Business leaders applaud Obama’s move on APEC travel card
Business leaders applaud Obama’s move on APEC
Issued by the APEC Secretariat
Honolulu, United States, November 12, 2011 – Business leaders today welcomed new legislation giving US citizens access to the APEC Business Travel Card scheme, a crucial tool for business travel in the Asia-Pacific region.
US President Barack Obama signed the bill today before addressing business executives at the APEC CEO Summit in Honolulu, describing the scheme as an “APEC business gold card.”
The new law allows US business people to apply for the card, increasing their mobility by expediting scheduling of visa interviews and fast-tracking processing at immigration checkpoints in APEC economies throughout the region.
“I just signed a piece of legislation that was voted on unanimously out of Congress that essentially sets up an APEC business gold card,” President Obama told the summit to applause.
“Everybody here appreciates it because they're not going to have to wait in line as long at the airport,” he said.
Deb Henretta, chair of the APEC Business Advisory Council (ABAC), welcomed the law which “will help US citizens take advantage of business and trade opportunities in the fast-growing Asia-Pacific region.”
“Access to the APEC Business Travel Card will save US business people valuable time and money as they travel throughout the area,” said Ms Henretta, who is P&G Group President, Asia.
Rich Lavin, Group President of Caterpillar, said the law “is good news for U.S. business people as they travel in the region, working to expand into Asia-Pacific markets and business opportunities for their companies.”
is a clear signal that the United States is assisting
businesses as they forge stronger trade ties in the
region,” said Mr Lavin, also an ABAC member.
The scheme facilitates business travel in the Asia-Pacific by allowing cardholders; pre-cleared immigration entry into the 18 fully participating member economies, eliminating the cost and time involved obtaining visas; and expedited transit through special fast-track lanes at major airports and seaports in all 21 economies.
Currently, the United States fast-tracks card holders via special lanes at immigration checkpoints. The new legislation, which passed the US Congress earlier this month, allows US business people to apply for the cards for reciprocal rights in the region.
More than 100,000 active cardholders currently enjoy these benefits and the APEC business community’s interest in the scheme continues to grow. A new study has found the number of cardholders was 88, 421 at the end of 2010, up 11.4% from 2009, and up 430% from 2006.
The study by the Policy Support Unit , an independent research unit at APEC, also found transaction costs for card holders have been reduced by 38%. The continued improvement of the ABTC scheme means even more benefits for business travellers in the Asia-Pacific.
The study found that transaction costs for card holders were reduced by 38% from March-July 2011 over the previous 12 months, which translates to total savings of US$ 3.7 million. Card holders were surveyed between March and July this year and asked about their travel patterns over the last 12 months.
The study found cardholders saved 43.3% in time costs completing visa applications over the 12 month period used in the survey. They spent 27.8% less money on fees for visa applications and saved 54.4% in time costs completing immigration procedures at airports.
“This shows that APEC is committed to improving the scheme which already saves business leaders valuable time and money,” said Agnieszka Holland, Chair of the APEC Business Mobility Group which oversees the scheme.
“The ABTC is one of APEC’s great success stories; it
contributes to APEC’s goal of free and open trade and
investment in the Asia-Pacific, and shows how practical
cooperation can be achieved,” Ms Holland said.
The study was conducted as part of an assessment of APEC’s Second Trade Facilitation Action Plan (TFAP II). The assessment found APEC had reached its target of reducing trade transaction costs by 5% across the Asia-Pacific region between 2007 and 2010.
The 5% reduction resulted in US$ 58.7 billion in total savings for business, the assessment found.
Under TFAP II, APEC has been
carrying out initiatives around the region to encourage
economies to undertake reforms and improvements to
streamline trade in four priority areas; customs procedures,
standards and conformance, business mobility and electronic
commerce (data privacy and paperless trading).