Friends,

A year and a half ago, on May 21st, I addressed the Nation right here in Valparaíso, and I conveyed my satisfaction for having subscribed an FTA with the European Union. However, I pointed out on that occasion that we had a yet greater challenge ahead: looking toward the Pacific Ocean and becoming part of the 21st Century’s most dynamic development pole.

At that time I expressed the need to be prepared because the APEC 2004 Summit and all the meetings that would take place in Chile would represent the largest international event Chile has ever organized. And we are here today. That time has come.

In a few days, Viña del Mar will welcome the Senior Officials designated by APEC Leaders. They will meet to analyze the agreements reached in Thailand to continue moving forward in this long-term project.

And several sectoral and ministerial meetings will follow this meeting. APEC member economies will meet practically every month afterward, focused on the different issues that concern APEC.

And exactly one year from today –November 21, 2004- the Leaders of all APEC economies will congregate here in Chile. This will be a crucial summit for the future of Asia Pacific and for the role of Asia Pacific in world economy.

Let us be honest. The task we are undertaking is enormous. The stakes are high and involve Chile’s international prestige and perspectives for the future. And, as we have always done in the face of major challenges, we must act earnestly, with responsibility, efficiency, but also with austerity. But, above all, we must be aware that Chile’s international standing is at stake and that the world will be appraising our performance.

This commitment involves all Chileans. One way or the other we can all add our share of optimism and a positive attitude to embark on this responsibility.

But what is APEC? What does this Forum mean to us? I would say it means forming part of a group of 21 economies that -from their diverse cultures, very different political views and histories- are all part of the Pacific Rim, and share a desire to carry forth an economic project that can change the course of humankind.

The world has always developed around the main seas, from the Mediterranean to the North Atlantic, and the Pacific Ocean today. A great part of the 21st Century’s history will unfold right here, in this ocean. The concepts that link these 21 economies are obvious: open and free trade and investments contribute to growth, to the creation of jobs, to the well being of people. Hence the goal is to provide better opportunities for international trade and so that the combined effort of these economies may generate a better life.

As we have mentioned this morning, economically speaking, APEC represents the planet’s most dynamic region. In its first 10 years of existence, APEC economies account for 70% of the world’s trade expansion. Let me repeat it: they account for 70% of the world’s trade expansion.

The world’s fastest growing trade is taking place in this ocean. This is why humankind’s economic future will unfold here in the next few years.

Chilean exports to APEC member economies rose from 50 to 56% in the 1998-2000 period, that is, from 7.3 billion to almost 10 billion pesos. This basically means that Chile has joined the modern world enhancing its economic growth, employment, development, the opportunities for our products, our scientists, and our universities. Trade in the future involves goods and services, but -as we have also learned- the added value provided by science and technology, which make the difference.

Exactly one decade ago, in 1994, Chile joined APEC. From there on, we started to participate in APEC’s different fora and debates. In the course of these 10 years Chile has had significant achievements, not only in economic terms but also in the country’s ongoing dialogue with Leaders of regions that are crucial in the world scenario.

Three of the five permanent members of the Security Council are members of APEC. The main economic powers and the fastest growing economies are part of APEC. Therefore, part of the wealth Chile has attained is also the dialogue with their Leaders.

What have we learned in this experience? Three fundamental teachings I would like to share with you:

First, as Hernán Somerville mentioned, APEC economies have taught us that in order to forge opportunities for our country, the public and private sectors must work together to grasp the new realities taking place in the Asia Pacific region.

If it is the authorities’ responsibility to understand the profound transformations taking place in the international arena and define policies in line with this rapidly changing reality, it is the business community’s responsibility to work with determination and imagination to attain the actual spaces to enhance our economy.

The public-private collaboration is fundamental, their roles are clear and differentiated. We are doing our work. I call the private sector to do theirs.

Hernán Somerville, Andrónico Luksic, and Juan Villarzú have represented Chile in ABAC since the year 2000 and now they will head it. Hernán Somerville will chair all business discussions in APEC 2004. It is an enormous task: it involves motivating our own people and at the same time showing our visitors how we conduct business in this end of the world, all we are proud to show them and what we still have to learn to move forward faster.

Secondly, in addition to public and private collaboration, we have learned to move in a constantly changing scenario, oftentimes with unclear references. Therefore we have to make enormous efforts to keep up in education, training, knowledge. Networks are indispensable for a successful entrance to world scenarios.

In this constantly changing scenario, the digital revolution has changed the economy and the way economics is conducted. It has also changed social relations and the links between citizens and the Government. We are in the midst of a tremendous scientific and technological transformation. How do we adapt each one of our institutions to this transformation– the government, enterprises, Armed Forces, workers, education, universities, the relationship between civilian organizations and the central government? They are all undergoing drastic changes. In our experience with APEC economies, we have learned to advance in the midst of this constantly changing scenario.

Thirdly, all this involves people - men and women who are inspired by their inner longings and dreams. When our copper, iron, salmon, grapes, wood pulp and wine travel to Asian countries they leave behind the hands of Chilean workers who are eager to do things well and to let the world know that they do it well. They are eager to do their part in productive development. I know the faces of these workers, I have seen them in different parts of Chile, I appreciate what they do and I know they strive to improve.

But all these meetings that seem so faraway have one thing in common: they all place human beings at their core. In these meetings we have learned the importance of public and private collaboration, we have conferred with the Leaders of the economies, we have learned to keep up with a changing world. We know that APEC economies are definitely becoming stronger, not to make their nations more powerful, but so that the people taking part in the process may benefit. In the tasks we are undertaking, we place humankind at our center.

Dear friends, when the APEC 2003 summit concluded in Thailand, the Leaders acknowledged we had come to a point of inflection and that it was necessary to re-start talks to expand trade among nations. We, as host country, must rise to the occasion. It is a major challenge that places Chile at the center of the world’s progress and trade.

In Thailand we were not happy with the outcome of the WTO Cancun talks. Cancun failed. No one can celebrate a failure because it definitely implies maintaining the present situation that does not favor trade. It implies maintaining the current situation in which trade is not sufficiently free or fair because some nations adopt protective measures, while others take other measures. When trade has no rules, the strongest, those with more trade, end up imposing theirs.

Cancun failed, but I believe the outcome of the AFFTA meeting held in Miami yesterday was important and fills us with optimism, it is a small step as a region. In Thailand we proposed that our representatives in Geneva meet with our Ministers Responsible for Trade in Viña del Mar next June. They will report on our advance in trade matters in Geneva.

In addition to international negotiations, APEC 2004 will focus on two central topics: Safer trade vis-à-vis the terrorist threat and the achievement of freer and fairer trade for all, not just a few.

The terrorist attack in Istanbul yesterday shows us, perhaps in a dramatic way, that we must be able to face the terrorist threat at every level, and also terrorism’s obstruction of the free flow of trade.

Safer trade is a concrete and current issue. Ports will have to take on the challenge, adopting safety measures, making sure their containers are duly sealed. When cargo is properly handled, when the necessary measures have been taken, cargo will be treated preferentially in its destination. This involves higher costs. One of the issues we will discuss at APEC 2004 is how to tackle and face this.

In Indonesia in 1994, APEC members defined strategic long-term goals and they set two deadlines by which they were to fully achieve free trade. These deadlines were set in recognition of asymmetries, of the different levels of the economies that make up APEC.

The developed economies – United States, Japan, Australia, Canada, and New Zealand – committed to free trade by 2010. Developing economies committed to 2020. In other words, developed economies committed to 2010 and the economies that require greater effort to compete internationally committed to 2020.

In 1995, a year after Chile joined APEC, President Eduardo Frei decided that Chile should enroll in the first deadline – 2010 – thus confirming its determination to open its trade to the region and the world.

When we did this we believed in our growth and our future. We still believe, and this confidence has led us to play an active role in international negotiations. This confidence will take us to stake everything on our substantial advance in 2004 as an APEC economy in the world’s different trade fora.

Consequently, 2010 shall be a key date for APEC agreements and its future. And we will be there in 2010. As you know, 2010 is a key date in our history too, it commemorates the bicentennial of our independence. Perhaps there is a profound symbolism in this coincidence. Chile will gain independence if it takes on the 21st Century with all its challenges and opportunities. The challenges we faced in our independence 200 years ago were different. At that time we had to safeguard sovereignty in our land. The situation 200 years later is different: we are safeguarding Chile’s continued growth and development by our participation in world trade.

That is our purpose today, like our National Anthem says, “to turn the Pacific Ocean into our true promise of future splendor”.

This is why today we are launching this national undertaking, APEC 2004. When the time comes to pass on APEC 2005 to Korea we hope to have learned to say with enthusiasm that Asia Pacific is also our community. Because if we learn to say our community when we refer to such diverse and faraway countries, we will also be saying that our future is here, around this extensive ocean. And we shall coincide with the dreams of others before us: Chile’s belonging to the Pacific, one community, our future.

Thank you very much.