17th ASIAN TRADE PROMOTION FORUM
23-24 February 2004
Hong Kong

Joint Communiqué

1. The 17th Asian Trade Promotion Forum (ATPF) was held in Hong Kong, China on 23-24 February 2004. Delegates from 18 Trade Promotion Organizations (TPOs) attended this annual forum.

2. Mr. Michael Sze, Executive Director of the Hong Kong Trade Development Council (HKTDC), welcomed participants to the forum and encouraged them to work out new creative strategies under this year's theme, Embracing Change, Creating Opportunities.

3. Mr. Osamu Watanabe, Chairman and CEO of the Japan External Trade Organization (JETRO), expressed sincere gratitude on behalf of the delegates to HKTDC for hosting the Forum. He noted the importance of ATPF in the light of various challenges and opportunities in the global economy, and articulated his belief that this Forum is the most appropriate body for TPOs to exchange views and consider strategies.

4. The Guest of Honor, the Hon. Henry Tang, GBS, JP, Financial Secretary, Hong Kong Special Administrative Region, in his inaugural address, emphasized Hong Kong's strong support for free trade and the efforts of ATPF to promote cooperation among member TPOs. He noted strong growth in Hong Kong's recent trade and economic performance and expressed strong hope that the Closer Economic Partnership Arrangement (CEPA) with mainland China would add further momentum to making Hong Kong an ideal platform for trade with mainland China.

5. The Forum adopted the meeting agenda.

6. JETRO provided a brief summary of the outcomes of the 12th ATPF Working Level Meeting held in Tokyo on 1-2 December 2003. Besides the theme of the present meeting, the main discussion points highlighted were: the development of the ATPF website; HKTDC's proposal for an ATPF Joint Trade Fair, which received unanimous agreement; and the Capacity Building Initiative Program. The latter encompasses programs organized by JETRO, Australian Trade Commission (AUSTRADE), and Korea Trade and Investment Promotion Agency (KOTRA).

7. Mr. Watanabe of JETRO presented an overview of recent progress in regional economic integration, with particular emphasis on factors leading to an "East Asian Free Business Zone," and briefed the Forum on the outlook for economic recovery in Japan. He introduced three new JETRO-supported proposals: (1) HKTDC's proposal for the ATPF Joint Trade Fair (see below); (2) enhanced ATPF projects in capacity building; and (3) establishing cooperation between ATPF and the World Customs Organization (WCO) as part of a broader ATPF mission to promote trade facilitation.

8. With regard to proposal (3) above, JETRO emphasized that TPOs are ideally positioned for promoting trade facilitation by playing intermediating roles between border control authorities and trade communities. To this end, JETRO proposed that ATPF explore the possibility of working with the WCO on trade facilitation, and that the ATPF Secretariat initiate talks with WCO regional members and its soon-to-be-established regional office.

9. Delegates held a broad discussion on the proposal on possible cooperation with WCO and other relevant international organizations. The Forum approved, with JETRO's agreement, that JETRO would convene a working group meeting in Tokyo to work out in greater detail the scope of trade facilitation, the role of ATPF, and whether dialogue with WCO should be initiated. This working group will produce a detailed paper for presentation at the next ATPF meeting.

Structuring and training for change-strengthening TPOs' capacity, upgrading skills and recruiting the right talent

10. Two TPOs, Thailand's Department of Export Promotion (DEP) and New Zealand Trade and Enterprise (NZTE), made presentations under this theme.

11. DEP outlined its experience with creating a Special Task Force (STF) to expedite Thai export to emerging markets and explained its responsibilities, especially in information-gathering, research, making strategic adjustments necessary to the nation's benefits and export policy, and contact building in cooperation with Thai Trade Centers overseas. These efforts are also supported by DEP's Intertrader program for matching SME producers with buyers overseas, and by the establishment of the Bright and Smart Group (B&S) for enhancing DEP's human resources.

12. NZTE briefed the Forum on its objective to help jump start New Zealand's OECD ranking in the context of the New Zealand government's broader goal of raising the standard of living. To achieve goals such as improving international connectivity, managerial capability and the culture of enterprise and entrepreneurship, it adopts an industry sector-led approach to maximize impact. NZTE also outlined general business principles that it follows and emphasized the importance of fact-based decision-making, developing key relationships, and measurement of performance.

Projecting the right image-creating a promotional environment that capitalizes on the unique attributes of your economy

13. Five member TPOs made presentations under this theme. These included (in order): HKTDC, Macao Trade and Investment Promotion Institute (IPIM), Malaysia External Trade Development Corporation (MATRADE), China Council for the Promotion of International Trade (CCPIT), and Mongolian National Chamber of Commerce and Industry (MNCCI).

14. HKTDC presented a proposal for the ATPF Joint Trade Fair planned to take place in Tokyo, 16-18 December 2004, organized by Mesago Messe Frankfurt Corp. under the coordination of ATPF and JETRO. Titled "Style Asia", it will provide an effective platform for ATPF members to promote their products to the Japanese market. It will be an annual fair to promote Asian lifestyle products in clothing and accessories, gifts, home appliances, furniture and other housewares, etc.

15. After a wide-ranging discussion, HKTDC's proposal was endorsed. ATPF members agreed to work closely with the organizer to put together promotional materials for distribution to potential exhibitors in their respective economies. Mr. Watanabe added later that JETRO would be happy to co-sponsor a symposium for Trade Ministers and VIPs who would be visiting the fair to provide them with a platform to promote their economies. Furthermore, exhibitors would have the opportunity to show their products in advance in a "virtual fair" on JETRO's website. All the TPOs were kindly requested to indicate their interests by filling out the reservation form and sending it to JETRO before the end of March 2004.

16. In its presentation, IPIM described how it is positioning itself as a service platform for SMEs in Macao's service-oriented, open economy. It concentrates on particular strengths, such as its links with mainland China and Portuguese speaking countries. Following the signing of CEPA with mainland China, IPIM is concentrating on its roles in information providing, promotional activities, and one-stop service, and on its involvement in supervising CEPA implementation. IPIM also shared statistical information on Macao's continuing economic growth.

17. MATRADE's presentation discussed the need for TPOs to project the right image to ensure their relevance amongst stakeholders and clients. MATRADE is focusing on taking a holistic approach towards creating a brand identity as a dynamic, proactive, customer-focused and effective TPO. This encompasses steps to restructure and strengthen the organization, enhancing business relationships, adopting creative promotion vehicles, and acting as a receptive change detector through expansion of its overseas network.

18. CCPIT's presentation discussed new directions relating to image as set forth in its Outline for CCPIT Development 2004-2008, and changes in its working environment. CCPIT is promoting international trade, FDI, globalized business development, and economic cooperation. It is also striving to enlarge its corporate client base as larger segments of the Chinese economy are transformed further with the liberalization of the right to conduct foreign trade. Therefore, it is emphasizing its image as a specialized, professional service provider. Meanwhile, it is perfecting its cooperation network with governments, businesses, and trade organizations.

19. MNCCI emphasized the increasing relevance of public-private partnerships (PPP) to TPOs. Government-run and semi-governmental TPOs were especially encouraged to listen carefully to the business community, further bringing it into decision-making. Every TPO in ATPF was urged to initiate and coordinate PPP in their respective countries. Moreover, MNCCI recommended that ATPF work more with WTO, UN, World Bank, Asian Development Bank (ADB), and other international organizations on developing PPP mechanisms.

Keeping customers satisfied-introducing new services, improving customer service and increasing front line contact

20. The presentation of the Australian Trade Commission (AUSTRADE) discussed its five-year strategy, in response to current trends, for doubling the number of Australian exporters. AUSTRADE seeks to increase customer contact through cost-effective hourly services, establishment of "TradeStart offices," and creating partnerships. It is introducing new services such as the New Exporter Development Program and the 'Business Club' programs. Furthermore, it is "keeping customers satisfied" through clearer grouping of services, an annual Client Service Improvement Study, and focused programs on areas such as knowledge-based exporters.

21. AUSTRADE's presentation generated much discussion among delegates, and the Forum noted that the kind of experience-sharing in such discussions is extremely valuable and informative. In reply to questions, AUSTRADE emphasized that in cultivating exporters it is important to package services, strive to link with local business communities, and mobilize existing resources. To satisfy customers, up-front negotiation of fees and services is critical. Some services are provided free to new customers, but frequent users are moved to a payment basis.

Customizing key services-adding more value through individual business matching, marketing advice and other tailored services

22. International Enterprise Singapore (IE Singapore) shared its experience in offering customized services. One key initiative is increased networking through Network China, Network India, and Network Indonesia for which IE Singapore serves as secretariat. IE Singapore has launched a subsidiary company called Global Business Insights (GBI), of which the Market Strategy Service Division provides market entry consultancy to larger clients, and the Business Support Office Division provides a range of services such as temporary office space, industry and market briefing, lead generation and follow-up, etc. IE Singapore has revamped its website to focus on customer-centric services.

23. The Forum held a broad discussion of IE Singapore's new initiatives. In reply to further questions, IE Singapore indicated that it limited consultancy liability by establishing GBI as a privately-owned subsidiary, and that it seeks eventually to make GBI self-sustaining. GBI attracts large clients by demonstrating its usefulness, through the quality of market knowledge and quality of connections.

Leading the way with e-commerce-helping SME's migrate to more sophisticated use of the Internet

24. HKTDC presented to the forum its experience in promoting its trade promotion website, tdctrade.com. It emphasized the need to help SMEs staying "one step ahead" in four key areas: world markets, competition, technology advancement, and the changing environment. HKTDC emphasized that keeping such a website successful depends on vision and leadership (support from the top), orchestrated portal strategy, maximum output with minimum input, nonstop promotional effort, and emphasis on consumer feedback and performance evaluation.

25. In subsequent discussion, HKTDC further explained that tdctrade.com is fully in English and Chinese (simplified and traditional characters), and has lead-in sites in 12 different languages. Fifteen persons work in the E-Commerce Department in development and maintaining tdctrade.com. HKTDC outsources some of the work and services, and it forms partnerships with industry leaders to put their services on its portal. Most services are free, but some of the partner services are on a charged basis. The top three "hit" areas of the site are TDC Cyber Marketplace, China Trade, and the search engine.

26. In other matters, ATPF member economies that have not yet completed the questionnaire for the 2004 Comparative Study of Asian Trade Promotion Organizations were asked to complete the questionnaire and send it by e-mail to the Center for International Trade Expositions and Missions (CITEM) of the Philippines by 5 March 2004.

Running with new opportunities-impact of FTAs on the work of TPOs

27. Under this theme, HKTDC presented a case study on how it is leveraging the CEPA with mainland China, and India Trade Promotion Organization (ITPO) introduced India's "Look East" policy.

28. HKTDC introduced CEPA and explained how it can benefit manufacturers and service providers seeking preferential access to mainland China. HKTDC emphasized that any company, regardless of nationality, can enjoy CEPA benefits through partnering with or investing in a Hong Kong-based company if it is a service provider, or manufacturing part of its product in Hong Kong or outsourcing to Hong Kong if it is a manufacturer. HKTDC has therefore set its CEPA strategy, based on which it aims to develop mainland China as its domestic market, assist service providers to get an early foothold in mainland China, and develop Hong Kong as a business and service platform for Asia.

29. ITPO profiled India's global trade and leading exports and explained that its "Look East" policy of encouraging trade with other ATPF member economies is due to the region's economic growth, increase of Indian exports to the region, an inadequate market presence of Indian goods, and commonality of interests in global fora. It aims to implement the policy through a steadily expanding range of bilateral and multilateral agreements leading to FTAs within the region, the launch of the "Focus ASEAN + 2" program, and enhanced cooperation with other TPOs.

30. In reply to questions, ITPO informed delegates that five of its 12 board members are governmental, so while it works in tandem with the government's policies, there is little interference. ITPO derives most of its revenue from service fees and trade fairs, and customer surveys indicate high rates of satisfaction with service quality. ITPO explained that India's recent economic growth is due to the opening of the economy since 1991.

31. The Forum noted that FTAs, as well as TPOs response to them, should be discussed further in later ATPF meetings.

Discussion on Venue and Tentative Date for the 18th ATPF

32. The ATPF gratefully accepted IE Singapore's offer to host the 18th ATPF Meeting in late February or early March 2005. Further details will be discussed in the Working Group Meeting.

33. The ATPF welcomed IPIM's tentative offer to host the 19th ATPF Meeting in Macao in 2006.

34. The meeting thanked HKTDC and its Executive Director Mr. Michael Sze for their excellent arrangements for the 17th ATPF.