Report of the

1

SOM XIV/2013

Report of the

Fourteenth Senior Official’s Meeting (SOM XIV) Forum for East-Asia – Latin America Cooperation

Bali, 12 June, 2013

1. The XIV Senior Officials Meeting (SOM XIV) of the Forum for East Asia – Latin America Cooperation (FEALAC) was held in Bali, Indonesia, on 12 June 2013.

The meeting was co-chaired by the Director General for America and Europe, Ministry of Foreign Affairs of the Republic of Indonesia, H.E. Ambassador Dian Triansyah Djani, and the Vice Minister of Foreign Affairs, Republic of Colombia, H.E.

Mrs. Mónica Lanzetta.

2. The Meeting was attended by delegations from 34 member countries participated in the meeting: Argentine, Australia,Brazil, Brunei Darussalam, Cambodia, Chile, China, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Indonesia, Japan, Laos, Malaysia, Mexico, Mongolia, Myanmar, New Zealand, Nicaragua, Panama, Paraguay, Peru, the Philippines, Republic of Korea, Singapore, Suriname, Thailand, Uruguay, Venezuela and Vietnam. The list of delegates is attached as ANNEX A.

3. In his opening remarks, H.E. Mr. Dian Triansyah Djani, Director General for America and Europe of the Ministry of Foreign Affairs of the Republic of Indonesia welcomed the delegates to Bali. He highlighted FEALAC’s accomplishments in building the foundation for wide-ranging cooperation that can bring the two regions closer. In this regard, FEALAC member countries are encouraged to bring forward concrete projects that will further promote connectivity and increase FEALAC’s attractiveness to the region. Ambassador Mónica Lanzetta, Vice Minister of Foreign Affairs of Colombia underlined the importance of bi-regional cooperation projects in deepening the ties between the two regions and enable FEALAC to realize its maximum potentials and produce better outcomes.

4. The Meeting agreed on the Agenda, which appears as ANNEX B.

AGENDA ITEM 2: Election of Working Group Co-chairpersons

5. The Meeting took note of the results of the election of working group Co- chairpersons for the period of 2013-2015 as follows:

a. China and Ecuador will co-chair the Working Group on Politics,

Education, Cultural and Sports.

2 b. Argentine will co-chair the Working Group on Economy and Society as well as the Sub-Working Group on Tourism. The position for the co- chair persons representing the Asian region is vacant since Viet Nam decided not to continue its current position as the co-chair and no Asian countries have submitted their nominations for the said position.

c. Japan and Brazil will co-chairs the Working Group on Science and Technology.

AGENDA ITEM 3: Consideration of the Working Groups Report a. Working Group on Politics, Education, Cultural and Sports

6. The Meeting considered the Report and Recommendations submitted by Japan and Argentine, Co-Chairs of the 10

^th

Working Group Meeting on Politics, Culture and Education held in Bali on 11 June 2013. The draft Charter for FEALAC University Network remains open to be commented by university experts from member countries.

7. Recommendations were submitted to and adopted by the Senior Officials.

The Report appears as ANNEX C. Member countries were encouraged to implement the recommendations.

b. Working Group on Economy and Society

8. The Meeting considered the Report and Recommendations submitted by Vietnam and Ecuador, Co-Chairs of the 10

^th

Working Group Meeting on Economy and Society held in Bali on 11 June 2013. The meeting underlines the importance of bi-regional projects that support the development of SMEs and promote investment flow through opportunity information sharing.

9. Recommendations were submitted to and adopted by the SOM. The Report appears as ANNEX D. Member countries were encouraged to implement the recommendations.

c. Sub Working Group on Tourism

10. The Meeting considered the Report and Recommendations submitted by Vietnam and Ecuador, Co-Chairs of the 4

^th

Sub Working Group Meeting on Tourism held in Bali on 11 June 2013. The Meeting noted that the Sub Working Grouphas discussed the need to increase flow of tourists through cooperation in connectivity, visa facilitation, enhanced security, and to further make use of the Cyber Secretariat website to better exchange tourism promotion related information.

11. Recommendations were submitted to and adopted by the SOM. The Report

appears as ANNEX E. Member countries were encouraged to implement the

recommendations.

3 d. Working Group on Science and Technology

12. The Meeting considered the Report and Recommendations submitted by South Korea and Brazil, Co-Chairs of the 10

^th

Working Group Meeting on Science and Technology held in Bali on 11 June 2013.

13. Recommendations were submitted to and adopted by the SOM. The Report appears as ANNEX F.

AGENDA ITEM 4: Report of the Meetings of FEALAC Vision Group (FVG)

14. H.E. Pitono Purnomo as the host of the 5

^th

FVG meeting held in Bali 4-6 June 2013, briefed the Meeting on the main recommendations put forward by the FGV to ensure FEALAC’s relevance in the region as follows:

a. FEALAC should focus at the implementation of iconic projects aimed at promoting connectivity between the two regions in the areas of common interests such as science and technology, media, business, tourism, education, youth and culture.

b. FEALAC should be more inclusive in formulating its cooperation projects and activities to ensure broader participation of relevant stakeholders and increase people-to-people contact.

c. Strengthening FEALAC’s institutions and improving the effectiveness and efficiency of FEALAC’s mechanism through among others the establishment of a permanent Secretariat, the re-organizing of the Working Group and the convening of Summit.

15. The complete report of the FEALAC Vision Group is attached as ANNEX G.

16. The Meeting expressed their appreciation for the report and recommendations put forward by the Group.

17. The Meeting highlighted and discussed the recommendations particularly on the idea to establish a permanent secretariat, a FEALAC Summit, as well as inter- sessional meetings between FEALAC and other regional organizations.

18. The Meeting agreed with South Korea’s proposal to have further discussion on FEALAC Vision Group’s report and recommendations in a back-to-back meeting during the FEALAC Cyber Secretariat Workshop to be held in Republic of Korea in 2014.

19. The Meeting also took note of the proposal to convene inter-sessional meetings between FEALAC and other regional organizations to ensure more consultations and strengthen relations and cooperation between the two regions.

AGENDA ITEM 5: Discussion on Activities related to Strengthening of Cyber

Secretariat

4 20. The Meeting was briefed by South Korea on the update of the current activities and future plans of the Cyber Secretariat, and encouraged FEALAC member countries to provide the Secretariat with basic information of member countries to be uploaded in the web page of the Secretariat.

21. The Meeting commended South Korea and agreed to encourage member countries to actively provide update information to the Secretariat.

AGENDA ITEM 6: Bi-Regional Projects

a. Follow up of FEALAC University Network

22. The Meeting was briefed by Brazil on the progress of its initiative on the FEALAC University Network. Brazil informed the Meeting that some member countries have provided their comments to the draft Charter of the FEALAC University Network as attached in ANNEX H.

23. The Meeting agreed to adopt the FEALAC University Network as the bi regional project for next year.

b. Follow up of Project for the establishment of a Bi Regional Development Center for SMEs

24. The Meeting was briefed by Ecuador on the current progress of the initiative to the establishment of Bi-Regional Development Center for SMEs. In this regard, member countries have expressed their support and agreement of the establishment of Bi Regional Development Center for SMEs as stipulated in its Term of Reference which appears in the ANNEX I.

AGENDA ITEM 7: Recommendation to the 6

^th

Foreign Ministers Meeting a. Election of Regional Coordinators

25. The Meeting welcomes the readiness of Thailand to take up the role as the next East Asia Regional Coordinator and Costa Rica for the Latin America Region.

Thus, Thailand and Costa Rica will assume the position as FEALAC’s regional coordinator for the period of 2013-2015.

26. Thailand informed the meeting that a working group meeting on tourism and Academic Roundtable will be held back to back with the FEALAC SOM in Thailand next year. The venue of the events and their respective time will be conveyed at a later date.

27. Costa Rica informed the meeting that the venue and time of the FEALAC Foreign Ministers’ Meeting in 2015 will be announced later.

28. The meeting expressed appreciation to Thailand and Costa Rica for their

readiness to assume the post of Regional Coordinators.

5 b. Strengthening FEALAC Mechanism

29. The Meeting discussed initiatives suggested by the member countries to further increase the efficiency and effectiveness of the FEALAC’s mechanism.

30. The Meeting agreed to realign the Working Groups as stipulated in ANNEX J.

31. The Meeting also agreed on the idea to convene an inter-sessional meeting between the FEALAC SOM and FMM to monitor progress and review implementation of projects and provide policy guidance.

c. Finalization of 6

^th

FMM Outcome Document

32. The Senior Officials discussed the draft outcome document of the 6

^th

Foreign Minister Meeting namely the “Uluwatu Declaration” as attached in ANNEX K and recommended for the adoption by the Ministers.

OTHER MATTERS

33. The Meeting took note the convening of the Second Meeting on International Cooperation Officials of FEALAC countries, Bi-Regional Dialogue on International Cooperation held in Bali, 12 June 2013, and the Seminar on Sustainable Tourism and Ethics which was held in Bali, 9-10 June 2013. The reports of the said events appear as ANNEX L and ANNEX M respectively.

ADOPTION OF THE 16

^th

SOM REPORT

34. The Meeting adopted the Report from the Senior Officials’ Meeting.

CLOSING

35.

The Meeting expressed its sincere appreciation to the Government of the Republic of Indonesia for the warm hospitality accorded to the FEALAC delegations and for the excellent arrangements made for the Meeting. The Meeting also conveyed its gratitude for the able Co-Chairmanship of the Republic of Colombia to make all meetings a success.

Bali, 12 June 2013

ANNEX A

LIST OF FEALAC SOM LEADERS XIV FEALAC SENIOR OFFICIALS' MEETING

BALI, 12 JUNE 2013

NO COUNTRY NAME POSITION AND INSTITUTION

1

Argentina H.E Maria Del Carmen Squeff Under – Secretary of Foreign Affairs

2

^Australia Mr. Richard Neumann Director, South America and COALAR

Section

3

Brazil H.E Maria Edileuza Fontenelle Reis Under-Secretary General for Political Affairs

4

Brunei Darussalam Dato Lim Jock Hoi Permanent Secretary

5

Cambodia H.E. Dr. Soeung Rathchavy Secretary of State

6

^Chile H.E. Mr. Fernando Danus Ambassador of the Republic of Chile in

Singapore

7

China Mr. Wang Baodong Counsellor of the Department of Latin

America and Carribean Affairs

8

Colombia H.E Mrs. Monica Lanzetta Mutis Deputy Foreign Minister

9

Costa Rica Mrs. Adriana Solano Lacle Minister Counsellor of the Embassy of the Republic of Costa Rica in Singapore

10

Cuba Mr. Hermino Lopez Diaz Deputy Director for Asia and Oceania

11

Ecuador H.E Mr. Eduardo Calderon Ambassador of the Republic of Ecuador in Indonesia

12

El Salvador Ms. Dian Hernandez Vanegas Charge d’Affaires a.i. of the Embassy of the Republic of El Salvador in Australia

13

^Guatemala Ms. Karla Samayoa Director of the Security Council

14

Honduras H.E. Ms. Marlene Villela-Talbott Ambassador of the Republic of Honduras in Japan

ANNEX A

15

Indonesia H.E. Ambassador Dian Triansyah

Djani Director General for America and Europe

16

Japan Mr. Yasushi Noguchi Director for Mexico, Central America and

Caribbean Division

17

^Korea Mr. Jang Myung-soo Director-General for South America and

Caribbean Affairs

18

^Laos Mr. Thongphane Savanphet

Director General of Economic Affairs Department of the Ministry of Foreign Affairs of the Lao People’s Democratic Republic

19

^Malaysia Mr. Loon-Lai Cheong

Undersecretary of OIC, D8, Specialized Agencies, South-South Cooperation (OD8SS)

20

^Mexico Mr. Alejandro Madrigal Becerra Director General for Asia and the Pacific

21

Mongolia Mr. Batlai Chuluunkhuu Director for American and African

Department

22

Myanmar Mr. U San Lwin Deputy Director General Political

Department

23

New Zealand Ms. Jane Coombs Divisional Manager for the Americas

Division

24

^Nicaragua Mrs. Rossana Espinoza General Director Asia, Africa and Oceania

25

Panama Mrs. Yazmin Brea de Contreras Deoputy Director of Special Projects and

International Cooperation

26

Paraguay H.E. Mr. Rigoberto Gauto Director General of Multilateral Policy

27

^Peru Mr. Juan Capunay Director of the APEC Office

28

Philippines The Honorable Mr. Carlos D. Sorreta Assistant Secretary for American Affairs

29

Singapore Ms. Foo Chi Hsia Director General of Americas

ANNEX A

30

Suriname H.E. Mrs. Titi Amina Pardi Ambassador of the Republic of Suriname in Indonesia

31

Thailand Mr. Sek Wannamethee Director-General of the Department of

American and South Pacific Affairs

32

^Uruguay H.E. Alfredo Raggio Lafone Regional Director for Asia, Africa and Oceania

33

^Venezuela H.E. Mr. David Velásquez Caraballo Viceminister for Asia, Middle East and Oceania

34

Vietnam Mr. Dang Xuan Dung Acting Director General of Americas

Department

35

ECLAC Mr. Antonio Prado Deputy Executive ECLAC

ANNEX B

FORUM FOR EAST ASIA-LATIN AMERICA COOPERATION 14

^TH

SENIOR OFFICIALS MEETING

PLENARY Bali, 12 June 2013 PROVISIONAL AGENDA

1. Adoption of the Agenda

2. Election of Working Group Co-Chairpersons 3. Consideration of the Working Groups Reports 4. Report of the Meetings of FEALAC Vision Group

5. Discussion on Activities related to Strengthening of Cyber Secretariat 6. Bi-Regional Projects

a. Follow-up of FEALAC University Network

b. Follow-up of Project for the establishment of a Bi-Regional Development Center for SMEs

c. Follow-up of Sectorial Action Plan on Science and Technology 7. Recommendation to the VI Foreign Ministers Meeting

a. Election of Regional Coordinators b. Strengthening FEALAC Mechanism:

c. Finalization of FMM VI Outcome Document 8. Schedule for Future FEALAC Meetings

9. Any Other Matters

10. Adoption of the SOM XIV Report

**********************************************

PCESWG/2013

Page 1 REPORT ON THE

10^TH FEALAC POLITICS, CULTURE, EDUCATION AND SPORTS WORKING GROUP MEETING

BALI, INDONESIA 11 JUNE 2013 1. Welcoming and Opening Remarks

10th Meeting of the Politics, Culture, Education and Sports Working Group (PCESWG) of FEALAC took place in Bali, Indonesia, on June 11 of 2013.

Representatives of Japan - Mr. Yasushi NOGUCHI - and Argentina - Mr. Daniel POLSKI – co-chaired the Meeting.

Attendees include delegates from Argentina, Australia, Bolivia, Brazil, Brunei Darussalam, Cambodia, Chile, China, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Indonesia, Japan, Korea, Malaysia, Mexico, Mongolia, New Zealand, Nicaragua, Panama, Peru, the Philippines, Singapore, Suriname, Thailand, Venezuela, and Vietnam.

The Co-Chairs conveyed the Working Group's appreciation to the excellent meeting arrangement made by the Government of Indonesia.

In their opening remarks, the Co-Chairs thanked the attendance of the delegates to the PCESWG, and stressed the importance of visibility and ways to follow up FEALAC projects. The Co-Chairs expressed hope that all participants will contribute in raising the visibility of the FEALAC process, which include the constant updating of new projects on the FEALAC website.

The Co-Chairs made a special mention about the Brazilian University Network project, and the importance of the Vision Group to guide FEALAC in formulating future follow up projects. Cultural Exchange is also considered as key to the development of the forum.

2. Adoption of the Agenda

The attached agenda was adopted.

3. Consideration of any reports on Politics, Culture, Education and Sports Working Group (PCESWG) projects since the 9^th Meeting

The Meeting welcomed the ongoing and concluded national projects presented by the following member countries:

ANNEX C

PCESWG/2013

Page 2

 China –

(i) Season for Chinese Contemporary Art, October 2012.

(ii) China-Latin America Academic Forum of High Level, November 2012.

(iii) International Seminar on “Soft power and Construction of China-Latin America partnerships”, November 2012.

 Colombia – Conference on Sports as Social Inclusion.

 Mexico – 5^th Course on Spanish Language for Foreign Diplomats, completed December 2012.

 Korea – Korea-Latin America Youth Forum.

 Thailand – Annual Training Courses and Workshops in Mutual Interests:

Sustainable Development, Philosophy, Economy, Public Health, Global Warming.

 Brazil – Introduced to the PCESWG the Charter of the FEALAC University Network.

 Peru – Short Courses for FEALAC Young Diplomats (through Diplomatic Academy of Peru).

 The Philippines – Philippines’ Academic Consortium for Latin America Studies.

 Japan – Invitation Program for Young Leaders.

 Indonesia –

(i) FEALAC Culinary Week (12-19 May 2013) (ii) FEALAC Film Festival (19-23 November 2012).

The Co-Chairs opened the floor for each attendant delegates to make comments on some of the aforementioned projects:

China:

 The Season for Chinese Contemporary Art Held was in Colombia, Ecuador, and Mexico, this art season was not only a showcase of Chinese contemporary art and China’s effort to promote cultural exchange, but also one of the largest, richest cultural activities in recent years.

 Around 30 scholars participated in the China-Latin America Academic Forum of High Level, interchanging opinions on how to promote academic exchanges and development between China and Latin America.

 Chinese senior officials,former presidents of Bolivia, Colombia, and Panama, and other Latin America experts gave advices for the further development of China-Latin American relationship during the seminar on

“Soft power and Construction of China-Latin America partnerships”.

Colombia:

 The social inclusion will be the second one (with the first one organized by Argentina), will be held on October 2015.

PCESWG/2013

Page 3 Korea:

 The program deals entitled “Future Generation Perspective of Latin- America-Korea Cooperation.

 The program invited Latin American students studying in Korea, and Korean students studying in Latin America.

 Recommends other countries to held similar meeting/program due to the low budget nature in organizing it.

Thailand:

 Thailand could also organize and formulate training specific to the needs of FEALAC member countries.

 Invite inputs on the needs of FEALAC member countries.

Brazil:

 At the diplomatic level, Brazil felt that at the diplomatic level all necessary decisions have been taken.

 Now, the decision needs to go to the experts.

 The Senior Official Meeting may opt to decide on a regional experts meeting.

Japan:

 For this year, the program focuses on environmental issues, especially eco-business.

 Programs will include sightseeing and visiting companies.

Indonesia:

 Cooking demos during the Culinary Week include cooking recipes from Ecuador, Mexico, and the Philippines.

 Screening of 23 children films from 15 countries shown in Jakarta, Depok, and Bandung; and workshops.

4.

Presentation of PCESWG member's new proposals

The Meeting welcomed future national projects presented by member countries:

 Colombia –

(i) Spanish Language course for Tourist Guide, 1 August – 30 November 2013.

(ii) Conference on Sports as Social Inclusion, October 2013.

 Thailand – 3^rd Workshop of Drug Enforcement for FEALAC countries, July 2013.

 China –

(i) Seminar for Press Officials and Journalists of Latin American Countries, June 2013.

(ii) Multilateral Seminar for Latin American Political Parties, July 2013.

(iii) The 1^st FEALAC Young Diplomats Visiting Program, September 2013.

(iv) The 4^th Sino-Latin America People’s Friendship Forum, September 2013 - October 2013.

PCESWG/2013

Page 4 (v) The 1^st FEALAC Law Forum, October 2013.

 Vietnam – 2014 International Hue Festival – 12-20 April 2014

 Argentina – “Seminar on perceptions of civil societies groups in one region about the other region", to be held in the first half of 2014.

 Indonesia –

(i) Youth FEALAC Conference (ii) Sports Industry Seminar

(iii) Traditional Sports Promotion (such as Pencak Silat).

 Mexico –

(i) 6^th Course on Spanish Language for Foreign Diplomats, 1 July 2013 - 4 December 2013.

(ii) 9^th Course on Mexican Foreign Policy for Foreign Diplomats, August-September 2013.

(iii) 19^th Course on Mexican Foreign Policy for Latin American and Carribean Diplomats, 25 September 2013 – 9 October 2013.

(iv) in progress of identifying posible project in Arts and Culture.

 Japan – Invitation Program for Young Leaders, early October 2013.

 Korea – Korea-Latin America Next Generation Leaders’ Forum.

The Co-Chairs opened the floor for the proposing country to make comments on some of the aforementioned projects:

Colombia:

 In the future, Colombia will listen to the needs of FEALAC member countries (and offer Spanish courses not only for Tourist Guide).

Thailand:

 Invite FEALAC member countries to attend the 3^rd Workshop of Drug Enforcement for FEALAC Countries to be held in July 2013.

 The event is a follow up other previous workshop held in 2009.

China:

 The seminar for Latin American countries’ press officials and journalists aims to promote interchanges and cooperation in the field of media to further develop dialog and understanding between China and Latin America.

 The multilateral seminar for Latin American political parties aims to increase mutual understanding and strengthen the relationship between China and Latin American countries.

 The young diplomats visiting program aims to invite about 20 young diplomats to participate in a 14-day course, with topics including public management, trade, diplomacy, the environment, and other fields.

 The people’s friendship fórum aims to promote the friendship betwen China and civil society organizations in Latin American and the Carribean.

PCESWG/2013

Page 5

 The law forum aims to make this Forum an opportunity for legal experts, scholars and legal officials from East Asia and Latin America to exchange ideas for exploring solutions to common challenges; and to make this Forum a site for entrepreneurs and businessmen to gain insights on how to develop their business more effectively.

Vietnam:

 The 2012 International Hue Festival was participated by 17 troops from 15 countries (6 East Asian and 6 Latin American countries).

Argentina:

 Information on East Asia and Latin America from a third region influences the perception. Therefore, it is important to diagnose and strengthen perceptions between officials, academics, and the media on each respective area. Exact dates of the event will be announced.

Indonesia:

 Hopes to be able to know the needs of youth, like entrepreneurship and other;

 Hopes to enhance economic development through sport activities;

 Promoting the use of science and technology to better enhance sports performance and to develop the field of Sports Science;

 Promotion of traditional sports so that they are known abroad, including the exchange of experts of traditional sports.

5. Discussion on the Appointment on New Co-Chairs

Japan (the Japanese Co-Chair) announced the intention of the government of China to co-chair in the next term.

China congratulates the excellent work of Argentina and Japan. In a response to the Chinese inquiry on the progress of selecting a Latin American countries’

candidate for the new Co-Chair, Argentina (the Argentine Co-Chair) expresses that an appointment will be made by the next day.

6.

Drafting and approval of PCESWG report

The Co-Chairs informed participants that the draft report of the 10^th PCESWG will be circulated for approval during the 14^th SOM FEALAC to be held in Bali on 12 June 2013 (on the next day).

7. Other Matters

The Argentine Co-Chair agrees with Colombia on the need in the future to embark on more joint follow-up projects to make the various initiatives truly bi- regional, allowing a FEALAC member country to embark on a follow-up Project previously undertaken by another FEALAC member country. Indonesia highlights on its proposed national projects that could potentially in the future become joint FEALAC projects.

While Chile and Argentina stated its support for Brazil’s FEALAC University Network project, Uruguay, Malaysia, and Japan made inquiries on issues related to the nature and structure of the Network encompassing the

PCESWG/2013

Page 6 relationship between focal point institution and the Network; financing mechanism; and qualification category for an institution to be come part of the Network.

In response, Brazil elaborated related elements within the proposed Charter of FEALAC University Network. Brazil also noted and complemented Indonesia’s commitment to support the University Network project, Indonesia offers programs such as Darmasiswa scholarship, Non-Aligned Movement scholarship, and the Ministry of Education scholarship, apart from joint research and joint degree programs.

The Argentine Co-Chair reminded the PCESWG that the FEALAC University Network Project was already approved by the FMM in Buenos Aires; and was one of the projects suggested by the Vision Group.

The Co-Chairs concluded that a meeting of experts on how to develop the FEALAC University Network project – a meeting that was supposed to take place prior to the current 10^th WG PCES – needs to be held soon.

-oOo-

ESWG/2013

Page 1 REPORT ON THE

10^TH FEALAC ECONOMY AND SOCIETY WORKING GROUP MEETING

Bali, June 11^th, 2013

I. The 10^th FEALAC Working Group Meeting on Economy and Society, held in Bali, June 11^th 2013, was co-chaired by Mr. Dang Xuan Dzung, Acting Director General of Americas Department, Ministry of Foreign Affairs of Viet Nam and Ambassador of the Republic of Ecuador to Indonesia, H.E. Mr. Eduardo Calderon.

II. The meeting was attended by delegates from Argentina, Australia, Brunei Darussalam, Cambodia, Chile, China, Colombia, Cuba, Ecuador, El Salvador, Guatemala, Indonesia, Japan, Lao PDR, Malaysia, Mexico, Mongolia, New Zealand, Nicaragua, Peru, Philippines, Republic of Korea, Singapore, Suriname, Uruguay, and Viet Nam.

III. In their opening remarks, the Co-Chairs extended a warm welcome and commended all delegations for participating in the meeting. The Co-Chairs also conveyed the Working Group’s gratitude to Indonesia for hosting as well as excellent facilitation of the meeting.

IV. The Working Group approved the following agenda:

1) Approval of the agenda;

2) Presentation of the Report of the Fourth Meeting of the Sub-Working Group on Tourism (presented by the Co-Chairs Viet Nam and Ecuador);

3) Presentation of National Projects for the period of 2012-2013;

4) Submission of Bi-Regional Projects for period of 2013-2014;

5) Review of progress of the Feasibility Study Draft for the Establishment of a Center for Promotion of SMEs (presented by Ecuador);

6) Review of progress towards the establishment of a Database Investment Projects, an Investment Network, and a FEALAC Business Forum (presented by Argentina); and 7) Other Matters.

V. Presentation of the Report of the Fourth Meeting of the Sub-Working Group on Tourism

On the first issue of the agenda, the delegates had the opportunity to receive the Report of the 4^th Meeting of the Sub-Working Group on Tourism. Viet Nam highlighted the inclusion of the substance of the “Guidelines for Cooperation among the Member Countries of the Forum on the Development of Tourism” prepared by Brazil in the Report of the meeting, so that it can be reported to the Working Group on Economy and Society, to the SOM and FMM.

VI. Presentation of National Projects for the period of 2012-2013

Co-Chairs extended their appreciation and invited member states to present the national projects for the period of 2012-2013. Japan, Viet Nam, and China presented their national projects carried out during this period.

ANNEX D

ESWG/2013

Page 2 Japan highlighted success of the “FEALAC Eco-Business Promotion Conference” which was held in Tokyo in Novermber 2012. The Conference sought to address the common challenges of Asia and Latin America, namely the simultaneous attainment of sustainable economic growth and environmental protection through the promotion of eco-business. In light of its success, Japan called on FEALAC members to continue the conference in future years.

Viet Nam reported the outcome of the Seminar on “Experiences of FEALAC countries in transforming growth model towards sustainable Development” held in Ha Noi, 5-8 June 2013 by Viet Nam as Co-chair of the Working Group on Economy and Society. 27 FEALAC member countries and 5 international organizations sent high level policy makers and experts to the seminar. The participants shared common view that restructuring and growth model transformation between two regions is vital. Participants also exchanged best practices and experiences on sustainable development and agreed that there is no one- size-fits-all growth models. Participants acknowledged that transformed growth model should be economically, socially and environmentally sustainable and should be interlinked with effective international integration. They also highlighted the nurturing South-South cooperation and triangular cooperation. The Seminar adopted Chairs’ Summary and expressed that such fora on economic and development should be organized in the future.

China also informed to the delegates on the national project where participated by more than 400 foreign entrepreneurs from 40 countries including 14 from FEALAC member countries. China also reported about its Micro-project seminar, held in November 2012 which was sponsored by China Central Bank and was intended to enhance cooperation between China and Latin America countries. The seminar was also attended by more than 20 institutions of small and medium enterprises. China also hosted a seminar in Shanghai regarding the fight against drug trafficking for high level customs officials of Latin America countries with participation of a number of senior officials dealing with drug trafficking issues.

VII. Submission of Bi-Regional Projects for period of 2013-2014

Co-Chairs highlighted two Bi-Regional projects proposed for the period of 2013-2014 namely the Project for the Establishment of a Bi-Regional Center for the Development of SMEs tabled by Ecuador (Annex I) and the FEALAC Investment Opportunities Database tabled by Argentina (Annex II). Both proposals were discussed at the subsequent agenda items.

Indonesia tabled a draft proposal regarding the Enhancement on Industrial and Technology Infrastructure with the purpose to boost trade and flow of goods between FEALAC and East Asia region (Annex III). Indonesia requested the assistance of the Chair to seek inputs from member states through Cyber Secretariat.

ESWG/2013

Page 3 VIII. Review of Progress of the Project for the Establishment of a Bi-Regional Center for

the Development of SMEs

Ecuador presented the progress of the study draft on the establishment of a Bi-regional Center for Development of Small and Medium Enterprises (SMEs), and informed the delegates of the revised proposal of the draft that will be focused on the first phase of the project with voluntary cooperation of the member countries of FEALAC. Ecuador highlighted the significance of the establishment of the Center, its contribution to the SMEs as well as its benefit to strengthen and improve the cooperation within FEALAC. The Chair also underlined the fact that the draft has been circulated for a long time and thus, urged the approval of the ESWG on the draft to enable further action.

Colombia, Indonesia, Japan, Mexico, Peru, and Viet Nam have expressed their support in principle and additional comments for the improvement of the revised draft. Delegations highlighted the importance of promoting cooperation of bi-regional SMEs and emphasized the voluntary basis of the contribution to the center and to its activities. Some delegations have requested further information on the status of the Center and appreciated Ecuador’s contributions in this regard. Indonesia and Viet Nam have also sought clarification on the definition and classification/categorization of the SMEs, taking into account the different classifications of the SMEs in East Asia and the Latin America. Indonesia also raised the issue of access fees for SMEs. Upon further explanations and information, delegations gave approval for the draft to be presented to the SOM.

Co-Chairs thanked and appreciated delegations for their supports, constructive comments and approval for the draft.

IX. Review of progress towards the establishment of a Database Investment Projects Argentina presented the review on the establishment of the FEALAC Investment Opportunities Database and highlighted the progress made including its discussion on the FEALAC website managed by the Government of the Republic of Korea.

Mexico, Republic of Korea, and Viet Nam expressed appreciation to the project as the platform to enhance enterprises and investment opportunities. Delegations also noted the implementation of the Database Project, in particular the voluntary financial contribution to the development and management of the Database. Delegations further encouraged the input and sharing of information through the cyber secretariat and make use of it for the benefit of FEALAC member countries.

The Chairs thanked Argentina for the presentation and thanked delegations for positive outlook and constructive discussion. The Chairs also thanked delegates for the support to submit the project to SOM.

ESWG/2013

Page 4 X. Other Matters

Several issues were discussed on this agenda item. Japan informed the meeting of the development and progress of the quality of food products after Fukushima disaster and sought the consideration of FEALAC member states to reduce the import restriction of such products.

Viet Nam informed the delegates of the end of its term as Co-chair of the Working Group on Economy and Society and encouraged East Asian countries to nominate candidate or self- nominate to replace Viet Nam for the term of 2013-2015.

Argentina informed the meeting of its consideration as the future Co-Chair representing Latin America region and will confirm its candidacy at the 14th SOM. The Co-Chairs further encouraged member states of the East Asia region to have consultations and later submit the nomination for new candidacy representing the region to SOM.

The delegates expressed their appreciation to the Government of the Republic of Indonesia for hosting the 10^th Meeting of the Working Group on Economy and Society of FEALAC.

Bali, 11^th June 2013

Co-Chairs Ecuador - Viet Nam

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Annex 1

UPDATE OF THE FEASIBILITY PROJECT FOR THE

ESTABLISHMENT OF A BI- REGIONAL CENTER OF

DEVELOPMENT OF THE SMES

QUITO, March 2013

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INDEX

1. ANTECEDENTS ... 3

2. FILOSOPHY, STRATEGIES AND BENEFICIARIES ... 3

3. OBJECTIVES OF THE BI REGIONAL CENTER FOR THE DEVELOPMENT OF THE SMES. 7 4. PRINCIPLES OF THE BI REGIONAL CENTER OF DEVELOPMENT OF THE SMES. ... 7

5. MANAGEMENT MODEL ... 7

 Remote System on-line training. ... 14

 System internships. ... 14

 Grants scheme. ... 14

 Monitoring system. ... 14

6. SUCCESS FACTORS ... 17

7. CONCLUSIONS ... 17

3 1. ANTECEDENTS

In the VII Reunion of the Group of Economy and Society of the Forum of Latin America – Easter Asia Cooperation (FOCALAE) (Bali, November 1^st, 2010) it tried to propel the Project of Establishing the Bi Regional Center of Development of the Small and Medium Enterprises (SMES) (VI/ESWG/ECU/2008/0), afterwards, it was agreed to carry out the updating of the project, and the budget with the purpose of making viable its creation and for it to me examined during the VIII Reunion of the Work Group of Economy and Society (Buenos Aires, August 23^rd, 2011). In such reunion, some countries recommended that Ecuador incorporates in the project the following recommendations:

(i) Update the project related to its financing, specially referring to the contribution of the headquarter country (Ecuador), as well as the contribution of the international financing organizations.

(ii) Have a updated work Plan, that includes the deadlines and stages for its establishment, its start – up and its maintenance.

The updated project, including these recommendations, was presented on the IX Reunion of the Work Group about Economy and Society, and in the XIII Reunion of High Functionaries of the FOCALAE, held in Bogota – Colombia, on October of 2012.

During this opportunity, the countries, recognizing the importance of the project and the fact that is one of the pioneering project with a bi-regional vision, manifested that, in the presented terms, the project still is ambitious and to be able to overcome this inconvenience and make feasible, it must introduce some elements that as a recommendation, they will send it to Ecuador.

In fact, Japan and Vietnam sent their recommendations that have been incorporated in this updating. In synthesis, Ecuador will focus its effort in the first phase of the project, in which, the participation of the countries of the FOCALAE will be considered as voluntary.

With this antecedent, the reformulation of the project is summarized to the following:

2. FILOSOPHY, STRATEGIES AND BENEFICIARIES

The globalization and crisis generate complex conditions for the countries and the enterprises, which demand the structuring of public policies that allow the improvement of competitiveness especially in the SMES case. Upon this reality, it is proposed that within the FOCALAE scope, the effort is channeled and oriented towards the support of the development and growth of the SMES, throughout the exchange of experiences and better obtained practices in countries of Easter Asia and Latin America.

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It generates for the SMES bigger and better opportunities of participation, it will contribute to achieve conditions of sustainability which lowers poverty and economic inequality of the population; a bigger access opportunity towards employment and better income of the peoples.

Without a doubt, a contribution to the bigger development of the SMES in the countries which are members of the FOCALAE is creating conditions to make them competitive and for them to be able to access their products, to the productive chain between the two regions.

With this vision, the key strategies are defined in two elements:

(i) Facilitate the exchange of experiences related to the better practices that foment the development of the SMES which allow facilitating to the policy makers in the different countries.

(ii) Generate a web of Focused Centers located in each country member, which gives services to the SMES, and which allows and facilitates its articulation to the international value chain, generating conditions of bigger competiveness.

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The strategies and range are presented in a concise manner in the following chart:

MATRIX OF STRATEGIES, RANGE AND SERVICES OF THE BI REGIONAL CENETR OF SUPPORT TO SMES

INITIAL STRATEGIES RANGE SERVICES

a) Virtual Bi Regional Center of Focal Centers of Development of SMES with the purpose of consolidating the support organizations for SMES in countries oriented to competiveness, better activities and promotion of exportations of SMES. This center is a data bank of good national activities of the countries involved in the SMES development, with a particular emphasis in information of innovation and the technological scope.

It is a space that allows achieving knowledge and innovation dynamic both for the: a) Development policies makers of SMES; as well as for the b) SMES of the country which are members.

 Innovation boost. Technical services for an efficient management.

 Assistance in Organizing.

 Facilitation of associative processes.

 Markets of Information and Intelligence.

 Research for development of products.

 Technological and scientific update.

 Subsidies for the information of human resources.

 Financing Provision.

 Government Advice on Fiscal Reform (incentives and Deductions) in favor of the SMES and strengthening of especially anything related to financial institutions that serve the SMES.

a) Information about the virtual instruments for technical services oriented towards the SMES:

specialized counsels in technology, processes, products development, market intelligence, technical consulting, and technical assistance, to SMES. In diverse areas of their development: technical, productive, administrative, financial, markets, etc.

Approach to assistance of supply chains.

b) Information about market intelligence as an instrument to access markets.

c) Information about training on human resources.

d) Information on systems of credit and promotion financing.

e) Catalogue of the businesses by economic scopes,

f) Businesses of import and exportation, g) Production offer by country,

h) Investment opportunity i) Investment agencies,

j) Guides about the way to develop businesses

k) Informative documents about specific topics,

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MATRIX OF STRATEGIES, RANGE AND SERVICES OF THE BI REGIONAL CENETR OF SUPPORT TO SMES

INITIAL STRATEGIES RANGE SERVICES

b) Data base about public politic and instruments for development of the SMES, applied in the countries of the FOCALAE, with the purpose of consolidating the competitiveness of SMES and their internationalization.

Informative base about public policies for competitiveness and internationalization of SMES; they must be shared as means for the countries who are members; and coordinated throughout the focal centers of the country members.

(i) Information base of policies and instruments of support for the SMES one by one (data base) and web of institutions of support: (ii) Studies of cases of good activities; (iii) Data base of organizations which support the internationalization of businesses in each country (data base and links) (iv) development policies of inclusive businesses. (iv) Internships system for the policies makers.

c) Online web of Focal Centers of Commercial Intelligence that allow broadcasting the opportunities for the SMES of the related country members, specially, for research, academic activities or business experiences.

Informative bank with data of the center of Market Intelligence in the different country members of the FOCALAE to be able to access to the exportable offer of the SMES of members of the FOCALAE.

(i) Web of focal centers of commercial intelligence for SMES´s products; (ii) Data base of centers that have exportable offers of countries and the demand in the value chain international members.

d) Online training center and exchange of information of experiences for training purposes and SMES preparation.

(i) Center of online training for public institutions of countries of the FOCALAE.

(ii) Training center for SMES for countries of the FOCALAE.

(i) Virtual Library; (ii) utility links; (iii) on line training; (iv) Promotion of events in each country, that are carried out in a web of institutions of support; (v) Making of material for training in specialized topics;

(vi) Organization of specialized events for SMES.

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3. OBJECTIVES OF THE BI REGIONAL CENTER FOR THE DEVELOPMENT OF THE SMES.

The main objective of the Bi Regional Center for SMES Development is oriented towards generating the conditions of cooperation among the countries which are members of the FOCALAE, with the purpose of sharing experiences, knowing policies and good activities for fomenting and developing SMES and the creation of a focal centers web that support the SMES located in the countries which are members of the FOCALAE so it facilitates them the access of their productions to the international value chains.

4. PRINCIPLES OF THE BI REGIONAL CENTER OF DEVELOPMENT OF THE SMES.

The principles of the center are the following:

Voluntary Cooperation. Every participation and/or contribution to the center and its activities will be voluntary. The cooperation throughout stabled and systematic links of support towards the activities related to the encouragement of SMES in the different countries, will be aimed to generate basic conditions to contribute to the exchange of experiences and good activities in the two Regions, that allow to systemize their transfer to the doers of policies of the country members creating the space of interrelation between the different FOCALAE centers of the countries which are members, to facilitate to the SMES the access to the international value chains and generate improvement of competitiveness.

Decentralization so that from each Focal Center, located in the country members, they can generate knowledge, interaction and cooperation with the rest of the focal centers.

Innovation of the concepts, mechanisms, learning instruments for doers of public policies in the SMES development, and for the SMES can have access to the focal centers in other countries which are members of the FOCALAE.

5. MANAGEMENT MODEL

The management model of the Bi Regional Center for the development of the SMES is based on the articulation of Focal centers for the development of the SMES that currently exist and operate in the country members of the FOCALAE. These experiences are articulated throughout the online center, with the purpose of broadcasting their activities, analyze and generate work material that facilitates learning among the doers of politic of the different country members; that promote the exchange and spaces for the development of internships of their parties among the countries. This online center can, in its initial stage, focus mainly in the exchange of information and work with the web page of the FOCALAE Online Secretariat to achieve its objective.

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Moreover, the focal points of each of the member countries of FOCALAE specialized to support the SMES, will be articulated in a network that generates information for SME access to international value chains, promoting innovation and competitiveness of these companies.

The connection of the focal points of each country will be managed so as to facilitate access to the prioritized information to the Network, to share these experiences and information related to the development of SMES. Member countries shall determine at the time, the specific contribution of each focal point, their commitment and the ongoing contact and feeding required information in a timely and reliable way.

Once considered the establishment of the Centre, it is suggested to raise strategic alliances with academic institutions and organizations engaged in research and development, for which we propose an operational framework, linked directly to the Bi-.- Regional Center of Focal Points for development of SMES, thus promoting the development of the eco system to support competitive SMES.

The virtual condition of this Network, demands to generate, design, and develop mechanisms of technological alternatives for meetings, open forums, create virtual groups:

on the other hand, It is necessary a virtual moderator, which must be provided for the development of Project.

The Center, because of its virtual nature demands for its operation few people, so it is considered a small interdisciplinary team of THIRTEEN people: two experts in SMES as coordinator and assistant coordinator of the Center, two administrative technicians Network, and two experts for each of the three components. These experts will come, one from Asia Pacific, and one from a Latin American country. Thus, maintaining the same logic which is based FOCALAE, thus enabling close coordination between the two regions, and an adequate exchange of experiences.

For this concept to be a virtual center, the Bi Regional Center demands of few specialized personnel, and instead is supported in databases and information systems that are fed from each of the focal points in each country, in the fields and prioritized areas.

For all functions are expected to always be represented each of the two regions. Bi Regional Center will have a coordinator and assistant coordinator.

The following table shows the services, and the requirement of specialists:

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Strategies Extent Services Elements required

a. Virtual Centre of focal SME Development, with the aim of consolidating the support organizations in countries oriented to SMEs competitiveness, best practices and promotion of exports of SMEs. This center is a database of good practice in the development of SMEs, with particular emphasis on innovation and information technology sector. The implementation of the above subject to further review: see below regarding to the stages of the project

Technical services, technical assistance, partnership, market intelligence, research, product development, scientific and technological upgrading, HR training grants, provision of finance, government advice on tax reform

i. Technical services to SMEs: consulting in technology, processes, product development, market intelligence, technical consulting, technical assistance, linkages

Two experts in SMEs, two administrative network technicians, two experts in good production practices and product development, two professional experts in commercial (business opportunities). Additionally required one general coordinator, one accountant, one assistant coordinator.

ii. Market intelligence as a means of access to them. IT as a competitive tool

Two experts in commercial matters (business opportunities)

iii. Human Resource Training Two experts in education and training

iv. Credit and promotion financing systems

Two professionals responsible for providing assistance in obtaining financing, could be the same professional experts of SMES

b. Database Center Focal Development Centers SMES, with the aim of strengthening the competitiveness of SMES and their internationalization

Public policy information base for SME competitiveness and internationalization

i. Information Base policies and instruments to support SMES by country (database) and support institutions network

Two professionals responsible for providing counseling support institutions. (To this effect would be the same professionals responsible for providing advice to access financing, SME experts)

ii. Case studies of good practice Two experts in good production practices of SMES

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Strategies Extent Services Elements required

iii. Database of organizations that support internationalization of firms in each country (and database links)

Two experts in commercial matters (to this effect would be the same professionals responsible for business

opportunities, detailed in market intelligence service)

iv. Policies for inclusive business development Two experts in SMES

c. Network Business Intelligence centers for disseminating opportunities for SMEs in member countries related especially to academic research or business experiences

i. Business Intelligence for SME products, base of export supply and demand of member countries

Two experts in trade issues (would be the same professionals responsible for business opportunities, detailed in market intelligence service)

ii. Base of export supply and demand of member countries

Two experts in trade issues (would be the same professionals responsible for business opportunities, detailed in market intelligence service)

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Strategies Extent Services Elements required

d. Bank demand for SME products

Bank demand of SME´s products of FOCALAE countries

i. Business Intelligence for SME products

Two experts in trade issues (would be the same professionals responsible for business opportunities, detailed in market intelligence service)

II. Base demand for exports of member countries

Two experts in trade issues (would be the same professionals responsible for business opportunities, detailed in market intelligence service).

e. Virtual training center and information exchange of experiences and best practices for training purposes and training to SMES. The implementation of the above subject to further review: see below with respect to the stages of the project

(i) Virtual training center for public institutions of FEALAC countries. (ii) Training Center of SMB of FEALAC countries.

i. Virtual library

Experts in each of the above issues would have to upload to the web bibliography, related to best practices, product development and innovation, business opportunities, support institutions, etc.. This means, the cost of this service would already be covered.

ii. Useful Links Experts in each detailed topic as well as upload bibliography will be publishing interesting links related to their topic.

iii. Online Training

Two experts in education and training (would be the same professional service comprising the training of human resources)

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Strategies Extent Services Elements required

iv. Promotion of events in each country, which are performed in network support institutions

Each event will be held once a year in January, one year will be in a country of East Asia and the second year in a Latin American country, and so on. The estimated cost for the completion of the annual event (considering local food, and material would be approximately $ 20,000, assuming a forum of approx. 100)

vi. Organization of special events for SMES

vi. Organization of special events for SMES. There will be a yearly event, targeted at SMES. Similarly, the host country could be intercalated every year between countries of Latin America and East Asia. The amount allocated for the event considering local material and supply would be

approximately $ 35,000, assuming a forum of 250 people for a workshop about 1 day of work

v. Development of training materials in specialized topics.

Videos of success stories, brochures and books on innovation, product development, production

improvements, competitiveness, business opportunities, etc. All this material is disseminated through the website

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1. STEPS FOR THE DEVELOPMENT OF THE BI REGIONAL CENTER

The Bi-regional center will be established in three stages: For the purposes of feasibility, the project will start with step 1. Upon review of the success of Phase 1 and taking into account the feasibility and need for further measures would be implemented in steps 2 and 3.

STAGE 1:Establishment of Focal Point Network in member countries and supply mechanism design information to the Bi Regional Center

Facilitating the exchange of information

Time: 12 months

Elements:

• Based Technology Platform

• Database

• Information

• Focal Point Network

Instruments:

• Base of information on good practice in public-private cooperation.

• Base of information on best practices of operational tools.

• Analysis of policy instruments, institutional architecture, etc., In each country, and the identification of best practices.

• System design practices on benchmarking in SME development policies.

• Periodic feed mechanisms of information of established organizations.

Upon review of the success of Phase 1 and taking into account the feasibility and need for further action, progress in stages 2 and 3 will be considered. This process and the details of steps 2 and 3 should be discussed and further elaborated STAGE 2: Network Centers of market intelligence for SMEs and SME business relations.

Time 8 months Elements:

• Identification of complementary business areas.

• Mechanisms for obtaining information from SMES.

• Matching mechanisms.

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• Technology Platforms

• Communication and dissemination strategies.

Instruments:

 Articulation of demand for goods and services (in most sectors where there are SME)

 Network Support services for production

 Network Consulting and advice

 Network-oriented organizations for SME Research and Development

 Broadcast Material sipping technological and scientific changes relevant to SMEs

STAGE 3: Design and development of Virtual Training System

Time 12 months Elements:

 Prioritization of training areas: policy design, instruments to support SMES, innovation and technology.

 Education and training system on-line.

 System internships.

 Grants scheme.

 Monitoring system.

Instruments:

 Remote System on-line training.

 System internships.

 Grants scheme.

 Monitoring system.

FINANCIAL ANALYSIS

The contributions were calculated based on all the elements required for the establishment of the Bi Regional Center in a Latin American country, and to the issue of computer

calculation was performed according to the most used worldwide. All these items were determined, using average prices of the countries that comprise the region.

The financial projection has been made to five years, in order to estimate the costs and revenue in this period and thus identify the project's viability. For this projection was used an average rate of inflation in Latin America corresponding to 6%. On the other hand, the