IPRs), science and technology, standards, trade facilitation, etc. containing deeper commitments than those made within the context of the WTO of other multilateral frameworks.  However, there is a clear risk that countries, in particular the poorer ones, will have significant difficulties in effectively managing many different and overlapping  commitments within the framework of their membership in a host of BTAs and RTAs.

            With the promotion of a multilateral trading system as a long-term objective and in view of the short-term and intermediate trend to a proliferation of BTAs and RTAs, UNESCAP has developed the Comprehensive Trade and Investment Cooperation Framework (CTICF) for Asia and the Pacific with the aim to: (i) enhance national capacities to accede, negotiate, conclude and implement multilateral and regional trade and investment agreements; and (ii) forge coalescing among emerging BTAs and RTAs and other forms of economic partnerships in the region within a common WTO-consistent framework towards a free and fair multilateral trading and investment regime.

            The CTICF will be implemented in cooperation with global and regional/subregional partners along a three-track approach:

1.      Multilateral trade and investment cooperation track.

2.      Regional trade and investment cooperation track.

3.      Bilateral trade and investment cooperation track.

Dimensions of cooperation

            For the purpose of implementing the CTICF in the region, the following subregional partners have been identified:  ASEAN, ECO, Forum Secretariat, and SAARC.

            Under the multilateral trade and investment cooperation track, UNESCAP intends to organize with the respective subregional organizations dialogues and training workshops at subregional level on WTO issues to create and increase awareness and knowledge of WTO agreements and current negotiations under the DDA and their implications; to allow countries to share experiences in implementing WTO agreements and to identify and promote commonalities at WTO negotiation forums. Under the regional and bilateral trade and investment cooperation tracks, UNESCAP intends to organize activities with its subregional partners aimed at forging regional cooperation in achieving WTO-consistent regional and bilateral integration initiatives with trade and to a lesser extent, investment, at their core (i.e. in the form of free trade areas) along a common format. Such activities could include subregional conferences, workshops and seminars as well as the conduct of joint studies. The regional and bilateral trade and investment cooperation tracks envisage the facilitation and promotion of membership of existing regional integration frameworks, with initial focus on trade cooperation but increasingly incorporating investment and other economic issues as well, provide WTO-consistent common frameworks for RTAs, promote subregional and intersubregional cooperation in trade and investment, and to establish links among major subregional trade initiatives. In addition, in collaboration with its subregional partners, UNESCAP would develop a database of existing and emerging BTAs and bilateral investment treaties (BITs) with a brief description of each agreement. The goal is to develop common frameworks for BTAs and BITs as building blocs of RTAs and the multilateral trading system and to consolidate these agreements within such frameworks. In this effort, particular attention would be given to the participation of and implications for LDCs of such agreements and frameworks.

            In organizing such activities, the collaboration of subregional organizations could include one or more of the following modalities:

• financial support (cost-sharing of activities, i.e. on a 50/50% basis).

• logistical support (i.e. assist in travel arrangements and authorizations for participants in regional meetings, meeting venue arrangements, identification and provision of resource persons, etc. as the case may be).

• substantive support (i.e. preparation of papers and presentations, information provision and sharing, etc.).

Practical steps

            In order to strengthen cooperation with subregional organizations in implementing the activities outlined above, UNESCAP should accelerate dialogue with the identified subregional partners on its initiatives and strive at concluding and/or strengthening long-term MOUs. It would be recommended that such cooperation initiatives would be properly reflected in each organization’s work programme. On the basis of such dialogues, long-term programmes for joint activities could be developed, e.g. for the period of one or two years with one or two joint activities per year with each organization on a cost-sharing basis. In addition, regional activities and workshops conducted under the ESCAP/WTO technical cooperation programme could include increased participation of subregional organizations while the programme itself could include activities at subregional level involving the subregional organizations. Similar activities have already been organized in the past with ASEAN and could be expanded to other subregions as well. However, with the objectives of the multilateral cooperation track in mind, regional activities could also include the participation of subregional organizations so as to ensure effective links between subregional, regional and multilateral cooperation initiatives.

Background

With rapid globalization in the ESCAP region there is an increasing demand for international transport linkages and networks.  Until recently this demand has focused on international movement of goods through ports and maritime shipping to reach markets in other regions.  There is, however, a great potential for the development of land transport services to help promote intra-regional trading opportunities.

            Each of the sub-regional organizations and groupings including ASEAN, SAARC, ECO, GMS, SCO, BIMSTEC, Tumen, SPECA, TRACECA as well as UNESCAP are taking initiatives to improve the capacity and efficiency of the land transport sector with respect to both infrastructure and facilitation.  The speed of progress in each of the subregions, however, has varied widely and important lessons are being learned that could be usefully exchanged.  In addition, there would appear to be substantial benefits in seeking approaches that would encourage greater harmonization across the subregions particularly with respect to trade and transport facilitation at border crossings.

Dimensions of cooperation

            In its work over the past 10 years, UNESCAP has been guided by the New Delhi Action Plan on Infrastructure Development which also provides an outline framework for the cooperation with sub-regional organizations and groupings.  Over many years the secretariat has been working closely with the subregional organizations resulting, for example, in the ASEAN Highway Network being based on the Asian Highway, similarly the foundation of the proposed Singapore-Kunming railway lies in the Trans-Asian Railway Network and the collaboration with the Asian Development Bank has helped the GMS countries in preparing for negotiation of the Annexes to the GMS Transit Transport Framework Agreement.  Similar examples exist of the collaboration between the UNESCAP and ECO.   Unfortunately, however, the opportunities for the subregional organizations to meet together and exchange ideas and practical experiences remain limited.

Practical steps

To review the impact of the implementation of the New Delhi Action Plan, a Ministerial Conference on Transport is planned to be convened in November 2006.  It is anticipated that this Conference will provide further guidance to the UNESCAP secretariat and its work with the subregional organizations in the transport sector over the next 10 years. 

The Ministerial Conference could provide an excellent opportunity to substantially speed up development in the transport sector and promote intra-regional trade.  In order to achieve this target, it merits consideration that the regional Ministerial Conference on Transport should include a special one day meeting when Ministers of Transport from each of the sub-regional organizations and groupings would meet in subregional sessions to provide them with the opportunity to consider specific issues and concerns at the sub-regional level.  Subsequently on the concluding day of the Conference, the region’s Ministers of Transport would all meet together to consider the cross-cutting or inter-subregional issues that need to be addressed at the regional level.  Such an approach could lead to a greater coherence between programmes of the sub-regions as well as at the regional level.  In particular, such coordination in the Conference could lead to a more harmonized approach to the issues of trade and transport facilitation and the application of information and communication technology within the transport and logistics sectors of the region.

Background

In support of the dynamism of economic development of the sub-regions of Asia and the Pacific, energy security is one of the major concerns of Governments in ensuring sustainable economic growth.  While the efforts to increase the share of renewable energy will continue and enhanced, fossil fuel will remain the major energy carrier in the region in the foreseeable future. At the same time, the pressure to reduce the burden on the environment from the energy sector will continue to increase, which creates the quest for cleaner sources of energy at a competitive price on a long-term basis.

Fortunately the region is well-endowed with various energy resources but not evenly across countries or subregions.  While some countries or sub-regions are rich in energy resources, others are resource poor needing to import energy to meet their demand. This opens up the potential for energy development and trade or exchange among countries or sub-regions. It is interesting to note that some countries have already developed cooperation agreements either bi- or multi-laterally or through their subregional organizations to reap the benefits of energy cooperation.

The ASEAN subregion has been developing joint programmes and coordinating activities through the ASEAN Plan of Action for Energy Cooperation, which is reviewed and revised every five years, contains collaboration plan on inter alia Power Grid and Trans ASEAN Gas Pipeline.  The ECO region adopted the Plan of Action for Energy/Petroleum Cooperation in the ECO Region (2001-2005) with a view to enhance economic cooperation in the ECO region.  The Plan of Action includes inter alia power trading, energy efficiency and conservation, cooperation in the field of petroleum refineries and products.  In the Pacific, there is an initiative to implement the Regional Energy Policy, prepared by SOPAC in consultation with national policy makers.  While issues in the Pacific may be different from those in Asia, energy security is still a major concern, which would have to be met by efficient oil transportation and storage facilities, supplemented by increased utilization of renewable energy.

Dimensions of cooperation

While any sub-sectors of energy could be chosen for cooperation, recent trend seems to be in two major sub-sectors, i.e. natural gas and electricity grids. Highlighted below, some thoughts towards promoting natural gas transmission in the region.  Given the continuing high demand for energy in Asia and looking at the energy resources endowment and the environmental benefit, there is a great potential for trade in natural gas in the region.  The globalization process offers a good opportunity for enhancing cross-border energy trade to gain mutual benefits by all stakeholders. The benefit of having natural gas pipelines that cross several borders will certainly contribute to enhance energy security through sharing of risks and responsibilities in the development and operation of the pipelines.

In the region, mis-match exists between the sources of resource endowment and demand for natural gas within countries as well as across countries and sub-regions. For example, the Russian Federation is rich in natural gas resources, while nearby countries of North-East Asia are resource poor. Similarly in South East Asia, Indonesia has a large natural gas reserve, while others have no or relatively low reserves.  In West and Central Asia also there are large variations in supply and demand, with large reserves in some countries, including the Islamic Republic of Iran, Kazakhstan, Turkmenistan and Uzbekistan.  These variations indicate the existence of untapped potential for turning the mis-match problem into an opportunity by developing a well coordinated natural gas pipeline grid(s) in Asia by linking resource-rich countries and sub-regions with the demand centres. Such networks would facilitate infrastructure development and intra-regional energy exchange and trade with investment flows as well economic and environmental benefits.

Practical steps

            To seize this opportunity, a complete and compelling strategic plan needs to be developed with appropriate analysis of the market dynamics and energy trade flows. Subject to the interest and willingness of sub-regional countries, could the Heads of the Sub-regional Organizations and UNESCAP facilitate the process?  One initial but critical challenge will be to secure political and financial commitment, followed by extensive multi- and bi-lateral negotiations to clearly identify and share the responsibilities among stakeholders. UNESCAP, as an independent and neutral body could play a catalytic role in facilitating the process including facilitating policy dialogues as well as negotiations. It has agreed, in principle, to a request to support the proposed APEC-PEG initiative on the Asian Gas Grid (the Partnership for Equitable Growth (PEG), a non profit organization acting as a catalyst for private sector involvement within the framework of APEC) with a view to develop a linkage and synergies with other initiatives, in particular the North-East Asian energy initiative.  Similar initiatives are possible in the area of trans-country electricity development and/or trade within the countries of sub-regions and across sub-regions.

            UNESCAP has been involved in facilitating the development of some action programmes or plans, although the level of involvement has been catalytic or supportive to other efforts in partnerships with lead government agencies or research institutions.  For example in the 1980s, UNESCAP with the support of UNDP, carried out and published a study on Trans-country Power Exchange and Development in South and South-East Asia. This study served as an important input to the sub-sequent work of the ASEAN and the Greater Mekong Sub-regional initiatives in this area. UNESCAP is currently involved in facilitating energy cooperation in North-East Asia towards the formation of an intergovernmental mechanism.

Background

Recently UNESCAP co-organized with FAO and ADB a Regional High Level Meeting on subregional programmes for poverty reduction and food security.  The Secretary Generals of ASEAN and SAARC and a representative of PIF attended the meeting.  The meeting’s objective was to spearhead the sub-regional programmes on poverty reduction and food security in the context of achieving the Millennium Development Goals.

Several initiatives in the area of food security undertaken by subregional organizations were presented,  such as Plans of Action and Regional Food Security Reserves.   The meeting declaration encourages subregional organizations to pursue the following activities for poverty reduction and food security:

i)     cooperation and collective action in international trade for securing better market access and better returns  on produce prioritizing small and marginal farmers;  

ii)    promotion of joint HRD and   R & D for food security and poverty alleviation;

iii)   exchange of experience and expertise among countries in tackling the poverty and food security issues;

iv)   knowledge exchange to foster sustainable  livelihoods and deliver rural services  including  utilization of local knowledge and innovation of farmers;

v)    research into and implementation of genuine agrarian reform and access to productive resources;

vi)   participation of women and farmers as well as social movements  in processes to design, decide  and implement  food and agricultural policies  including poverty and hunger eradication policies and programmes;

vii)  the special challenges facing small island countries;

viii) strengthening of the mechanisms for the prevention and resolution of conflicts.

Dimensions of Cooperation

There is further scope to build on this cooperation. UNESCAP has substantive experience in the identification and replication of appropriate practices in poverty reduction across the region.  Cooperation with one or more subregional organizations can be beneficial to both sharing good practices in poverty reduction from individual subregions as well as replicating successful initiatives in a collaborative manner.

There is also scope for collaboration in promoting R&D for poverty alleviation and food security, through the Centre for Research and Development of Coarse Grains, Pulses, Roots and Tuber Crops in the Humid Tropics of Asia and the Pacific, which operates within the framework of the work programme of UNESCAP.

Background

With the rapidly increasing level of human trafficking and its transboundary nature affecting various sub-regions in Asia and the Pacific ( particularly South-east Asia, South Asia and Central Asia), there is a perceived need for a concerted response at the national, subregional and regional levels. In 2002, SAARC had taken a landmark step through the adoption of a SAARC Convention on Preventing and Combating Trafficking in of Women and Children for Prostitution.  The ASEAN Plan of Action to Combat Transnational Crime envisages strengthening national and regional capacities to counter crimes including trafficking in persons.

UNESCAP has in the recent past actively engaged in consultations (including with the participation of  ASEAN and SAARC)  on the issue of human trafficking. The consultations have indicated that there is mutual interest in pursuing greater cooperation and collaboration among the various sub-regions, facilitated by UNESCAP, for the purposes of combating human trafficking in the region.

Dimensions of Cooperation

Some of the immediate challenges to sub-regional and inter-regional cooperation include: lack of adequate common or similar institutions, laws, policies and procedures at the national and sub-regional levels; lack of conceptual clarity on terminology; absence of mutual trust to address cross border issues such as monitoring and law enforcement; need for advocacy for the  ratification of the United Nations  Convention on Transnational Organized Crime and its  Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children;  lack of follow up of the various regional agreements and processes; absence of linkages to the various subregional processes dealing with the subject ;  and the lack of information sharing among the various regional and sub-regional processes so as to have added value impetus.

Practical Steps

There is scope for the following cooperation which UNESCAP could facilitate:

Regular periodic joint meeting of the various sub-regional, regional and different groupings within the Asia Pacific region  would be beneficial to enable the process of sharing of experiences and information to foster greater mutual trust and cooperation among the sub-regions to make headway.

            The SAARC experience of consensual adoption of the Convention on Preventing and Combating Trafficking of Women and Children for Prostitution may be an important experience to be shared with ASEAN and other subregional entities .  The progressive and hands on experience at the national level in the Greater Mekong and ASEAN countries may also offer  a different perspective for SAARC.

Whilst multi-lateral initiatives are important, equally important are the bilateral processes for action at the national level. There are various bilateral initiatives and memoranda of understanding  which could be studied and documented.

There still remains a great deal of confusion and misunderstanding of terminology and definitions and issues relating to trafficking, human smuggling and irregular migration. More advocacy for awareness raising, training and discussions (e.g.   in line with the United Nations Convention on Transnational Organized Crime and its Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children) should be encouraged for purposes of conceptual clarity. This may be carried out at the national , subregional and regional  levels with UNESCAP’s assistance.

Cross border issues and legal processes relating to extradition of offenders remain  problematic and sensitive among  countries .More dialogue and regular consultations between the concerned countries may foster better understanding of the issues involved.

All agencies and subregional and regional  groups should make use of their various data bases and web sites to establish linkages and derive benefit from information about current and existing activities and related information. Such information sharing will promote complementary programming and reduce duplication. Further discussion and clarification  on the mechanisms for management and maintenance are needed.

A review of all activities of the different regional projects, programmes and initiatives would identify the value added element of such activities.  There is a need to review all of the various regional instruments and processes to ascertain the progress made and the synergies between them. A matrix of the commonalities, the areas of achievement and the areas outstanding for further action is necessary. This activity would pave the way for more complementary work and reduce duplication and competitiveness among organizations, which may also be reflected at the country level.

The collection and publication of model legislation, memoranda of understanding, benchmark judgments and best practices from the region will be very useful as a next step to the recent UNESCAP publication of a Legal Resource Guide to combat human trafficking. There is also scope to set out a more comprehensive framework for cooperation among the various sub-regional entities for the implementation of the several international and regional legal instruments, political commitments and action plans.

There is a need to  target the supply factors through intensified efforts to deal with the prevention aspect of trafficking which would involve developmental programmes to address root causes,  including measures for poverty reduction and human resource development.