ABAC Membership Information

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U.S. ABAC Representatives
1996	Frank Shrontz, The Boeing Co.
1996-97	Robert Denham, Salomon, Inc.
1996-98	Susan Corrales-Diaz, Systems Integrated
1997-99	John F. Smith, Jr.; General Motors
1998-99	J. Gary Burkhead, FMR Corp.
1999-2002	Paul Song, ARIS Corp./Noetix
2000-2002	Ernest S. Micek, Cargill, Inc.
2000-2002	Sy Sternberg, New York Life Insurance Company
2003-2005	Robert Prieto, Fluor Corporation
2003-2005	Gary G. Benanav, New York Life International
2003-2006	Michael L. Ducker, FedEx Express Corporation
2006-2008	Spencer H. Kim, CBOL Corporation
2006-2008	Michael J. Phillips, Russell Investments
2007-2009	Nick Reilly, General Motors
2009-2011	Peter Scher, JP Morgan Chase
2009	Deb Henretta, P&G
2010	Richard Lavin, Caterpillar

The ABAC was formed in May 1996 with three CEOs from each of the 21 APEC member economies. In selecting the three US members, the desired mixture is the head of a large manufacturing company, a financial service industry firm, and a small/medium business. ABAC members are not appointed for a fixed term, but two years, with the option to extend for a third year, is considered the optimum commitment.

ABAC creates ad hoc working groups to address active issues and target specific recommendations to Leaders and Ministers on these topics. Each year's Chair (one ABAC member from the economy hosting/chairing APEC during that year) determines the focus and leadership of each of ABAC's working groups.

Regional Economic Integration Working Group: The REIWG works on a range of issues on the trade agenda with the ultimate goal of establishing a Free Trade Area in Asia Pacific (FTAAP). Focus is given to supporting APEC's trade & investment agenda, identifying and defining next generation building blocks for 21st century trade agreements such as the Trans Pacific Partnership, and making recommendations on regulatory coherence as well as value chain and supply chain choke points. The REIWG also addresses security issues, business mobility, and tracks the global trade agenda including progress on in the WTO.

Finance and Economics Working Group: The FEWG focuses on increasing financing for small and medium enterprises, developing capital markets in Asia, and setting out a framework of standards for strong domestic financial systems to help economies sustain the momentum necessary to effect necessary reforms. This group has also traditionally supported existing and potential skills-building programs for the financial sector.

Sustainable Development Working Group: The SDWG focuses primarily on building a strong foundation within APEC economies to promote energy security and address the impact of climate change. The SDWG also looks at ways to improve food security in the region through technology sharing, rural development initiatives, trade facilitation, and anincreased focus on public-private partnerships.

Small, Medium and Micro Enterprises and Entrepreneurship Working Group: The SMMEEWG works towards creating an environment that facilitates creation, growth and sustainability of SMMEs. The SMMEEWG has a holistic agenda that promotes policies that support SMME start-up and sustainability, facilitate their economic inclusion and internationalization, and ultimately build long term capacity for SMME success so that they may ultimately grow to become large enterprises.The SMMEEWG has also focused on increased economic inclusion, particularly among women entrepreneurs.

Infrastructure Development Working Group: The IDWG was established in 2012. It will focus on strengthening transportation and supply chains, improving disaster preparedness, promoting investment in green development such as eco-cities, and enhancing public private partnership.

Action Plan & Advocacy Working Group. The APAWG liaises with APEC and supporting organizations/Ministerials to galvanize the ABAC working group recommendations. The Group also makes recommendations on how ABAC can be strengthened as an institution, and promotes awareness of the Council.

There are three major reports released by the ABAC each year: the Interim Report to Leaders is released each May before the APEC Trade Ministers' meeting, the ABAC Report to Finance Ministers, and the ABAC Report to Leaders is released each fall before the annual APEC Summit. At the annual APEC Leaders' Meeting, ABAC then meets face-to-face with the Leaders to discuss their recommendations and issues of broader strategic interest to the region.

The National Center for APEC serves as the Secretariat for the three US ABAC members. In that capacity, the National Center prepares briefing materials, staffs ABAC meetings, and conducts an annual Executive Roundtable with senior US business representatives to provide input to the ABAC members. The Center also coordinates the State Department's annual APEC CEO Roundtable, where US CEOs meet with the Secretaries of State, Treasury, and Commerce, as well as the USTR and the director of the NEC to discuss US involvement in APEC. The National Center also coordinates with the US ABAC members and their counterparts around the region to ensure that US ABAC participation flows smoothly.

The ABAC is exciting and interesting work, but as described below, the membership requires a significant commitment of executive time, staff resources and financial support.

TIME. ABAC membership requires a significant time commitment. In some cases, certain ABAC responsibilities may be delegated to an Alternate ABAC Member which would allow an ABAC member to minimize time out of the office to as few as 12 days per year.

ABAC Meetings: ABAC meetings are held four times a year. A typical ABAC meeting would begin with a welcome reception on the first evening, an informal discussion session, an opening plenary session, committee meetings on Day 2, working group meetings on Day 3 and finish on Day 4 with a closing plenary, a press conference and a farewell lunch. Each principal can have one official alternate designated to serve in their place when the principal is unable to attend a meeting, but alternates do not hold the same status as ABAC members and those who send alternates to more than one or two meetings a year tend to significantly diminish their position on the ABAC.

Outreach: To ensure the wider US business community has an effective means of informing our ABAC representatives about their concerns on APEC policy issues, the National Center hosts several outreach sessions for the ABAC members each year. The primary strategy session with US business and government is the Executive Roundtable, held at the beginning of each year. Additionally, there are quarterly outreach events in Washington, D.C. , outreach to the expatriate US business community in the cities where ABAC meetings are held, and the ABAC members also jointly chair the business delegation at the annual State Department CEO Roundtable on the APEC.

STAFF. The National Center is the Secretariat for the US members of the ABAC. We have one permanent senior staff person dedicated to supporting the ABAC. The National Center also provides support for the US members at each ABAC. Members normally dedicate at least one corporate staff member to focus on ABAC responsibilities. In collaboration with the National Center, these staff members conduct a significant amount of work between ABAC meetings to prepare papers and develop consensus positions on issues.

FUNDS. ABAC membership for U.S. executives requires funding three kinds of expenses. The first is the cost of attending the meetings themselves -- travel, hotel, etc. for the ABAC member and corporate staff. The second expense is funding the ABAC International Secretariat, which is based in Manila. The ABAC uses the "APEC formula" to fund the Secretariat, which means the United States members pay 17.9% of the total annual budget. For the previous two years the total cost to the U.S. has been around $91,000, which the current three US ABAC members divide equally among themselves. The three US ABAC members can, of course, re-evaluate how these costs will be paid and how they divide the cost. Thirdly, ABAC members may be approached to sponsor various APEC-related events in the US and in the region each year, such as the large CEO Summit event coincident to the APEC Leaders' meeting, US-ABAC Outreach events and the US Executive Roundtable, among others.

Please feel free to contact the National Center for APEC if you would like to discuss ABAC membership further.

January, 2012